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An Audit Report on Financial Processes at the Texas Ethics Commission

July 2023


The Texas Ethics Commission (Commission) did not administer all of its financial transactions in accordance with applicable requirements. Specifically, the Commission (1) purchased services for its Electronic Filing Software (EFS) system that it did not need at the time they were purchased, (2) made advance payments to its EFS vendor that were not allowed, and (3) inaccurately reported those purchases in its Annual Financial Report for fiscal year 2022. The Commission also did not report all of its EFS contracts to the Legislative Budget Board as required.

In addition, the Commission should improve its payroll function by ensuring adequate segregation of duties and by maintaining required documentation to support personnel actions. It should improve its revenue function by performing reconciliations and processing refunds of certain transactions in compliance with applicable requirements.