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TAHC audit subcommittee approves internal audit reports and adopts FY2026 risk‑based plan
Summary
The Texas Animal Health Commission audit subcommittee approved follow‑up audit reports for cash disbursements, fixed assets, and prior recommendations and voted to adopt a risk‑based FY2026 internal audit plan that prioritizes procurement and follow‑ups and outlines a four‑year schedule including IT and disaster recovery audits.
The Audit Subcommittee of the Texas Animal Health Commission approved several internal audit follow‑ups and adopted a risk‑based internal audit plan for fiscal year 2026 at a committee meeting.
Monday Rufus, of the CPA firm Monday Rufus and Co. PC, presented follow‑up results for the commission’s cash disbursements audit, reporting that “there were about 13 findings, 11 of them fully implemented and 2 partially implemented,” and said the firm will continue to monitor implementation. The committee moved and voted to accept that follow‑up report.
Rufus also presented the results of an internal audit of fixed assets (reported “as of 08/27/2025”), saying the commission generally has controls in place but that controls could be strengthened. He said auditors tested a sample of 25 items from a population of 802 and noted that three sampled items “did not have matching serial numbers” in the asset system, recommending that management implement input and review controls to verify serial numbers and other asset details at the time of entry. The committee voted to approve the fixed assets audit as presented.
Rufus reviewed the status of prior recommendations for program records management (original audit dated 08/31/2021) and legal and compliance (audit dated 10/25/2023), stating the program records recommendation was partially implemented while the legal and compliance recommendation was fully implemented. The subcommittee approved the follow‑up report.
Rufus summarized the fiscal year 2025 internal audit annual report, noting that it meets the requirements of Texas Government Code section 2.102.015 by summarizing audits completed during the fiscal year and including required disclosures about fraud, quality assurance, and the audit plan. Miss Sherman moved to approve the FY2025 annual report and the committee voted to accept it.
A new internal auditor (presenter not named in the transcript) outlined the committee’s risk assessment methodology and a four‑year internal audit plan built from inherent‑risk ratings. The presenter said the FY2026 plan prioritizes an audit of the procurement cycle (including purchasing cards or “p‑cards”), follow‑ups on open audit findings, and annual reporting obligations. The multi‑year plan identifies purchasing cards and physical asset management for 2027, information technology services and personnel training for 2028, and disaster recovery, business continuity and animal disease response for 2029.
Commissioners asked for clarifications about the p‑card program (physical versus virtual cards, monitoring and state rebate reporting) and the status of the open fixed assets finding; the presenter said the p‑card review will examine usage and controls and that follow‑ups will target only findings still open as of the date of the follow‑up. The subcommittee voted to approve the risk assessment and the FY2026 internal audit plan.
The chair noted there were no public comments and adjourned the meeting at 08:30.
Next steps: the approved FY2026 plan will be brought back annually for refresh and approval as the auditors reassess inherent risks and the committee conducts follow‑ups on any remaining open findings.
