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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Senate
Fiscal 2012 Fourth Quarter

Audit scope

A random sample of the Texas Senate’s (Senate’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.

Purchase transactions

Purchase transactions were audited for compliance with the General Appropriations Act (GAA), eXpendit and other pertinent statutes.

The audit identified:

  • Insufficient documentation for three transactions.
  • PO created after invoice for two transactions.
  • Changes to the purchase order not initialed/dated on one transaction.
  • Freight not on the purchase order on one transaction.
  • One duplicate payment.

Travel transactions

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

The audit identified:

  • Five travelers that reimbursed an incorrect amount for mileage/tolls.
  • Missing documentation on five transactions.
  • A gratuity charge reimbursed to the employee that was not payable.
  • Three duplicate per diem payments.
  • One lodging receipt not in the traveler’s name.

Payroll transactions

Payroll transactions were audited for compliance with the GAA, the Texas Payroll/Personnel Resource and other pertinent statutes.

  • No errors were identified.

A limited sample of voluntary contributions was also reviewed.

  • No errors were identified.

Internal control structure

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

The security review identified:

  • Four employees with multiple security capabilities to process expenditures without oversight.

Direct deposit authorization forms

A review was conducted of the Senate’s procedures 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  • An outdated version of the direct deposit setup form was used for some of the employees selected that did not adhere to the National Automated Clearing House Association (NACHA) 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 Senate’s purchase, travel and payroll transactions was concluded on July 25, 2008.

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

  • Purchase order created after invoice.
  • Duplicate payment.
  • Missing documentation for travel transactions.
  • Incorrect travel reimbursements.
  • Control weakness over expenditure processing.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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