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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
The University of Texas M.D. Anderson Cancer Center
Fiscal 2012 Fourth Quarter

Audit scope

A sample of The University of Texas M.D. Anderson Cancer Center’s (Center’s) payroll, purchase and travel transactions that processed through the Uniform Statewide Accounting System (USAS) during the period beginning Sept. 1, 2010, through Aug. 31, 2011, was 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:

  • Incorrect state effective service date/incorrect longevity pay amount.

A sample of voluntary deductions was also reviewed:

  • No errors were identified.

Purchase transactions

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

The audit identified:

  • Freight not on purchase order (PO).
  • Payment in excess of PO.
  • PO created after invoice.

Travel transactions

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

The audit identified:

  • Gratuities not payable.
  • Conservation of state funds.
  • Lodging in excess of state rate.
  • Incorrect payment of taxes.
  • Incorrect mileage.
  • Unable to determine purchase.

Internal control structure

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

The review identified:

  • Two employees could process and release payments and payroll in USAS without electronic oversight and one employee could adjust payment instructions in the Texas Identification Number System (TINS) and approve vouchers.

Security

The audit included a security review that entailed identifying any of the Center’s employees with security in USAS, TINS or on the voucher signature cards that were no longer employed or whose security had been revoked.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.

The review identified:

  • Two employees remained listed on the Center’s voucher signature cards after termination and one employee retained the ability to expend funds in USAS after authority expired.

Fixed assets

The audit included 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. During the audit period, the Center reported 20 assets that were missing or stolen with the net book value of $7,801.27.

  • All 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 Center’s payroll, purchase and travel transactions was concluded on Feb. 29, 2008.

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

  • Incorrect mileage.
  • Incorrect payment of taxes.
  • Lodging in excess of state rate.
  • Gratuities not payable.
  • Payment in excess of purchase order.
  • Purchase order created after invoice.
  • Control weakness over expenditure processing.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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