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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
The University of Texas of the Permian Basin
Fiscal 2013 Third Quarter

Audit scope

A sample of The University of Texas of the Permian Basin’s (University) payroll, purchase, and travel 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

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

  • No errors were identified.

Purchase transactions

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

The audit identified:

  • Purchase Order (PO) created after invoice was received.
  • Missing PO.
  • Freight not on PO.
  • Missing legal authority for purchase.
  • Payment of late interest charged by vendor.

Travel transactions

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

The audit identified:

  • Gratuities not payable.
  • Meals not payable.

Security

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employees with security in USAS or on the voucher signature cards, who were no longer employed or whose security had been revoked.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

  • One employee remained on the signature cards 268 days after termination.
  • Two employees retained security to expend funds after termination.

Internal control structure

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

The audit identified:

  • One employee can process and release payrolls and payments in USAS.
  • The same employee had the ability to adjust payment instructions in the Texas Identification Number System (TINS) and approve paper vouchers.

Direct deposit authorization forms

A review was conducted of the University’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.

Human Resource Information System (HRIS) reporting

The University did not report all relevant payroll information to HRIS during the audit period. By not reporting this data, the Equal Employment Opportunity report, the Annual Report and the Veteran’s Workforce Summary report to the Legislative Leadership does not include the required information for the University for Fiscal Year 2012.

Payroll information is required to be reported to HRIS by Texas Government Code, Section 2101.0375.

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.

Prior post-payment audit and current audit recurring errors

We concluded a prior post-payment audit of the University’s payroll, purchase and travel transactions on Feb. 27, 2009.

During the current audit, the recurring errors were:

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