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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Racing Commission
Fiscal 2013 Third Quarter

Audit scope

All of the Texas Racing 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, were audited to determine compliance with applicable state laws.

Payroll transactions

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

The audit identified:

  • Four payroll files were missing documentation.

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:

  • One purchase voucher for membership dues was missing authorization from the agency head.

Travel transactions

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

The audit identified:

  • Four travel vouchers where the employees were reimbursed for fuel for personal vehicles.
  • One travel voucher where an employee was reimbursed incorrect mileage.

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 payments through USAS and USPS.
  • One employee can adjust payment instructions in the Texas Identification Number System (TINS) and approve paper vouchers.
  • One employee can pick up warrants from the Comptroller’s office and approve paper vouchers.

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with security in USAS, USPS or on the voucher signature cards, who were no longer employed or whose security had been revoked. Upon termination or revocation, certain deadlines must be observed so that security can be revoked in a timely manner.

The security review identified:

  • One employee retained the ability to expend funds after termination.
  • One employee retained security to expend funds after authority expired.

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 existence of the assets:

  • No issues identified.

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:

  • One direct deposit set-up form was not checked yes or no indicating whether the funds would be forwarded to a financial institution outside the United States.
  • Three direct deposit set-up forms were outdated and did not contain the information pertaining to whether funds would be forwarded to a financial institution outside the United States.

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 24, 2009.

Recurring issues from the previous audit are:

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