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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Department of Criminal Justice
Fiscal 2011 Fourth Quarter

Audit scope

A sample was audited of the Texas Department of Criminal Justice’s (Department’s) payroll, purchase and travel transactions that processed through the Standardized Payroll/Personnel Reporting System (SPRS) and the Uniform Statewide Accounting System (USAS) during the period beginning Dec. 1, 2009, through Nov. 30, 2010.

A limited review was conducted of payroll deductions, grants, food and services for wards of the state, supplies, materials, parts, medical services, placement services, revenue refunds, payment card and non-overnight travel (meals) transactions.

Each transaction was audited to determine compliance with applicable state laws.

Payroll transactions and deductions

Payroll transactions were audited for compliance with the General Appropriations Act (GAA), the Texas Payroll/Personnel Resource and other pertinent statutes.

  • No errors were identified in the audit of the Department’s payroll transactions and payroll deductions.

Purchase transactions

Purchase transactions were audited for compliance with the GAA, eXpendit, the State of Texas Procurement Manual and other pertinent statutes.

  • No errors were identified in the audit of purchase transactions, except for payment scheduling issues discussed below.
  • Additionally, no errors were indentified in our limited review of food and services for wards of the state, supplies, materials, parts, medical services, placement services and payment card transactions.

Prompt payment law and scheduling rule

The Department’s compliance with the prompt payment law and scheduling rule was audited.

The following was noted:

  • $1,593.36 in prompt payment interest paid by the Department during the audit period
  • 89 payment card, 24 travel and two purchase transactions paid early resulting in interest loss to the State Treasury

Travel transactions

Travel transactions were audited for compliance with the GAA, Textravel and other pertinent statutes.

  • No errors were identified in the audit of travel transactions, except for scheduling issues discussed above.
  • Additionally, no errors were identified in the limited audit of non-overnight meals.

Security

The Department’s voucher signature cards and electronic approval security effective during our audit period were reviewed.

The security review entailed identifying any of the Department’s employees with security in USAS, the Texas Identification Number System (TINS) or on the voucher signature cards that were no longer employed or whose security had been revoked. Upon termination or revocation, certain deadlines must be observed so that security can be revoked in a timely manner.

The following was noted:

  • Six employees retained the security to expend funds after the employees’ revocation dates.

Internal control structure

The Department’s internal control structure was also reviewed. The review was limited to obtaining an understanding of the Department’s controls sufficient to plan the audit and did not include tests of control policies and procedures.

The following was identified:

  • The Department designated six employees with multiple security capabilities.

Grant payments

A limited review of the Department’s transactions relating to grant payments was conducted. This review consisted of verifying that payments did not exceed the authorized amounts.

  • No errors were identified in the payments reviewed.

The audit of these payments did not include an investigation of the Department’s procedures for awarding the grants or monitoring payments made to grantees; therefore, an opinion on those procedures is not being offered.

Transactions relating to refunds of revenue

The audit included a limited review of the Department’s transactions relating to refunds of revenue. The review consisted of verifying that the documentation provided reconciled with the payment amounts in the sample.

  • No errors were identified in these transactions.

Fixed assets

10 fixed assets acquired by expenditures during the audit period were audited. The following were noted:

  • All 10 assets located and accurately recorded in the State Property Accounting System (SPA)
  • Department reported to SPA during the audit period 127 missing or stolen assets with a total net book value of $79,125.03

Direct deposit authorization forms

A review was conducted of the Department’s procedures to comply with the federal mandate to properly identify and handle payments involving the movement of funds internationally. The following was noted:

  • The Department was using an outdated version of the direct deposit setup form during our audit that did not adhere to the National Automated Clearing House Association (NACHA) rules requiring the identification of a direct deposit payment if it is an International ACH Transaction.

The Department stated it is now using a current form approved by the Comptroller’s office.

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the Department’s payroll, purchase and travel transactions was issued on April 30, 2007.

The current audit identified the following recurring errors:

  • Prompt payment errors
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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