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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Comptroller of Public Accounts
Fiscal 2013 First Quarter

Audit scope

A sample of the Texas Comptroller of Public Accounts’ (CPA’s) payroll, purchase and travel transactions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period from Dec. 1, 2010 through Nov. 30, 2011 was audited to determine compliance with applicable state laws. In addition, a limited sample of the payment card and filing fee transactions was audited.

Payroll transactions and payroll deductions

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

The audit identified:

  • Missing documentation.

A sample of voluntary deductions was audited. The audit identified:

  • Deduction document missing.

Purchase transactions

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

The audit identified:

  • Texas Industries for the Blind and Handicapped (TIBH) contracts not utilized.

Prompt payment and payment scheduling

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

The audit identified:

  • Payment scheduling issues.

During the current audit period, the CPA paid $330.78 in prompt payment interest.

Travel transactions

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

  • No issues were identified.

Payment cards

Payment card transactions were audited for compliance with the GAA, eXpendit, the Procurement Manual and other pertinent statutes.

  • No issues were identified.

Filing fees

The audit included a limited review of the CPA’s transactions relating to filing fee payments. This review consisted of verifying that the payments did not exceed the authorized amounts.

  • No issues were identified.

Internal control structure

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

  • No issues were identified.

Fixed assets

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

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

The disposed assets report listed three assets as missing or stolen with a net book value of $440.94. The theft of one asset was supported by a police report.

Direct deposit authorization forms

A review was conducted of the CPA’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 two employees. Another two employees were set up on the current form but the required “section 5” was not completed. These four setup forms did not adhere to the National Automated Clearing House Association rules requiring the identification of a direct payment if it is an International Automated Clearing House Transaction.

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the CPA’s payroll, purchase, travel and filing fee transactions concluded on Nov. 30, 2007.

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

  • Missing documentation.
  • Payment scheduling.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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