Health, Department of
An Audit Report on Management Controls at the Texas Department of Health
Report #: 96-051
Overall Conclusion
Management controls are generally effective, but improvements are needed in contracting for services and performance management. Other control areas need enhancements. Weaknesses in communication and information were found throughout the management controls.
Key Facts and Findings
Although the budget process has been improved, program managers need better information and communication to monitor operating budgets. The budget/accounting information systems do not readily provide adequate and timely information that managers need to plan, direct, monitor, and report on program activities. In fiscal year 1996, the Department will be responsible for an operating budget of approximately $6.5 billion. The Department is transferring the budget/accounting information systems from the mainframe to a client server environment which should provide more user-friendly systems.
Issues reported in 1991 on the lack of coordination and integration of information systems have not been adequately addressed. The Department does not have a steering committee to assist in prioritizing information needs and allocating resources. The current environment allows duplicative work to be performed due to a lack of participative management, funding restrictions, and confidentiality issues.
Current controls over contracting for client services are not adequate to ensure that accountability for contractor performance is maintained for services that are purchased rather than provided by the Department. The Department is in the process of developing new guidelines for managing contracted services. The Department reports payments of approximately $310 million for contracts initiated in fiscal year 1995, excluding Medicaid.
The human resource policies and procedures are well-documented and generally comply with applicable statutes; however, communication of policies and procedures is, at times, incomplete or inconsistent, especially in the regions. Effective communication will become more critical as the Department continues to decentralize human resource management. The Department estimates that approximately $190 million will be spent in fiscal year 1996 on personnel costs.
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