Texas Workforce Commission

Transcription

1 Fiscal Year Annual Audit November

2 TWC Mission Statement The mission of the OIA is to enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight to the Commission and agency management. TWC Commission Andres Alcantar, Chairman Ruth R. Hughs, Commissioner Representing Employers Julian Alvarez, Commissioner Representing Labor Ashley Sagebiel, CIA, CGAP, Director of ternal Audit Susan Cunningham, CISA, Audit Manager Luis Solis, CGAP, CRMA, Audit Manager Sheryl Walton, Executive Assistant Michael Boehme, CIA Terry Harris, CPA Michelle Joseph, CPA John Kim Harold Rogers, CIA, CISA Juan Sanchez, CGAP Ron Titus, CISA

3 Fiscal Year Annual Audit 1 Table of Contents I. Compliance with Title 10, Texas Government Code, Section : Posting the ternal Audit Plan, ternal Audit Annual, and Other Audit formation on ternet Web Site... 2 II. ternal Audit Plan for Fiscal Year... 3 III. Consulting Services and Nonaudit Services Completed... 8 IV. External Quality Assurance Review (Peer Review)... 9 V. ternal Audit Plan for Fiscal Year Performance Audits Performance Audits - Continued Carry Forward Projects Carry Forward Projects Continued VI. External Audit Services Procured in Fiscal Year VII. ing Suspected Fraud and Abuse... 13

4 Fiscal Year Annual Audit 2 I. Compliance with Title 10, Texas Government Code, Section : Posting the ternal Audit Plan, ternal Audit Annual, and Other Audit formation on ternet Web Site The Commission approved the Fiscal Year 2018 Audit Plan on September 5,. The Office of ternal Audit (OIA) posted the approved plan to the s, Plans, and Publications page of the TWC s ternet website on September 8,. The TWC OIA will post the Fiscal Year Annual Audit to the s, Plans and Publications page of the TWC s ternet website within 30 days after the report s submission to the Commission and other recipients. The organizational format of the report and the information provided in the report will comply with the State Auditor s Office Fiscal Year Guidelines for Submitting and Posting the ternal Audit Annual and Periodic ternal Audit s.

5 Fiscal Year Annual Audit 3 II. ternal Audit Plan for Fiscal Year The s list of planned audits for fiscal year follows in the table below. The table provides project numbers, report dates, project titles, and whether the audits were completed. If an audit was not completed, the table states the current status of the audit as of the submission of the report. If applicable, the table also provides brief explanations for any deviations from the fiscal year audit plan. Project Number Date Project Title and Objective Contract Administration - to perform an internal control review of Contract Administration. Consumer Procurement Services - to assess the quality of operations and to determine the status of corrective actions taken by management to address prior issues reported in DARS internal audit Administrative Procurement Services - to evaluate the efficiency and effectiveness of Administrative Procurement Services. Consumer Services - to evaluate departmental operations of Consumer Services and to determine the status of corrective actions taken by management to address prior issues reported in DARS internal audit Current Status Merged Merged Cancelled Deviations from Plan Combined with Statewide itiatives ( ) Renamed Controls Over Procurement for Vocational Rehabilitation Customers; Follow-up portion was performed separately (a) Combined into Controls Over Procurement for Vocational Rehabilitation Customers ( ) Departmental Reorganization; Redefined objective in FY18 Audit Plan - VR Division Oversight Processes; Follow-up portion was performed separately

6 Fiscal Year Annual Audit 4 Project Number Date Sept 4 March June Project Title and Objective Rehabilitation Services Operations - to evaluate departmental operations of Rehabilitation Services Operations. Vocational Rehabilitation Systems - to evaluate the controls over the change management process for vocational rehabilitation systems. Vocational Rehabilitation Contract Oversight - to determine compliance with enabling statutes. Warehouse Fleet Operations - to evaluate the controls over fleet operations. Unemployment surance (UI) Systems - to analyze access management controls for the UI Tax and Benefits systems. Criss Cole Rehabilitation Center - to perform a physical security review of the Criss Cole Rehabilitation Center. Budget Controls - to perform an internal control review of budget processes. Strategic Workforce itiatives - to evaluate the effectiveness of strategic initiatives. Board & Special itiatives Contracts - to evaluate the efficiency and effectiveness of new Board & Special itiatives Contracts processes. Subrecipient Monitoring - to evaluate departmental operations of Subrecipient Monitoring. Lease Management - to evaluate the effectiveness of lease management. Consumer Complaints - to evaluate the efficiency and effectiveness of the consumer complaints process Current Status Merged Cancelled Merged Cancelled Deviations from Plan Combined into Controls Over Procurement for Vocational Rehabilitation Customers ( ) Renamed Statewide itiatives Combined with Statewide itiatives ( ) Cancelled due to staff shortage and hiring freeze Renamed Customer Complaints

7 Fiscal Year Annual Audit 5 Project Number Date Jan April May Dec Feb Dec 2016 Nov 2016 Jan Project Title and Objective Separations and Transfers - to evaluate administrative and access controls over separation and transfer processes Follow-Up of TAA Reauthorization - to Follow-Up of Fraud Determination - to Follow-Up of IT Governance - to determine the status of corrective actions taken by management to address prior issues reported in internal audit project and DARS internal audit project Follow-Up of Hiring Process - to determine the status of corrective actions taken by management to address prior issues reported in internal audit project Follow-Up of PII Physical Security - to Follow-Up of Records Retention - to Follow-Up of Field Tax Controls - to Follow-Up of Commission Appeals - to Current Status Deviations from Plan

8 Fiscal Year Annual Audit 6 Project Number Q M P J L Date May Nov 2016 Sept March March Project Title and Objective Follow-up of Collections Processes - to Follow-Up of Contracting Processes - to Follow-Up of Workforce formation Systems Change Controls - to determine the status of corrective actions taken by management to address prior issues reported in internal audit project Follow-Up of Administration of Business Enterprises of Texas Trust Fund - to issues reported in DARS internal audit project Follow-Up of Contract Management of the Community Rehabilitation Programs in the Division of Rehabilitation Services - to issues reported in DARS internal audit project Follow-Up of Division for Blind Services dependent Living Program - to determine the status of corrective actions taken by management to address prior issues reported in DARS internal audit project Follow-Up of Controls Over Due Process Hearings - to determine the status of corrective actions taken by management to address prior issues reported in DARS internal audit project Current Status Deviations from Plan

9 Fiscal Year Annual Audit 7 Project Number Date Sept April Jan Dec 2016 May April Dec 2016 May K Feb Feb July (a) March (b) June (c) Aug Project Title and Objective Follow-Up of Business Enterprises of Texas - to determine the status of corrective actions taken by management to address prior issues reported in DARS internal audit project Child Care Automated Attendance System to analyze the impact of the new system on the child care program. Career Schools and Colleges to evaluate internal controls in the Career Schools and Colleges program. CATS IT Controls to conduct an applications control review of the CATS System. IT Procurement Controls to determine whether TWC incorporates recommended controls into the framework of its ethics program and whether management expectations for ethical behavior are understood by agency employees. Adult Education & Literacy Systems - to assess controls over data integrity for the Adult Education and Literacy information systems (TEAMS and AEGIS). Purchasing for People with Disabilities to determine if the agency is in compliance with enabling statues. Tax Collections Process to evaluate the efficiency and effectiveness of the tax collections process Follow-up of Work Opportunity Tax Credit Follow-up of DRS Vocational Rehabilitation Program Follow-up of Data Sharing Controls Review Quarterly Follow-up of Open Findings (a) Quarterly Follow-up of Open Findings (b) Quarterly Follow-up of Open Findings (c) Current Status Deviations from Plan Added to Plan Added to Plan Added to Plan Added to Plan Added to Plan Added to Plan

10 Fiscal Year Annual Audit 8 III. Consulting Services and Nonaudit Services Completed A list of consulting and nonaudit services completed by the Office of ternal Audit during fiscal year follows in the table below. The table provides project or report numbers, report dates, project name titles, and the high-level objective of each project, if applicable. The table also provides summaries of observations, results, and recommendations, if applicable. Project Number N/A Project Name Date N/A Monitoring, Meetings, and Committees High-Level Project Objective To participate in an observatory and advisory role in various meetings throughout the agency. N/A N/A SAO Hotline To perform reviews of an allegation of suspected fraud, waste, abuse, or inefficient operations, as required by the Texas Government Code, Section (d), that had been referred to the TWC OIA by the State Auditor's Office N/A N/A N/A N/A Jan Dec Dec External Quality Assurance Review Peer Review of DIR Peer Review of DSHS N/A BEST Team Quarterly Meetings To determine if OIA is conforming with applicable professional standards and the Texas ternal Auditing Act. To determine if DIR IA is conforming with applicable professional standards and the Texas ternal Auditing Act. To determine if DSHS IA is conforming with applicable professional standards and the Texas ternal Auditing Act. To participate in an observatory role in these meetings held to discuss IT projects. Observations, Results, and Recommendations formation is monitored on an ongoing basis to ensure risks are appropriately addressed when identified. Perform audit work to address allegations in any complaints forwarded from the State Auditor s Office. s provided to SAO Office of vestigations. TWC OIA received a rating of Pass/Generally Conforms and is in compliance with Auditing Standards and the IA Act. formation is monitored on an ongoing basis to ensure risks are appropriately addressed when identified.

11 Fiscal Year Annual Audit 9 IV. External Quality Assurance Review (Peer Review)

12 Fiscal Year Annual Audit 10 V. ternal Audit Plan for Fiscal Year 2018 Performance Audits Auditable Units Vocational Rehabilitation - Evaluation & Support Services Vocational Rehabilitation - Field Services Delivery Vocational Rehabilitation - Blind Services Field Support/Policy Development, Quality Assurance and Program Evaluation Business Operations/ Workforce Development/ UI and Regulation/ Vocational Rehabilitation formation Technology Application Development & Maintenance Agency-wide Agency-wide Operational sights/ Workforce Development/ Unemployment surance and Regulation Agency-wide Objectives Compliance Review of Evaluation & Support Services to determine whether functions in Evaluation & Support Services are in compliance with relevant statutes and guidelines. A Review of Case Management in Field Services Delivery to review case management processes to ensure effectiveness and timeliness of delivery of direct services programs. VR Division Oversight Processes - to review Vocational Rehabilitation oversight processes and the elimination in duplication of efforts. Controls Over Maintenance in Agency Owned Buildings to determine whether there are controls in place to ensure that agency owned buildings are being properly maintained. Review of Small Application Portfolio Management to evaluate the effectiveness of the IT governance structure to determine whether IT decisions, directions and performance support the organization s strategies and objectives. Compliance with IT Standards and Guidelines - to determine whether IT activities that are occurring outside of the IT division comply with the standards and guidelines established by the IT division. ventory Audit to evaluate the process in place to ensure the existence and completeness of agency assets. Data tegrity Audit are controls in place to ensure the integrity of data used by Division of Operational sight. Accessibility Compliance to review processes in place to monitor and enforce agency compliance with accessibility policies and whether agency policies align with federal/state accessibility requirements. Budget Hours

13 Fiscal Year Annual Audit 11 Performance Audits - Continued Auditable Units Unemployment surance and Regulation- Central Tax Operations Civil Rights Employer itiatives Skills Development Outreach Finance Payables and Payroll Agency-wide Agency-wide Carry Forward Projects Auditable Units Vocational Rehabilitation/ Business Operations/ Regulatory tegrity Regulatory tegrity Division Sub-recipient Monitoring formation Technology - Application Development & Maintenance Finance Budget & Financial Systems Support Business Operations Warehouse Operations Agency-wide Objectives Post RPI Assessment: Tax Adjustment Backlog - to verify the accuracy and appropriateness of RPI outcomes. Post RPI Assessment: Civil Rights Division to verify the accuracy and appropriateness of RPI outcomes. Skills Development Review to review the efficiency and effectiveness of skills development processes and operations. Accuracy and Timeliness of Payments to evaluate controls in place for ensuring the accuracy and timeliness in paying the agency s obligations. Follow-Up Projects to determine the adequacy and effectiveness of corrective actions taken by management to address reported audit findings. Commission Requests - additional projects requested by the Commission. Objectives Controls over Procurement for VR Customers - to evaluate the state office oversight over the procurement process for vocational rehabilitation (VR) customers receiving direct service in VR regional field offices across the state. Sub-recipient Monitoring - to evaluate departmental operations of Subrecipient Monitoring. Vocational Rehabilitation Systems - to evaluate the controls over the change management process for vocational rehabilitation systems. Budget Controls - to perform an internal control review of budget processes. Warehouse Fleet Operations - to evaluate the controls over fleet operations. Separations and Transfers - to evaluate administrative and access controls over separation and transfer processes and to determine the status of corrective actions issues reported in DARS internal audits and Budget Hours Budget Hours

14 Fiscal Year Annual Audit 12 Carry Forward Projects Continued Auditable Units Workforce Development/ Regulatory tegrity Division formation Technology/ Workforce Development Objectives Collections Processes Follow-Up - to determine the status of corrective actions taken by management to address prior issues reported in internal audit # Workforce formation Systems Change Controls Follow-Up - to determine the status of corrective actions issues reported in internal audit # Budget Hours addition to planned audit and non-audit services, ternal Audit has ongoing responsibilities, which include: Annual ternal Audit issuance Annual Risk Assessment and Audit Plan development Commission and Management briefings on reports TeamMate, website, and database maintenance Annual Quality Self-Assessment Quarterly Open Findings Assessment Professional development Data analysis Project Wrap-up and ing General Appropriations Act Limitations and Restrictions and Senate Bill 20 Projects that address benefits proportionality, expenditure transfers, capital budget controls, or any other limitation or restriction in the General Appropriations Act: No projects are scheduled Projects that address contract management and other requirements of Senate Bill 20: Controls over the Procurement for VR Customers Case Management in Field Service Delivery Skills Development Review Additional High Risks Not cluded in the Fiscal Year Audit Plan The utilizes a weighted ranking in its risk assessment methodology. The Fiscal Year 2018 Audit Plan includes all risks that were identified with a high weighted ranking.

15 Fiscal Year Annual Audit 13 Risk Assessment Methodology The (TWC) allocates its resources in a manner that is consistent with the mission and goals of the TWC. To support the TWC s mission, audit coverage is considered across the agency. The audit plan is designed to provide coverage of key business processes. Risk is assigned based on research related to each risk area as well as input from Commissioners and agency management. The following key factors were considered to assess risk and develop the audit plan: Commission and Management terest Program and formation Technology Changes or Concerns Critical Nature of the Business Function to the Mission of the Agency Strength of ternal Controls Staff Turnover and Retirement Prior Audit Coverage Potential for Fraud VI. External Audit Services Procured in Fiscal Year During Fiscal Year, the did not procure or have any ongoing external audit services. VII. ing Suspected Fraud and Abuse The Office of vestigations conducts inquiry and investigative services pertaining to allegations of fraud, theft, program abuse, or misconduct. The Office of vestigations reports cases of suspected fraud and coordinates with the State Auditors Office as required by Article IX, Section of the General Appropriations Act (84 th Legislature) and the Texas Government Code, Section The agency lists its fraud hotline number on the TWC ternet site. The ternet site also contains a link to report fraud directly to the State Auditor s Office.