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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Board of Veterinary Medical Examiners
Fiscal 2012 Third Quarter

Audit scope

A sample of the Texas Board of Veterinary Medical Examiners’ (Board) purchase, travel and payroll transactions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period beginning Sept. 1, 2010, through Aug. 31, 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.

A sample of voluntary deductions was also reviewed.

  • Prior state service verification missing for four employees
  • Unsigned hiring personnel action form for one employee
  • Underpayments of longevity pay for one employee

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:

  • Insufficient documentation for 16 transactions
  • Missing procurement documentation for four transactions
  • Missing expense documentation for a petty cash reimbursement
  • Payment in excess of the purchase order on one transaction
  • A purchase order created after invoice for one transaction

Travel transactions

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

The audit identified:

  • Three employees’ meal expenses were improperly processed.
  • A fee reimbursed to an employee was not payable.
  • One employee was reimbursed an incorrect amount for mileage.

Internal control structure

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

The review identified:

  • One employee had the ability to process expenditures without oversight.
  • The confidential treatment of information acknowledgement (CTIA) form was not signed timely for two employees.

Fixed assets

The audit included a review of 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.

The audit identified:

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

Direct deposit authorization forms

A review of the Boards’ procedures was conducted 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 used for selected employees 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).

Other auditor observations

The audit included a review of the annual procurement plans due to the Texas Procurement and Support Services section of the Comptroller’s office by Nov. 30 of each year. We did not find a recently submitted procurement plan on file for the Board.

Prior post-payment audit and current audit recurring errors

We concluded a prior post-payment audit of the Board’s purchase, travel and payroll transactions on April 9, 2008.

During the current audit, the following recurring errors were identified:

  • Payment in excess of the purchase order
  • Purchase order created after invoice
  • Missing documentation for purchase transaction
  • Interest not paid/overpaid to vendor
  • Excessive travel reimbursement
  • Missing prior state service verification forms
  • Employee with ability to process expenditures without oversight

We recommend the Board inquire into Fiscal Management training classes. The Board can make the request via FMX’s Training Center (login required).

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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