A Performance Audit
An Audit Report on The Office of Consumer Credit Commissioner: A Self-directed, Semi-independent Agency
March 2022
Summary Analysis
The Office of Consumer Credit Commissioner (Office) has established controls and processes to accurately report financial and performance data. It set its fiscal year 2021 fees as part of its budget process. Those fees and penalties assessed by the Office were within limits set by statute and applicable rules.
The Office performed reconciliations and maintained appropriate controls over processing receipts. These controls helped ensure that the Office's fiscal year 2021 annual financial report was mathematically accurate and internally consistent. In addition, the annual financial report accurately reported License and Fee transactions, Cash in Treasury, Cash Equivalents, Investments, Net Increase in Fair Value, and Fund Balances.
The Office's budget was designed to keep the Office in compliance with the Finance Commission's rules for liquidity. However, the Office ended fiscal year 2021 with unreserved cash balances in excess of limits set by Finance Commission policy. These cash balances were higher than expected because the Office spent $1.7 million less than it budgeted, largely due to factors related to the COVID-19 pandemic.
The Office generally has automated processes and related controls that help ensure the accuracy and completeness of its data. However, the Office inconsistently processes change management requests.
The Office of Consumer Credit Commissioner (Office) had processes and related controls that were effectively designed, in place, and operating to help ensure the accuracy and completeness of its financial data. The Office performed reconciliations and maintained appropriate controls over processing receipts. These controls helped ensure that the Office's fiscal year 2021 annual financial report is significantly and mathematically accurate.
In addition, the Office submitted its biennial and annual reports to the Legislature and the Governor, as required.
The Office reported accurate results for the two performance measures tested in its reports to the Finance Commission of Texas (Finance Commission) for fiscal year 2021. The two performance measures tested were:
- Monies Returned to Consumers.
- Number of Complaints Closed.
The Office set its fiscal year 2021 fees as part of its budget process. The Office set these fees and assessed penalties during fiscal year 2021 within limits set by statute and applicable rules.
The Office's budget was designed to keep the Office in compliance with the Finance Commission's rules for liquidity. However, the Office ended fiscal year 2021 with unreserved cash balances in excess of limits set by Finance Commission policy. These cash balances were higher than expected because the Office spent $1.7 million less than it budgeted, largely due to factors related to the COVID-19 pandemic.
The Office generally has automated processes and related controls that help ensure the accuracy and completeness of its data. However, the Office inconsistently processes change management requests.
The Office implemented certain information technology controls recommended in previous audits, including:
- Implementing formal user access reviews for its directories and automated systems. The Office's management stated that these reviews are performed twice each year. These controls performed as designed.
- Strengthening user access controls in the Office's Application Licensing Examination Compliance System (ALECS).
- Documenting the job duties of information technology staff.
Graphics, Media, Supporting documents