Summary of Report 97-353

Report Number 97-353

June 1997

Overall Conclusion

The internal audit function at the Texas Workforce Commission (Commission) is ineffective:

The internal audit function has not effectively assisted the new executive management in the discharge of its responsibilities since the Commission began operations on June 1, 1996. The Executive Director, two of three Commissioners, and two Department Heads stated that they do not consider current Internal Audit Department (Department) products useful. Commission executive management and the Internal Audit Director have not clearly determined what is useful information.

The internal audit function did not meet six of eight effectiveness criteria developed from the Texas Internal Audit Act. Most of these conditions existed prior to the creation of the Texas Workforce Commission.

The Commission's internal audit function employs five auditors to assist executive management in identifying risk through assessments of agency operations. Commission management is responsible for implementing internal controls, ensuring program effectiveness, and monitoring risk in the Commission.

In fiscal year 1997, the Commission has responsibility for more than $800 million in appropriations and has oversight responsibility for about $430 million available to local workforce development programs. The Commission employs more than 5,500 workers.

Texas Workforce Commission facts:

The Commission was created September 1, 1995, but did not begin full operations until June 1, 1996.

On June 1, 1996, the Commission absorbed the Texas Employment Commission and workforce-related programs from other agencies.

Three new Commissioners and a new Executive Director replaced the previous executive management.

The Internal Audit Department personnel of the Texas Employment Commission transferred to the new Texas Workforce Commission.

Contact the SAO about this report.

Download the PDF version of this report. (.pdf)

HTML Equivalent (utilizing Adobe's PDF Conversion by Simple Form).