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Report Affecting Multiple Agencies

1998 Small Agency Management Control Audit

April 1998

Report Number 98-035

Overall Conclusion

Fiscal year 1998 management control audits at six small agencies identified weaknesses in controls over human resources, financial management, policy management, management information systems, and licensing/enforcement.

Follow-up audits at six agencies showed that 63 percent of our previous recommendations had been implemented, 28 percent had been partially implemented, and 9 percent had not been implemented.

The 12 small agencies at which we conducted management control audits or follow-up reviews collectively received approximately $66 million in appropriations and employed 1,173 full-time equivalent employees in fiscal year 1997.

Key Facts and Findings

In our reviews of six regulatory agencies, three agencies (50 percent) had weaknesses in licensing, inspections, and enforcement. These agencies are the Board of Barber Examiners, the Texas Racing Commission, and the Texas Funeral Service Commission. In addition, the governing boards of the Board of Barber Examiners and the Texas Funeral Service Commission did not fully comply with applicable laws and policies.

Our management control reviews show that five of six agencies need to strengthen controls over human resources (the Fair Labor Standards Act, employee selection procedures, performance appraisal systems, job descriptions, and training).

Three of the agencies need to improve controls over financial management (cash receipts, travel vouchers, fixed assets, and purchasing).

Three of the agencies need to strengthen controls over management information systems (disaster recovery planning, access to automated information systems, and management information).

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