Summary of Report 97-361

Report Number 97-361

June 1997

Overall Conclusion

The internal audit function at the Texas Department of Criminal Justice (Department) met minimum criteria to be effective for the period reviewed. Recommendations to improve the internal audit function's effectiveness were made in six criteria.

The Department has taken positive steps to improve the internal audit function since June 1996. The risk assessment process used to evaluate auditable areas has been revised. The new process will provide management with better documented information about auditable units. This should enhance management's ability to identify the auditable units with the most risk.

A change in the reporting of information to the Board of Criminal Justice (Board) has also been implemented. Board management has changed a policy which limited the Internal Audit Division's (Internal Audit) ability to report recommendations to audit findings. The Board currently receives information on both findings and recommendations.

Prior to June 1996, actions by Department management may have impaired the overall effectiveness of the internal audit function. Although management's participation in managing the internal audit function is imperative, some management actions may have been inappropriate:

Documentation does not exist to support why unscheduled audits were substituted for other audits in the audit plan. Audits of purchasing controls and contract monitoring were included in the fiscal year 1995 annual plan. Both audits were suspended due to a request by executive management for an audit not originally included in the audit plan.

Four to seven internal audit positions have been vacant for extended periods of time because of a lack of sufficient space to house the staff.

The internal audit function met minimum requirements in seven of eight effectiveness criteria developed from the Texas Internal Auditing Act. However, the function could improve in five effective criteria and may have been ineffective in one of the criteria prior to June 1996.

Texas Department of Criminal Justice has made the following changes to improve the internal audit function:

A new Director of Internal Audit was named effective June 1, 1996.

In May 1996, two special projects were initiated to address procurement and contract monitoring.

The Department participated in a joint project with the State Auditor's Office to address departmental issues.

The risk assessment process has been improved to include executive and operational managers to better identify auditable activities, potential for loss or risk, and opportunities to achieve benefits in effectiveness and efficiency of programs.

Contact the SAO about this report.

Download the PDF version of this report. (.pdf)

HTML Equivalent (utilizing Adobe's PDF Conversion by Simple Form).