A Follow-up Audit Report on Unemployment Insurance Tax at the Texas
Report Number 13-001
The Texas Workforce Commission (Commission) fully or substantially
implemented all 11 of the recommendations that auditors selected for follow-up
from An Audit Report on Unemployment Insurance Tax at the Texas Workforce
Commission (State Auditor's Office Report No. 11-042, July 2011).
Of the six recommendations fully implemented:
- The Commission fully implemented four recommendations related to its tax
audit process and system.
- The Commission fully implemented a recommendation that it properly review
delinquent employer accounts before issuing a tax lien.
- The Commission fully implemented a recommendation related to its
disposition of complaint referrals.
While the Commission has made significant progress in implementing the 11
prior audit recommendations selected for follow-up, it should continue its
efforts to improve controls related to its delinquent employer contacts, tax
audit reviews, and records retention schedule. Specifically:
- The Commission did not consistently contact delinquent employers within the
time frames required by its policies and procedures.
- The Commission did not consistently ensure that tax audit results entered
into its tax system were accurate and agreed with audit documentation.
- The Commission did not consistently document supervisory approval of tax
audit rejections that its account examiners made. In addition, the tax examiners
did not consistently include documentation in the Commission's tax system to
support why they rejected a tax audit.
- The Commission had not completed updating its records retention schedule
for documentation of payments from service agents.
Acrobat version of this report. (.pdf)