FY13-14 Executive Travel and Entertainment …...April 1, 2016 OFFICE OF INTERNAL AUDITS TITE UNIVERSITY OF TEXAS AT AUSTIN 7616 Guadalupe Street, Suite 2.302 ·Austin, TX 78701 •

FY13-14 Executive Travel

and Entertainment Expenses

Audit

Office of the Vice-President and Chief

Financial Officer

April 2016 The University of Texas at Austin

Office of Internal Audits

UTA 2.302 (512) 471-7117

The University of Texas at Austin Internal Audit Committee

Mr. William O'Hara, External Member, Chair Dr. Gregory L. Fenves, President Dr. Judith Langlois, Executive Vice President and Provost, ad interim Dr. Patricia L. Clubb, Vice President for University Operations Ms. Patricia C. Ohlendorf, Vice President for Legal Affairs Dr. Daniel T. Jaffe, Vice President for Research Dr. Gage E. Paine, Vice President for Student Affairs Ms. Mary E. Knight, CPA, Associate Vice President and Interim Chief Financial Officer Mr. Paul Liebman, Cruef Compliance Officer Mr. Cameron D. Beasley, University Information Security Officer Ms. Christine A. Plonsky, Women's Athletics Director and Executive Senior Associate

Athletics Director for External Services Mr. Tom Carter, External Member Ms. Lynn Utter, External Member Ms. Susan Whittaker, External Member Mr. Michael W. Vandervort, Chief Audit Executive Mr. J. Michael Peppers, Chief Audit Executive, University of Texas System

The University of Texas at Austin Office of Internal Audits

Chief Audit Executive:

Associate Director:

Assistant Directors:

Audit Manager:

Auditor III:

Auditor 11:

Auditor I :

lT Auditor:

Michael Vandcrvo1t, CPA

Jeff Treichel, CPA

Angela McCarter, CIA, CRMA Chris Taylor, CIA, CISA

*Brandon Morales, CISA, CGAP

Michael Hammond, CIA, CISA, CFE Cynthia Martin-Hajrnasy, CPA *Ashley Oheim, CPA

*Slephanie Grayson Miranda Pruett, CFE

Jason Boone Bobby Castillo Kerri Jordan

Tiffany Yanagawa

* denotes project members

This report has been distributed to Tntcrnal Audit Committee members, the Legislative Budget Board, the State Auditor's Office, the Sunset Advisory Commission, the Governor's Office of Budget and Planning, and The University of Texas System Audit Office for distribution to the Audit, Compliance, and Management Review Committee of the Board of Regents.

FY13-14 Ex.ccutive Travel and Entertainment Expenses Audit Project #15.003

April 1 , 2016

OFFICE OF INTERNAL AUDITS TITE UNIVERSITY OF TEXAS AT AUSTIN

7616 Guadalupe Street, Suite 2.302 ·Austin, TX 78701 • (512)471-7117 ·FAX (512)471-8099

President Gregory L. Fenves The University of Texas at Austin Office of the President P .O. Box T Austin, Texas 78713

Dear President Fenves,

We have c ompleted our audit of Executive Travel and Enterta inment Expenses. Our scope inc luded expenses for fiscal years 2013 and 2014.

Based on the audit procedw-es performed, we conclude that the executives selected have reasona ble to st rong controls in most of the areas rev iewed. However, opportunities for improvement were noted in the area of adequate supporting documentation. Our audit report provides detailed observations for each area under review. Suggestions are offered fo r improvement i n the existing control structures.

We apprec iate the cooperation and assistance tluoughout the audit of the exec utives se lected, and hope that the information presented here in is beneficial.

Sincerely,

0 · ·;chac l W. Vandervort, CPA\ i/�)rc1"hief Audit Executive �i

cc : Institutional Audit Committee Members Ms. Mary Knight, Assoc iate V ice President for Finance, Vice President and Chief

F inancial Officer (Interim), Office of the V ice-President and Chief Financial Officer

Ms. Nancy Brazzil, Deputy to the President and Chief of Staff, Office of the President Ms. Patricia Ohlendorf, Vice President for Legal Affairs Mr. Jeff Treichel, Assoc iate Director, Office of Internal Audits

Executive Travel and Entertainment Audit April 2016

T ABLE OF C ON TEN TS

Executive Summary .................................. . . . . . . . .............................. ................................. ..... 1

Background ............ . . . . . . . . . . . . . . ........ ........... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .... . . . . ....... . . . . . . .... . . . . .... 2

Scope, Object ives, and Procedures ............................................................. . . ....................... 2

Audit Results .............................................................. . . . . . . ... . . . ..................................... . . . . . . ... 2

Conclusion .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Appendix ................................................ ......................................................................... . . . . . 4

A •


EXE CU TIVE S UMM ARY

This audit was conducted as required by The University of Texas System (UT System) Audit Office, as part of our Fiscal Year 20 l 5 Audit P lan.

Conclusion Ten executives were chosen as a sample to represent the executives at The University of Texas at Austin (UT Austin). Based on a review of releva11t policies, procedures, and su pporting documentation, it appears that UT Austin executives generally arc in compliance with policies and procedures regarding travel and entertainment expenses. Recommendations in the area of adequate supporting documentation were made at the executive level regarding compliance with UT Austin policies and procedures.

ln accordance with directives from The UT System l3oard of Regents, the Office of Internal Audits wi l l perform follow-up procedures to confirm that audit recommendations have been implemented.

Summary of Recommendations Recommendations in the area of adequate supporting documentation were made at the executive level regarding compliance with UT Austin policies and procedures. Each executive agreed with the recommendations and provided an action plan with implementation dates. Executives included i n the review have been individually apprised of their audit results via discussion and in final memorandums, which are included in the Appendix of this report.

The individual recommendations and management responses can be found jn the Appendix of this repo11.

Audit Scope and Objective The scope of this audit involved travel and entertai nment expenses rei mbursed to, or paid on behalf of, UT Austin's executive officers during the period of September 1, 2 0 12-August 31, 2013, and September 1, 2013-August 31, 2014. Our objective was to determine whether the expenses reimbursed or directly paid to vendors on behalf of executives were in compliance with re levant UT Austin policies and procedures.

Background Summary Since fiscal year 2013, UT System has required the Executive Travel and E ntertainment audit under regent rule 20205. All of the executive officers arc su bject to review on an annual basis, but may not be chosen for an audit each year. Executives consisted of those who directly reported to the president, key management members (Executive V Ps/Directors, VP/Directors, and Deans), and department chairs.

Page 1


BA CKGR OUND

Since fiscal yoar 2013, The University of'fcxas System (UT System) has required the F,xecutive Travel and Entertainment audit under regent rule 20205. All of the executive officers are subject to review on an annual basis, but may not be chosen for an audit each year.

The population of executives was determined based on audit gu idance provided from UT System to The University of Texas at Austin (UT Austin) Office of Internal Audits. Executives consisted of those who directly reported to the president, key manage ment members (Executive VPs/Directors, V P/Directors, and Deans), and department chairs.

S C OPE, OBJE C T IVES, AND PR O CEDURES

The scope of this audit involved travel and entertainment expenses reimbursed to, or paid on behalf of, UT Austin's executive officers during the period of September 1 , 201 2-August 3 1 , 2013, and September 1 201 3-August 3 1 , 20 1 4. Our objective was to determine whether the expenses re imbursed or directly paid to vendors on behalf of executives were in compliance with relevant UT Austin policies and procedures.

To achieve the objective, the Office of Internal Audits:

• Reviewed and evaluated relevant pol icies and procedures for processing and approving trave l and entertainment expenses;

• Reviewed suppo1ting documentation; and • Conducted testing on a sample of travel an d entertainment expenses.

This audit was conducted in accordance with the International Standards for the Professional Practice of lnterhal Auditing and with Government Auditing Standards.

The remainder of this report presents detai led observations and recommendations.

AUD I T RESUL TS

A review of each executive's department policies and procedures indicated that they are

generaJ ly aligned with UT Austin's requirements regarding travel and entertainment expenditures. Expenses related to executive travel and entertai nment for fiscal years 2013 and 20 1 4 appeared to be in alignment with UT Austin guidance.

Recommendations in the area of adequate supporting documentation were made at the executive level regarding compliance with UT Austin policies and procedures. The two executives identified agreed with the recommendations and provided an action plan with implementation dates. These individual reports are attached in the Appendix of this report.

Page 2


C ON CLUS I ON

Ten executives were chosen as a sample to represent the executives at UT Austin. Based on a review of relevant policies, procedures, and supporting documentation, it appears that UT Austin executives generally are in compliance with policies and procedures regarding t ravel and entertainment expenses. Recommendation s in the area of adequate supporting documentation were made at the executive level regarding compliance with UT Austin policies and procedures. Each executive agreed with the recommendations and provided an action plan with implementation dates. Executives included in the review have been individually apprised of their audit results via discussion and in final memorandums, which arc included in the Appendix of this report.

In accordance with directives from The UT System Board of R9gents, the Office of Internal Audits will perform fol low-up procedures to confirm that audit recommendations have been implemented.

Page 3


APPEN DIX

Table of Contents

Dr. David Brant, UT Austin Center for Agile Technology ... , ................................. . . . . . . . . . . . . 1

Ms. Nobuc ( Susie) Brown, Red McCombs School of Business .. ..... ........... . . .. . . . . . . . . . . . . . . . . . . . )

Dr. Joseph Carter, Department of Classics ..................................... ..................................... 5

Dr. Fred Heath, UT Libraries ........ .............................. . . . . . . ................................................... 7 Dr. Robert Hutchings, Lyndon B Johnson School of Public Affairs ......................... . . . . . . . . . . 9

Dr. Harrison Keller, Office of the President . . . . . ....................... . . ........................................ 13

Mr. Steve Patterson, Intercollegiate Athletics .................. . . . .............................................. 15

Dr. Susan Sedwick, Office of Sponsored Projects ...... . . . . . . . . . . . . . . . . . . ................ ......... . . . . . . . . . . . 17 Dr. Scott Tinker, Department of Geological Sciences ....................... . . . . . . . . ... ...... . . . . . . . . . . . . . . . 19

Dr. Philip (Uri) Treisman, Department of Mathematics . .. ................. . . ............. . . . . . . ........... 23

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To:

F rom:

Subject:

Date:

OFFICE OF INTERNAL AUDITS

THE UNIVERSITY OF TEXAS AT AUSTIN

1616 Guadalupe Street, Suite 2.302 ·Austin, TX 78701 · (512)471-7117 ·FAX (512)471-8099

MEMORANDUM

Dr. David Brant Director, The University of Texas at Austin (UT Austin) Center for Agile Technology

j ( Mr. Michael Vandervort, CPA\ ,/ � � Chief Audit Executive ��

Memorandum-Executive Travel and Entertai nment Expenses: Project #15.003

March 1 5, 20 1 6

The University of Texas System Audit Office requires that we perform a n audit o f travel and entertainment expenses that have been reimbursed to, or t hat have been directly paid on behalf of, the executive officers of UT Austin. All of the executive officers wi l l be subject to review annua l ly, but may not be chosen to be audited every year.

We have completed our audit of t ravel and entertainment expenses. Our scope involved travel and entertainment expenses reimbursed to, or paid on behalf of, UT Austin's executive officers dming the period of September 1, 2012, through August 3 1 , 2013; and September 1 , 20 13, th roug h August 31, 20 1 4. Our objective was to determine whether the expenses reimbu rsed to and directly paid to vendors on behalf of executives are in compliance with re levant UT Austin policies and procedures.

To achieve the objective, T he Office o f Internal Audits (Internal Audits): • Reviewed and evaluated re levant policies and procedures fo r processing and approving

t ravel and entertainment expenses; • Reviewed supporting documentation; and • Conducted testing on a sample of travel and entertainment expenses.

This audit was conducted in accordance with the International Standards.for the Professional Practice of Internal Auditing and with Government Auditing Standards.

AUDIT RESULTS

We obtained a l l fiscal year 20 1 3-2014 ente rtainment expenses reimbursed to or paid on behalf of D r. B rant from UT Austin's Departmenta l Financia.I Information Network. A sam ple of entertainment expenses was random ly selected and tested for t he following attributes:

• Proper Approval, • Adequate Supporting Documentation, • Mathematical Accuracy, • Adequate and Appropriate Business Purpose,

Memorandum for Dr. Brant March 15, 2016 Page 2 of2

• Proper Recording, • Within Allowable LimHs, • Non�Reimbursement of Prohibited Hems, and • Timeliness.

Based on the above procedures, i t appears that a l l travel policies and procedures are being followed. No recommendations are necessary.

We appreciate the assistance and cooperation of you and your staff in this audit. If you have any questions, p lease contact me or Ashley Oheim at 5 12-47 1-9836 or ash ley. ohei [email protected] .

MV: sg

cc: Ms. Mary Jo Moore, Senior Administrative Associate, UT Austin Center for Agile Technology Mr. Jeff Treichel, Associate Director, Office of I nternal Audits

2


THE UNIVERSITY OF TEXAS AT AUSTIN

1616 Guadalupe Streer, Suite 2.302 •Austin, TX 78701 • (512)471-7117 •FAX (512)471-8099

MEMORANDUM

To: Ms. Nobue (Susie) Brown Associate Dean for Business Affairs, Red McCombs School of Business

From: r Mr, Michael Vandervort, CPA\ ''-< I 1-'- Chief Audit Executive ��

Subject: Memorandum-Executive Travel and Entertainment Expenses: Project# 1 5 .003

Date: March 1 , 20 1 6

The University of Texas System Audit Office requires that we perform a n audit of travel and entertainment expenses that have been reimbursed to, or that have been directly paid on behalf of, the executive officers of The University of Texas at Austin (UT Austin). All of the executive officers wil l be subject to review annually, but may not be chosen to be audited every year.

We have completed our audit of travel and entertai nment expenses. Our scope involved travel and entertai nment expenses reim bursed to, or paid on behalf of, UT Austin's executive officers during the period of September 1, 2012, through August 3 1 , 2013 ; and September l , 2013 through August 3 1 , 2 0 1 4. Our objective was to determine whether the expenses reimbursed to and direct l y paid to vendors on behalf of executives are in compliance with relevant UT Austin policies and procedures.

To achieve the objective, The Office of Internal Audits: • Revie wed and evaluated relevant policies and procedures fo r processing and approving

travel and enter tainment expenses; • Reviewed supporting documentation; and • Conducted testing on a sample of travel and entertainment ex penses.

This audit was conducted in accordance with the International Standards for the Professional Practice of Internal Auditing and with Government Auditing Standards.

AUDIT RESULTS

We obtained all fiscal year 20 12-20 I 3 entertainment expenses reimbursed to or paid on behalf of Ms. Brown from UT Austin's Departmental Financial information Network. A sample of entcrtairunent expenses was randomly selected and tested for the following attributes:

• Proper Approval, • Adequate Supporting D ocumentation, • Mathematical Accuracy, • Adequate and Appropriate Business Purpose1 • Proper Recording,

3

Memorandum for Ms. Brown March 1, 2016 Page 2 of2

• Witbjn Allowable Limits, • Non-Reimbursement of Prohibited Items, and • Time liness.

Based on the above procedures, it a ppears t hat al l entertainment policies and procedures are being followed. No recommendations are necessary.

We appreciate the assistance and cooperation of you and your staff in this audit. If you have any questjons, please contact me or Ashley Obeim at 512-471-9836 or ashley .obe i m@austin. utexas.ed u.

MV:sg

cc: Ms. Nan Watkins, Assistant Director for Business Affairs, McCombs School of Business Affairs Mr. Jeff Treichel, Associate D i rector, Office of I nternal Audits

4

To:

From:

Subject:

Date:

OFFICE OF INTERNAL AUDITS THE UNIVERSlTY OF TEXAS AT AUSTTN

1616 Guadalupe Street, Suite 2.302 · Austin, TX 78701 · (512)471-7117 ·FAX (512)471-8099

MEMORANDUM

Dr. Joseph Caiter Professor, Department of Classics, Coll�ge ff �iberal Arts

( Mr. Michael Vandervort, CPA \ J/�� Chief Audit Executive �/ /"'

Memorandum-Executive Travel and Entertainment Expenses: Project # 1 5 .003

March 1, 2016

The University of Texas System Audit Office requires that we perform an audit of travel and entertainment expenses that have been reimbursed to, or that have been directly paid on behalf of, the executive officers of The University of Texas at Austin (UT Austin). AJI of the executive officers will be subject to review annually, but may not be chosen to be audited every year.

We have completed our audit ofti:avel and entertainment expenses. Our scope involved travel and ente1tairunent expenses reimbursed to, or paid on behalf of, UT Austin's executive officers during the period of September l , 2012, through August 31, 2013; and September 1, 2013 through August 31, 2014. Our objective was to determine whether the expenses reimbursed to and directly paid to vendors on behalf of executives are in compliance with relevant UT Austin policies and procedures.

To achieve the objective, The Office of Internal Audits: • Reviewed and evaluated relevant policies and procedures for processing and approving

travel and entertainment expenses; • Reviewed supporting documentation; and • Conducted testing on a sample of travel and entertainment expenses.

This audit was conducted in accordance with the International Standards.for the Professional Practice of Internal Auditing and with Government Auditing Standards.

AUDIT RESULTS

We obtained all fiscal year 2012-2013 travel expenses reimbmsed to or paid on behalf of Dr. Carter from UT Austin's Departmental Financial Information Network. A sample of travel expenses was randomly selected and tested for the following attributes:

• Proper Approval, • Adequate Supporting Documentation,

• Mathematical Accuracy, • Adequate and Appropdate Business Purpose, • Proper Recording,

5

Memorandum for Dr. Carter March I, 2016 Page 2 of2

• Within Allowable Limits, • Non-Reimbursement of Prohibited Items, and • Timeliness.

Based on the above procedures, it appears that all travel policies and procedures are being followed. No recommendations are necessary.

We appreciate the assistance and cooperation of you and your staff in this audit. If you have any questions, please contact me or Ashley Oheim at 5 12-47 1-9836 or ashley [email protected].

MV: sg

cc: Ms. Esmeralda Moscatelli, Senior Admin istrative Associate, fnstitute for Classical Archaeology Mr. Jeff Treichel, Associate Director, Office of Internal Audits

6

To:

From:

Subject :

Date:

OFFICE OF INTERNAL AUDITS THE UNNERSITY OF TEXAS AT AUSTIN

1616 Guadalupe Street, Suite 2.302 ·Austin, 1X 78701 • (512)471-7117 ·FAX (512)471-8099

MEMORANDUM

Dr. Lorraine Haricombe Vice Provost and Director, University ofT xas (UT) Libraries

(' Mr. Michael Vandervort, CPA � Chief Audit Executive

Memorandum-Executive Travel and Entertainment Expenses: Project # 1 5.003

March 1 , 201 6

The University of Texas System Audit Office requi res that we perform an audit of travel and entertainment expenses that have been reimbursed to, or that have been directly paid on behalf of, the executive officers of The University of Texas at Austin (UT Austin). All of the executive officers will be subject to review annually, but may not be chosen to be audited every year.

We have completed our audi t of travel and entertainment expenses. Our scope involved travel and entertainment expenses reimbursed to, or paid on behalf of, UT Austin's executive officers during the period of September 1 , 2012, through August 3 1 , 2013; and September 1, 2013, through August 31, 2014. Our objective was to determine whether the expenses reimbursed to and direct ly paid to vendors on behalf of executives are in compliance with relevant UT Austin policies and procedures.

To achieve the objective, The Office oflnternal Audits: • Reviewed and evaluated relevant policies and procedures for processing and approving

travel and entertainment expenses; • Reviewed supporting docu mentation; and • Conducted testing on a sample of travel and entertainment expenses.

This audit was conducted in accordance with the International Standards for the Professional Practice of Internal Auditing and with Government Auditing Standards.

AUDIT RESULTS

We obtained all fiscal year 2013-20 1 4 t ravel an d entertainment expenses reimbmsed to or paid on behalf of Dr. Heath from UT Austin's Departmental Financial lnformation Network . Samples of tTavcl and entertainment expenses were randomly selected and tested fo r the fol lowing attributes:


7

Memorandum for Dr. Heath March l, 2016 Page 2 of2

• Proper Recording, • Within Allowable Limits, • Non-Reimbursement of Prohibited Items, and • Timeliness.

Based on the above procedures, it appears that aJI travel and entertainment policies and procedures are being fol lowed. No recommendations are necessary.

We appreciate the assistance and cooperation of you and your staff in this audit. If you have any questions, p lease contact me or Ashley Oheim at 512-471-9836 or ashley [email protected] .

MV: sg

cc: Mr. D ouglas Barnett, Chief of Staff, Vice Provost s Office Mr. Jim D ougherty, Assistant Director and Financial Officer, UT L ibraries Mr. Je(f Treichel, Associate Director, Office oflnternal Audits

8

To:

From:


THE UNNERSI'IY OF TEXAS AT AUSTIN

1616 Guadalupe Street, Suite 2.302 •Austin, TX 78701 • (512)471-7117 • FAX(512)471-8099

MEMORANDUM

Dr. Angela Evans Dean, Lyndon B Johnson ( L BJ) School o Public Affairs

( Mr. Michael Vandervort, CPA\ JI \ r Chief Audit Executive � Subject: Memorandum-Executive Trave l and Entertainment Expenses: Project #15.003

Date: March 1, 2016

T he University of Texas System (UT System) Audit Office requires that we perform an audit of travel and entertainment expenses that have been reimbursed to, or that have been directly paid on behalf of, the execu6ve officers of The Un iversity of Texas at Austin (UT Austin). All of the executive officers will be subject to review annual ly, but may not be chosen to be audited every year .

We have completed our audit of travel and cnterta irunent expenses. Our scope involved travel and entertainment expenses reimbursed to, or paid on behalf of, U T Austin's executive officers during the period of September 1 , 2012, through August 3 1 , 2013; and September l, 20 1 3, through August 31, 2014. Our objective was to determine whether t he expenses re imbursed to and directly paid to vendors on behalf of executives are in compliance with re levant UT Austin policies and procedures.

To achieve t he objective, The Office of Internal Audits ( Internal Audits): • Reviewed and e valuated re levant policies and procedures for processing and approving

travel and entertainment expenses; • Reviewed support ing documentation; and • Conducted testing on a sample of travel and entertainment expenses.

This audit was conducted in accordance with the International Standard s for the Professional Practice of Internal AudUing and with Government Auditing Standard s'.

T he remainder of this memorandum presents a detai led observation and recommendation.

AUDIT RES UL TS

We obtained all fiscal year 2012-2013 t rave l and entertainment expenses reimbursed to or paid on behalf of Dr. Hutchings from UT Austin's Departmental F inancial Information Network . Samples of travel and entertainment expenses were randomly se1ected and tested for t he fol lowing attributes:

• Proper Approval,

9

Memorandum to Dr. Hutchings March I, 2016 Page 2of4

• Adequate Supporting D ocumentation, • Mathemat ical Accuracy, • Adequate and Appropriate Business Purpose, • Proper Recording, • Within Allowable Limits, • Non-Reimbursement of Prohibited Items, and • Timeliness.

In general, evidence of t he above attributes was found in the travel and entertainment expenses. An opportunity for improvement pertaining to adequate supporting documentation was noted. The issue has been ranked according to The UT System Audit Issue Ranking guide lines. P lease see the Appendix for rari.king definit ions.

Adequate Supporting Documentation Audit Issue Ranking: High Testing for four (24%) of 17 entertainment transact ions was incomplete because adequate supporting docu mentation was not provided by the department. The department was not aware that t hese transactions required OOEF documentat ion. Without adequate supporting documents, disal lowed entertainment t ransactions may be approved and reimbursed with UT Anstin funds.

According to Section 9 . 1 . l .M. 1 .a of UT Austin's Hcmdboolc of Business Procedures,

An Official Occasion Expense Form (OOEF) shou ld be submitted with corresponding itemized receipts at the time a voucher is submitted for payment. The form must include t he date of t he act ivity, location, participants and/or group attending with estimated or actual number of people attending, purpose, benefit, funding source to charge, and required approval(s). Departments may use a form of their own design as long as it includes the same information as the Official Occasion Expense Form.

Departments may enter t he required information in the Notes section of the *DEFINE document instead of supplying an OOEF. However, t he dean/vice president or official delegate must be included in t he e lectronic rout ing of the document in order for Notes to be accepted.

Recommendation: Management should ensure that adequate supporting documentation is submitted and maintained for entertainment expenses.

Mana2crnent Response: The approval procedure for entertainment expenses has been modified such that al l documents must have an attached, signed Official Occasion Expense Form (OOEF) or the Senior Administrative Associate wi l l enter the required infonnation in t he Notes sect ion of the D EFINE document instead of supplying an OOEF before being approved by the L BJ School Business Office. Official delegates wi l l be included in the electronic.routing of documents when using t he Notes section in lieu of an OOEF. Implementation Date: March 3, 20 16

JO

Memorandum to Dr. Hutchings March 1, 2016 Page3 �of�4'--��

Post Audit Review: I nternal Audits is in the process of conducting its post audit rev iew.

In accordance with directives from The UT System Board of Regents, I nternal Audits wil l perform follow-up procedures to confirm that the audit reconunendation has been implemented.

We appreciate the assistance and cooperation of you and your staff in this audit. If you have any questions, please contact me or Ashley Oheim at 512-4 71-9836 or [email protected].

MV: sg

cc: Dr. Robert Hutchings, Professor, LBJ School of Public Affairs Ms. Cindy Brewer, Chief Business Officer, LBJ School of Public Affairs Ms. K atherine Jackson, Temp to Perm Assignments, Human Resources Mr. Jeff Treichel, Associate Director, Office of fnterna l Audits

l I

Memorandum to Dr. I lutchings March I, 2016 Page4 of4

A P P E ND IX Audit Issue Ranking

Audit issues arc ranked according to the following def initions, consistent with UT System Audit Office guidance. These determinations are based on overall risk to UT System, UT Austin, ancVor the individual col lege/school/unit if the issues are left uncorrected. These audit issues and rankings are reported to UT System direct ly.

•

•

•

•

Priority - A Pt iority Issue is an issue that, if not addressed immediately, has a high probability to directly impact a chievement of a strategic or important operat ional objective of UT Austin or the UT System as a whole.

High - An issue that i s considered to have a medium to high probability of adverse effects to UT Austin either as a whole o r to a significant col lege/school/unit level.

Me1lit11n - An issue that is considered to have a low to medium probability of adverse effects to UT Austin either as a whole or to a college/schooliunit level.

low - An issue t hat is considered to have minimal probability of adverse cffocts to UT Austin either as a whole or to a coJ lcgc/school/unit level. Issues with a ranking of "Low" arc reported verbaJly to the unit and are not included in the final report.

12

To:

OFFICE OF INTERNAL AUDITS THE UNNEilSlTY OF TEXAS AT AUSTIN

1616 Guadalupe Street. Suite 2.302 ·Austin, 1X 78701 • (512)471-7117 ·FAX (512)471·8099

MEMORANDUM

Dr. Harrison Keller

From:

Vice Provost for Higher Education Poli)d �search

� Mr. Michael Vandervort, CPA\ iJ C\h y-chief Audit Executive � \ r

Subject: Memorandum-Executive Travel and Entertainment Expenses : Project # 15.003

Date: March 1, 2016

The University of Texas System Audit Office requires that we perform an audit of travel and entertainment expenses that have been reimbursed to, or that have been directly paid on behalf of, the executive offi cers of The University of Texas at Austin (UT Austin). All of the executive officers wil l be subject to review annually, but may not be chosen to be audited every year.

We h ave completed our audit of travel and entertainment expenses. Our scope involved t ravel and entertainment expenses reimbursed to, or paid on behalf ot: UT Austin's executive officers during the period of September l , 2012 through August 31, 2013; and September 1 , 2013, through August 31, 20 1 4. Our objective was to determine whether the expenses reimbursed to and directly paid to vendors on behalf of executives are in compliance with relevant UT Austin policies and procedures.

To achieve th e objective, The Office of Internal Audits: • Reviewed an d evaluated relevant policies and procedures for processing and approving


This audit was conducted in accordance with the International Slandardsfor the Professional Practice of Internal Auditing and with Government Auditing Standards.

AUDIT RESULTS

We obtained all fiscal year 201 3-2014 travel and entertainment expenses reimbursed to or paid on behalf of Or. Keller from UT Austin's Departmental Financial Info1mation Network. Samples of travel and entertainment expenses were randomly selected and tested for the following attributes:


13

Memorandum Dr. Keller March l, 20.16 Page 2 of2


Based on the above p rocedures, it appears that all travel an d entertainment policies and p rocedures are being fo llowed. No reconm1endations are necessary.

We app reciate the assistance and cooperat ion of you and your staff in this audit. If you have any questions, p lease contact me or Ashley Oheim at 51 2-471-9836 or [email protected].

MY: sg

cc: Ms. Dena Grumbles, Administrative Services Officer, Off ice of Strategy and Policy Ms. Lori Ray, Executive Assistant, Office of Strategy and Policy Mr. Jeff Treichel, Associate Director, Office oflnternal Audits

1 4

To:

OFFICE OF INTERNAL AUDITS THE UNlVERSITY OF TEXAS AT AUSTIN

1616 Guadalupe Street, Suite 2.302 · Austin, TX 78701 • (512)471-71 1 7 · FAX (512)471-8099

MEMORANDUM

From:

Mr. Mike Pen"in ;1 Athletics D irector, Intercollegiate Athletics

( Mr. Michael Vandervort, CP A\ "� �C hief Audit Executive -_)f\!)\./'

Subject: Memorandum-Executive Travel and Entertainment Expenses: Project #15.003

Date: March 1, 2016

The University of Texas System Audit Office requires that we perform an audit of travel and entertainment expenses that have been reimbursed to, or that have been directly paid on behalf of , the executive officers of The University of Texas at Austin (UT Austin). All of the executive officers will be subject to review annually, but may not be chosen to be audited every year.

We have completed ou r audit of t ravel and entertainment expenses. Our scope involved travel and entertainment expenses reimbursed to, or paid on behalf of, UT Austin's executive officers during the period of September 1, 2012 through August 31, 2013; and September l , 2013, through August 31, 2014. Our objective was to determine whether the expenses reimbursed to and directly paid to vendors on behalf of executives are in compliance with relevant UT Austin policies and procedures.

To achieve the objective, The Office of l nternal Audits: • Reviewed and evaluated relevant policies and procedures for processing and approving


This audit was conducted in accordance with the international Standards for the Profe ssional Practice of internal Auditing and wi th Government A udiling Standards .

AUDIT RES UL TS

We obtained all fiscaJ year 2013-2014 travel and entertainment expenses reimbursed to or paid on behalf of Mr. Patterson from UT Austin's Departmental financial [nformation Network. Samples of travel and entertainment expenses were randomly selected and tested for the following attributes:

• Proper Approval, • Adequate Supporting D ocumentation, • Mathematical Accuracy, • Adequate and Appropriate Business Purpose,

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Memorandum for Mr. Patterson Match 1 , 2016 Page 2 of2


Based on the above procedures, it appears that al l trav el and ente11ainment policies and p rocedures are being followed. No recommendations are necessary.

We appreciate the assistance and cooperat ion of you and your staff i n this audit. If you have any quest ions, p lease contact me or Ashley Oheim at 5 12-471 -9836 or ashley [email protected].

MV: sg

cc: Mr. Dave Ma1mion, Assistant Athletics D i rector- CFO, Intercollegiate Athletics Mr. Jeff Treichel, Associate Director, Office of Internal Audits

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OFFICE OF INTERNAL AUDITS THE UNNERSITY OF TEXAS AT AUSTIN

1616 Guadalupe StreeL, Suite 2.302 · Austin, TX 78701 · (512)471-71 1 7 · FAX (512)471 -8099

MEM ORANDUM

Mr. Jason Richter Interim Di. rector, Office of Sponsored�. r �ects

(' Mr. Michael Vandervmt, CP�NA� >( Chief Audit Executive � J/v

Memorandum-Executive Travel and Entertainment Expenses: Project # 1 5.003

March l , 20 1 6

The University of Texas System Audjt Office requires that we perform an audit of travel and entertainment expenses that have been reimbursed to, or that have been directly paid on behalf of, the executive officers of The University of Texas at Austin (UT Austin). A l l of the executive officers wil l be subject to review annually, but may not be chosen to be audited every year.

We have completed our audit of travel and entertainment expenses. Our scope involved travel and entertainment expenses reimbursed to, or paid on behalf of , UT Austin 's execu tive officers during the period of September 1 , 2012, through August 3 1 , 20 1 3 ; and September 1 , 201 3, through August 3 1 , 201 4. Our objective was to determine whether the expenses reimbursed to and directly paid to vendors on behalf of execu tives are in compl iance with relevant UT Austin policies and procedures.

To achieve t he objective, The Office of Internal Audits: • Rev iewed and evaluated relevant pol icies and procedu res fo r processing and approving

travel and entertainment expenses; • Reviewed supporting documentation; and • Conducted testing on a sample of travel and entertain ment expenses.

This audit was conducted in accordance with the International Standard s for the Profe s sional Practice of Internal Auditing and with Government Auditing Standards.

AUDIT RESULTS

We obtained all fiscal year 201 3-2 0 1 4 travel expenses reimbursed to or paid on behalf of Ms. Sedwick from UT Austin's Departmental Financial Information Network. A sample of travel expenses was randomly selected and tested for the fo l lowing attributes:

• Proper Approval, • Adequate Supporting Documentation, • Mathematical Accuracy, • Adequate and Appropriate Business Purpose • Proper Recording,

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Memorandum for Ms. Sedwick March I, 2016 Page 2 of2

• Within Allowable Limits, • Non- Reimbursement of Prohibited (terns, and • Timeliness.

B ased on the above procedures, it appears that all travel policies and procedures are being followed. No recommendations are necessary.

We appreciate the assistance and cooperation of you and your staff in t his audit. If you have any questions, please contact me or Ashley Oheim at 5 1 2-4 7 1 -9836 or ash Ley [email protected].

MV: sg

cc: Mr. Jeff Treichel, Associate Director, Office of lnternal Audits

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OFFICE OF INTERNAL AUDITS THE UNfVERSlTY OF TEXAS AT AUSTIN

1616 Guaclulupe Street, Suite 2.302 ·Austin, TX 78701 · (512)471-71 1 7 • FAX (512)471-8099

MEMORANDUM

Dr. Scott Tinker Professor, Department of Geologica l� S i nces, Jackson School of Oeosciences

\ Mr. Michael Vandervort, CPA \JI� !{ Chief Audit E xecut ive -:J'f'\V \,

Memorandum-Executive Travel and Entertainment Expenses: Project# 1 5 .003

March 1 4, 20 1 6

The U niversity of Texas System (UT System) Audit Office requires that we perfo1m an audit of travel and entertainment expenses that have been reimbursed to, or that have been directly paid on behalf of, the executive officers of The University of Texas at Austin (UT Austin). All of the executive officers will be subject to review rumual ly, but may not be chosen to be audited every year.

We have completed our audit of travel and entertainment expenses. Our scope involved travel and ente1tainment expenses reimbuTsed to, or paid on behalf ot: UT Austin's executive off icers during the period of September l , 2012, through August 3 1 , 2 0 1 3; and September 1 , 201 3 through August 3 1 , 2014. Our object ive was to determine whether the expenses reimbursed to and direct ly paid to vendors on behalf of executives are in compliance wit h re levant UT Austin policies and procedures.

To achieve the objective, The Office oflnternal Audits ( I nternal Audits) : • Reviewed and evaluated relevant policies and procedures for processing and approving

travel and entertainment expenses; • Reviewed supporting documentation; and • Conducted testing on a sample of t ravel and ente1iainment expenses.

This audit was conducted in accordance with the International Standards.for the Professional Practice of Internal Auditing and wit h Government Auditing Standards .

The remainder of this memorandum presents a detailed observation and recommendation.

AUDIT RESULTS

We obtained all fiscal year 2012-20 1 3 travel and entertainment expenses reimbursed to or paid on behalf of Dr. Tinker from UT Austin's Departmental F inancial I nformation Network. Samples of travel and entertainment expenses were randomly selected and tested for the following attributes:

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Memorandum to Dr. Tinker March 1 4, 20 1 6 Page 2 of 4

• Proper Approval1 • Adequate Supporting Documentat ion, • Mathematical Accuracy, • Adequate and Appropriate Business Purpose, • Proper Recording, • Within Allowable Limits, • Non-Reimbursement of Prohibited Items, and • Timeliness.

In general, evi dence of the above att ributes was found in the travel and entertainment expenses. An opportunity for improvement pertaining to adequate suppor6ng documentat ion was noted. The issue has been ranked according to The UT System Audit Issue Ranking guidelines. P lease see the Appendix fo r ranking definitions.

Adequate Supporting Documentation Audit Issue Ranking: High Test ing for two ( 12%) of 1 7 entertainment transactions was incomplete because adequate supporting documentat ion was not provided by the depart ment. I nternal Audits requested documentat ion v ia email, but did not receive documentation for two of the transact ions. Without adequate support ing documents, disal lowed mileage tran sact ions may be approved and reimbursed with UT Austin funds.

Section 9. 1 . 1.M. l .a of UT Austin's Handbook of Busines s Procedure s states,

An Official Occasion Expense Form (OOEF) shou ld be submitted with corresponding itemized receipts at the time a voucher is submitted for payment. The form must include the date of the activity, location, participants and/or group attending with estimated or actual number of people attending, purpose, benefit, funding source to charge, and required approval(s). Departments may use a form of their own design as long as it includes the same in format ion as the Official Occasion Expense Form.

Departments may ente r the requ ired informat ion in the Notes section of the *DEF INE document instead of supplying an OOEF. However, the dean/vice president or official delegate must be included in the electronic rout ing of the document in order for Notes to be accepted.

These transactions were tested in the sample for entertainment expenses. For UT Austin fleet mileage, adequate supporting documentat ion is def ined in the UT Austin Vehicle Fleet Management Plan as,

5. Vehicle U se Reports a. State law requires each driver of a state-owned vehicle to complete a daily report of use on the Monthly Vehicle Use Report f orm. b. The report must show the number of trips, purpose for which the vehicle was used, mi les traveled, amount and type of fuel purchased) oil added, passengers carried, and other information as may be required to provide a record of vehicle use and maintenance performed. Receipts for any vehicle pu rchases made, by the driver, from private sector vendors must be itemized and attached to the Monthly

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Memorandum to Dr. Tinker March 14, 2016 Page 3 o f 4

Vehicle Use Report fonn . The vehicle custodian i s re sponsible for reporting these transactions, i n the manner prescribed by the U niversity, to the Fleet Manager. c . Tf the vehicle is used by more than one operator during the day, each operator must enter his or her name into the report. If more than one page is requ ired per month, a continuation page may be used. d. After the close of the reporting period, the vehicle custodian will review the report for accuracy and sign in the clesignated space. Then, the completed report will be sent to the University's Vehicle F leet Manager. This re pott must be submitted no later than the fifth day of the following month.

Recommendation: Management should ensure that adequate supporting documentation of e xpenses is submitted and maintained fo r audit purposes.

Management Response: Bureau management considers a strong system of internal accounting controls a high priority and has implemented procedures to ensure that adequate supporting documentation of expenses is submitted and ma intained for audit purposes.

In September of20 1 3, subsequent to the period being audited, we initiated a process of e lec tronica l ly scanning and storing aJI backup documentation on a Bureau server. The scanning is done by a nu mber of people in the Accounting unit, and are stored and maintained on a secure Bureau server. Mi leage reports are maintained by Devin Krieg.

We regu larly spot check documentation to ensure that files are available and readable. In addition, a l l mileage files are typically accessed multiple times in order to provide regular, monthly documentation of expenses fot· 20-30 projects. Under the cunont system, i t would be extremely unlikely for a missing mileage log scan to go undetected be fore paper records have been discarded.

Implementation Date: September 201 3

Post Audit Review: Interna l Audits is in the process of conducting its post audit review.

I n accordance with directives from The UT System 3oard of Regents, Interna l Audits wil l perform fol low-up procedures to confirm that the audit recommendation has been .implemented.

We appreciate the assistance and cooperation of you and your staff in this audit. If you have any questions, please contact me or Ashley Oheim at 5 1 2-471-9836 or ashley .ohe [email protected].

MV: sg

cc : Ms. Ju lie Duiker, Administrative Services Officer IIl, Bureau of Economic Geology, Jackson School of Geosciences

Mr. Jeff Tre ichel , Associate Director, Office of JnternaJ Audits

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Memorandum to Dr. Tinker March 14, 20 1 6 Page 4 of4

A P P E ND IX Audit Issue Ranking

Audit issues are ranked according to the following definitions, consistent with UT System Audit Of fice guidance. These determinations are based on overa ll r isk to UT System, UT Austin, and/or the individual college/school/unit if the issues are left uncorrected. These audit issues and rankings are reported to UT System directly.

• Priority - A Priority Issue is an issue that, if not addressed immediately, has a high probabi l ity to directly impact achievement of a strateg ic or important operational objective of UT Austin or the UT System as a whole.

• High - An issue that is considered to have a medium to high probabi l ity of adverse effects to UT Austin either as a whole or to a signif icant college/school/unit level.

• Medium - An issue that is considered to have a low to medium probability of adverse ef fects to UT Austin either as a whole or to a college/school/unit level.

• Low - An issue that is considered to have minimal probability of adverse ef fects to UT Austin either as a whole or to a col lege/school/unit level. Issues with a ranking of "Low" are reported verbally to the unit and are not included in the final report.

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OFFICE OF INTERNAL AUDITS THE UNIVERSITY OF TEXAS AT AUSTlN

1616 Guadalupe Street, Suite 2.302 · Austin, TX 78701 • (512)471 -71 1 7 • FAX (512)471-8099

MEMORANDUM

Dr. PhiHp (Uri) Treisman � Professor of Mathematics, College of Nat ral Sciences

( Mr. Michael Vandervort, CPA\ d� ':f' Chief Audit Executive �I/'

Memorandum-Executive Travel and Entertainment Expenses: Project # 1 5 .003

March 1 4, 201 6

The University of Texas System Audit Office requires that we perform an audit of travel and entertainment expenses that have been reimbursed to, or that have been directly paid on behalf of , the executive officers of The University of Texas at Austin (UT Austin). All of the execut ive officers will be subject to review annually, but may not be chosen to be audited every year.

We h ave completed our audit of travel and entertain ment expenses. Our scope involved travel and entertainment expenses reimbursed to, or paid on behalf of, UT Austin ' s executive of ficers during the period of September 1 , 201 2 , through August 3 1 , 201 3 ; and September 1 , 201 3 through August 3 1 , 2014. Our objective was to determine whether the expenses reimbu rsed to and direct ly paid to vendors on behalf of executives are in compliance with re levant UT Austin policies and procedures.

To achieve the objective, The Office of Internal Audits: • Reviewed and evaluated relevant policies and procedures for processing and approving


This audit was conducted in accordance with the International Standardff for the Professional Practice of internal Auditing and with Government Auditing Standards .

AUDIT RESULTS

We obtained all fiscal year 20 12-2013 t rave l and entertainment ex penses reimbursed to or paid on behalf of D r. T reisman from UT Austin's Departmental F inancial Information Network . Samples were randomly selected and tested for the folJowing attributes:

• Proper Approval, • Adequate Supporting Docu mentat ion, • Mathematical Accuracy, • Adequate and Appropriate Business Purpose, • Proper Recording,

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Memorandum for Dr. Treisman March 14, 20 1 6 Page 2 of2

• Within Al lowable Limits, • Non-Reimbursement of Prohibited Items, and • Timeliness.

Based on the above procedures, it appears that all travel and entertainment policies and procedures are being followed. No recommendations are necessary.

We appreciate the assistance and cooperation of you and your staff in this audit. I f you have any questions, please contact me or Ashley Oheim at 5 12-47 1 -9836 or [email protected].

MV: sg

cc: Mr. Richard Blount, Director I l l , Charles A Dana Center for Science and Mathematics Education Mr. Jeff Treichel, Associate Director, Office of Internal Audits

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Documents

FY13-14 Executive Travel and Entertainment …...April 1, 2016 OFFICE OF INTERNAL AUDITS TITE UNIVERSITY OF TEXAS AT AUSTIN 7616 Guadalupe Street, Suite 2.302 ·Austin, TX 78701 •