Health, Department of
1994 Statewide Financial and Compliance Audit
Report Number 95-106
Overall Conclusion
The Department is in compliance with most federal regulations related to the $4.2 billion in federal funds expended in fiscal year 1994. We also tested accounts that were significant to the State's financial statements and determined that the accounts are materially accurate and properly reported. These accounts included $4.1 billion of federal revenues, human services expenditures of $6 billion, and accounts payable of $475 million.
Key Facts and Findings
The Department does not comply with Maternal and Child Health Services Block Grant administrative requirements. The Department lacks sufficient accounting procedures and fiscal controls to determine if they are meeting spending requirements for $58 million in block grant funds.
The Department has not fully addressed the computer access and disaster recovery issues cited in fiscal years 1991 and 1993. Data accuracy and disaster recovery are essential since the agency processed $4.2 billion in federal funds during fiscal year 1994.
The Department does not have documented procedures to consider unresolved subrecipient questioned costs for materiality and possible disclosure in the financial statements. The lack of procedures could hinder the preparation of accurate financial statements.
On September 1, 1993, the Department became responsible for administering the Medical Assistance Program as well as other programs that were previously administered by the Texas Department of Human Services. As a result, the Department's revenues increased from $633 million in fiscal year 1993 to $6.6 billion in fiscal year 1994.
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