FMX Home
Glenn Hegar  ·  Texas Comptroller of Public Accounts

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

Audit scope

A sample was audited of the Texas Department of Insurance’s (Department’s) payroll, purchase and travel transactions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period beginning March 1, 2010, through Feb. 28, 2011.

A limited review of payment card, payroll deductions, revenue refunds, office rent, consumables, trust claims/telecommunications and grant transactions was also conducted.

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.

  • The audit of the Department’s payroll transactions identified one employee who was underpaid longevity pay because of an undocumented action that could not be otherwise substantiated.
  • The review of payroll deductions did not identify any issues.

Purchase transactions

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

During the audit, the following were identified:

  • 13 transactions where the Department could not provide statutory authority for food purchases
  • One transaction where sales tax was improperly paid

Prompt payment law and scheduling rule

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

The following were identified:

  • $157.70 in prompt payment interest paid by the Department during the audit period
  • Six purchase transactions and seven payment card transactions that did not properly pay prompt payment interest and one where interest was underpaid

Travel transactions

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

  • No errors were identified in the review of travel transactions.

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 provided documentation reconciled with the payment amounts in the sample transactions.

  • No errors were identified in these transactions.

Grant payments

A review of the Department’s transactions related to grant payments was conducted. This review consisted of verifying that payments made did not exceed contract amounts.

  • No errors were identified in the payments reviewed.

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

Internal control structure

The Department’s internal control structure was 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. Certain areas of risk involving the internal control structure and its operation were noted:

  • The Department designated one employee with multiple security capabilities.

Fixed assets

A limited sample of fixed assets acquired by expenditures was selected during the audit period to test for accurate reporting in the State Property Accounting System (SPA) and to verify existence of the assets. The following was noted:

  • All assets were located and reporting of assets in SPA verified
  • Identified four missing assets reported to SPA by the Department during the audit period

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 Feb. 15, 2008.

The current audit identified two recurring errors:

  • Incorrect longevity pay amount
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
Comptroller.Texas.Gov | FMX
FMX Sitemap | Contact FM
Accessibility Policy | Privacy and Security Policy