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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Lamar State College – Orange
Fiscal 2013 Fourth Quarter

Audit scope

A sample of the Lamar State College – Orange’s (College) payroll and purchase transactions that processed through the Uniform Statewide Accounting System (USAS) during the period beginning Dec. 1, 2011, through Nov. 30, 2012, was audited for compliance with applicable state laws.

Payroll transactions and deductions

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

  • No issues were identified.

A limited sample of voluntary contributions was also audited.

  • No issues were identified.

Purchase transactions

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

The audit identified:

  • A purchase order created/changed after invoice.

Prompt payment and payment scheduling

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

The audit identified:

  • Minimal errors related to prompt payment and scheduling.

Internal control structure

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

The audit identified:

  • One employee who can adjust payment instructions in the Texas Identification Number System (TINS) and approve paper vouchers.

Direct deposit authorization forms

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

The audit identified:

  • Two vendor direct deposit set-up forms that did not indicate whether the funds would be forwarded to a financial institution outside the United States.
  • One vendor that did not have a direct deposit set-up form completed.

These situations do 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.

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the College’s payroll and purchase transactions was concluded on March 23, 2010.

During the current audit, there were two recurring errors:

  • Purchase order changed after invoice.
  • Control weakness over expenditure processing.
Glenn Hegar
Texas Comptroller of Public Accounts
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