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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Department of State Health Services
Fiscal 2013 Third Quarter

Audit scope

A sample of the Texas Department of State Health Services’ (Department) payroll, purchase, travel, payment card and medical services and supplies transactions that processed through the Uniform Statewide Accounting System (USAS) and the Standardized Payroll/Personnel Reporting System (SPRS) during the period beginning March 1, 2011, through Feb. 29, 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. A limited sample of voluntary contributions was also reviewed:

  • No errors 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:

  • Two payments were made for an incorrect amount.
  • Three payments were missing documentation needed to verify the payments.

Travel transactions

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

The audit identified:

  • Two payments were missing documentation.
  • Two documents paid a lodging rate greater than the allowable limit.

Payment card transactions

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

The audit identified:

  • Procurement deficiencies in PDME transactions.
  • Many payments were missing documentation.
  • One payment did not follow the correct procurement process.
  • Four transactions did not take advantage of a discount offered by the vendor.
  • Two transactions included payment for sales taxes.

Medical services and supplies transactions

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

The audit identified:

  • One transaction did not take advantage of a discount offered by the vendor.

Prompt payment and payment scheduling

We audited the Department’s compliance with the prompt payment law and scheduling rules.

The audit identified:

  • Several payments were paid late where interest was not paid to the vendors.
  • Several payments were paid early resulting in interest lost to the treasury.

Security

The audit included a security review that entailed identifying any of the Department’s employees with security in USAS, SPRS 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 remained on the Department’s signature cards after termination.
  • The Department did not obtain a signed Confidential Treatment of Information Acknowledgement (CTIA) form prior to granting access to the state systems for two employees.

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 16 assets as missing or stolen with a net book value of $7,337.84. The Department provided police reports for all of the stolen assets.

Direct deposit authorization forms

A review was conducted of the Department’s procedures to comply with the federal mandate to properly identify and handle payments involving the movement of funds internationally.

The audit identified:

  • One vendor stated it intended to forward payments outside of the United States and because of this, the vendor should not have been set up on direct deposit.

Prior post-payment audit and current audit recurring errors

We concluded a prior post-payment audit of the Department’s payroll, purchase and travel transactions on March 31, 2008.

We noted the following recurring findings:

  • Discounts not taken.
  • Missing documentation.
  • Prompt payment and payment scheduling issues.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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