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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Tech University
Fiscal 2011 Fourth Quarter

Audit scope

A sample was audited of the Texas Tech University’s (University’s) payroll, purchase and travel transactions that processed through the Uniform Statewide Accounting System (USAS) during the period beginning March 1, 2010, through February 28, 2011.

A limited review of payroll deductions, books and grants 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 payroll transactions identified the following issue:

  • One incorrect death benefit payment amount

No errors were identified in the review of payroll deductions.

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 issues were identified:

  • Two instances where the payment amount exceeded the purchase order amount
  • One instance where the University improperly paid sales tax

No errors were identified in the limited review of book transactions.

Prompt payment law and scheduling rule

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

  • The University paid $1,506.76 in prompt payment interest during the audit period.

Travel transactions

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

The following were identified:

  • Eight instances in which the expense was not payable
  • Two missing vouchers
  • One missing lodging receipt

Grant payments

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

  • No errors were identified in the payments reviewed.

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

Security

The University’s voucher signature cards and electronic approval security effective during the audit period were reviewed. The security review entailed identifying any of the University’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 identified:

  • One employee retained the ability to expend funds after the employee’s termination date was identified.

Internal control structure

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

The following was identified:

  • One employee had the security to adjust payment instructions in TINS and approve vouchers was identified.

Direct deposit authorization forms

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

  • The University was using an outdated version of the direct deposit setup form during the 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 Automated Clearing House Transaction (IAT).

The University 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 University’s payroll, purchase and travel transactions was issued on Sep. 28, 2007.

The current audit identified two recurring errors:

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