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Multiple Agencies

1997 Small Agency Management Control Audit

Report Number 97-086

August 1997

Overall Conclusion

During the management control audits of 13 small agencies and follow-up reviews at 6 small agencies, we identified significant control weaknesses over financial management, contracting, licensing, and human resources at 5 agencies. These control weaknesses could prevent the agencies from ensuring that their missions are achieved or that resources are used appropriately. In addition, we identified five other agencies that have serious control weaknesses but are fulfilling their statutory functions. Nine of the agencies we reviewed have adequate controls. The agencies reviewed concurred with our findings.

In addition, we found that 76 percent (13 of 17) of the performance measures examined were found to be reliable (Certified or Certified With Qualifications), and 18 percent (3 of 17) were inaccurate. We were unable to determine the accuracy of the remaining 6 percent (1 of 17).

Follow-up audits at six agencies showed that 70 percent of our previous recommendations have been implemented or have no need for corrective action, 13 percent have been partially implemented, and 17 percent have not been implemented.

Key Facts and Findings

Five agencies audited had significant control weaknesses that could prevent them from meeting their statutory functions:

Board of Private Investigators and Private Security Agencies
Texas Funeral Service Commission
Texas Commission on Fire Protection
Commission for the Deaf and Hard of Hearing
Animal Health Commission

Our management control and follow-up reviews identified frequent weaknesses in the following areas:

Controls over fixed assets, cash receipts, and expenditures (9 agencies)
Controls over grants and contracts (6 agencies)
Controls over licensing and examinations (3 agencies)
Controls over performance appraisal systems and compliance with the Fair Labor Standards Act (6 agencies)
Physical and access controls over management information systems (7 agencies)

Small agencies should review their controls over the above key areas.

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