A Performance Audit
An Audit Report on the Board of Public Accountancy: A Self-directed, Semi-independent Agency
December 2017
Summary Analysis
The Board of Public Accountancy (Board) had controls to accurately report financial data and appropriately set fees and assess penalties.
In addition, the Board had effective processes and related controls to help ensure that it administered its Fifth-year Accounting Student Scholarship Program in compliance with statutes and rules.
The Board also had a documented process for settings fees that was based on its budgetary needs, and it complied with statutes and rules when calculating license fees from September 1, 2015, through May 31, 2017. The Board also had a documented process to assess penalties consistently and in compliance with statutory requirements. However, the Board did not have documented policies and procedures for abating penalties for the late payment of license fees; as a result, it did not always document its decision to abate penalties for the late payment of license fees.
The Board should address certain weaknesses related to user access and change management. To minimize security risks, auditors communicated details about certain significant issues directly to the Board in writing. However, auditors did not identify any significant issues regarding the reliability of data in the Board's information systems.
The Board's fiscal year 2016 annual financial report was accurate, complete, and properly reported. The Board had effective financial processes and controls over revenues, expenditures, and other financial information to help ensure that it accurately reported key financial statement amounts. However, the Board should strengthen certain aspects of its financial reconciliations process.
The Board had effective processes and controls to help ensure that it administered its Fifth-year Accounting Student Scholarship Program in compliance with statutes and rules. However, it should strengthen certain processes within the program by 1) ensuring the accuracy of scholarship-related data entered into its AS/400 System, and 2) documenting its process for reallocating unexpended scholarship funds.
The Board had a documented process for setting fees, and it complied with requirements when it calculated license fees. However, the Board did not have documented policies and procedures for abating penalties for the late payment of license fees.
In addition, the Board had a documented process to assess administrative penalties, but its policies and procedures for calculating the administrative costs related to disciplinary matters did not reflect its actual process.
The Board complied with the SDSI reporting requirements of Texas Government Code, Section 472.104. However, in its required SDSI reports the Board did not accurately report results for the performance measure Average Time (in days) for Complaint Resolution.
Auditors did not identify any significant issues in the reliability of the data in the Board’s information systems. However, the Board should strengthen its information technology controls to address significant security risks that could affect the reliability of data used for reporting financial information and performance measure data. To minimize security risks, auditors communicated details about certain significant issues directly to the Board in writing.
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