table of contents for audit, compliance, and …internal audit plan for fiscal year 2010...
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TABLE OF CONTENTS FOR
AUDIT, COMPLIANCE, AND MANAGEMENT REVIEW COMMITTEE
R. Steven Hicks, Chairman Paul Foster Janiece Longoria Robert L. Stillwell
Committee Meeting: 11/11/2009
Board Meeting: 11/12/2009 Austin, Texas
Committee
Meeting
Board Meeting
Page
A. CONVENE 4:00 p.m. Chairman Hicks
1. U. T. System: Report on the Medical Billing Compliance work plan for Fiscal Year 2010
4:00 p.m. Report Mr. Plutko Dr. Wolf
Not on Agenda
55
2. U. T. System: Report on the U. T. Systemwide
Compliance Academy 4:10 p.m.
Report Mr. Plutko
Not on Agenda
64
3. U. T. System Board of Regents: Report on results of
the audits of funds managed by The University of Texas Investment Management Company (UTIMCO)
4:20 p.m. Report Mr. Tom Wagner, Deloitte & Touche
Not on Agenda
70
4. U. T. System Board of Regents: Approval of the U. T.
Systemwide Annual Internal Audit Plan for Fiscal Year 2010
4:28 p.m. Action Mr. Chaffin
Action
70
5. U. T. System: Report on the Systemwide internal
audit activities, including the preliminary results of the Presidential travel, entertainment, and housing expense audits and audits of financial controls at the institutional police departments; and Internal Audit Department reports for U. T. Health Science Center – San Antonio and U. T. El Paso
4:30 p.m. Report Ms. Carla Cashio, U. T. Health Science Center – San Antonio Mr. William Peters, U. T. El Paso Mr. Chaffin
Not on Agenda
74
6. U. T. System: Report on the progress and preliminary
results of the audits of the Fiscal Year 2009 U. T. System Administration and institutional Annual Financial Reports
4:37 p.m. Report Mr. Chaffin
Not on Agenda
104
i
ii
Committee
Meeting B. RECESS TO EXECUTIVE SESSION PURSUANT
TO TEXAS GOVERNMENT CODE, CHAPTER 551
Personnel matters relating to appointment, employment, evaluation, assignment, duties, discipline, or dismissal of officers or employees - Section 551.074 Discussion with institutional auditors and compliance officers concerning evaluation and duties of individual System Administration and institutional employees involved in internal audit and compliance functions
4:40 p.m. Report Mr. Plutko Ms. Carla Cashio, U. T. Health Science Center – San Antonio Mr. William Peters, U. T. El Paso Mr. Chaffin
C. RECONVENE IN OPEN SESSION TO CONSIDER ACTION, IF ANY, ON EXECUTIVE SESSION ITEM AND TO ADJOURN
5:00 p.m.
1. U. T. System: Report on the Medical Billing Compliance work plan for Fiscal Year 2010
REPORT Mr. Lawrence Plutko, Systemwide Compliance Officer, and Dr. CJ Wolf, Assistant Systemwide Compliance Officer, will report on the Medical Billing Compliance Advisory Committee work plan for Fiscal Year 2010 set forth on Page 56. Dr. Wolf’s PowerPoint presentation is on Pages 57 - 63.
55
TH
E U
NIV
ER
SIT
Y O
F T
EX
AS
SYST
EM
M
ED
ICA
L B
ILL
ING
CO
MP
LIA
NC
E A
DV
ISO
RY
CO
MM
ITT
EE
F
Y 2
010
WO
RK
PL
AN
PL
AN
OB
JEC
TIV
ES
AU
TH
OR
ITA
TIV
E G
UID
AN
CE
I.
RE
CO
VE
RY
AU
DIT
CO
NT
RA
CT
OR
(R
AC
) R
EA
DIN
ESS
•
Stud
y an
d m
ake
reco
mm
enda
tions
rega
rdin
g be
st p
ract
ices a
nd p
roce
dure
s fo
r pre
para
tion
and
resp
onse
to re
cove
ry a
udito
r act
ivity
. •
Dev
elop
a re
adin
ess c
heck
list a
nd im
plem
ent s
teps
at e
ach
inst
itutio
n.
• Co
llabo
rate
and
dev
elop
a m
echa
nism
of c
omm
unica
ting
reco
very
aud
it re
ques
ts a
nd a
ctio
ns.
• RA
C de
mon
stra
tion
proj
ect r
epor
t •
Cent
ers f
or M
edica
re a
nd M
edica
id S
ervi
ces
(CM
S)
• A
mer
ican
and
Texa
s Hos
pita
l Ass
ociat
ions
•
Conn
olly
Hea
lthca
re (R
AC
for T
exas
) •
Med
icare
Pre
scrip
tion
Dru
g, Im
prov
emen
t an
d M
oder
niza
tion
Act
(MM
A, 2
003)
•
Tax
Relie
f and
Hea
lth C
are
Act
(200
6)
• M
edica
id In
tegr
ity C
ontra
ctor
sII
. DA
TA
AN
AL
YT
IC P
RO
GR
AM
S •
Dev
elop
a st
rate
gy to
ana
lyze
high
risk
bill
ing
area
s thr
ough
dat
a an
alytic
te
chni
ques
. •
Perf
orm
ana
lytic
billi
ng re
view
s of t
he fi
ve a
reas
of c
once
rn sh
ared
by
the
Part
B Tr
ailBl
azer
Med
ical D
irect
or.
• E
licit
feed
back
on
othe
r hig
h ris
k ar
eas f
rom
add
ition
al pa
yors
such
as
Med
icare
Par
t A a
nd M
edic
aid a
nd d
evelo
p st
rate
gies
to a
ddre
ss th
ese
area
s.
• Tr
ailBl
azer
Med
ical D
irect
ors (
Part
A a
nd B
) •
Med
icaid
Med
ical D
irect
or
• O
ffice
of t
he In
spec
tor G
ener
al (O
IG)
Wor
k Pl
an
• CM
S D
ivisi
on o
f Dat
a A
nalys
is •
Med
icare
Pro
gram
Inte
grity
Man
ual C
h. 2
–
Dat
a A
nalys
isII
I. C
LIN
ICA
L T
RIA
L B
ILL
ING
•
Stud
y an
d m
ake
reco
mm
enda
tions
on
best
pra
ctice
s. •
Cond
uct e
ffect
iven
ess r
eview
s at e
ach
inst
itutio
n.
• N
atio
nal C
over
age
Det
erm
inat
ion
(NCD
) fo
r Rou
tine
Cost
s in
Clin
ical T
rials
(310
.1)
• A
ssoc
iatio
n of
Aca
dem
ic H
ealth
Cen
ters
•
Cent
ers f
or M
edica
re a
nd M
edica
id S
ervi
ces
IV.
CO
NT
INU
ING
ED
UC
AT
ION
•
Sche
dule
and
hold
at l
east
four
web
inar
/sem
inar
s on
billi
ng c
ompl
iance
to
pics
. •
Seek
app
rova
l for
con
tinui
ng e
duca
tiona
l uni
ts (C
EU
) for
all
sess
ions
.
• Co
nsen
sus o
f com
mitt
ee m
embe
rs
• O
IG W
ork
Plan
•
OIG
Com
plian
ce G
uida
nce
Doc
umen
ts
V.
MD
aud
it™
Sof
twar
e •
Prom
ulga
te O
ffice
of H
ealth
Affa
irs g
uidi
ng p
rincip
les fo
r use
of M
Dau
dit
Phys
ician
and
MD
audi
t Hos
pita
l. •
Cond
uct e
ffect
iven
ess r
eview
s of i
nstit
utio
nal u
se o
f MD
audi
t Phy
sician
. •
Cont
inue
as a
dev
elopm
ent p
artn
er in
MD
audi
t Hos
pita
l and
ana
lyze
usef
ulne
ss o
f the
pro
duct
for U
T in
stitu
tions
resp
onsib
le fo
r hos
pita
l bill
ing.
• O
IG C
ompl
iance
Gui
danc
e fo
r Phy
sician
Pr
actic
es a
nd H
ospi
tal G
uida
nce
• H
ayes
Man
agem
ent C
onsu
lting
•
Offi
ce o
f Hea
lth A
ffairs
Gui
ding
Prin
ciples
56
Mdi
lBill
iC
liM
edic
al B
illin
g C
ompl
ianc
e
CJ
Wol
fM
DC
J W
olf,
MD
Ass
ista
nt S
yste
mw
ide
Com
plia
nce
Offi
cer
Nb
2009
Boa
rd o
f Reg
ents
’
Nov
embe
r 200
9
Mee
ting
Aud
it, C
ompl
ianc
e, a
nd
Man
agem
ent R
evie
w
Com
mitt
eeC
omm
ittee
57
Med
ical
Bill
ing
Com
plia
nce
Adv
isor
yC
omm
ittee
Adv
isor
y C
omm
ittee
•M
edic
alB
illing
Com
plia
nce
Adv
isor
yM
edic
al B
illing
Com
plia
nce
Adv
isor
y C
omm
ittee
(MB
CA
C) i
s ch
arte
red
by th
e S
yste
mw
ide
Exe
cutiv
eC
ompl
ianc
eS
yste
mw
ide
Exe
cutiv
e C
ompl
ianc
e C
omm
ittee
•M
BC
AC
Mem
bers
hip:
•M
BC
AC
Mem
bers
hip:
Com
plia
nce
Offi
cer o
r des
igne
e fro
m e
ach
of th
e si
xhe
alth
inst
itutio
nssi
x he
alth
inst
itutio
nsM
embe
r fro
m U
T S
yste
m O
ffice
of H
ealth
Affa
irsM
bf
UT
St
idC
liO
ffi2
Mem
ber f
rom
UT
Sys
tem
wid
e C
ompl
ianc
e O
ffice
58
Expe
ctat
ions
p
The
MB
CA
Cis
expe
cted
to:
The
MB
CA
C is
exp
ecte
d to
:R
esea
rch
and
adop
t bes
t bill
ing
com
plia
nce
prac
tices
prac
tices
See
k co
nsis
tenc
y fo
r bill
ing
com
plia
nce
acro
ss
UT
Sys
tem
UT
Sys
tem
Exh
ibit
natio
nal l
eade
rshi
p in
bill
ing
com
plia
nce
Dev
elop
and
impl
emen
tan
annu
alw
ork
plan
Dev
elop
and
impl
emen
t an
annu
al w
ork
plan
Pro
vide
tim
ely
educ
atio
nal e
vent
sC
onve
neco
mm
ittee
atle
astq
uarte
rly
3
Con
vene
com
mitt
ee a
t lea
st q
uarte
rly
59
FY 2
010
Ann
ual W
ork
Plan
IR
ecov
ery
Aud
itC
ontra
ctor
Rea
dine
ssI.
Rec
over
y A
udit
Con
tract
or R
eadi
ness
II.D
ata
Ana
lytic
Pro
gram
sIII
Cli
ilT
ilB
illiIII
.Clin
ical
Tria
l Billi
ngIV
.Con
tinui
ng E
duca
tion
V.
MD
audi
t Sof
twar
e
4
60
Dat
a A
naly
tic P
rogr
ams
yg
•A
kin
to“F
indi
ngth
ene
edle
inth
eha
ysta
ck”
Aki
n to
Fin
ding
the
need
le in
the
hays
tack
•Fo
cusi
ng o
n ar
eas
of h
ighe
st ri
skE
l•
Exa
mpl
e:P
rese
ntat
ion
give
n by
Med
icar
e m
edic
al d
irect
or
tth
MB
CA
Cto
the
MB
CA
CFi
ve a
reas
of g
reat
est c
once
rn (A
mbu
lanc
e,
Wd
CD
CA
tC
TW
ound
Car
e, D
rugs
, Cor
onar
y A
rtery
CT
Ang
iogr
aphy
and
Fac
et J
oint
Inje
ctio
ns)
Com
mitt
eede
velo
ped
data
anal
ytic
appr
oach
for
5
Com
mitt
ee d
evel
oped
dat
a an
alyt
ic a
ppro
ach
for
revi
ewin
g th
ese
spec
ific
issu
es
61
Con
tinui
ng E
duca
tion
g
“The
prop
ered
ucat
ion
and
train
ing
ofco
rpor
ate
The
prop
er e
duca
tion
and
train
ing
of c
orpo
rate
of
ficer
s, m
anag
ers,
em
ploy
ees,
phy
sici
ans
and
othe
rhea
lthca
repr
ofes
sion
als
and
the
othe
r hea
lth c
are
prof
essi
onal
s, a
nd th
e co
ntin
ual r
etra
inin
g of
cur
rent
per
sonn
el a
t all
leve
lsar
esi
gnifi
cant
elem
ents
ofan
effe
ctiv
ele
vels
, are
sig
nific
ant e
lem
ents
of a
n ef
fect
ive
com
plia
nce
prog
ram
.”
Offi
ce o
f the
Insp
ecto
r Gen
eral
US
Dt
fHlth
dH
Si
U.S
. Dep
t. of
Hea
lth a
nd H
uman
Ser
vice
s 6
62
Con
tinui
ng E
duca
tion
g
•P
re-a
ppro
ved
cont
inui
nged
ucat
ion
units
from
Pre
appr
oved
con
tinui
ng e
duca
tion
units
from
th
e A
mer
ican
Aca
dem
y of
Pro
fess
iona
l Cod
ers
•M
BC
AC
spon
sors
betw
een
68
even
tspe
ryea
r•
MB
CA
C s
pons
ors
betw
een
6-8
even
ts p
er y
ear
•S
yste
mw
ide
Com
plia
nce
Offi
ce o
ffers
tif
iti
lli
ltce
rtific
atio
n co
urse
s as
wel
l as
spec
ialty
sp
ecifi
c tra
inin
g (e
.g.,
Inte
rven
tiona
l Rad
iolo
gy)
•Fa
cilit
atio
n of
mon
thly
cod
ing
tuto
rials
offe
red
by M
D A
nder
son
to o
ther
inst
itutio
ns
7
63
2. U. T. System: Report on the U. T. Systemwide Compliance Academy
REPORT Mr. Lawrence Plutko, Systemwide Compliance Officer, will report on the U. T. System-wide Compliance Academy following the presentation set forth on Pages 65 - 69.
64
ThU
iit
fTTh
e U
nive
rsity
of T
exas
S y
stem
wid
e C
ompl
ianc
e y
pA
cade
my
Mr.
Larr
y Pl
utko
, Sys
tem
wid
e C
ompl
ianc
e O
ffice
r
Nov
embe
r200
9
Boa
rd o
f Reg
ents
’
Nov
embe
r 200
9
Mee
ting
Aud
it, C
ompl
ianc
e, a
nd
Man
agem
ent R
evie
w
Com
mitt
eeC
omm
ittee
65
U.T
. Sys
tem
wid
e C
ompl
ianc
eA
cade
my
Com
plia
nce
Aca
dem
y
The
Sys
tem
wid
e C
ompl
ianc
e A
cade
my
prov
ides
onl
ine
web
inar
s to
:
•S
erve
as
an e
duca
tion
and
com
mun
icat
ion
vehi
cle
to d
iscu
ss c
urre
nt
and
emer
ging
com
plia
nce-
rela
ted
issu
es a
nd tr
ends
; •
Faci
litat
eth
esh
arin
gof
com
plia
nce
best
prac
tices
amon
gco
mpl
ianc
e,Fa
cilit
ate
the
shar
ing
of c
ompl
ianc
e be
st p
ract
ices
am
ong
com
plia
nce,
le
gal,
audi
t, ris
k m
anag
emen
t, an
d ot
her i
nstit
utio
nal s
take
hold
ers;
•P
rovi
de p
rofe
ssio
nal d
evel
opm
ent o
ppor
tuni
ties
thro
ugh
high
qua
lity
cont
inui
nged
ucat
ion
web
inar
son
emer
ging
topi
cs.
2
cont
inui
ng e
duca
tion
web
inar
s on
em
ergi
ng to
pics
.
66
U.T
. Sys
tem
wid
e C
ompl
ianc
eA
cade
my
Com
plia
nce
Aca
dem
y
Sys
tem
wid
eC
ompl
ianc
eAc
adem
yw
ebin
arto
pics
Sys
tem
wid
e C
ompl
ianc
e A
cade
my
web
inar
topi
cs
have
incl
uded
:
•R
esea
rch
Con
flict
sof
Inte
rest
•R
esea
rch
Con
flict
s of
Inte
rest
•Th
e Ja
ime
Sch
anba
um A
ct, H
B 4
189
ThE
til
fEtC
tl
PtO
•Th
e E
ssen
tials
of E
xpor
t Con
trols
: Par
t One
•Th
e E
ssen
tials
of E
xpor
t Con
trols
: Par
t Tw
oA
dd
Fl
Cl
iA
t•
Am
ende
d Fa
lse
Cla
ims
Act
3
67
U.T
. Sys
tem
wid
e C
ompl
ianc
eA
cade
my
Com
plia
nce
Aca
dem
y
Web
inar
ann
ounc
emen
t an
d re
gist
ratio
n g
4
68
U.T
. Sys
tem
wid
e C
ompl
ianc
eA
cade
my
Com
plia
nce
Aca
dem
y
Futu
reS
yste
mw
ide
Com
plia
nce
Acad
emy
web
inar
Futu
re S
yste
mw
ide
Com
plia
nce
Aca
dem
y w
ebin
ar
topi
cs w
ill d
iscu
ss:
•In
form
atio
nS
ecur
ity:C
loud
Com
putin
g•
Info
rmat
ion
Sec
urity
: Clo
ud C
ompu
ting
•O
rgan
izat
iona
l Eth
ics
HIP
AA
HIT
EC
HA
tRi
i•
HIP
AA
HIT
EC
H A
ct R
evis
ions
•C
linic
al R
esea
rch
Bill
ing
Cd
tiC
liI
titi
•C
ondu
ctin
g C
ompl
ianc
e In
vest
igat
ions
•N
CA
A C
ompl
ianc
e
5
69
70
3. U. T. System Board of Regents: Report on results of the audits of funds managed by The University of Texas Investment Management Company (UTIMCO)
REPORT Mr. Tom Wagner, Deloitte & Touche, LLP, will report on the results of the financial statement audits of the Permanent University Fund (PUF), General Endowment Fund (GEF), Permanent Health Fund (PHF), Long Term Fund (LTF), and Intermediate Term Fund (ITF). These funds are managed by The University of Texas Investment Management Company (UTIMCO). The Deloitte & Touche report was mailed separately to all Regents in advance of the meeting and is available upon request.
BACKGROUND INFORMATION Fiduciary responsibility for the PUF, GEF, PHF, LTF, and ITF (the Funds) rests with the U. T. System Board of Regents (Board). Texas Education Code Section 66.08(f) requires that the U. T. System provide for an annual financial audit of the PUF, if the PUF is within the scope of funds managed by an external management corporation. On July 11, 2007, the Board authorized U. T. System staff to negotiate and enter into an auditing services contract with Deloitte & Touche, LLP, to perform a financial audit of the Funds managed by UTIMCO for the fiscal year ended August 31, 2007, with the option to renew for four additional one-year terms. The Board renewed the contract with Deloitte & Touche, LLP, for the first time on February 7, 2008, and the second time on February 11, 2009, to perform the audit of the funds managed by UTIMCO for the fiscal year ended August 31, 2009. 4. U. T. System Board of Regents: Approval of the U. T. Systemwide Annual
Internal Audit Plan for Fiscal Year 2010
RECOMMENDATION Mr. Charles Chaffin, Chief Audit Executive, recommends approval of the proposed Fiscal Year 2010 U. T. Systemwide Annual Internal Audit Plan (Plan). Development of the Plan is based on risk assessments performed at each institution. Implementation of the Plan will be coordinated with the institutional auditors. The Plan executive summary is on Pages 72 - 73. The full Plan was mailed to all Regents on September 25, 2009, and is available upon request.
71
BACKGROUND INFORMATION
Institutional audit plans, compiled by the internal audit departments after input and guidance from the System Audit Office, the Offices of Academic or Health Affairs, and the institution's Management and institutional Internal Audit Committee, were submitted to the respective institutional Internal Audit Committee and institutional president for review and comments. Additionally, the institutional audit plans were presented and discussed at the System Administration Internal Audit Committee meeting held on September 8, 2009. Also, the Chief Audit Executive provided feedback by conducting audit hearings with each institution. After the review process, each institutional Internal Audit Committee formally approved its institution's audit plan.
The University of Texas System Systemwide Internal Audit Program Fiscal Year 2010 Annual Audit Plan
Executive Summary
Prepared by: U. T. System Internal Audit Program Consolidated by: U. T. System Audit Office Date: September 2009
Executive Summary The University of Texas (UT) Systemwide fiscal year (FY) 2010 Internal Audit Plan (FY 2010 Audit Plan) is a blueprint of the internal audit activities that will be performed by the internal audit function throughout the System in FY 2010. The process of preparing the audit plans is risk based and ensures that areas/activities specific to each institution with the greatest risk are identified to be audited. Individual annual audit plans were prepared at UT System Administration and each institution in July and August. The System Audit Office, Offices of Academic or Health Affairs, and the institution's management and Audit Committee provided input and guidance on the audit plans. Additionally, the Chief Audit Executive provided direction to the internal audit directors both prior to the preparation of the audit plans and through formal feedback through “audit hearings” with each institution. The institutional annual audit plans were reviewed for the possibility of assurance work done by external entities during the audit year, such as the State Auditor’s Office (SAO), external audit firms, federal auditors, etc. Where appropriate, other assurance work was relied upon to reduce the internal audit resources needed. After the review process, each institutional Audit Committee formally approved its institution's annual audit plan. At the November 2009 meeting, the FY 2010 Audit Plan will be presented to the Audit, Compliance, and Management Review Committee for review and consideration for approval. The efforts of the internal audit function continue to focus on adding value. Examples of value-added auditing includes: Systemwide financial audit, patient revenue and patient charge capture audits, construction audits, information technology audits, audits of research administration, and consulting projects and special investigations at the request of management. The FY 2010 Audit Plan addresses the risks of The University of Texas System by allocating the use of internal audit resources as follows:
Audit Audit Percent of Areas Hours Audit Hours
Financial 24,428 20%Operational 30,395 24%Compliance 16,445 13%Information Technology 21,850 17%Follow-up 5,240 4%Projects 27,443 22%
Total 125,801 100%
72
The University of Texas System Systemwide Internal Audit Program Fiscal Year 2010 Annual Audit Plan
Executive Summary
Prepared by: U. T. System Internal Audit Program Consolidated by: U. T. System Audit Office Date: September 2009 73
FY 2010 Total Budgeted Priority Audit Plan Hours by Institution:
Fina
ncia
l
Ope
ratio
nal
Com
plia
nce
Info
rmat
ion
Tec
hnol
ogy
Follo
w-u
p
Proj
ects
Tot
al*
U. T. System Administration 5,230 5,925 1,800 2,350 900 1,800 18,005
Large Institutions:U. T. Austin 2,350 2,050 1,700 3,775 400 3,950 14,225 U. T. Southwestern 2,450 3,300 2,550 1,650 500 4,060 14,510 U. T. Medical Branch at Galveston 1,180 1,325 560 1,700 250 1,830 6,845 U. T. Health Science Center - Houston 1,715 1,790 1,395 1,350 300 1,500 8,050 U. T. Health Science Center - San Antonio 1,200 1,700 480 1,200 600 2,300 7,480 U. T. M. D. Anderson Cancer Center 1,380 4,050 1,425 2,420 500 3,305 13,080 Subtotal 10,275 14,215 8,110 12,095 2,550 16,945 64,190
Mid-size Institutions:U. T. Arlington 1,140 1,100 1,380 740 200 1,100 5,660 U. T. Brownsville 680 750 620 550 300 800 3,700 U. T. Dallas 760 1,820 630 1,020 110 690 5,030 U. T. El Paso 1,550 2,550 850 1,700 450 1,690 8,790 U. T. Pan American 1,265 1,050 875 1,125 150 1,175 5,640 U. T. San Antonio 1,590 1,070 1,020 980 300 1,820 6,780 Subtotal 6,985 8,340 5,375 6,115 1,510 7,275 35,600
Small Institutions:U. T. Permian Basin 580 780 230 250 60 300 2,200 U. T. Tyler 460 660 340 590 60 458 2,568 U. T. Health Science Center - Tyler 898 475 590 450 160 665 3,238 Subtotal 1,938 1,915 1,160 1,290 280 1,423 8,006
TOTAL 24,428 30,395 16,445 21,850 5,240 27,443 125,801
Percentage of Total 20% 24% 13% 17% 4% 22% 100%
* "Total" reflects total hours budgeted for priority audits/projects (subject to approval by the Audit, Compliance, and Management
Review Committee), which represents approximately 80 - 85% of total budgeted hours for the FY 2010 Systemwide Annual Audit Plan.
5. U. T. System: Report on the Systemwide internal audit activities, including the preliminary results of the Presidential travel, entertainment, and housing expense audits and audits of financial controls at the institutional police departments; and Internal Audit Department reports for U. T. Health Science Center – San Antonio and U. T. El Paso
REPORT Ms. Carla Cashio, Assistant Vice President for Internal Audit and Consulting Services, U. T. Health Science Center – San Antonio, will report on internal audit's role in consulting activities following the presentation set forth on Pages 75 - 84. Mr. William Peters, Director of Auditing and Consulting Services, U. T. El Paso, will discuss the importance of information technology auditing. His presentation is on Pages 85 - 93. Mr. Charles Chaffin, Chief Audit Executive, will report on the progress and preliminary results of the Presidential travel, entertainment, and housing expense audits conducted at each of the institutions and at U. T. System Administration. Mr. Chaffin will also present the final results of the financial controls audits of the institutional police departments. Next, Mr. Chaffin will present the annual report of the Systemwide Internal Audit Program for Fiscal Year 2009. The Report is set forth on Pages 94 - 100. Institutional internal audit activity reports are presented to the Audit, Compliance, and Management Review Committee of the Board of Regents on an annual basis. The last activity report was sent on October 23, 2009. Additionally, Mr. Chaffin will report on the implementation status of significant audit recommendations. The fourth quarter activity report on the Implementation Status of Outstanding Significant Findings/Recommendations is set forth on Pages 101 - 102. Satisfactory progress is being made on the implementation of all significant recommendations. Additionally, a list of other audit reports issued by the Systemwide audit program follows on Page 103.
BACKGROUND INFORMATION Significant audit findings/recommendations are tracked by the U. T. System Audit Office. Quarterly, chief business officers provide the status of implementation, which is reviewed by the internal audit directors. A quarterly summary report is provided to the Audit, Compliance, and Management Review Committee of the U. T. System Board of Regents. Additionally, Committee members receive a detailed summary of new significant findings and related recommendations quarterly.
74
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The University of Texas System Systemwide Internal Audit Program
Annual Report Summary Fiscal Year Ended August 31, 2009
System Audit Office October 2009 94
Program Executive Summary The University of Texas (UT) System has established Internal Audit Programs at each of the 15 institutions and UT System Administration. The Internal Auditor provides independent, objective assurance, and consulting services designed to add value and improve UT’s operations. Additionally, the Internal Auditor is responsible for providing executive management with information about the adequacy and effectiveness of the institution’s system of internal administrative and accounting controls and the quality of operating performance when compared with established standards. Overall, the Internal Audit Programs accomplished the majority of their approved annual audit plans. Some of the audit hours budgeted were transferred, reallocated, cancelled or carried forward to fiscal year (FY) 2010 for various reasons, including limited time and staff resources, special requests from management and internal audit committee, or investigative matters that emerged during the year. These changes were communicated to the executive management and/or the institutional internal audit committees. During FY 2009, the Systemwide Internal Audit Program conducted for the second time an internal audit of the institutional, UT System Administration, and UT System Consolidated Annual Financial Report (AFR) for FY 2008. This audit provided assurance to the UT System Board of Regents that the financial statements, Systemwide, were free from any material misstatements while also providing the individual institutions valuable recommendations to enhance internal controls over financial reporting. Additionally in FY 2009, the Internal Audit Programs at the academic and health institutions performed audits of their police departments, which provided valuable recommendations in the areas of expenditures, citations, and inventory to executive management at the institutions. At the 2009 Association of College and University Auditor’s (ACUA) annual national conference, Mr. Michael Peppers, Chief Audit Executive at UT M. D. Anderson Cancer Center, was selected to receive ACUA’s “Professional Contributions Award.” This award is only presented periodically and is in recognition of sustained outstanding contributions to the practice of internal auditing in higher education. Mr. Peppers is a frequent speaker on auditing topics, has over twenty years of higher education auditing experience, and has held many leadership positions in professional internal auditing organizations, currently including a second term serving on the Institute of Internal Auditors (IIA) Internal Audit Standards Board. In general, the Internal Audit Programs experienced limited staff turnover during FY 2009. However, at the director level, a new internal audit director was hired at UT Health Science Center at San Antonio in the second quarter of FY 2009. Among the Internal Audit Programs Systemwide, approximately 75% of staff members hold one or more professional certifications, including the Certified Public Accountant, Certified Internal Auditor, and Certified Information Systems Auditor designations.
The University of Texas System Systemwide Internal Audit Program
Annual Report Summary Fiscal Year Ended August 31, 2009
System Audit Office October 2009 95
Mr. Charles G. Chaffin, Chief Audit Executive, is responsible for apprising the Chancellor and Board of Regents of the status and activities of the institutional Internal Audit Programs. Significant Accomplishments During FY 2009, the Internal Audit Programs provided numerous value-added services to the institutions, managed successful collaborative activities, supplied support to external organizations, made contributions to the internal auditing profession, managed student internship opportunities, and continued to enhance the established Internal Audit Programs through Quality Assurance Reviews. • Value-added Services – The Internal Audit Programs worked to ensure audits and projects
added value and addressed the needs and concerns of executive management. Audits and projects included the internal audit of the AFR, audits in specialized areas, special investigations requested by executive management, and reviews of information systems and security as well as other core business operations.
o Internal Audit of the UT System AFR – Coordinated and overseen by the System Audit
Office, the Internal Audit Programs effectively conducted the second internal audit of the System Administration and institutional AFR and the UT System Consolidated AFR for FY 2008. The auditors performed risk-based procedures on the financial statement information and controls over the financial reporting process. Overall, the audit resulted in no material adjustments to the financial statements; however, two Systemwide recommendations were made in the areas of segregation of duties and reconciliation of accounts and access controls over the accounting system used by six of the academic institutions and System Administration. Additionally, System Administration and each institution issued an individual report to its executive management with specific internal control related recommendations, as applicable.
o Police Department Audits – In response to several concerns which arose during police
department inspections performed by the UT System Office of the Director of the Police, the Internal Audit Programs at the academic and health institutions performed audits of the financial controls of its police departments. These audits identified several issues in the areas of expenditures, citations, and inventory and provided effective recommendations that are in the process of implementation across the institutions.
o Cash Handling and Management Audits – Several of the Internal Audit Programs,
including System Administration, performed an audit of cash handling and management processes and compliance with the related Systemwide policy. These audits resulted in recommendations to improve controls over petty cash and the cash collections process (including reconciliation of revenue), increase centralized oversight, ensure appropriate employees attend applicable training, and centralize accounts receivable.
The University of Texas System Systemwide Internal Audit Program
Annual Report Summary Fiscal Year Ended August 31, 2009
System Audit Office October 2009 96
o Special Projects and Investigations – Several of the institutional and the UT System Administration Internal Audit Programs performed complex and sensitive audits at the request of executive management to assist in fraud investigations, address media allegations, and follow up on compliance hotline calls.
• Collaborative Activities
o Exchange Program – The Internal Audit Programs have continued the success of the exchange program in which staff with audit expertise in a particular area provided on-site assistance to another institution conducting an audit in that area. The program included several information technology exchange efforts in FY 2009 and continues in FY 2010.
o Performance Metrics – A working group, made up of several Internal Audit Directors
from both academic and health institutions, developed a model framework of performance metrics to consistently evaluate Systemwide internal audit activity on an annual basis in four areas of focus: Internal Audit Committees, Audit Clients, Staff Resources and Competencies, and Internal Audit Processes. These performance metrics, including the specific tools that will be used to measure them, were approved by the UT System Administration Internal Audit Committee and will be put in practice in early FY 2010 to measure the FY 2009 internal audit performance in these four major areas.
• External Support – Internal Audit Programs provided audit assistance to various external
organizations, including performance of audit procedures as part of the external financial statements audit of the funds managed by The University of Texas Investment Management Company (UTIMCO) and the Southern Association of Colleges and Schools (SACS) accreditation process, aid to the Office of the Inspector General on various audits, support to the State Auditor’s Office in conducting their OMB A-133 Single Audit and State of Texas Comprehensive AFR Audit, and assistance to the State Comptroller of Public Accounts in conducting their post payment audits at UT institutions.
• Professional Contributions
o Professional Organizations – Throughout the year, numerous members of the Internal
Audit Programs have made presentations at national and regional conferences including the Annual Fraud Summit and those sponsored by the Association of College and University Auditors (ACUA) and the Association of Healthcare Internal Auditors (AHIA). Many of our Internal Audit Directors have held various officer and board member positions and actively participated in professional organizations, such as ACUA, AHIA, the Texas Association of College and University Auditors (TACUA), the Healthcare Financial Management Association (HFMA), the Information Systems Audit and Control Association (ISACA), the Association of Certified Fraud Examiners (ACFE), the Texas Society of Certified Public Accountants (CPAs), Institute of Internal Auditors (IIA) Internal Audit Standards Board, and local chapters of the IIA.
The University of Texas System Systemwide Internal Audit Program
Annual Report Summary Fiscal Year Ended August 31, 2009
System Audit Office October 2009 97
o Certifications – The Internal Audit Programs Systemwide had several employees pass all or part of internal audit related certification exams, including Certified Internal Auditor, Certified Public Accountant, Certified Information Systems Auditor, Certified Fraud Examiner, and Certified Government Audit Professional.
o Training – Some of the Internal Audit Programs provided internal audit related training
in subjects, such as account reconciliations, segregation of duties, and internal controls to institutional leadership and other groups within their institutions.
• Quality Assurance Reviews – Quality Assurance Reviews (QARs) ensure the Internal Audit
Programs are conducting their work in compliance with IIAs’ International Standards for the Professional Practice of Internal Auditing (Standards). QARs are performed by audit professionals independent of the institution. QARs were completed of the Internal Audit Programs at UT Arlington, UT Brownsville, UT Permian Basin, UT San Antonio, UT Tyler, UT Southwestern, and UT Health Science Center at Tyler. These Internal Audit Programs, with the exception of UT Permian Basin, were found to “generally conform” (the highest rating) with the Standards and have implemented or are in the process of implementing recommendations to improve efficiency and operations. While found to be making good faith efforts, UT Permian Basin was rated “partially conform” with Standards and had fallen short of achieving some major objectives. Additionally, a follow-up QAR, in which the implementation status of recommendations made in the previous QAR are reviewed, was completed at UT Austin. Several of the Internal Audit Directors also participated as team members in QARs of other institutions, including University of Houston, Texas A&M System, Texas Tech System, and University of Colorado System.
• Internship Opportunities – Many of the Internal Audit Programs utilized student interns from their campuses and local high schools to assist in conducting fieldwork on various audits to provide the students with real-world experience while also increasing their own staff supervisory and project management skills. These students have gone on to be offered positions with the UT Internal Audit Programs as well as with outside companies and government agencies.
Internal Audit Committee Each institution and UT System Administration has an internal audit committee consisting of executive management, including the President and Chancellor, respectively. They also include at least one external member with several institutions having more than one external member and some institutions having the external member serve as committee chair. In general, the committees meet quarterly to provide guidance and direction to the internal audit function and allow direct communication between the internal audit director and senior management. On a periodic basis, the internal audit committees are surveyed to obtain further feedback. Annually, the internal audit committee members from each of the institutions will now also participate in a Systemwide survey as part of the performance metrics.
The University of Texas System Systemwide Internal Audit Program
Annual Report Summary Fiscal Year Ended August 31, 2009
System Audit Office October 2009 98
Internal Audit Clients As part of the continuous internal quality assurance process, the Internal Audit Programs administer client surveys at the conclusion of each audit project to obtain feedback on the quality of services provided. Key personnel involved in the audit are requested to complete a survey. While each Internal Audit Program distributes a unique set of questions, they are on the general topics of professionalism, performance, results and reporting, and value added with a comments section. Overall, the Internal Audit Programs received responses in the top two ratings with positive remarks. Annually, the internal audit clients audited during the fiscal year at each of the institutions will now also participate in a Systemwide survey as part of the performance metrics. Systemwide Internal Audit Program Processes/Activities The following summarizes the consolidated activities of the institutional and UT System Administration Internal Audit Programs compared to the approved audit plan for FY 2009:
Audit Priority Actual Percent Area Budget Hours Hours Completion
Financial 26,385 33,813 128%Operational 38,404 37,476 98%Compliance 20,085 20,197 101%Information Technology 18,220 14,567 80%Follow-up 5,186 5,448 105%Projects 23,495 40,051 170%
Total 131,775 151,552 115% Most of the Internal Audit Programs accomplished the majority of their approved annual audit plans. Some of the audit hours budgeted were transferred, reallocated, cancelled or carried forward to FY 2010 for various reasons, including limited resources and special management requests or investigative matters that emerged during the year. These changes were communicated to the executive management and/or the institutional internal audit committees. See Appendix A for total approved priority budget hours versus actual hours by audit area and institution for FY 2009.
The University of Texas System Systemwide Internal Audit Program
Annual Report Summary Fiscal Year Ended August 31, 2009
System Audit Office October 2009 99
Systemwide Internal Audit Program Staffing Statistics: • Positions: Total Number Budgeted: 118.9 Average Total Number Filled: 112.1 Average Years Experience: 13.1 • Certifications/Training: Number of Certified Public Accountants: 47 Number of Certified Internal Auditors: 60 Number of Certified Information Systems Auditors: 22 Other Certifications*: 41 Average Percentage of Staff with a certification: 75% Average Annual Training Hours per Auditor: 52.6
*Other Certifications include: Certified Government Auditing Professional Certified Fraud Examiner Certification in Control Self-Assessment Certified Information Systems Security Professional Certified Ethical Hacker Certified Expert Penetration Tester Certified Security Manager Certified Healthcare Financial Professional Certified Information Security Manager Doctor of Jurisprudence/Texas State Bar Licensure
The University of Texas System Systemwide Internal Audit Program
Annual Report Summary Fiscal Year Ended August 31, 2009
System Audit Office October 2009 100
Appendix A FY 2009 Systemwide Audit Plan Status
Fina
ncia
l
Ope
ratio
nal
Com
plia
nce
Info
rmat
ion
Tech
nolo
gy
Follo
w-u
p
Proj
ects
Tota
l Act
ual
Hou
rs
(N
OTE
1)
Tota
l Prio
rity
Bud
get H
ours
(N
OTE
2)
Perc
ent
Com
plet
ion
(NO
TE 3
)
U. T. System Administration 7,029 6,687 1,846 946 870 3,119 20,496 18,205 113%
Large Institutions:U. T. Austin 1,893 3,240 1,919 1,784 289 6,315 15,439 16,540 93%U. T. Southwestern 5,071 4,933 2,140 1,570 213 4,823 18,749 15,510 121%U. T. Medical Branch at Galveston 1,460 1,272 525 1,457 517 2,849 8,080 7,490 * 108%U. T. HSC - Houston 1,992 753 1,514 1,824 367 3,187 9,636 7,204 134%U. T. HSC - San Antonio 2,018 1,021 1,627 454 524 3,501 9,145 7,300 125%U. T. MDA Cancer Center 2,899 6,225 1,936 2,010 791 3,336 17,197 17,768 97% Subtotal 15,332 17,444 9,660 9,098 2,701 24,011 78,245 71,812 109%
Mid-size Institutions:U. T. Arlington 1,467 915 1,835 1,125 308 2,120 7,769 6,130 127%U. T. Brownsville 860 945 688 261 183 1,479 4,415 4,030 110%U. T. Dallas 1,653 1,986 1,181 389 133 1,896 7,237 4,520 160%U. T. El Paso 2,939 3,624 1,591 889 694 1,288 11,025 8,756 126%U. T. Pan American 1,173 972 1,154 144 14 1,977 5,434 5,110 106%U. T. San Antonio 1,451 1,488 1,643 1,712 332 2,071 8,697 6,264 139% Subtotal 9,542 9,929 8,091 4,520 1,664 10,831 44,576 34,810 128%
Small Institutions:U. T. Permian Basin 462 1,613 - - 41 608 2,724 1,250 218%U. T. Tyler 574 767 409 3 55 642 2,450 2,668 92%U. T. HSC - Tyler 874 1,036 192 - 118 840 3,060 3,030 101% Subtotal 1,910 3,416 601 3 214 2,090 8,234 6,948 119%
TOTAL 33,813 37,476 20,197 14,567 5,448 40,051 151,552 131,775 115%Percentage of Total 22% 25% 13% 10% 4% 26% 100%
NOTE 1:
NOTE 2:
NOTE 3:
of vacant positions during the year.
* Total Priority Budget Hours for U. T. Medical Branch at Galveston was reduced from the original plan of 11,805 hours to 7,490 hours due to the impacton operations as a result of Hurricane Ike. The revised Total Priority Budget was approved by the ACMR at the February 11, 2009 meeting.
"Total Actual Hours" reflect total actual hours spent during the 12 months of fiscal year 2009 to complete the annual audit plan.
"Total Priority Budget Hours" reflect budgeted hours approved by ACMR for priority projects, which represents approximately 80 - 85% of the totalbudgeted hours for the fiscal year 2009 annual audit plan.
"Percent Completion" may be greater than 100% due to "Total Actual Hours" including both priority and non-priority project hours and/or over-estimation
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t for
the
Yea
r End
ed A
ugus
t 31,
200
81
18/
31/2
009
*S
atis
fact
ory
2008
-12
UTT
Enr
ollm
ent M
anag
emen
t Dep
artm
ent
33
12/3
1/20
09S
atis
fact
ory
2009
-03
UTT
Col
lege
of B
usin
ess
and
Tech
nolo
gy -
Offi
ce o
f Dea
n an
d A
ssis
tant
Dea
n3
312
/31/
2009
Sat
isfa
ctor
y20
09-0
4U
TTA
udit
of C
ash
Han
dlin
g P
roce
dure
s2
212
/31/
2009
Sat
isfa
ctor
y20
09-0
6U
TTH
uman
Res
ourc
e D
evel
opm
ent a
nd T
echn
olog
y4
7/31
/200
9 *
Sat
isfa
ctor
y20
09-0
8U
TTU
nive
rsity
Pol
ice
Dep
artm
ent
112
/31/
2009
Sat
isfa
ctor
y20
08-0
5U
TMB
- G
alve
ston
Info
rmat
ion
Sys
tem
s C
hang
e M
anag
emen
t Pro
cess
22
8/31
/201
0S
atis
fact
ory
2008
-05
UTM
B -
Gal
vest
onIn
form
atio
n S
ecur
ity A
ctio
n P
lan
22
2/28
/201
0S
atis
fact
ory
2008
-08
UTM
B -
Gal
vest
onD
ata
Ret
entio
n an
d R
ecor
ds M
anag
emen
t3
311
/30/
2009
Sat
isfa
ctor
y20
08-1
1U
TMB
- G
alve
ston
Rem
ote
Ven
dor A
cces
s1
07/
31/2
009
Impl
emen
ted
2009
-05
UTM
B -
Gal
vest
onD
ecen
traliz
ed In
form
atio
n Te
chno
logy
Ope
ratio
ns S
ecur
ity P
roce
ss R
evie
w1
08/
31/2
009
Impl
emen
ted
2009
-02
UTH
SC
- H
oust
onM
edic
al S
ervi
ce, R
esea
rch,
and
Dev
elop
men
t (M
SR
DP
) Pla
n1
111
/30/
2009
Sat
isfa
ctor
y20
08-1
0U
THS
C -
San
Ant
onio
Texa
s A
dmin
istra
tive
Cod
e S
ectio
n 20
2 - I
nfor
mat
ion
Sec
urity
Pro
gram
10
8/31
/200
9Im
plem
ente
d20
09-0
7U
THS
C -
San
Ant
onio
Cas
h H
andl
ing/
Par
ticip
ant R
eim
burs
emen
t Acc
ount
s A
udit
35/
31/2
010
Sat
isfa
ctor
y20
09-0
8U
THS
C -
San
Ant
onio
Cha
nge
in M
anag
emen
t - P
olic
e A
udit
210
/1/2
009
Sat
isfa
ctor
y20
01-0
8U
TMD
AC
C -
Hou
ston
Lotu
s N
otes
Env
ironm
ent
11
5/31
/200
9 *
Sat
isfa
ctor
y20
07-0
6U
TMD
AC
C -
Hou
ston
Con
flict
of I
nter
est
11
11/3
0/20
09S
atis
fact
ory
2007
-09
UTM
DA
CC
- H
oust
onM
aint
enan
ce a
nd S
ecur
ity o
f Bio
logi
cal R
esea
rch
Mat
eria
ls1
18/
31/2
009
*S
atis
fact
ory
2007
-10
UTM
DA
CC
- H
oust
onR
esea
rch
Com
plia
nce
Des
ign
Rev
iew
11
11/3
0/20
09S
atis
fact
ory
2008
-05
UTM
DA
CC
- H
oust
onC
linic
al T
rial R
esea
rch
11
2/28
/201
0S
atis
fact
ory
3rd
Qua
rter
200
94t
h Q
uart
er 2
009
Ove
rall
Prog
ress
To
war
ds
Com
plet
ion
(N
ote)
Targ
eted
Im
plem
enta
tion
Dat
eA
udit
Inst
itutio
nR
epor
t Dat
e
Info
rmat
ion
Rec
eive
d fro
m In
tern
al A
udit
Dire
ctor
s an
d C
hief
Bus
ines
s O
ffice
rsC
onso
lidat
ed b
y: S
yste
m A
udit
Offi
ceS
epte
mbe
r 200
9
101
THE
UN
IVER
SITY
OF
TEXA
S SY
STEM
Impl
emen
tatio
n St
atus
of O
utst
andi
ng S
igni
fican
t Fin
ding
s/R
ecom
men
datio
ns
Ran
king
# o
f Si
gnifi
cant
Fi
ndin
gsR
anki
ng #
of
Sign
ifica
nt
Find
ings
3rd
Qua
rter
200
94t
h Q
uart
er 2
009
Ove
rall
Prog
ress
To
war
ds
Com
plet
ion
(N
ote)
Targ
eted
Im
plem
enta
tion
Dat
eA
udit
Inst
itutio
nR
epor
t Dat
e
2008
-05
UTM
DA
CC
- H
oust
onA
dvan
ce B
enef
icia
ry N
otic
e Im
plem
enta
tion
Rev
iew
10
5/31
/200
9Im
plem
ente
d20
09-0
3U
TMD
AC
C -
Hou
ston
Spi
rit o
f Sar
bane
s-O
xley
11
8/31
/200
9S
atis
fact
ory
2009
-03
UTM
DA
CC
- H
oust
onW
irele
ss a
nd F
irew
all R
emot
e A
cces
s S
ecur
ity A
sses
smen
t4
48/
31/2
012
Sat
isfa
ctor
y20
09-0
3U
TMD
AC
C -
Hou
ston
A R
evie
w o
f Pat
ient
His
tory
Ora
cle
Dat
abas
e S
ecur
ity3
05/
31/2
009
Impl
emen
ted
2009
-03
UTM
DA
CC
- H
oust
onA
Rev
iew
of P
atch
Man
agem
ent
11
11/3
0/20
09S
atis
fact
ory
2009
-03
UTM
DA
CC
- H
oust
onA
Rev
iew
of P
erfo
rman
ce a
nd C
apac
ity M
onito
ring
44
8/31
/200
9 *
Sat
isfa
ctor
y20
09-0
5U
TMD
AC
C -
Hou
ston
Bus
ines
s C
ontin
uity
Pla
n R
evie
w1
2/28
/201
0S
atis
fact
ory
2005
-04
UTH
SC
- Ty
ler
Texa
s A
dmin
istra
tive
Cod
e 2
02 C
ompl
ianc
e A
udit
10
8/31
/200
9Im
plem
ente
d20
05-1
2U
TSY
S A
DM
Sys
tem
- w
ide
Fina
ncia
l Aud
it Fi
scal
Yea
r 200
51
19/
1/20
10S
atis
fact
ory
2006
-06
UTS
YS
AD
MU
TIM
CO
Inst
itutio
nal I
nves
tmen
t and
Com
plia
nce
Aud
its1
112
/31/
2009
Sat
isfa
ctor
y20
08-0
8U
TSY
S A
DM
File
Net
Aud
it1
110
/15/
2009
Sat
isfa
ctor
y20
08-1
2U
TSY
S A
DM
Con
solid
ated
Ann
ual F
inan
cial
Rep
ort F
isca
l Yea
r 200
81
110
/31/
2009
Sat
isfa
ctor
y20
09-0
3U
TSY
S A
DM
UT
Fede
ratio
n O
pera
ting
Pra
ctic
es a
nd P
roce
dure
s1
112
/31/
2009
Sat
isfa
ctor
y
T
otal
s76
72
2007
-03
UTP
BFe
dera
l Por
tion
of th
e S
tate
wid
e S
ingl
e A
udit
Rep
ort f
or th
e Y
ear E
nded
Aug
ust 3
1, 2
006
10
8/31
/200
9Im
plem
ente
d20
09-0
3U
TPB
Fede
ral P
ortio
n of
the
Sta
tew
ide
Sin
gle
Aud
it R
epor
t for
the
Yea
r End
ed A
ugus
t 31,
200
83
19/
30/2
009
Sat
isfa
ctor
y20
09-0
2U
THS
C -
San
Ant
onio
Fina
ncia
l Por
tion
of th
e S
tate
wid
e S
ingl
e A
udit
Rep
ort f
or th
e Y
ear E
nded
Aug
ust 3
1, 2
008
11
10/3
1/20
09S
atis
fact
ory
2009
-08
UTS
WM
C -
Dal
las
Cam
pus
Sec
urity
Em
erge
ncy
Man
agem
ent P
lans
412
/31/
2009
Sat
isfa
ctor
y20
07-0
5U
TSY
S A
DM
Cha
rity
Car
e at
Hea
lth-R
elat
ed In
stitu
tions
11
10/3
1/20
10S
atis
fact
ory
T
otal
s6
7
Col
or L
egen
d:
Eith
er a
new
sig
nific
ant f
indi
ng fo
r whi
ch c
orre
ctiv
e ac
tion
will
be
take
n in
the
subs
eque
nt q
uarte
r or a
pre
viou
s si
gnifi
cant
find
ing
for w
hich
no/
limite
d pr
ogre
ss w
as m
ade
tow
ards
impl
emen
tatio
n.
Sig
nific
ant f
indi
ng fo
r whi
ch s
ubst
antia
l pro
gres
s to
war
ds im
plem
enta
tion
was
mad
e du
ring
the
quar
ter.
Sig
nific
ant f
indi
ng w
as a
ppro
pria
tely
impl
emen
ted
durin
g th
e qu
arte
r and
will
no
long
er b
e tra
cked
.
Not
e:
Impl
emen
ted
- Th
e In
tern
al A
udit
Dire
ctor
dee
ms
the
sign
ifica
nt fi
ndin
g ha
s be
en a
ppro
pria
tely
add
ress
ed/re
solv
ed a
nd s
houl
d no
long
er b
e tra
cked
.Sa
tisfa
ctor
y -
The
Inte
rnal
Aud
it D
irect
or d
eem
s th
at th
e si
gnifi
cant
find
ing
is in
the
proc
ess
of b
eing
add
ress
ed in
a ti
mel
y an
d ap
prop
riate
man
ner.
Uns
atis
fact
ory
- Th
e In
tern
al A
udit
Dire
ctor
dee
ms
that
the
sign
ifica
nt fi
ndin
g is
not
bei
ng a
ddre
ssed
in a
tim
ely
and
appr
opria
te m
anne
r.
* Rec
omm
enda
tion
deem
ed to
be
impl
emen
ted
per m
anag
emen
t and
aw
aitin
g ve
rific
atio
n an
d va
lidat
ion
by in
tern
al a
udit.
Sig
nific
ant f
indi
ng fo
r whi
ch s
ubst
antia
l pro
gres
s to
war
ds im
plem
enta
tion
was
mad
e du
ring
the
quar
ter t
hat t
he s
igni
fican
t fin
ding
was
firs
t rep
orte
d.
STA
TE A
UD
ITO
R'S
OFF
ICE
AU
DIT
S
Info
rmat
ion
Rec
eive
d fro
m In
tern
al A
udit
Dire
ctor
s an
d C
hief
Bus
ines
s O
ffice
rsC
onso
lidat
ed b
y: S
yste
m A
udit
Offi
ceS
epte
mbe
r 200
9
102
U. T. SYSTEMWIDE INTERNAL AUDIT AND STATE AUDITOR'S OFFICE AUDIT REPORTS
Institution AuditUTARL Change in Management Audit of Linguistics & Teaching English to Speakers of Other Languages UTARL Review of Police Department Operations – Special RequestUTARL NCAA Eligibility Compliance AuditUTAUS Anti-Fraud Program ReviewUTAUS Information Technology Systems Change ManagementUTAUS Applied Research Laboratories - Export ControlsUTAUS Student Organization Bank ActivitiesUTAUS Export ControlsUTAUS Cash Management and Cash Handling Policy AuditUTAUS The University of Texas at Austin Police Department AuditUTAUS Texas UnionUTAUS Texas Student MediaUTB Fiscal Year 2009 Special Request Audit of Campus PoliceUTD Vice President for Enrollment Change in Management AuditUTD AthleticsUTEP Information Technology Physical SecurityUTEP Animal Research Program AuditUTEP Clery Act Report AuditUTEP UTS 166 Cash Management and Cash HandlingUTEP Texas Administrative Code 202: Phase IUTEP Police Department Financial AuditUTEP University College, Professional and Public ProgramsUTPA Police DepartmentUTPA Endowment Management & Administrative Fee AssessmentUTPA Cash Management/Cash HandlingUTPA ProcurementUTPA Office of International ProgramsUTPB Programs Assisting Students Study OfficeUTPB Police DepartmentUTPB Vice President for Student ServicesUTSA Police Department AuditUTSA Animal ResearchUTTY Continuous Auditing - Procurement CardUTTY Graduate/Undergraduate Programs - Monitoring PlansUTSMC - Dallas University Hospitals - Charge EntryUTSMC - Dallas University Hospitals - Outpatient Imaging ServicesUTSMC - Dallas TelecommunicationsUTSMC - Dallas UTS 155 Policies & Procedures Regarding Medical Service, Research, and Development (MSRDP) Plan Business OperationsUTMB - Galveston Institutional Firewalls and Peer-to-PeerUTMB - Galveston Police Department Internal Controls AuditUTMB - Galveston Correctional Managed Care Length of Stay Benchmark AnalysisUTMB - Galveston Department of Legal Affairs Change in ManagementUTHSC - Houston Texas Administrative Code 202 AuditUTHSC - Houston University of Texas Police Department Financial ControlsUTHSC - Houston Follow-up on Open RecommendationsUTHSC - San Antonio Family Practice Residency Program Audit Fiscal Year 2008UTHSC - San Antonio Division of Geriatric, Gerontology and Palliative Med.UTHSC - San Antonio Family Practice Residency: HSCSAUTHSC - San Antonio Family Practice Residency: RAHCUTHSC - San Antonio Cash Handling Audit - UTS 166UTMDACC - Houston Medical Records Audit ProcessUTMDACC - Houston Human ResourcesUTMDACC - Houston University of Texas Police Department Financial ControlsUTMDACC - Houston Trainee and Alumni Affairs - I-9 ComplianceUTMDACC - Houston myMDAnderson Security Assessment and Internet Services Risk AssessmentUTMDACC - Houston Texas Administrative Code 202UTMDACC - Houston CARE Application Security AssessmentUTHSC - Tyler Petty Cash and Change Funds (UTS 166) AuditUTHSC - Tyler Research Enterprise AuditUTHSC - Tyler Police Department AuditUTSYS ADM Office of Employee Benefits Dependant EligibilityUTSYS ADM Office of Employee Benefits Employee Assistance ProgramUTSYS ADM Campus Security and Emergency Preparedness PlanUTSYS ADM Office of Administration Departmental AuditUTSYS ADM University of Texas Investment Management Company Permanent University Fund AuditUTSYS ADM Office of Facilities Planning and Construction Customer Survey AuditUTSYS ADM University of Texas Health Science Center San Antonio President Change in ManagementUTSYS ADM Institutional Studies and Policy Analysis Departmental AuditUTSYS ADM Cash Handling Audit - UTS 166UTSYS ADM System Administration Information Technology Follow-upUTSYS ADM System Administration Follow - upUTSYS ADM University of Texas Pan American Change in ManagementUTSYS ADM Approach Oil and Gas
Institution AuditUTMB - Galveston, UTHSC - Houston, UTHSC - San Antonio, UTMDACC - Houston, UTHSC - Tyler,
Campus Safety and Emergency Preparedness at Texas Health-related Institutions
UTSMC - Dallas Accreditation Review Fiscal Year 2008
OTHER U. T. SYSTEM AUDIT REPORTS RECEIVED BY SYSTEM AUDIT 6/2009 THROUGH 8/2009
STATE AUDITOR'S OFFICE AUDIT REPORTS RELEASED 6/2009 THROUGH 8/2009
Information Received from Internal Audit Directors Consolidated by: System Audit OfficeSeptember 2009 103
6. U. T. System: Report on the progress and preliminary results of the audits of the Fiscal Year 2009 U. T. System Administration and institutional Annual Financial Reports
REPORT Mr. Charles Chaffin, Chief Audit Executive, will report on the progress and preliminary results of the audits of the Fiscal Year 2009 U. T. System Administration and institutional Annual Financial Reports being performed by institutional and U. T. System Administration internal audit.
BACKGROUND INFORMATION The U. T. System Audit Office prepared a plan to oversee and coordinate the internal audit of the Fiscal Year 2009 U. T. System Administration and institutional Annual Financial Reports. The System Audit Office and each institutional internal audit department will express an opinion on their institution's individual Annual Financial Report, including the Balance Sheet, the Statement of Revenues, Expenses, and Changes in Net Assets, and related footnote information. In addition, the auditors will express an opinion on certain key internal controls over the financial statement information. The internal audits of the Annual Financial Reports are performed at the request of the U. T. System Board of Regents (Board) for the benefit of the Board, U. T. System Administration management, and U. T. System institution management only and are not intended to provide assurance for any purpose to readers of the report outside of U. T. System.
104