The Department of Criminal Justice (Department) had processes and controls in place to ensure that Texas Correctional Industries (TCI) sales,
purchases, and cost sheets complied with state laws and regulations and Department policies and procedures. However, the Department should strengthen
its processes for recording sales transactions and documenting cost sheets.
Most of the raw material and overhead costs used to calculate the cost sheets were supported; however, auditors identified some instances in which the
Department should improve its documentation. Additionally, the Department did not consistently document the review and approval of cost sheets in accordance
with its policies and procedures.
The Department had processes and related controls to help ensure that all TCI sales were supported, reviewed, approved, and processed in accordance with applicable statutes,
rules, and Department policies and procedures. However, the Department did not always ensure that the amount at which it sold TCI products was consistent with the product cost sheets.
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