A Follow-up Audit Report on Unemployment Insurance Tax at the Texas Workforce Commission
September 2012
Report Number 13-001
Overall Conclusion
The Texas Workforce Commission (Commission) fully or substantially implemented all 11 of the recommendations that auditors selected for follow-up from An Audit Report on Unemployment Insurance Tax at the Texas Workforce Commission (State Auditor's Office Report No. 11-042, July 2011).
Of the six recommendations fully implemented:
- The Commission fully implemented four recommendations related to its tax audit process and system.
- The Commission fully implemented a recommendation that it properly review delinquent employer accounts before issuing a tax lien.
- The Commission fully implemented a recommendation related to its disposition of complaint referrals.
While the Commission has made significant progress in implementing the 11 prior audit recommendations selected for follow-up, it should continue its efforts to improve controls related to its delinquent employer contacts, tax audit reviews, and records retention schedule. Specifically:
- The Commission did not consistently contact delinquent employers within the time frames required by its policies and procedures.
- The Commission did not consistently ensure that tax audit results entered into its tax system were accurate and agreed with audit documentation.
- The Commission did not consistently document supervisory approval of tax audit rejections that its account examiners made. In addition, the tax examiners did not consistently include documentation in the Commission's tax system to support why they rejected a tax audit.
- The Commission had not completed updating its records retention schedule for documentation of payments from service agents.