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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Legislative Reference Library
Fiscal 2012 First Quarter

Audit scope

A random sample of the Texas Legislative Reference Library’s (Library) payroll and purchase transactions, and all travel transactions, that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period beginning June 1, 2010, through May 31, 2011, was audited to determine compliance with applicable state laws.

Payroll transactions and deductions

Payroll transactions were audited for compliance with the GAA, Texas Payroll/Personnel Resource and other pertinent statutes.

The following issues were identified:

  • One longevity underpayment transaction
  • Two incorrect calculations of overtime

Purchase transactions

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

  • No errors were identified.

Travel transactions

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

The following issue was identified:

  • Three transactions lacking conservation of state funds

Internal control structure

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

The following issues were identified:

  • Two employees can process and release payments in USAS without electronic oversight, process and release payrolls in USPS without electronic oversight, and pick up warrants and approve paper vouchers.
  • The Library did not obtain a signed Confidential Treatment of Information Acknowledgement (CTIA) form prior to granting access to the state systems for one employee.

Direct deposit authorization forms

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

The following issue was identified:

  • An outdated version of the direct deposit setup form that did not adhere to the National Automated Clearing House Association (NACHA) rules requiring the identification of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).

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the Library’s payroll, purchase and travel transactions was concluded on Aug. 20, 2007.

During the current audit, there were three recurring errors:

  • Underpayment of longevity
  • Incorrect calculation of overtime
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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