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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Tarleton State University
Fiscal 2013 Fourth Quarter

Audit scope

A sample of Tarleton State 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:

  • Two employees that were underpaid longevity due to an incorrect number of service months used for the longevity calculation.

A sample of voluntary contributions was also reviewed.

  • 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.

Grant transactions

Grant transactions were audited for compliance with the GAA, eXpendit and other pertinent statutes. All grant transactions reviewed were the $1,000 tuition rebates to students who met the eligibility criteria set by Texas Education Code, Section 54.0065. All applications are submitted by the students and approved by the Registrar’s office before being processed by the accounting office.

  • No issues were identified.

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employees with security in USAS or on the voucher signature cards who were no longer employed or whose security had been revoked.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

  • One employee who can process and release payrolls, payments through USAS and payments in the University’s internal system, and who also has the ability to pick up warrants from the Comptroller’s office and approve paper vouchers.
  • Three employees who can adjust payment instructions in Texas Identification Number System (TINS) and approve paper vouchers.
  • Two employees who can pick up warrants from the Comptroller’s office and approve paper vouchers.

Fixed assets

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

  • All assets tested were in their intended locations and properly tagged.

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 June 30, 2009.

During the current audit, there were three recurring errors:

  • Incorrect payment of longevity pay.
  • Control weakness over expenditure processing.
  • Employee retaining security to expend funds after authority expired.

Auditor observation

During the audit period, the University was assessed a penalty in the amount of $10,531.01 by the Internal Revenue Service (IRS) as a result of a late deposit of payroll taxes. The University made a payment to the IRS in the wrong quarter.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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