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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Third Court of Appeals — Austin
Fiscal 2013 Fourth Quarter

Audit scope

A sample of the Third Court of Appeals’ (Court) purchase transactions and all of the payroll transactions that processed through the Uniform Statewide Accounting System (USAS) and Uniform Statewide Payroll/Personnel System (USPS) during the period beginning March 1, 2012, through Feb. 28, 2013, were audited to determine compliance with applicable state laws.

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 employee was paid an incorrect longevity pay amount and an incorrect lump sum vacation pay amount.

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.

Internal control structure

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

The audit identified:

  • One employee had the ability to adjust payment instructions in the Texas Identification Number System (TINS) and also approve paper vouchers, process and release payrolls, pick up warrants from the Comptroller’s office and approve paper vouchers.
  • One employee had the ability to process and release payments through USAS, process and release payrolls, pick up warrants from the Comptroller’s office and approve paper vouchers.
  • The Confidential Treatment of Information Acknowledgement (CTIA) form was not signed timely for three employees.

Direct deposit authorization form

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

The audit identified:

  • On 10 instances, the Court used an outdated version of the direct deposit setup form which did not adhere to the National Automated Clearing House Association rules requiring the identification of a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.

The Court had only recently begun using the new required form.

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the Court’s payroll, purchase and travel transactions was concluded on Aug. 26, 2009.

During the current audit, there was one recurring error:

  • Control weakness over expenditure processing.

Additional auditor comments

In prior audits, the Court acknowledged that in a small agency it is often challenging to have the staff available to maintain a complete separation of duties at all times. However, the Court has taken additional precautions outside the accounting systems to mitigate the risk.

Glenn Hegar
Texas Comptroller of Public Accounts
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