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An Audit of the Texas A&M Engineering Extension Service

December 2019

Summary Analysis

The Texas A&M Engineering Extension Service (TEEX) had certain processes in place for the processing and review of disaster response and recovery expenditures, such as internal personnel costs, purchases of supplies, and travel-related expenditures. In addition, TEEX had sufficient processes for non-disaster related expenditures and its training programs.

However, it had significant weaknesses in its controls over its reimbursements of disaster-related personnel costs to Texas Task Force 1 participating entities, including costs related to Hurricane Harvey. Specifically, TEEX did not consistently ensure that it (1) obtained and retained all required supporting documentation and (2) verified and accurately calculated the personnel costs to be reimbursed.

 Jump to Overall Conclusion

While it ensured that disaster-related personnel costs for TEEX employees complied with requirements, TEEX had significant weaknesses in its processes for reimbursements for Task Force participating entities for personnel costs related to disaster-response activities. Between August 1, 2017, and February 28, 2019, TEEX paid $7,627,845 in personnel cost reimbursements to participating entities, which accounted for 73 percent of TEEX's total disaster-response costs during that time period.

While TEEX had review processes in place for disaster-response personnel costs, it did not consistently ensure that (1) it obtained supporting documentation required by its agreements with Task Force participating entities and (2) its calculations were accurate.

Jump to Chapter 1-A 

TEEX had controls for its non-personnel expenditures related to disaster response activities, such as supply purchases, equipment rental and purchases, technology related purchases, interdepartmental charges, and procurement card purchases, which included meals and other travel-related expenditures. However, for 2 travel-related purchase vouchers tested totaling $38,400, TEEX did not obtain sufficient supporting documentation for the use of hotel rooms. In addition, while TEEX procured the purchase of rescue boats in compliance with federal and internal requirements tested, it should strengthen its controls over asset tracking.

Jump to Chapter 1-B 

TEEX had processes in place to ensure that its non-disaster expenditures were properly supported, approved, and complied with applicable TEEX internal policies, procedures, and contracts.

From August 1, 2017, through February 28, 2019, TEEX had $154.6 million in total non-disaster expenditures. All 26 purchase vouchers tested, totaling $5.1 million, were supported, approved, and allowable.

Jump to Chapter 1-C 

TEEX had controls and processes for its training programs to ensure that it (1) safeguarded electronic student information, (2) had complete records for classes held, and (3) complied with most of its internal curriculum development requirements.

However, TEEX should strengthen certain controls to ensure that (1) hard-copy documentation is appropriately protected, (2) certain required reviews are conducted consistently, and (3) courses are consistently documented, end-user tested, and approved as required.

Jump to Chapter 2 

Graphics, Media, Supporting documents

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