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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas State University System
Fiscal 2012 Fourth Quarter

Audit scope

The Texas State University System’s (System’s) payroll transactions that processed through the Uniform Statewide Payroll/Personnel System (USPS) during the period beginning March 1, 2011, through Feb. 29, 2012, were audited to determine compliance with applicable state laws.

Payroll transactions and payroll deductions

Payroll transactions were audited for compliance with the General Appropriations Act (GAA), Texas Payroll/Personnel Resource and other applicable statutes.

The audit identified:

  • Missing payroll documentation.

A limited sample of voluntary contributions was reviewed.

  • No errors were identified.

Internal control structure

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

The review identified:

  • One employee could adjust payment instructions in the Texas Identification Number System (TINS) and approve vouchers.
  • The same employee could pick up warrants from the Comptroller’s office and approve paper vouchers.

Direct deposit authorization forms

A review was conducted of the System’s procedures to comply with the federal mandate to properly identify and handle the movement of international funds.

The audit identified:

  • Three instances in which an outdated version of the direct deposit setup form was used which did not adhere to the National Automated Clearing House Association (NACHA) rules requiring the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).
  • One instance in which the correct form was used but the employee did not answer the question if funds would be forwarded to a financial institution located outside the United States.

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the System’s payroll transactions was concluded on May 28, 2009.

During the current audit, one recurring error was identified:

  • Control weakness over expenditure processing.
Glenn Hegar
Texas Comptroller of Public Accounts
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