Skip to content

Top 10 Audit Findings in Post-Payment Audits (2015-2018)

1. Lack of Controls over Expenditure Processing

The issue

State employees often have the security access to perform multiple tasks in the statewide financial systems such as both entering and releasing payments through USAS without oversight, adjusting payment instructions in TINS, approving vouchers and picking up warrants from the Comptroller’s office.

Proper procedure

State agencies should implement controls over expenditure processing and segregate each task as much as possible.

Agencies can strengthen internal controls and reduce risks to state funds by:

Find out more

USAS Accounting and Payment Control (FPP B.005)

2. Procurement Process Not Followed

The issue

State agencies do not maintain documentation that the procurement process was followed. Procurement policies and procedures ensure equality among vendors, transparency of financial transactions and best value for the state of Texas. A successful procurement process requires observance of the following policies and procedures:

Proper procedure

Agencies must follow the procurement policies and procedures in the State of Texas Procurement and Contract Management Guide.

Find out more

State of Texas Procurement and Contract Management Guide

3. Missing Prior State Service Forms/Incorrect Amount of Longevity Pay

The issue

Failure to verify prior state service when hiring could lead to incorrect longevity payments. When agencies fail to verify, longevity payments are calculated incorrectly and eligible employees are underpaid.

Proper procedure

When hiring a new employee, agencies must:

Find out more

Texas Payroll/Personnel Resource – State of Texas Employment History Application

Texas Payroll/Personnel Resource – Longevity Pay

4. Failure to Request Security Access Removal and Failure to Notify Comptroller to Remove Employee from Signature Card

The issue

State agencies often fail to notify the Comptroller’s office of an employee’s termination so the employee’s security access can be revoked in a timely manner. Any payments authorized electronically in USAS or paper vouchers approved after the employee’s termination would constitute an unapproved expenditure.

Proper procedure

Agencies must:

Find out more

Establishing and Removing Authority and Security to Approve Expenditures (FPP B.007)

5. Lack of Conservation of State Funds (Travel)

The issue

Agencies often do not consider cost savings to the state when making travel arrangements. Employees often fail to compare costs to determine the most cost-effective method to travel. This results in additional travel expenses.

Proper procedure

Agencies must:

Find out more

Textravel – Conservation of State Funds

Textravel – Agency and Employee Responsibilities

6. Missing/Insufficient Supporting Documentation (Purchase & Travel)

The issue

Agency documentation for purchases and travel expenses is often missing or insufficient. Without supporting documentation, a purchase or travel expense and the corresponding data entered into the Uniform Statewide Accounting System (USAS) cannot be validated.

Proper procedure

Agencies must maintain supporting documentation in their files to support the legality and fiscal responsibility of each payment that results from either a purchase or a travel expense.

Examples of required documentation include:

7. Prompt Payment and Payment Scheduling Errors

The issue

Payments are often improperly scheduled for payment in USAS, which may result in either a late payment or an early payment. If it is a late payment, the Comptroller’s office must pay interest due under the prompt payment law on behalf of the agency. If a payment is early, the state’s treasury incurs a loss in interest.

Proper procedure

State agencies should review their procedures to ensure they submit payment information for processing in a timely manner and release payments on time to avoid incurring interest.

In addition, state agencies must verify that proper due dates are entered to ensure that, if interest is due, it is paid correctly to the vendors.

To minimize the loss of earned interest to the state’s treasury, state agencies must schedule all payments greater than $5,000 for the latest possible distribution allowed by their purchasing agreements.

Find out more

eXpendit – Prompt Payment

eXpendit – Payment Scheduling

8. Purchase Order Created After Invoice Received

The issue

When a purchase order is created after receipt of the invoice, it becomes difficult for the agency to ensure it was not overcharged or billed for goods or services beyond those the agency agreed to purchase.

Proper procedure

Agencies must ensure the documentation of the purchase agreement is created when the goods or services are ordered from the vendor.

Agencies should maintain supporting documentation that reflects the sequential order of transactional events. They should also certify the content of each document is meticulously verified and fully corresponds to prior agreements.

The purchase order must be referenced on all bills of lading, packing slips, back orders, invoices and other transactional documents.

Find out more

See Invoice Review and Payment in the State of Texas Procurement and Contract Management Guide

9. Incorrect Vacation Lump Sum Payment

The issue

Sometimes a terminated employee’s lump-sum payment for accrued vacation time is calculated and paid incorrectly.

Proper procedure

Find out more

Texas Government Code, Section 661.064

10. Purchase Overpayment

The issue

Sometimes state agencies pay a greater amount than the authorized amount on a purchase order, resulting in an unauthorized payment.

Proper procedure

Find out more

See Invoice Review and Payment inside the State of Texas Procurement and Contract Management Guide

Back to Top

PDF documents require the latest version of Adobe Acrobat Reader.