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An Audit Report on Selected Financial Transactions and Financial Reporting at the Texas Emergency Services Retirement System

December 2021

Summary Analysis

The Texas Emergency Services Retirement System (System) accurately collected, accounted for, and reported local contributions made by participating departments to its pension fund, which provides retirement benefits for volunteer firefighters and emergency services personnel in Texas. However, the System should strengthen its processes for monitoring, documenting, and recording pension fund transactions; and following up on late payments.

 Jump to Overall Conclusion

For fiscal years 2019 through 2021, the System collected $10.7 million in pension fund contributions from participating departments. Documentation for entries in the Uniform Statewide Accounting System (USAS) generally supported that the System appropriately received and deposited those contributions. In addition, the contribution payments due from each participating department for those three fiscal years, as calculated by the TESRS Online system (TOL), were accurately recorded in the System’s internal accounting system, MIP Fund Accounting (MIP). The System also reported contributions as required.

Jump to Chapter 1-A 

The System did not (1) implement adequate segregation of duties among its financial staff, (2) adequately establish and document accounting staff responsibilities, (3) implement monitoring processes over pension fund transactions, or (4) adequately document certain pension fund transactions. As a result of the weaknesses discussed in this chapter, the System inaccurately recorded some transactions in its internal accounting system.

Jump to Chapter 1_B 

The System bills participating departments for monthly contributions every six months. For those semiannual bills, the System had a process in place to ensure that the participating departments were invoiced and those invoices were supported and accurate. However, the System did not have documented processes for following up on late payments.

Jump to Chapter 2 

Graphics, Media, Supporting documents

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