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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas State Technical College
Fiscal 2011 Fourth Quarter

Audit scope

A sample was audited of the Texas State Technical College’s (TSTC’s) purchase, travel and payroll transactions that processed through the Uniform Statewide Accounting System (USAS) during the period beginning June 1, 2009, through May 31, 2010.

A limited sample of grant 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.

  • No issues with payroll were identified.

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:

  • Purchase order created/changed after invoice
  • Missing documentation
  • Incorrect amounts paid

Prompt payment law and scheduling rule

TSTC’s compliance with the prompt payment law and scheduling rule was reviewed.

The following issues were identified:

  • Unpaid prompt payment interest or incorrectly scheduled payments
  • Missing documentation necessary to determine if timely payments were made on some travel transactions
  • $514.15 in late payment interest paid by TSTC to vendors during audit period

Travel transactions

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

The following issues were identified:

  • Improper payment of gratuities
  • Incorrect amounts paid

Grant payments

The audit included a review of the College’s transactions relating to grant payments. The review consisted of verifying that payments did not exceed the contract amount or the correct amount payable for each grant.

The review of these payments did not include an investigation of the College’s procedures for awarding the grants or monitoring payments made to grantees; therefore, no opinion is being offered on those procedures.

  • No errors were identified in the payments reviewed.

Internal control structure

TSTC’s internal control structure was also reviewed. The review was limited to obtaining an understanding of TSTC’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:

  • TSTC designated four employees with multiple security capabilities without oversight.

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.
  • During the audit period, TSTC reported 96 assets as missing/stolen in SPA with a book value of $39,902.01.

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of TSTC’s purchase, travel and payroll transactions was issued on July 25, 2006.

Recurring findings in the current audit include the following:

  • Incorrect amounts paid – purchase and travel
  • Interest not paid
  • Payments not scheduled properly
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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