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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Sunset Advisory Committee
Fiscal 2012 Third Quarter

Audit scope

All of the Sunset Advisory Commission’s (SAC) payroll, purchase and travel transactions 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, were 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 personnel file that was missing prior state service verification. Not having the prior state service verification resulted in an underpayment to the employee in the amount of $720.00.

A sample of voluntary deductions was 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.

  • No issues were identified.

Travel transactions

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

  • No errors were identified.

Internal control structure

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

The review identified:

  • One employee who can process and release payments through USAS. The same employee can pick up warrants from the Comptroller’s office and approve vouchers.
  • One employee who can adjust payment instructions in TINS and approve vouchers. The employee can also process and release payrolls.

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.

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 SAC’s procedures to comply with the federal mandate to properly identify and handle payments involving the movement of funds internationally.

The audit identified:

  • One direct deposit form that did not indicate if payments would be forwarded to a financial institution outside of the United States. This is required by the National Automated Clearing House Association rules to identify 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 SAC’s payroll, purchase and travel transactions was concluded on Aug. 27, 2008.

During the current audit, there were two recurring errors:

  • Underpayment of longevity pay
  • Control weakness over expenditure processing

In prior audits, SAC acknowledged that it is often challenging for a small agency to have the staff available to maintain a complete separation of duties at all times; however, SAC has taken additional precautions outside of the accounting systems to mitigate the risk.

Glenn Hegar
Texas Comptroller of Public Accounts
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