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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Funeral Service Commission
Fiscal 2013 Second Quarter

Audit scope

A sample of the Texas Funeral Service Commission’s (Commission) 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 beginning Sept.1, 2011 through Aug. 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:

  • One employee was paid a different amount from the authorized amount on the personnel action form.

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:

  • Eight improper payments of taxes and surcharges were made to one vendor.
  • Procurement procedures for print services were not followed for two payments.
  • 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:

  • Five non-overnight meal reimbursements processed incorrectly.
  • An incorrect mileage rate was used for calculating three mileage reimbursements.

Security

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with security in USAS, USPS, or on the voucher signature cards, who were no longer employed or whose security had been revoked.

The audit identified:

  • One individual who was on the signature card was not an employee of the Commission.

Internal control structure

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

The audit identified:

  • Two employees can process and release payment through USAS.
  • Two employees can pick up warrants from the Comptroller’s office and approve paper vouchers.

Fixed assets

The audit included 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 the existence of the assets.

The audit identified:

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

Direct deposit authorization forms

A review was conducted of the Commission’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 set-up form was used which did not adhere to the National Automated Clearing House Association rules requiring the identification of a direct deposit 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 Commission’s payroll, purchase and travel transactions was concluded on June 26, 2009.

During the current audit, there is one recurring error:

  • Control weakness over expenditure processing.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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