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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Commission on Environmental Quality
Fiscal 2012 Fourth Quarter

Audit scope

A stratified random sample of the Texas Commission on Environmental Quality’s (Commission's) payroll, purchase, payment cards and travel 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.

A limited review of payroll deductions, refund of revenues, grants, USAS travel/per diem and USPS travel/per diem was also conducted.

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 employee was paid incorrect longevity payment amounts because of incorrect service dates.

A limited sample of voluntary contributions was also audited.

  • One deduction form was missing a signature.

Purchase and payment card transactions

Purchase and payment transactions were audited for compliance with the GAA, eXpendit and other pertinent statutes.

The audit identified:

  • Three duplicate payments were made to vendors.

Prompt payment and payment scheduling

The Commission’s compliance with the prompt payment law and scheduling rules was audited. During the audit period, the Commission paid $5,293.82 in late payment interest.

  • No errors were identified.

Travel transactions

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

The audit identified:

  • Conservation of state funds — excessive airfares.
  • Incorrect amount for rental car fees and taxes.
  • Incorrect mileage rate used.
  • Transportation expense not payable.
  • Gas purchase not payable.

Grant transactions

The audit included a limited review of the Commission’s transactions relating to grant payments. This review consisted of verifying that payments did not exceed authorized amounts. The review of these payments did not include an investigation of the Commission’s procedures for awarding the grants or monitoring payments made to grantees; therefore, no opinion is being offered on those procedures.

  • No errors were identified.

Internal control structure

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

The audit identified:

  • Three employees could process and release payrolls.
  • Two employees had the ability to adjust payment instructions in the Texas Identification Number System (TINS) and approve paper vouchers.
  • Two employees could pick up warrants at the Comptroller’s office and approve paper vouchers.

Refund of revenues

A limited review of the Commission’s refund of revenue transactions was conducted. This review consisted of verifying that refund amounts did not exceed authorized amounts.

  • No errors were identified.

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 (SPA) System and to verify existence of the assets.

  • The audit verified all assets tested were in their intended location and properly recorded in SPA.
  • The SPA report showed one asset that was stolen. The police report was reviewed.
  • The SPA report showed four missing assets that had been listed as missing for two years. The net book value of the four assets is $66.22, with a historical book value of $6,396.61.

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the Commission’s payroll, purchase including procurement, and travel transactions was concluded on Feb. 26, 2009.

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

  • Incorrect service date causing incorrect longevity payments.
  • Control weakness over expenditures.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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