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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Adjutant General’s Department
Fiscal 2012 Fourth Quarter

Audit scope

A sample of the Adjutant General’s Department’s (AGD’s) purchase, travel and payroll transactions that processed through the Uniform Statewide Accounting System (USAS) and Uniform Statewide Payroll/Personnel System (USPS) during the period beginning March 1, 2011, through Feb. 29, 2012, was audited to determine compliance with applicable state laws.

Payroll 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 instance of missing verification of prior state service which resulted in an underpayment of longevity.

A limited sample of voluntary deductions was also audited.

  • No errors were identified.

Purchase

Purchase transactions were audited for compliance with the GAA, eXpendit, the State of Texas Procurement Manual and other pertinent statutes.

The audit identified:

  • One procurement transaction not properly posted on the electronic state business daily (ESBD).
  • Four transactions where the purchase order (PO) was created after the respective invoice.
  • Multiple bids not obtained for two transactions.
  • Missing PO on one transaction.
  • Discount not taken on one transaction.

Prompt payment and payment scheduling

The AGD’s compliance with the prompt payment law and scheduling rules was audited.

The audit identified:

  • Interest not paid on 35 purchase and 35 travel direct-billed transactions.
  • Interest underpaid on five purchase transactions.
  • Interest loss to Treasury in four purchase transactions.

Travel

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

  • No errors were identified except for the prompt payment issues discussed above.

Security

The audit included a security review that entailed identifying any of the AGD’s employees with security in USAS, USPS or on the voucher signature cards who were no longer employed or whose security had been revoked. Upon termination or revocation, certain deadlines must be observed so that security can be revoked in a timely manner.

  • One employee retained USAS security to expend funds 194 days after revocation.

Internal control structure

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

The audit identified the following issues:

  • Four employees could process and release payments through USAS without oversight.
  • Two of the four employees could also adjust payment instructions in the Texas Identification Number System (TINS).
  • Two of the four employees could also pick up warrants from the Comptroller’s office and approve vouchers.
  • Two employees could also process and release payments through USPS without oversight.

Fixed assets

The audit included a review of a limited sample of fixed assets acquired by expenditures during our audit period to test for accurate reporting in the State Property Accounting (SPA) System and to verify existence, location and proper reporting of the fixed assets.

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

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the AGD’s payroll, purchase and travel transactions on Sept. 16, 2008 was conducted.

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

  • Prompt payment errors.
  • Control weakness over expenditures.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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