Post-Payment Audits

1
Post-Payment Audits
Cheryl Scott, CPA, CTP
2
OVERVIEW
3
OVERVIEW
Planning Phase
Intent to Audit Questionnaire Entrance Interview
4
OVERVIEW
Fieldwork Phase
Primary Compliance Update Meetings Exit
Conference
5
OVERVIEW
Reporting Phase
Preliminary Report Final Report and Management
letter Corrective Action Plan
6
SCOPE
7
SCOPE
Compliance with
Texas Statutes General Appropriations Act
(GAA) Texas Administrative Code (TAC)
8
SCOPE
Compliance with
Texas Procurement Manual
9
SCOPE
Compliance with
System Security Compliance Signature
Cards State Property Accounting (SPA) Proper
System Coding
10
Expectations

• What the agency should expect from the auditors
• What the auditors expect from the agency

11
HOW TO PREPARE
12
How to Prepare

• Knowing the Texas laws and rules governing
  expenditures
• Ensuring agency expenditures comply with laws and
  rules
• Determining legal authority for a payment before
  submission to the Comptroller

• Retaining documentation showing the payment is
  legal, proper, and fiscally responsible
• Ensuring each purchase document complies with
  USAS processing requirements

13
HOW TO PREPARE
Know Texas Laws Rules
Training
TPASS
14
HOW TO PREPARE
Comply with Texas Laws/Rules
Internal Controls Internal Controls Internal
Controls
SUBTLE ARENT WE???
15
DOCUMENTATION
16
Examples of What We Look For

• Compares documentation to the Texas Government
  Code, CPA
• Rules, the State of Texas Procurement Manual, and
  eXpendit
• 3 Way Match Invoice, Receiving, and Agreement
• Delivery terms and/or contract terms must be
  defined
• NIGP Class-Item Codes must be listed on the
  purchase order
• The Order of preference was followed. TIBH/TCI?
  Term Contracts? Open Market
• Informal bidding requires a minimum of 3 bids
  with 2 HUBS from the CMBL
• Formal bidding requires notification to all
  vendors
• listed on the CMBL in the applicable class/item
  code

17
Examples of What We Look For

• All affirmations and applicable clauses included
  in the solicitation
• The bid documentation including bid tabulation
• The correct legal citation on exempt purchases
  must be documented on the purchase order
• Authorized purchasing signatures and appropriate
  certification level for the dollar amount of the
  purchase
• All needed printouts ESBD and SAMM website

18
AUDIT OUTPUTS
19
AUDIT OUTPUTS
Audit Reports
Monetary issues Documentation Issues
Management letter
Non-Monetary Violations of Processing
Requirements
20
REPORTING RESULTS
21
REPORTING RESULTS
All Results
Are reported to
Governor Legislative Budget Board (LBB) Texas
House of Representatives Texas Senate State
Auditors Office (SAO)
22
REPORTING RESULTS
All Results
Are summarized on
http//fmx.cpa.state.tx.us/audits
23
QUESTIONS???
Cheryl Scott, CPA, CTP
Cheryl.Scott_at_CPA.STATE.TX.US