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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas A&M University Health Science Center
Fiscal 2013 Third Quarter

Audit scope

A sample of the Texas A&M University Health Science Center’s (Center) payroll, purchase, travel, payment card and grant transactions that processed through the Uniform Statewide Accounting System (USAS) 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:

  • Eight employees with incorrect months of service in the Center’s payroll system resulting in four employees being overpaid longevity pay and two employees being underpaid longevity pay.

A sample of voluntary contributions was also reviewed:

  • No errors were identified.

Purchase transactions

Purchase transactions were audited for compliance with the GAA, eXpendit and other pertinent statutes.

The audit identified:

  • One purchase order (PO) was created after the invoice was received.

Travel transactions and payment card transactions

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

The audit identified:

  • Three travel transactions for state employees did not use the state contract travel agency resulting in higher-than-necessary travel agency fees.
  • Seventeen payment card transactions for contracted speakers’ travel did not use the state contract travel agency resulting in higher-than-necessary travel agency fees.

Internal control structure

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

The audit identified:

  • One employee had the ability to adjust payment instructions in the Texas Identification Number System (TINS) and approve paper vouchers.
  • Two employees can pick up warrants at the Comptroller’s office and approve paper vouchers.

Grant transactions

The audit included a limited review of the Center’s transactions relating to grant payments. This review consisted of verifying that the payments did not exceed the authorized amounts. The review of these payments did not include an investigation of the Center’s procedures for awarding the grants or monitoring payments made to grantees; therefore, we are not offering an opinion on those procedures:

  • No issues were identified.

Fixed assets

The audit included a review of a limited number of fixed assets acquired by expenditures during our audit period to test for proper tracking in its internal system. The assets were properly accounted for and tagged.

Direct deposit authorization forms

A review was conducted of the Center’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 for six employees. Another employee was set up on the current form but the required question regarding payments being forwarded outside the United States was not completed. The seven set-up 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

We concluded a prior post-payment audit of the Center’s payroll, purchase, and travel transactions on April 30, 2009.

During the current audit, the recurring errors were:

  • Incorrect longevity payment.
  • Control weakness over expenditure processing.
Glenn Hegar
Texas Comptroller of Public Accounts
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