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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas Education Agency
Fiscal 2013 Fourth Quarter

Audit scope

A sample of the Texas Education Agency’s (Agency) payroll, purchase and travel transactions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period beginning Sept. 1, 2011, through Aug. 31, 2012, were audited to determine compliance with applicable state laws. Additionally, a limited review was conducted of the grant, payment card, professional fees, revenue refund and textbook transactions.

Payroll transactions and payroll deductions

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

The audit identified:

  • Overpayment of longevity pay.

A sample of voluntary deductions was audited.

  • No issues were identified.

Purchase transactions

Purchase transactions were audited for compliance with the GAA, eXpendit, the State of Texas Procurement Manual 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

The audit included a limited review of the Agency’s transactions relating to grant payments. This review consisted of verifying payments did not exceed authorized amounts. The review of these payments did not include an investigation of the Agency’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.

Revenue refund transactions

The audit included a limited review of the Agency’s transactions relating to revenue refund payments. This review consisted of verifying that payments did not exceed authorized amounts.

  • No issues were identified.

Payment card and professional fee transactions

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

  • No issues were identified.

Internal controls

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

The review identified:

  • One employee who can pick up warrants from the Comptroller’s office and approve paper vouchers.
  • The Agency did not obtain a signed Confidential Treatment of Information Acknowledgement (CTIA) form prior to granting access to the state systems for three employees.

Fixed assets

The audit included a limited review 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 of the assets. During the audit period, the Agency reported 12 assets as missing.

  • No issues were identified.

Direct deposit authorization forms

A review was conducted of the Agency’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 form was used for one transaction. This form did not adhere to the National Automated Clearing House Association rules requiring the identification of a direct payment if it is an International Automated Clearing House Transaction.
  • Three transactions where the appropriate box indicating whether or not the payments will be forwarded to an institution outside the United States was not completed.

Prior post-payment audit and current audit recurring errors

We concluded a prior post payment audit of the Agency’s payroll, purchase and travel transactions on July 21, 2009.

  • No recurring errors were identified during the current audit.

Other auditor observations

The Agency currently does not have written rules and procedures for processing equity pay adjustments as required by the GAA, Art. IX, Section 3.08(d).

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