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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Juvenile Probation Commission
Fiscal 2011 Fourth Quarter

Audit scope

A sample was audited of the Texas Juvenile Probation Commission’s (Commission’s) payroll, purchase, travel, refund and grant transactions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period beginning Dec. 1, 2009, through Nov. 30, 2010.

A limited review was conducted of payroll deductions and grant 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.

The following was noted:

  • Three employees were paid longevity incorrectly
  • Four employees were identified for whom prior state service was not verified

For the limited review of payroll deductions, the following was identified:

  • There was one instance where the Commission could not provide documentation to support the employee’s payroll deduction

Purchase transactions

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

In the audit of the purchase transactions, the following instances were noted of the Commission:

  • Four purchases for printing services that did not follow the procurement requirements for printing services
  • Two payments under one contract for more than $25,000 where the Commission did not follow procurement procedures to obtain bids from multiple vendors for this service
  • Two payments for which the contract could not be provided
  • One invoice paid for a greater amount than the contract allowed
  • One payment that reimbursed an employee for the purchase of food consumed during a meeting without identifying a benefit to the state
  • Duplicate payments to a vendor

Travel transactions

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

The following was noted:

  • One instance of lack of conservation of state funds
  • One document that could not be located

Prompt payment law and scheduling rule

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

The following errors were identified in the audited sample:

  • 17 purchase transactions and 68 travel direct bill payments paid late without paying interest to vendors
  • Interest overpaid on five transactions
  • One transaction paid early
  • $761.62 in prompt payment interest paid by the Commission during the audit period

Grant payments

The audit included a limited review of the Commission’s transactions relating to grant payments. The review consisted of verifying that the documentation provided reconciled with the payment amount in the sample. The review of these payments did not include an investigation of the Commission’s procedures for awarding the grants or monitoring payments made to grantees; therefore, we are not offering an opinion on those procedures.

  • No payment or documentation errors were identified in these transactions.

Internal control structure

The Commission’s internal control structure was reviewed. The review was limited to obtaining an understanding of the Commission’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 Commission designated three employees with security to perform multiple tasks without oversight.

CTIA forms compliance

As a routine part of the security review, the Commission’s compliance with the requirement that all agency users of the Comptroller’s state government accounting systems complete a Confidential Tax/Vendor Information Agreement (CTIA) form was reviewed.

  • The Commission did not retain a signed CTIA form for one employee.

Fixed assets

A limited number of fixed assets acquired by expenditures were selected during the audit period to test for accurate reporting in the State Property Accounting System (SPA) and to verify existence of the assets.

  • All assets were located and accurate tracking in SPA verified.

Prior post-payment audit and current audit recurring error

A prior post-payment audit of the Commission’s purchase, travel and payroll transactions was issued on Sept. 24, 2007.

The current audit error rate shows the Commission needs improvement in the purchase group, primarily due to the procurement findings. Findings identified in both the prior and current audit include the following:

  • Incorrect payments of longevity pay
  • Missing verification of prior state service
  • Missing payroll deduction forms
  • Incorrect amount paid
  • Duplicate payments
  • Prompt payment issues
  • Missing documentation
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
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