An Audit Report on Compliance with Benefits Proportional by Fund Requirements at 20 State Entities
March 2003
Report Number 03-025
Overall Conclusion
As a result of our audit, 3 of the 20 entities we audited reimbursed an additional $2,174,427 to General Revenue to comply with a General Appropriations Act (76th Legislature) requirement to pay benefits proportionately to funding sources for fiscal year 2001. As of March 18, 2003, Texas Tech University still needed to reimburse $92,865 to General Revenue. As of March 5, 2003, the Public Utility Commission of Texas still needed to reimburse $28,000 to General Revenue. Prior to our audit, nine of the 20 entities had reimbursed a net $2,622,758 to General Revenue to comply with this requirement. After those reimbursements are processed, all 20 entities' total reimbursements to General Revenue for fiscal year 2001 will be $4,918,050.
During our audit, we also identified certain aspects of the proportionality requirements that could be clarified to better ensure compliance. For example, the absence of an established deadline by which entities must make reimbursements to General Revenue allowed two entities we audited to wait until 12 and 9 months after the reporting deadline to make necessary reimbursements to General Revenue. We also noted that the proportionality requirements in the General Appropriations Act do not specify what entities are required to do when they have used less than a proportionate share of General Revenue to pay employee benefits. In some cases, entities must comply with other proportionality requirements that differ from the Salaries to be Proportional by Fund requirements in the General Appropriations Act. This has caused a lack of clarity at the entity level about how to handle this circumstance.
As we reported in August 2002, it is also possible for entities to refrain from submitting Benefits Proportional by Fund Reports to the Comptroller of Public Accounts (Comptroller) by combining multiple sources of funding into a single operating fund. The General Appropriations Act does not prohibit entities from doing this. Clarification of this area could help to ensure that entities comply with proportionality requirements.
Key Facts and Findings
- Three entities' Benefits Proportional by Fund Reports contained
errors that required $125,074 in additional reimbursements to General Revenue.
- Two of eight entities that complied with proportionality requirements took
several months to make necessary reimbursements to General Revenue.
- Three entities used less than a proportionate share of General Revenue to
pay employee benefits.
- Six entities paid employee benefits from a single appropriated fund and, therefore, did not submit Benefits Proportional by Fund Reports for fiscal year 2001.
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