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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Midwestern State University
Fiscal 2012 Second Quarter

Audit scope

A stratified random sample of the Midwestern State University’s (University) payroll transactions and a limited sample of purchase transactions that processed through the Uniform Statewide Accounting System (USAS) during the period beginning June 1, 2010, through May 31, 2011, were audited.

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), Texas Payroll/Personnel Resource and other pertinent statutes.

The audit identified:

  • One incorrect payment of lump sum vacation pay.

A limited number of voluntary payroll deductions were reviewed.

  • No issues were identified.

Purchase transactions

Purchase transactions were audited for compliance with the GAA, eXpendit and other pertinent statutes.

The audit identified:

  • Four instances of purchase orders created after the invoice was received.
  • One payment of freight not included on the purchase order.
  • An internal procedure that violated the warrant hold statutes.

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 review identified two employees who can:

  • Process and release payments through USAS,
  • Adjust payee instructions in the Texas Identification Number System (TINS) and approve paper vouchers,
  • Process and release payments between the University’s internal accounting system and USAS, and
  • Process and release payrolls without oversight.

Fixed assets

The audit included a limited number of fixed assets acquired by expenditures during our audit period to test for accurate reporting in the State Property Accounting system (SPA) and to verify existence of the assets.

  • All of the assets tested were in their intended location and properly recorded in SPA.
  • During the audit period, the University had eight missing or stolen assets reported to SPA with a total net book value of $830.52.

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the University’s payroll, purchase and travel transactions was concluded on June 11, 2008.

During the current audit, there were three recurring errors:

  • Purchase orders created after invoice was received
  • Freight not listed on purchase order
  • Control weaknesses over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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