A Follow-up Audit Report on the Department of Transportation's Financial Forecasting and Fund Allocation Page: 2 of 22
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8
tate
editor's
A Follow-up Audit Report on
John Keel, CPA The Department of Transportation's
State Auditor Financial Forecasting and Fund Allocation
SAO Report No. 10-039
August 2010
Overall Conclusion
The Department of Transportation
(Department) has fully or substantially Background Information
implemented 14 (78 percent) of 18 The State Auditor's Office issued An
recommendations in An Audit Report on the Audit Report on the Department of
Department of Transportation's Financial Transportation's Financial Forecasting
Forecasting and Fund Allocation (State and Fund Allocation (Report No. 08-045)
in August 2008. Of the 18
Auditor's Office Report No. 08-045, August recommendations in that report:
2008). That audit report cited weaknesses - 9 have been fully implemented. The
related to the Department's processes over (1) Department has taken all actions to
managing internal communications and implement those recommendations.
preparing external reports; (2) approving 5mpavemented The Department has
amounts available for construction contract taken the majority of actions
awards; (3) preparing, reviewing, and necessary to implement those
communicating its cash forecast reports; and recommendations.
comncaigthe effect on district offices 3 are incomplete or ongoing. The
(4) communicating Department has taken some action to
when other district offices accelerate implement those recommendations,
construction projects. but that action is not sufficient to
show substantial progress toward
completion.
Because its construction projects last for many 1 1 is undetermined. Auditors could
years, the Department forecasts its cash not identify an opportunity for the
balances for the current fiscal year and the Department to have demonstrated its
next 11 fiscal years to ensure that its future implementation of the
nextrecommendation.
expenditures will not exceed its anticipated
revenues. The Department uses a cash forecast
system to produce reports of projected
revenues, expenditures, and cash balances. Those reports are the Department's
primary tool for identifying projected cash shortages. The Department avoids
projected cash shortages by adjusting contract awards or other expenditures to
reach the desired cash level.
Since the 2008 audit, the Department has implemented policies and procedures
related to its construction contract award and cash forecast processes, and it has
formalized its communication with district offices when construction projects are
accelerated. It has also improved transparency by adding monthly workshops to
most meetings of the Texas Transportation Commission and by posting briefing
documents for Texas Transportation Commission meetings on its Web site.
The Department's new cash forecast system is not yet fully operational. The
Department anticipates that the new system will automate several manual
This audit was conducted in accordance with Texas Government Code, Section 321.0131.
For more information regarding this report, please contact Sandra Vice, Assistant State Auditor, or John Keel, State Auditor, at (512)
936-9500.
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Texas. Office of the State Auditor. A Follow-up Audit Report on the Department of Transportation's Financial Forecasting and Fund Allocation, report, August 2010; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth518235/m1/2/: accessed June 20, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.