Cheryl Scott, CPA, CTP

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OVERVIEW

Intent to AuditQuestionnaireEntrance Interview

Planning Phase

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OVERVIEW

Fieldwork PhasePrimary ComplianceUpdate MeetingsExit Conference

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OVERVIEW

Reporting Phase

Preliminary ReportFinal Report and Management letterCorrective Action Plan

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SCOPE

Texas StatutesGeneral Appropriations Act (GAA)Texas Administrative Code (TAC)

Compliance with

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SCOPE

Texas Procurement Manual

Compliance with

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SCOPE

System Security ComplianceSignature CardsState Property Accounting (SPA)Proper System Coding

Compliance with

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Expectations

• What the agency should expect from the auditors

• What the auditors expect from the agency

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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

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TPASS

HOW TO PREPARE

Internal ControlsInternal ControlsInternal Controls

Comply with Texas Laws/Rules

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Examples of What We Look For Compares documentation to the Texas Government Code, CPARules, 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

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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

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Monetary issues

Documentation Issues

AUDIT OUTPUTS

Audit Reports

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Management letterNon-Monetary

Violations of Processing Requirements

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REPORTING RESULTS

Are reported to

All Results

GovernorLegislative Budget Board (LBB)Texas House of RepresentativesTexas SenateState Auditor’s Office (SAO)

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REPORTING RESULTS

Are summarized on

All Results

http://fmx.cpa.state.tx.us/audits

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Cheryl Scott, CPA, CTPCheryl.Scott@CPA.STATE.TX.US