Cheryl Scott, CPA, CTP

2

OVERVIEW Intent to Audit Questionnaire Entrance Interview Planning Phase 3

OVERVIEW Fieldwork Phase Primary Compliance Update Meetings Exit Conference 4

OVERVIEW Reporting Phase Preliminary Report Final Report and Management letter Corrective Action Plan 5

6

SCOPE Texas Statutes General Appropriations Act (GAA) Texas Administrative Code (TAC) Compliance with 7

SCOPE Texas Procurement Manual Compliance with 8

SCOPE System Security Compliance Signature Cards State Property Accounting (SPA) Proper System Coding Compliance with 9

10 Expectations What the agency should expect from the auditors What the auditors expect from the agency

11

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

HOW TO PREPARE Training Know Texas Laws & Rules 13 TPASS

HOW TO PREPARE Internal Controls Comply with Texas Laws/Rules 14

15

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 16

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 17

18

Monetary issues Documentation Issues AUDIT OUTPUTS Audit Reports 19 Management letter Non-Monetary Violations of Processing Requirements

20

REPORTING RESULTS Are reported to All Results Governor Legislative Budget Board (LBB) Texas House of Representatives Texas Senate State Auditor’s Office (SAO) 21

REPORTING RESULTS Are summarized on All Results 22

23 Cheryl Scott, CPA, CTP