Audit Reports Affecting Multiple Agencies
An Audit Report on Improving the State's Accounts Receivable and Cash Receipting Processes
Report Number 96-027
Texas does not have the comprehensive accounts receivable information it needs to evaluate how well the State is doing in collecting its accounts receivable and to identify where improvements are needed. Additional information would enable state leaders and agency managers to identify problem areas, improve performance related to the administration of accounts receivable, and, thus, enhance revenues through improved cash management and earning of interest.
The accounting categories now used to capture financial reporting information about accounts receivable are not detailed enough to support analysis of the relationship between different types of receivables and the revenue sources that generate them. We recommend that the Comptroller revise the set of accounts for reporting receivables. The State of Texas had $3.5 billion of accounts receivable at August 31, 1994.
Opportunities exist for the State to further minimize the time that elapses between provision of services and reimbursement from the Federal Government. Some inefficiencies have arisen because the process currently in place for receiving and spending federal funds is so decentralized and complex. We recommend that the Legislature direct a task force of representatives from selected legislative and executive agencies to identify specific solutions to improve the State's management of federal fund receipts and receivables.
Opportunities exist at the Texas Department of Transportation and the Texas Parks and Wildlife Department to increase revenue by more than $751,000 annually by improving the timeliness of license, fee, and permit collections. The Texas Parks and Wildlife Department has recognized the problems associated with their current procedures and plans to implement an automated point-of-sale issuance system.
Opportunities exist at two of the State's medical components to continue improving the collection of patient revenue.
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