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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas State Board of Dental Examiners
Fiscal 2013 Second Quarter

Audit scope

A sample of the Texas State Board of Dental Examiners’ (Board) purchase and refund of revenue transactions and all of the payroll and travel transactions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period beginning June 1, 2011 through May 31, 2012 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), the Texas Payroll/Personnel Resource and other pertinent statutes.

The audit identified:

  • Eight employee files were missing documentation.
  • Three employees were overpaid salary amounts.

A limited sample of voluntary contributions was also audited:

  • No issues were identified.

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:

  • Eleven payments were missing required documentation.
  • Five purchases were made without using term contracts.
  • The Department of Information Resources (DIR) contract was not used for two transactions.
  • One document paid an incorrect amount.
  • One duplicate payment was processed.
  • A procurement plan was not submitted to the Comptroller’s office.

Travel transactions

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

The audit identified:

  • Many reimbursements did not adequately conserve state funds.
  • Many hotel receipts did not show a zero balance.
  • Taxes were not withheld on a non-overnight reimbursement.
  • One purchase of alcohol was reimbursed.
  • One incorrect mileage amount was reimbursed.
  • One employee was reimbursed for the purchase of food for others.
  • Five incorrect amounts were paid.
  • Many reimbursements did not have sufficient documentation.

Refund transactions

Our audit included a limited review of the Board’s transactions relating to refund of revenue payments.

The audit indentified:

  • The Board could not provide any of the requested refund transactions. Therefore, we could not verify that payments made were valid refunds.

Prompt payment

The transactions were audited for compliance with the prompt payment laws.

The audit identified:

  • Fourteen purchase transactions were paid late without interest.
  • Eight travel transactions were paid late without interest.
  • Five purchase transactions overpaid interest to the vendor.

Security

The audit included a security review that entailed identifying any of the Board’s employees with security in USAS, USPS, the Texas Identification Number System (TINS) or on the voucher signature cards, who 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 audit identified:

  • One employee retained security in USAS to approve documents after her termination and retained the ability to approve paper documents five days after her termination.

Internal control structure

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

The audit identified:

  • One employee has the ability to process expenditures without oversight.

Fixed assets acquired by expenditures

The audit included a review of a limited number 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.

The audit identified:

  • Four of the selected assets did not have a property tag attached.

Prior post-payment audit and current audit recurring errors

We concluded a prior post-payment audit of the Board’s payroll, purchase and travel transactions on March 31, 2009.

We noted one recurring finding regarding lack of controls over expenditure processing.

Other auditor observations

The Board had significant turnover in its accounting staff during the audit period. We noted a large number of findings both before and after this turnover occurred. We highly recommend that the Board provide training to its accounting staff on payroll and purchase requirements, and to all employees on travel requirements. Due to the large number of findings, we will schedule a follow-up audit in 2014 to determine if improvements have been made.

We also noted that the Board does not have formal procedures governing its accounting operations. Policies and procedures are an important management tool in any organization. They provide a link between the organizations overall goals and objectives and its day-to-day operations. Policies and procedures in general are designed to give employees an understanding of their roles, responsibilities and limitations.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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