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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Prairie View A&M University
Fiscal 2013 Fourth Quarter

Audit scope

A sample of the Prairie View A&M University’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 and deductions

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

The audit identified:

  • One incorrect longevity payment.

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.

  • No issues were identified.

Travel transactions

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

  • No issues were identified.

Payment card

The audit included a limited review of the University’s transactions relating to the payment card payments. These transactions were audited for compliance with the GAA, eXpendit and other pertinent statutes.

  • No issues were identified.

Grant transactions

The audit included a limited review of the University’s transactions relating to grant payments. This review consisted of verifying that payments did not exceed authorized amounts. The review of these payments did not include an investigation of the University’s procedures for awarding the grants or monitoring payments made to grantees; therefore, no opinion is being offered on those procedures.

  • No issues were identified.

Security

The audit included a security review 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employees with security in USAS or on the voucher signature cards who were no longer employed or whose security had been revoked.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 audit identified:

  • Three employees who retained the ability 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:

  • Three employees who can adjust payment instructions in the Texas Identification Numbering 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:

  • Seven vendors for whom the University did not have a direct deposit form on file.
  • Two direct deposit forms where the vendor did not indicate if funds would be transferred outside of the United States.
  • One employee who had an outdated direct deposit form. The outdated form is not in compliance with Office of Foreign Assets Control requirements.

Fixed assets

The audit included a limited number of fixed assets acquired by expenditures during our audit period to verify existence of the assets.

  • All assets tested were in their intended location.

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the University’s payroll, purchase and travel transactions was concluded on Jan. 8, 2010.

During the current audit, there were two recurring errors:

  • Prompt payment issues.
  • Control weakness over expenditure processing.

Auditor observations

  • During the audit period, the University was assessed a penalty in the amount of $22,788.15 by the Internal Revenue Service as a result of a late deposit of payroll taxes.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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