A Legislative Summary Document Regarding Building and Procurement Commission Page: 4 of 7
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Texas Building and Procurement Commission
SAO Contact: Nick Villalpando
(512) 936-9500
Network (TEX-AN) and the Capitol Complex Telephone System (CCTS) was understated by at least $5.3 million on GSC's
fiscal year 2001 internal balance sheets for these two systems. GSC was abolished effective September 1, 2001, and the
newly created Texas Building and Procurement Commission (TBPC) subsequently assumed most of its responsibilities.
These errors unnecessarily complicated the transfer of the management of TEX-AN and CCTS to DIR. Therefore, DIR's
ability to make timely management decisions regarding TEX-AN and CCTS was limited because of uncertainty about the
accuracy of the financial data GSC provided.
The errors in the TEX-AN balance sheet also impaired GSC's ability to manage this program as a cost recovery program.
The adjusted TEX-AN balance sheet shows that GSC financed TEX-AN's reported loss of $9.5 million in fiscal year 2001
largely by spending cash left over from fiscal year 2000. Project delays, poor vendor performance, and GSC management
decisions associated with an upgrade to TEX-AN telecommunications systems were major contributing factors in TEX-AN's
fiscal year 2001 loss. TEX-AN still had a net equity (the amount by which assets exceed liabilities) of $2.1 million at the end
of fiscal year 2001.
An Audit Report on Procurement Card Processes and Controls
(Report No. 02-022, February 2002) Status of Audit Recommendations as of
November 30, 2002 (unaudited)
The Texas Building and Procurement Commission (TBPC) has not actively
managed the contract between the State and the vendor bank that provides TBPC has reported the following:
procurement cards. The lack of contract management has cost the State money, Partially implemented 2
but omissions in the contract make it impossible to determine how much. Has other explanatory information 1
Total recommendations 3
TBPC did not maintain a copy of the complete procurement card contract or
track contract changes. The parts of the contract that we were able to review lacked sufficient detail to hold the vendor
accountable. Because TBPC did not manage the contract well, the vendor may have given state agencies and universities
misleading information and may have underpaid or delayed paying the annual rebate due to the State. TBPC has been
working to address these problems. A new contract will be negotiated this year.
TBPC could help agencies develop and implement effective controls over their procurement card programs. TBPC should
also use available data on procurement card purchases to improve its volume buying ability.
Performance Management
Performance Indicators Used by Management
The Texas Building and Procurement Commission (TBPC) uses the Legislative Budget Board's (LBB) measures to
determine whether it is achieving its mission. However, TBPC's goals, strategies, and performance measures do not align
with its current statutory responsibilities. As a result, TBPC has revised its entire budget structure, including its mission,
philosophy, goals, objectives, strategies, and performance measures. The revised budget structure becomes effective in the
fiscal year 2004-2005 budget cycle.
Of the 27 LBB performance measures in effect for fiscal year 2001, TBPC did not meet the targets for 25 (93 percent).
TBPC asserts that the performance measures used by previous management did not provide sufficient information to
determine whether TBPC was meeting legislative expectations. As a result, TBPC has revised the performance measures.
The new measures will not be in effect until the 2004-2005 biennium.
Two existing goals will be replaced with five goals that more closely reflect TBPC's primary statutory responsibilities. The
new measures developed by TBPC have been approved by the LBB and the Governor's Office of Budget and Planning.
January 2003 SAO No. 03-307
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Texas. Office of the State Auditor. A Legislative Summary Document Regarding Building and Procurement Commission, report, February 2003; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth517583/m1/4/?rotate=270: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.