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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Real Estate Commission
Fiscal 2011 Fourth Quarter

Audit scope

A sample was audited of the Texas Real Estate Commission’s (Commission’s) purchase, travel and payroll 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 sample of the payroll deductions, per diem salary and refund of revenue transactions was also audited.

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

Payroll transactions

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

The following issues were identified:

  • Missing verification of prior state service
  • Leave-without-pay not entered

Purchase transactions

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

The following issues were identified:

  • Improper payment of taxes/fees
  • Purchase order created after vendor’s invoice was received
  • Insufficient documentation

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 Commission’s transactions relating to refunds of revenue. This review consisted of verifying the documentation provided reconciled with the payment amount in the sample.

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

Internal control structure

The Commission’s internal control structure was also 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.

Fixed assets

A limited number of fixed assets acquired by expenditures were selected during our 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 errors

A prior post-payment audit of the Commission’s purchase, travel and payroll transactions was issued on Nov. 26, 2007.

There was only one recurring finding in the current audit from the previous audit:

  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
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