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Internal auditors find controls generally effective but flag investment reporting discrepancies
Summary
McConnell Jones presented audits of procurement and the agency's compliance with the Public Funds Investment Act, finding generally effective controls but a discrepancy in investment holding reports and several opportunities for improved reporting.
McConnell Jones, the commission's internal auditor, reported to the Texas Real Estate Commission that procurement controls were rated "generally effective" and that compliance with state competitive solicitation requirements showed no findings. The audit firm recommended nonbinding improvements such as a dashboard for procurement metrics and a management‑review signature on procurement checklists.
Liz Myers of McConnell Jones told commissioners the public funds investment audit — performed under the Public Funds Investment Act — also rated controls "generally effective" but identified a single finding in investment reporting. "The investment holding reports for the funds ... contained discrepancies when compared to the Texas Treasury safekeeping trust company statements," Myers said, listing differences in reported cash receipts and disbursements, purchase dates and purchase amounts.
Myers recommended the investment officer's review and sign‑off process be strengthened to verify all dates and amounts, and suggested two opportunities for clarity: separate line items for sources of monthly beginning cash balances on staff holdings reports, and certifying investment holding reports quarterly for presentation to the commission rather than monthly.
Myers also presented a follow‑up noting one previously open finance finding — a mismatch between the agency's budget report and the comptroller's USAS report — has been resolved through direct work with the comptroller's office. She said additional open findings related to IT remain under follow‑up and will be presented at a future meeting.
Commissioners asked whether the audit included checks on required investment training and policy compliance; Myers said the audit reviewed training, reconciliations and compliance with the commission's investment policy and found no policy‑level findings.
The commission received the audit report and auditors answered questions; no formal action was taken at the meeting on the audit itself.
