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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Executive Council of Physical Therapy and Occupational Therapy Examiners
Fiscal 2012 Third Quarter

Audit scope

A sample of the Executive Council of Physical Therapy and Occupational Therapy Examiners’ (Council) purchase transactions and all payroll and travel 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, 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:

  • Underpayment of longevity pay

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.

The audit identified:

  • Purchase order created after invoice
  • Texas Correctional Industries (TCI) and Texas Industries for Blind and Handicapped (TIBH) contracts not utilized

Travel transactions

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

The audit identified:

  • Payment in excess of the maximum allowable rate and lack of conservation of state funds
  • Incorrect amount paid for mileage
  • Improper payment of non-mandatory rental fees and excessive amount paid

Internal control structure

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

The audit identified:

  • Five employees could pick up warrants from the Comptroller’s office and approve paper vouchers.
  • Three of the five employees could also process and release payments through USAS.
  • Two of the three employees could also adjust payment instructions in the Texas Identification Numbers system (TINS) and approve paper vouchers.

Fixed assets

The audit included a limited review 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 the Council’s procedure to comply with the federal mandate to properly identify and handle payments involving the movement of funds internationally.

The audit identified:

  • Two employees were set up using an outdated direct deposit form. Another employee was set up using the updated form but one section was not completed. The outdated and incomplete version of the direct deposit setup form does 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 Council’s payroll, purchase and travel transactions was concluded on May 5, 2008.

During the current audit, there were four recurring errors:

  • Incorrect payment of longevity pay
  • Purchase order created after invoice
  • Incorrect amount paid for mileage
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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