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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Cancer Prevention and Research Institute of Texas
Fiscal 2013 Fourth Quarter

Audit scope

A sample of the Cancer Prevention and Research Institute of Texas’ (CPRIT) payroll, travel and purchase transactions that processed through the Uniform Statewide Accounting System (USAS) and the Statewide Payroll Reporting System (SPRS) during the period beginning Sept. 1, 2011, through Aug. 31, 2012, was audited to determine compliance with applicable state laws. A limited review of grant transactions was also performed.

Payroll transactions

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

The audit identified:

  • One instance of missing verification of prior state service that resulted in an underpayment of longevity.

Purchase transactions

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

The audit identified:

  • Five procurement transactions that were not posted on the electronic state business daily (ESBD).
  • Eleven procurement transactions that failed to document the required excluded parties list system (EPLS) search.
  • Two procurement transactions that failed to document the required centralized master bidders list (CMBL) solicitations.

Grant transactions

Grants transactions were audited for compliance with the GAA, eXpendit, the Procurement Manual and other pertinent statutes. This review consisted of verifying that the payments did not exceed the authorized amounts and followed contractual terms and conditions.

In grant awards, we did not audit for compliance with procedures for awarding the grants or monitoring grantee compliance; therefore, no opinion is being offered on those procedures.

The audit identified:

  • CPRIT processed grant contracts in an amount exceeding $42.7 million and transactions over $100,000 without a Certified Texas Contract Manager (CTCM) and a Certified Texas Purchasing Manager (CTPM) on staff.

Prompt payment and payment scheduling

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

The audit identified:

  • Five purchase documents and 25 travel vouchers that did not pay interest when due.
  • Three purchase documents that overpaid interest to the vendor.
  • Four purchase transactions that were paid early.

Travel transactions

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

  • No issues were identified.

Internal control structure

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

The audit identified:

  • Two employees who could adjust payment instructions in the Texas Identification Number System (TINS) and approve paper vouchers without oversight.
  • Three employees who could also pick up warrants from the Comptroller’s office and approve paper vouchers without oversight.

Fixed assets

The audit included a review of a limited sample of fixed assets acquired by expenditures during our audit period to test for accurate reporting in the State Property Accounting (SPA) System and to verify existence, location and proper reporting of the fixed assets.

  • All of the assets tested were in their intended location and properly recorded in SPA.

Other observations

HB 957 requires that newly hired employees participate in a default 401(k) plan unless they opt out of the program. Agencies are required to maintain documentation that shows the new hires’ acknowledgement that they received information about opting out of the automatic enrollment. CPRIT does not have procedures to comply with HB 957.

Prior post payment audit and current audit recurring errors

A prior post-payment audit was conducted of CPRIT’s payroll, purchase and travel transactions on Oct. 2, 2009.

During the current audit, the following recurring errors were identified:

  • Prompt payment errors.
  • Control weakness over expenditures.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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