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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas State Law Library
Fiscal 2012 Third Quarter

Audit scope

A sample of the Texas State Law Library’s (Library) payroll, purchase and travel trans-actions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period beginning Dec. 1, 2010, through Nov. 30, 2011, 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:

  • Three personnel files missing new hires authorization.
  • The actual amount of salary paid to one employee did not match the amount on the personnel action form for the employee.
  • One employee whose state effective service date was incorrect.
  • Five incidences of incorrect payroll payments made.

A limited sample of voluntary contributions was also audited.

  • No issues 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 audit identified:

  • Five purchase transactions were missing the purchase agreement change notices necessary to authorize or substantiate the payments.

Travel transactions

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

  • No issues were identified.

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 review identified:

  • Two employees who can process and release payment through USAS.
  • The same two employees can adjust payment instruction in the Texas Identification Number System (TINS) and approve vouchers.
  • One employee can both process and release payrolls.
  • One employee can pick up warrants from the Comptroller’s office and approve vouchers.

Fixed assets

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

The audit identified:

  • All assets tested were in their intended location and properly recorded in SPA.

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 audit identified:

  • An outdated version of the direct deposit setup form was used for two vendors. The form did not adhere to the National Automated Clearing House Association 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 Dec. 22, 2008.

During the current audit, there was one recurring error:

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