The Univer.;ity of Texas at Arlington

The Univer.;ity of Texas at Austin

The Univer.;ity of Texas at Brownsville

The University of Texas at Dallas

The University of Texas at El Paso

The University of Texas - Pan American

The University of Texas

of the Permian Basin

The University of Texas at San Antonio

lhe University of Texas at 'I)'ler

lhe University of Texas

Southwestern Medical Center

The University of Texas

Medical Branch at Galveston

lhe Univer.;ity of Texas

Health Science Center at Houston

The Univer.;ity of Texas

Health Science Center at San Antonio

The University of Texas

M. D. Ander.;on Cancer Center

The Univer.;ity of Texas

Health Science Center at 'I)'ler

www.utsystem.edu

The University of Texas System Nine Universities. Six Health Institutions. Unlimited Possibilities.

System Audit Office 210 W. 6th Street, Suite B.140E, Austin, Texas 7870 I Phone: 512-499-4390 Fax: 512-499-4426

December 15, 2015

Ms. Deborah S. Hanna, Chair The Texas Council on Alzheimer's Disease and Related Disorders Capital of Texas Chapter 3429 Executive Center Dr. #100 Austin, TX 78731

Dear Ms. Hanna:

Attached is the Report of Revenues and Expenditures (cash basis) for the Fiscal Year ended August 31, 2014. Overall, the accompanying Report of Revenues and Expenditures presents fairly, in all material respects, the Council on Alzheimer's Disease and Related Disorders (Council) activity for the fiscal year ended August 31 , 2014.

This statement is sent to you to serve as fulfillment of a contractual requirement that the Report of Revenues and Expenditures submitted by The University of Texas System to the Council be accompanied by an internal auditor's opinion every even year.

Our examination was conducted in accordance with the guidelines set forth in The Institute of Internal Auditors' International Standards for the Professional Practice of Internal Auditing.

We hope the information presented in our report is helpful.

Sincerely,

gfd.Q~s J. Michael Peppers, CPA, CIA, QIAL, CRMA Chief Audit Executive

cc: Raymond S. Greenberg, M.D., Ph.D., Executive Vice Chancellor for Health Affairs Robert Buckingham, Assistant to the Executive Vice Chancellor Officer for Health Affairs, The University of Texas System Randy F. Wallace, Associate Vice Chancellor, Controller & Chief Budget Officer Alan Werchan, Assistant Budget Officer, The University of Texas System

The University of Texas System Administration The Texas Council on Alzheimer's Disease

and Related Disorders Report FY 2015

December 2015

THE UNIVERSITY OF TEXAS SYSTEM AUDIT OFFICE 702 COLORADO STREET, CLB 3.100

AUSTIN, TX 78701 (512) 499-4390

The University of Texas System Audit Office The Texas Council on Alzheimer's Disease and Related Disorders Fiscal Year 2015

BACKGROUND

Audit Report December 2014

The Texas Council on Alzheimer's Disease and Related Disorders (Council) was established by the Texas Legislature in 1987 to advocate for persons with Alzheimer's disease and those who care for them. Council members are appointed by the Governor, the Lieutenant Governor, and Speaker of the House. Additionally, Council appointments include members representing the Texas Department of State Health Services, Texas Health and Human Services Commission, and the Texas Department of Aging and Disability Services. The Council's mission includes:

1. Recommending needed action for the benefit of persons with Alzheimer's disease and related disorders and their care givers;

2. Disseminating information on services and related activities for persons with Alzheimer's disease and related disorders to the medical and healthcare community, academic community, primary family care givers, advocacy associations, and general public;

3. Facilitating coordination of services and activities of state agencies, other service providers and advocacy groups relating to persons with Alzheimer's disease and related disorders; and

4. Advocating statewide coordinated research and to increase dollars allocated for research to benefit persons with Alzheimer's disease and related disorders.

In 2006, the Lieutenant Governor requested The University of Texas (UT) System serve as the accounting agent for the Council. The Office of Health Affairs (OHA) acts in this capacity for UT System. As the accounting agent for the Council, OHA issues payments based on the Council's instructions for third party expenditures the Council has approved. The Council is responsible for reviewing and determining the appropriateness of expenditures made by third parties. Except for Council instructions to pay third parties on the Council's behalf, UT System is not responsible for receiving, maintaining, or reviewing underlying support for amounts requested by the Council to be remitted by UT System to authorized third parties. However, UT System is responsible for preparing a financial statement on a cash basis, and submitting it to the Council chair. The cash basis financial statement is prepared by the UT System Office of the Controller.

As dictated in the "Agreement Between the Texas Council on Alzheimer's Disease and Related Disorders and The University of Texas System," the cash basis financial statement prepared and submitted to the Council must be accompanied by an internal auditor's opinion every even year, covering the first fiscal year of a given appropriation of funds. This audit is a result of this contractual requirement.

AUDIT SCOPEAND METHODOLOGY The scope of this audit was limited to the Report of Revenue and Expenditures (Report of Revenues and Expenditures) for the period from September 1, 2013 through August 31, 2014 (see Appendix A). The extent of our procedures was limited to the following:

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The University of Texas System Audit Office The Texas Council on Alzheimer's Disease and Related Disorders Fiscal Year 2015

• We tied out the Texas Council on Alzheimer's disease and Related Disorders Report of Revenue and Expenditures (cash basis) to supporting schedules and amounts recorded in in the *DEFINE (for the period from 9/1/2013 to 4/30/2014) and UTShare (for the period from 5/1/2014 to 8/31/2014) accounting systems;

• We tested a sample of revenue and expenditure transactions to determine whether amounts were properly authorized, accurately recorded, appropriately classified on the Report of Revenues and Expenditures, and had sufficient supporting documentation of approval. The supporting documentation examined was limited to documented approval from the Council to remit payments to authorized third parties.

We conducted our audit in accordance with The Institute of Internal Auditors' International Standards for the Professional Practice of Internal Auditing.

OBJECTIVES The objective of this engagement was to determine ifthe Report of Revenues and Expenditures prepared and submitted by UT System to the Council fairly represented, on a cash basis, the revenues and expenditures for the period from September 1, 2013 through August 31, 2014.

CRITERIA The "Agreement Between the Texas Council on Alzheimer's Disease and Related Disorders and The University of Texas System." The term of this contract is from September 1, 2013 through August 31, 2015.

RESULTS We agreed the Report of Revenues and Expenditures to the amounts recorded in applicable account and cost centers in the *DEFINE and UTShare accounting systems without exception. Additionally, it appears that revenue and expense transactions were properly authorized, accurately recorded, appropriately classified, and had sufficient supporting documentation of approval.

CONCLUSION Overall, the Report of Revenues and Expenditures, presents fairly the Council's revenues and expenditures, on a cash basis, for the period from September 1, 2013 to August 31, 2014.

We would like to thank the staff from the OHA and the Office of the Controller for their support and assistance during this audit and hope that the information in this report is helpful.

n ~-~~ r~s _Ck---+-+--~--

J. MiChJIPeppers, CPA, CIA, QIAL, CRMA Eric J. P ski, CPA, CIA Chief Audit Executive Assistant Director of Audits

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*

The University of Texas System Audit Office The Texas Council on Alzheimer's Disease and Related Disorders Fiscal Year 2015

Appendix A

Texas Council on Alzheimer's Disease and Related Disorders Report of Revenue and Expenditures (Cash Basis)

For the Fiscal Year Ended August 31, 2014

Cash Balance Forward at September 1, 2013:

Revenue: Funding Appropriated for 2014-15 Biennium from UT System

Excess Funds from the Prior Biennium from THECB

Total Revenue

Expenditures:

Institutional Contracts:

Baylor College of Medicine

University of North Texas HSC

University of Texas Southwestern Medical Center

Texas Tech University HSC

Texas Tech University HSC (Return of FY 12/13 Funds)

University of Texas HSC at San Antonio

Subtotal

Consulting Contracts:

Hinds Service Contract

Ristine Service Contract

UT System - Fiscal Agent Services

External Advisory Committee

Subtotal

Miscellaneous Expenses:

Conference/Training/Business Meeting

Communicati ons/V ideo/W eh/Printing

Office Supplies/Equipment

Courier/Postage

Rent

Individual Travel Reimbursements

Subtotal

Total Expenditures

Cash Balance Available at August 31, 2014*:

$

$

33,073.14

9,230,625.00

9 487.87

9,240,112.87

466,200.00

701 ,370.00

785,129.00

537,396.00

(3,086.22)

495 192.00

2,982,200.78

7,500.00

18,284.00

40,000.00

6 000.00

71 784.00

697.42

4,069.46

1,268.33

214.96

12,000.00

9 341.37

27 591.54

3,081,576.32

611211602.62

Of the reported cash balance at August 31, 2014, a total of $43,936.33 was committed to accrued obligations that were paid in FY 2015.

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