UNIVERSITY OF VIRGINIA
BOARD OF VISITORS
MEETING OF THE
AUDIT AND COMPLIANCE
COMMITTEE
February 22, 2013
AUDIT AND COMPLIANCE COMMITTEE
(Open Session)
Friday, February 22, 2013
8:30 a.m. – 9:00 a.m.
Auditorium of The Harrison Institute/
Small Special Collections Library
Committee Members:
George Keith Martin, Chair
Frank B. Atkinson
A. Macdonald Caputo
The Hon. Alan A. Diamonstein
Victoria D. Harker
Edward D. Miller, M.D.
Helen E. Dragas, Ex-officio
Adelaide Wilcox King, Faculty
Consulting Member
AGENDA
PAGE
I.
II.
INFORMATION REPORTS (Ms. Deily)
A.
Auditor of Public Accounts (APA) Audit and
Management Letter (Ms. Deily to introduce
Ms. Laurie Hicks, Auditor of Public Accounts
of the Commonwealth; Ms. Hicks to report)
B.
Institutional Response to APA Management Letter
(Ms. Deily to introduce Mr. James Hilton;
Mr. Hilton to report)
C.
Corporate Compliance and Privacy Office
Status Report for Fiscal Year 2012 – 2013
(Ms. Deily to introduce Ms. Lori Strauss; Ms.
Strauss to report)
D.
Audit Department Status Report for Fiscal Year
2012 – 2013
2
3
6
EXECUTIVE SESSION – LIST OF ITEMS
III. APPROVAL OF THE SUMMARY OF AUDITOR OF PUBLIC ACCOUNTS
AND THE CORPORATE COMPLIANCE AND PRIVACY OFFICE
FINDINGS (resolution)
IV.
1
ATTACHMENT
 Results of Financial Statement Audit
8
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
February 22, 2013
COMMITTEE:
Audit and Compliance
AGENDA ITEM:
I.A.
ACTION REQUIRED:
None
Auditor of Public Accounts (APA)
Audit and Management Letter
BACKGROUND: The Auditor of Public Accounts of the Commonwealth
conducts an annual audit of the University and the Medical
Center and reports to the Board on her findings. Ms. Deily will
introduce Ms. Laurie Hicks, who will report. University
management will respond to the Auditor’s Audit and Management
letter.
Ms. Hicks is an Audit Director for the Auditor of Public
Accounts (APA). Ms. Hicks serves as the Project Manager for
the UVA audit. Ms. Hicks is a CPA and has been with the APA
for about 10 years. She has reviewed a variety of state
organizations in her time with the APA.
1
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
February 22, 2013
COMMITTEE:
Audit and Compliance
AGENDA ITEM:
I.B.
ACTION REQUIRED:
None
Institutional Response to APA
Management Letter
BACKGROUND: Mr. James Hilton, Vice President and Chief
Information Officer, will present the institutional response to
the Auditor of Public Accounts Audit and Management letter.
This report does not require formal action, but is information
of which the Board should be made aware.
2
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
February 22, 2013
COMMITTEE:
Audit and Compliance
AGENDA ITEM:
I.C.
ACTION REQUIRED:
None
Corporate Compliance and Privacy Office
Status Report for Fiscal Year 2012 – 2013
BACKGROUND: Ms. Strauss will inform the Board of the status of
compliance projects of the Corporate Compliance and Privacy
Office for the current fiscal year. This report does not
require formal action, but is information of which the Board
should be made aware.
3
UVA Health System
Corporate Compliance & Privacy Office
Summary of Completed Scheduled Projects
Six-Month Status Report
Fiscal Year 2012-2013
Corporate Compliance & Privacy Office
Scheduled Projects 2012-13
Projects
Outpatient Department
Coding, Billing, and
Documentation
Privacy Monitoring and
Auditing
Inpatient Medicare
Severity Diagnosis Related
Groups
Inpatient/Observation
Billing Review with
University Physicians
Group
Scheduled
In Process/
(%)
0
(0%)
Completed/
(%)
0
(0%)
3
(8%)
0
(0%)
18
(50%)
0
(0%)
1
1
(100%)
0
(0%)
39
4
(10%)
18
(46%)
1
36
1
Total
Of 39 scheduled projects, 18(46%) projects are complete and four
(10%) scheduled projects are in process. We are on schedule to
complete the revised project schedule for this fiscal year.
4
UVA Health System
Corporate Compliance & Privacy Office
Determination of Hours Available for 2012-2013
Corporate Compliance and Privacy Projects
Revised January 2013 for Staffing Vacancy
Fiscal Year 2012-2013
Total Hours Available
Less: Vacancies
Sub-Total
Professional Development
Leave and Holidays
Other Activities: Office and Personnel Administration
Hours Available for Corporate Compliance & Privacy
Projects
TOTAL
8,320
-08,320
320
1,100
320
6,580
REVISED
7,240
1,080
6,160
320
963
320
4,557
Allocation of Hours Available for
Corporate Compliance & Privacy Projects
Fiscal Year 2012-2013
Unscheduled Projects
Hours Available for Corporate Compliance & Privacy
Projects
Consulting
Developing and Conducting Training
Special Projects
Hours Available for Corporate Compliance & Privacy
Scheduled Projects
Total
REVISED
6,580
4,557
500
1,100
1,200
3,780
500
1,100
1,200
1,757
HOURS
800
1,700
1,200
80
REVISED
200
1,277
200
80
3,780
1,757
Corporate Compliance & Privacy Projects
Fiscal Year 2012-2013
Scheduled Projects
Outpatient Department Coding, Billing, & Documentation
Privacy Monitoring and Auditing
Inpatient Medicare Severity Diagnosis Related Groups
Inpatient/Observation Billing Review with University
Physicians Group
Total
5
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
February 22, 2013
COMMITTEE:
Audit and Compliance
AGENDA ITEM:
I.D.
ACTION REQUIRED:
None
Audit Department Status Report for
Fiscal Year 2012 – 2013
BACKGROUND: Ms. Deily will inform the Board of the status of
audit projects of the Audit Department for the current fiscal
year. This report does not require formal action, but is
information of which the Board should be made aware.
6
UNIVERSITY OF VIRGINIA
AUDIT DEPARTMENT
Status of Fiscal Year 2012-13 Audit Projects
as of December 31, 2012
Scheduled Audit Projects
University
Scheduled
Completed
% Completed
In Process
% In Process
13
4
31%
4
31%
% Complete or
In Process
62%
Hospital
& IT
13
4
31%
7
54%
Internal
Control
Compliance
5
3
60%
1
20%
85%
80%
TOTAL
31
11
35%
12
39%
74%
Non-Scheduled Projects
University
Carry-forward
New
Total
Completed
% Completed
In Process
% In Process
4
13
17
9
53%
8
47%
Hospital
& IT
0
5
5
4
80%
1
20%
% Complete or
In Process
100%
100%
7
Internal
Control
Compliance
0
0
0
0
0%
0
0%
100%
TOTAL
4
18
22
13
59%
9
41%
100%
UNIVERSITY OF VIRGINIA
BOARD OF VISITORS AGENDA ITEM SUMMARY
BOARD MEETING:
February 22, 2013
COMMITTEE:
Audit and Compliance
AGENDA ITEM:
III.
Approval of the Summary of Auditor
of Public Accounts and the Corporate
Compliance and Privacy Office
Findings
BACKGROUND: This resolution reflects discussion by the
Committee, in Executive Session, of a summary of recent
projects conducted by the Corporate and Privacy Compliance
Office, as well as the findings of the Auditor of Public
Accounts.
ACTION REQUIRED: Approval by the Audit and Compliance
Committee and by the Board of Visitors
APPROVAL OF THE SUMMARY OF COMPLIANCE FINDINGS AND AUDITOR
OF PUBLIC ACCOUNTS FINDINGS
RESOLVED, the Summary of Compliance Projects for the
period July 1, 2012 through December 31, 2012, as presented
by the Chief Corporate Compliance and Privacy Officer and
the Auditor of Public Accounts Findings for fiscal year
2011-2012 are approved.
8
ATTACHMENT
University of Virginia
Results of Financial Statement Audit
For the Year Ended June 30, 2012
Attachment 1
Area
Auditor’s Opinion
Comments
We have issued an unqualified opinion on the
University’s financial statements for the year
ended June 30, 2012. Our opinion is included in
the University’s fiscal year 2012 Financial
Statement Report.
Scope of Internal
Control Work
We have also issued a separate report on Internal
Controls and Compliance that was distributed to the
Board of Visitors. We obtained a sufficient
understanding of internal control to plan our audit
and to determine the nature, timing, and extent of
testing performed. Our audit did not identify any
matters that we consider to be material weaknesses.
Compliance Testing
We found no instances of noncompliance that are
required to be reported.
Fraud and Illegal
Acts
We found no indications of fraudulent transactions
or illegal acts
Significant Audit
Adjustments
All audit adjustments were reviewed with management
and recorded in the audited financial statements.
Accounting Policies,
Principles, Methods,
and Estimates

We concur with management’s application of
accounting principles.

We reviewed the basis for accounting estimates
and these estimates appear to be reasonable
based on available information and consistent
with prior periods.

There were no material changes to accounting and
reporting policies and standards during the
year.

There were no material alternative accounting
treatments identified as a result of the audit.

There were no unusual transactions or
significant accounting policies in controversial
or emerging issues.

There were no disagreements with management
about auditing, accounting, or disclosure
matters.
1
University of Virginia
Results of Financial Statement Audit
For the Year Ended June 30, 2012
Attachment 1
NCAA Agreed-Upon Procedures
We also performed an agreed-upon engagement to assist the
University in complying with NCAA Bylaw 3.2.4.16.1. All
adjustments that we identified were properly corrected in the
Schedule. Our separate report on this Agreed-upon Procedures
engagement has been distributed to the Board of Visitors.
2