A Performance Audit
An Audit Report on the Texas Facilities Commission’s Compliance with Requirements Related to the Historically Underutilized Business and State Use Programs
The Texas Facilities Commission (Commission) had processes to ensure compliance with Historically Underutilized Business (HUB) Program planning, outreach and reporting requirements. In addition, the Commission had processes in place to comply with most HUB-related requirements for procurement and contract monitoring.
The Commission generally complied with the Purchasing from People with Disabilities (State Use) Program requirements. However, it lacked a documented process to report exceptions.
The Commission should also strengthen certain controls over its information technology systems.
For fiscal year 2016, the Commission had processes in place to ensure compliance with all three planning requirements tested. For fiscal year 2016, the Commission had processes in place to ensure compliance with all four outreach requirements tested. For fiscal year 2016, the Commission complied with the three reporting requirements tested and reported accurate information to the Office of the Comptroller of Public Accounts (Comptroller’s Office) in a timely manner.
The Commission Conducted Its Procurement and Contract Monitoring Program in Compliance with Most HUB-related Statutes and Rules
The Commission requires contractors to submit a HUB subcontracting plan for all procurements with an expected value greater than $100,000. For the 13 contracts tested, the Commission consistently documented its justification when choosing a non-HUB vendor instead of a HUB vendor. The Commission complied with most HUB contractor and subcontractor reporting requirements. The Commission did not ensure that contractors submitted monthly Progress Assessment Reports, as required. However, the Commission required a completed Progress Assessment Report to be submitted with all requests for payment, and it did not process payments until after it has reviewed the Progress Assessment Report.
The Commission Generally Complied with State Use Program Reporting Requirements; However It Lacked a Documented Process to Report Exceptions
The Commission had a process to ensure that it complied with State Use Program requirements that included: (1) maintaining product-specific policies for procuring certain goods exclusively from TIBH Industries through the State Use Program, (2) requiring annual procurement training for its purchasers and (3) tracking and monitoring compliance with procurement statutory requirements. The Commission did not have a documented process to ensure that it reports all purchasing exceptions to the Comptroller’s Office and the Texas Workforce Commission as required. The Commission did not report any of the three purchase exceptions identified during testing, totaling $652.79 to the Comptroller’s Office and the Texas Workforce Commission.
Auditors identified weaknesses in the Commission’s controls over the change management processes for two systems. The Commission’s process for making changes to its financial accounting system and legal contracts database does not ensure proper segregation of duties. In addition, auditors determined that the data in the Commission’s legal contracts database was unreliable because of incomplete and inaccurate data.
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