A Performance Audit
An Audit Report on Angelo State University’s Compliance with Requirements Related to the Historically Underutilized Business and State Use Programs
November 2018
Summary Analysis
Angelo State University (University) did not comply with Historically Underutilized Business (HUB) subcontracting monitoring requirements. The University compiled and maintained its HUB expenditures as required and reported those expenditures to the Office of the Comptroller of Public Accounts (Comptroller’s Office) within the required timeframes. However, the University did not accurately report certain HUB activities.
The University complied with certain statutes, rules, and Comptroller’s Office requirements related to HUB planning and outreach.
The University substantially complied with purchasing requirements; however, it should strengthen its documented policies and procedures for the State Use Program to ensure full compliance with State Use Program requirements. From September 1, 2016, through February 28, 2018, the University did not report any exceptions from the State Use Program to the Comptroller’s Office as required.
The University should improve its information technology controls, such as its user access management and change management processes for its financial accounting system, to help ensure accurate HUB information.
The University did not effectively monitor its contractors’ adherence to HUB subcontracting monitoring requirements. Specifically, the University did not consistently obtain (1) required monthly HUB Progress Assessment Reports or (2) complete (or updated) HUB subcontracting plans from contractors.
The University compiled and maintained its HUB expenditures as required and reported those expenditures to the Comptroller’s Office within the required timeframes. However, the University did not accurately report certain HUB activities to the Comptroller’s Office from September 1, 2016, through February 28, 2018. Specifically, the University uploaded invalid HUB vendor information associated with the HUB subcontracting expenditures it reported, and it did not accurately report supplemental data regarding HUB bids received and total contracts awarded.
From September 1, 2016, through February 28, 2018, the University complied with HUB planning and outreach requirements.
From September 1, 2016, through February 28, 2018, the University complied with the purchasing requirements of the State Use Program for some purchases it made with state-appropriated funds. However, the University should strengthen its processes to achieve full compliance with State Use Program requirements.
The University did not report any of its State Use Program purchase exceptions made from state-appropriated funds to the Comptroller’s Office and the Texas Workforce Commission as required.
The University should improve its information technology system controls over user access management and change management processes for its financial accounting system.
The University authorized changes to the financial accounting system in compliance with University policy. Additionally, it limited access to update the system in the production environment to individuals whose job duties required such access while maintaining an adequate segregation of duties.
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