FY13-14 Executive Travel
and Entertainment Expenses
Audit
Office ofthe 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:
Michael Vandcrvo1t, CPA
Associate Director:
Jeff Treichel, CPA
Assistant Directors:
Angela McCarter, CIA, CRMA
Chris Taylor, CIA, CISA
Audit Manager:
*Brandon Morales, CISA, CGAP
Auditor III:
Michael Hammond, CIA, CISA, CFE
Cynthia Martin-Hajrnasy, CPA
*Ashley Oheim, CPA
Auditor 11:
*Slephanie Grayson
Miranda Pruett, CFE
Auditor I :
Jason Boone
Bobby Castillo
Kerri Jordan
lT Auditor:
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
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
April 1 , 2016
P resident G regory L. Fenves
The University of Texas at Austin
Office of the President
P .O. Box T
Austin, Texas 78713
Dear P resident 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 e xecutives 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 rev iew. Suggestions are offered fo r
improvement i n the existing control structures.
We apprec iate the cooperation and assistance tluoughout the a udit of the exec utives se lected,
and hope that the informa tion pre se nte d here i n is beneficial.
Sincerely,
i/�)­
0 ·;chac l W. Va ndervort, CPA\
rc1"h ief Audit Executive �i
·
cc :
Institutional Audit Committee Members
Ms. Mary Knight, Assoc iate V ice P resident for Finance, Vice P resident and Chief
F i nancial 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 P resident
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 . .
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Background ............. ............ ................................ ............. .................. ..................................2
Scope, Object ives, and P rocedures
Audit Results... .. . .......
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Conclusion ........................ ................................... ....................................... . . . . ..................... 3
Appendix
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4
A
•
Executive Travel and Entertainment Audit
April 2016
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 ex ecutives at The University of
Texas at Austin (UT Austin). Based on a review of releva11t policies, procedures, and
su pporting documentation, it appear s 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 t he
executive level regardi ng compliance wi th U T Austin policies and procedures.
ln accordance with directives from The U T 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 regardi ng compliance with UT Austin policies and procedures. Each
executive agreed wi th the recommendations and provided an action plan with
implementation dates. Executives i ncluded 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 fou nd 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 pai d
on behalf of, UT Austin's executive officers during the period of September 1, 2 0 12August 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 u nder 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. E xecutives consi sted of those
who directly reported to the president, key management members (Executive
V Ps/Directors, VP/Directors, and D eans), and department chairs.
Page 1
Executive Travel and
April 2016
Entertainment
Audit
BA CKGR OUND
Since fiscal yoar 2013, The University o f 'fcxas System (UT System) has required the
F,xecutive Travel and Entertainment audit under re gent 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 Au stin (UT Austin) Office of Internal Audits.
Executives consisted of t hose 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
T he scope of thi s audit involved travel an d entertainment expenses rei mbursed to, or paid
on behalf of, UT Austin's executive officers during the period of September 1 , 201 2August 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 procedure s.
To achieve the objective, the Office of Internal Audits:
•
•
•
Reviewed and evaluated relevant pol icies and procedures for processing and
approving trave l and entertai nment ex penses;
Reviewed suppo1ting documentation; and
Conducted testing on a sample of travel an d ente rtainment 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 pre sents 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 wit h UT Austin's requirements regarding travel and entertainment
expenditures. Expenses related to e xecutive travel and entertai nment for fiscal years
2013 and 20 1 4 appeared to be i n alignment with UT Austin guidance.
Recommendations in the are a of ade quate supporting docu mentation were made at the
executive level re garding compliance with UT Austin policies and procedures. The two
executives identified agreed with the re commendations and provided an action plan with
imple mentation dates. These individual reports are attached in the Appendix of this
report.
Page 2
Executive Travel and Entertainment Audit
April 2016
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 ade quate
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 wi th implementation dates. Executives included in the
review have been individually apprised of their audit resu lts via discussion and in final
memorandums, which arc included in the Appendix of this report.
In accordance wi th directives fr o m The UT System Board of R9gents, the Office of
Internal Audits will perform fol low-up procedures to confirm that audi t recommendations
have been implemented.
Page 3
Executive Travel and Entertainment Audit
April 2016
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
Dr. Fred Heath, UT Libraries
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7
........ .............................. . . . . . . ...................................................
Dr. Robert Hu tchings, Lyndon B Johnson School of Public Affairs
Dr. Harrison Keller, Office of the President
. . . . . ......................
Mr. Steve Patterson, Intercollegiate Ath letics .
.
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Dr. Susan Sedwick, Office of Sponsored Projects .
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Dr. Philip (Uri) Treisman, Department of Mathematics .
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13
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15
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Dr. Scott Tinker, D epartment of Geological Sciences
Page 4
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17
19
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23
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
To:
F rom:
Dr. David Brant
Director, The University of Texas at Austin (UT Austin) Center fo r Agile
Technology
(
�
j
\
,/ �
��
Mr. Michael Vande rvort, CP A
Chief Audit Executive
Subject:
Memorandum-Executive Travel and Entertai nment Expenses: Project #15.003
Date:
March 1 5, 20 1 6
The University of Texas System Audit Office requires t hat we perform a n audit o f travel and
e ntertainment expenses that have been reimbursed to, or t hat have been di rectly paid on behalf
of, the executive officers of UT Austin. All o f t he executive officers wi l l be subject to review
a nnua l ly, but may not be c hosen to be audited every year.
We have completed our audit of t ravel and entertainment expense s. Our scope involved travel
and entertainment expenses reimbursed t o, or paid on behalf of, UT Austin's executive officers
dming t he period of September 1, 2012, through August 3 1 , 2013; and September 1 , 20 1 3 ,
th roug h August 31, 20 1 4. Our objective wa s to determine whet her t he expenses reimbu rsed to
and directly paid to ve ndors on behalf of executives are in compliance wit h re levant UT Austin
policies and procedures.
To achieve the objective, T he Office o f Internal Audits (Internal Audit s):
•
Reviewed and evaluated re levant policies and procedures fo r processing a nd approving
t ravel and entertainment expenses;
•
Reviewed supporting documentation; and
•
Conducted testing on a sample of travel and e ntertainment expenses.
This audit was conducted i n accordance with t he International Standards.for the Professional
Practice of Internal Auditing and with Government Auditing Standards.
AUDIT RESULTS
We obtained a l l fi s cal year 20 1 3 -2014 e nte rtainment expenses reim bursed to or paid on behalf of
D r. B ra nt from UT Austin's Departmenta l Financia.I Information Network. A sam ple of
entertainment expenses wa s random ly selected and tested for t he followi ng attributes:
•
P roper 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�Reimburse ment 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 a ppreciate the assistance and cooperation of you and your staff i n 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] .
M V : 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
OFFICE OF INTERNAL AUDITS
THE UNIVERSITY OF TEXAS AT AUSTIN
1616 Guadalupe Streer, Suite 2.302 •Austin, TX 78701
•
(512)471-7117 •FAX (512)471-8099
MEMORANDUM
To:
F rom:
Ms. Nobue (Susie) Brown
Associate Dean for Business Affairs, Red McCombs School of Business
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 ofTexas System Audit Office requires that we perform a n audit of travel and
entertainment expenses that have been reim bursed 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, 2 0 1 2, through August 3 1 , 2 0 1 3 ; and September l , 2 0 1 3
through August 3 1 , 2 0 1 4. Our objective was t o determine whether the expenses reimbu rsed 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 supporti ng documentation; and
•
Conducted testing on a sample of travel and entertainment ex penses.
This audit wa s 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 1 2-20 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 random l y selected and tested for the fo llowing attributes:
•
P roper Approval,
•
Adequate Supporting D ocumentation,
•
Mathematical Accuracy,
•
Adequate and Appropriate Business Purpose1
•
Proper Recording,
3
Memorandum for Ms. Brown
March
1, 2016
Page 2of2
•
•
•
Witbjn Allowable Limits,
Non-Reimbursement of P rohibited Items, and
T i me liness.
Based on the above procedures, it a ppears t hat all 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 a ny
questjons, please contact me or Ashley Obeim at 512-471-9836 or
ashley.obe i [email protected] xas.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
OFFICE OF INTERNAL AUDITS
THE UNIVERSlTY OF TEXAS AT AUSTTN
,
1616 Guadalupe Street, Suite 2.302 A ustin TX 78701
·
·
(512)471-7117 ·FAX (512)471-8099
MEMORANDUM
To:
� ff �
Dr. Joseph Caiter
Professor, Department ofClassics, Coll ge
iberal Arts
\
J/
�
�
�/
Mr. Michael Vandervort, CPA
(� Chief
Audit Executive
From:
/"'
Subject:
Memorandum-Executive Travel and Entertainment Expenses: Project # 1 5.003
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). 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 behalfof, 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 behalfofexecutives 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 oftravel and entertainment expenses.
This audit was conducted in accordance with the International Standards.for the
Professional
Practice ofInternal 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 abo ve procedures, it appears that all travel policies and procedures are being
follo wed. No recommendations are necessary.
We appreciate the assistance and cooperation of you and your staff i n this audit. If you have any
questions, please contact me or Ashley Oheim at 5 12-47 1-9836 or
[email protected].
MV: sg
cc:
Ms. Esmeralda Moscatelli, Senior Admin istrative Associate, fnstitute for
Classical Archaeo logy
Mr. Jeff Treichel, Associate Director, Office of Internal Audits
6
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
To:
From:
Dr. Lorraine Hari combe
Vice Provost and Director, University ofT xas (UT) Libraries
Mr. Michael Vandervort, CPA
('� Chief
Audit Executive
Subject :
Memorandum-Executive Travel and Entertainment Ex penses: P roject # 1 5.003
Date:
March 1 , 20 1 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 execu tive
officers wi ll 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 t ravel
and entertainment expenses rei mbursed 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 whet her the expenses reimbursed t o
and direct ly paid t o 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 De partmental Financial lnformation Network . Samples
of tTavcl and entertainment expenses were randomly selected and tested fo r the fol lowing
attributes:
•
P roper Approval,
•
Adequate Supporting Documentation,
•
Mathematical Accuracy,
•
Adequate and Appropriate Business Purpose,
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 a bove procedures, it a ppears that aJI travel and entertainment policies and
procedures are being fo l lowed. No recomm endations 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 .oheim@austin .utexas.edu .
MV: sg
cc:
Mr. D ouglas Barnett, Chief of Staff, Vice P rovost s Office
Mr. Jim D ougherty, Assistant Director and Financial Officer, UT L i braries
Mr. Je(fTreichel, Associate Director, Office oflnternal Audits
8
OFFICE OF INTERNAL AUDITS
THE UNNERSI'IY OF TEXAS AT AUSTIN
1616
Guadalupe Street, Suite 2.302 •Austin, TX 78701
•
(512)471-7117 FAX(512)471-8099
•
MEMORANDUM
To:
From:
Subject:
Date:
Dr. Ange la Evans
Dean, Lyndon B Johnson ( L BJ) School o Public Affairs
Mr. M ichael Vandervort, CPA\ JI
(r Chief
Audit Executive
�
\
Memorandum-Executive Trave l and Entertainment Expenses: Project #1 5.003
March 1, 2016
T he University of Texas System (UT System) Audit Office require s 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 t o 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 executi ve 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 wit h the International Standard s for the Professional
Practice of Internal AudUing and with Government Auditing Standard s'.
T he re mainder of this memorandum presents a detai led observation and recommendation.
AUDIT RES ULTS
We obtained all fiscal year 2012-2013 t rave l and entertainment expenses reimbu rsed 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:
•
P roper 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 gene ral, evidence of t he above attributes was found in the travel and entertainment expense s.
An opportunity for i mprovement 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 SupportingDocumentation
Audit Issue Ranking: High
Testing for fou r (24%) of 1 7 entertainment transact ions was incomp lete because adequate
supporting docu mentation was not provided by the department. The depart ment was not aware
that t he se t ransactions required OOEF documentat ion. Without adequate supporting docu ments,
disal lowed ente rtainment t ransactions may be approved and rei mbursed 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 p ayment.
The form must include t he date of t he act ivity, location, participants and/or group
attending with estimated or actual number ofpeople attending, purpose, benefit,
funding source to charge, and required approval(s). Departments may u se 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 supp l ying 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 shou ld ensure that adequate supporting documentation
is submitted and maintained fo r 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.
ImplementationDate: March 3, 2 0 1 6
JO
Memorandum
March
Page3
to Dr. Hutchings
1, 2016
�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 Rege nts, 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 512-471-9836 or
[email protected].
MV: sg
cc:
Dr. Robert Hutchings, Professor, LBJ School of Pu blic Affairs
Ms. Cindy Brewer, Chief Business Officer, LBJ School ofPublic Affairs
Ms. K atherine Jackson, Temp to Perm Assignments, Human Resources
Mr. Jeff Treichel, Associate Director, Office of fnterna l Audits
lI
Memorandum to Dr.
March
I lutchings
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/schoo l/unit if the issues are left uncorrected. These audit issues and
rankings are reported to UT System direct ly.
•
Priority A Pt io rity Issue i s an issue that, if not addressed immediately, has a high
probability to directly impact a c hievement of a strategic or important o perat ional o bjective of
UT Austin or the UT System a s 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/schoo l/unit level.
•
Me1lit11n - An issue that is considered to have a low to medium probability of adverse effects
to U T Austin either as a who le 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/sc hool/unit level. Issues with a ranking of "Low" arc
repo rted verbaJly to the unit and are not included in the final report.
-
12
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
To:
F rom:
)�
D r. Harrison K eller
Vice P rovost for Higher Education Poli
Michael Vandervort, CP A\ iJ C\h
�y- Mr.
chief Audit Executive
�
d
search
\ r
Subject:
Memorandum-Executive Travel and Entertainment Expenses : Project # 15.003
Date:
March 1, 2016
The University ofTexas System Audit Office requires that we perform an au dit of travel and
entertainment ex penses 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 wi l 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 ente rtainment expenses. Our scope involved t ravel
and entertainment expenses rei mbursed 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 di rectly 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
travel and entertainment expenses;
•
Reviewed supporting documentation; and
•
Conducted testing on a sample of travel and entertainment expenses.
This audi t 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 th e
following attributes:
•
Proper Approval,
•
Adequate Supporting Documentation,
•
Mathematical Accuracy,
•
Adequate and Appropriate Business Purpose,
13
Memorandum Dr. Keller
March l, 20.16
Page 2 of2
•
•
•
•
Proper Recording,
Within Allowable Limits,
Non-Reimbursement ofP rohibited Items, and
Timeliness.
Based on the above p rocedures, it appears that all travel an d entertainment policies and
p rocedures are being fo ll owed. 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
14
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
;1
MEMORANDUM
To:
From:
Subject:
Date:
Mr. Mike Pen"in
Athletics D irector, Intercollegiate Ath letics
Vandervort, CP A \ "
( CMr.hiefMichael
�
Audit Execu tive
-_)f\!)\. /'
�
Memorandu m-Executive Travel and Entertainment Expenses: P roject #15.003
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 Austi n (UT Austin). All of the executive
officers wi ll 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 rei mbursed 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 di rectly 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 processi ng and approving
travel and entertainment expenses;
•
Reviewed su pporting documentation; and
•
Conducted testing on a sample of travel and entertainment expenses.
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 RESULTS
We obtai ned 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,
15
Memorandum for Mr. Patterson
Match 1 , 2016
Page 2 of2
•
•
•
•
P roper Recording,
Within Allowable Limits,
Non-Reimbursement of Prohibited Items, and
Timeliness.
Based on the above procedures, it appears that all 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
[email protected].
M V : sg
cc:
Mr. Dave Ma1mion, Assistant Athletics D i rector- CFO, Intercollegiate Athletics
Mr. Jeff Treichel, Associate Director, Office of Internal Audits
16
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
To:
From:
Subject:
Date:
�
Mr. Jason Richter
Interim D i. rector, O ffice of Sponsored . r �ects
M ichael Vandervmt, C P � N A�
('>( Mr.
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 perfo rm an au dit 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 will be subject to review annually, but may not be chosen to be au dited every year.
We have compl eted our audit of tr avel 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 , 20 1 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 evalu ated 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 ofInternal 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 Au stin'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 Record ing,
17
Memorandum for Ms. Sedwick
March I , 2 0 1 6
Page 2 of2
•
•
•
Within Allowable Limits,
Non- Rei mbursement of P rohibited (terns, and
Timeliness.
B ased on the above procedures, it appears that all travel policies and procedures are b eing
followed. No recommendations are necessary.
We appreciate the assistance and cooperation of you and your staff i n t his audit.
questions, please contact me or Ashley Oheim at 5 1 2-47 1 -9836 or
ash Ley [email protected].
If you have any
MV: sg
cc:
Mr. Jeff Treichel, Associate Director, Office of lnternal Audits
18
OFFICE OF INTERNAL AUDITS
THE UN fVERSlTY OF TEXAS AT AUSTIN
1616 Guaclulupe Street, Suite 2.302 ·Austin, TX 78701
·
(512)471-71 1 7 • FAX (512)471-8099
MEMORANDUM
To:
F rom:
�
Dr. Scott Tinker
Professor, Department of Geologica l S i nces, Jackson School of Oeosciences
Michael Vandervort,
\JI'\V�
\!{ Mr.
Chief Audit E xecut ive
-:J'f
\,
CPA
Subject :
Memorandum-Executive Travel and E ntertainment E xpenses: Project# 1 5 .003
Date:
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 e ntertainment expenses t hat have been reimbursed to, or that have been directly paid
on behalf of, the executive officers of The University of Texas at Austin ( U T Austin). All of the
e xecutive officers will be subject t o review rumual 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 ente1tainme nt expenses reimbuTsed to, or paid on behalf ot: UT Austin's executive o ff icers
during the period of September l , 2012, through August 3 1 , 2 0 1 3; and September 1 , 20 1 3
through August 3 1 , 2 0 1 4 . Our object ive was t o 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 eval uated relevant policies and procedures for processing and approving
t ravel and entertainment e xpenses;
•
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 ofInternal 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 entertai nment expenses were randomly selected and tested for t he
following attributes:
19
Memorandum to Dr. Tinker
March
1 4, 20 1 6
Page 2 of 4
•
•
•
•
•
•
•
•
P roper Approval1
Adequate Supporting D ocumentat ion,
Mathematical Accuracy,
Adequate and Appropriate Business Purpose,
Proper Recording,
Within Allowable Limits,
Non-Reimbursement of P rohibited 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 adequ ate suppor6ng documentat ion was noted.
The issue has been ranked according to The UT System Audit Issue Rank ing guidelines. P lease
see the Appendix fo r ranking definitions.
Adequate SupportingDocumentation
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, di sal lowed mileage t ran sact ions may be approved and
reimbursed with U T Austin funds.
Section 9. 1 . 1.M. l . a of UT Austin's Handbook of Busines s Procedure s stat es,
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 su pplying 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 U T Austin Vehicle Fleet
Management Plan as,
5. Vehicle U se Reports
a. State law requ ires 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
20
Memorandum to Dr. Tinker
14, 2 0 1 6
3 o f4
March
Page
Vehicle Use Report fonn . The vehicle custodian i s re sponsible for re porting these
transactions, i n the manner prescribed by the U nive rsity, to the Fleet Manager.
c . Tf the vehicle is used by more than one operator during the day, each operator
must enter his or he r 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 re porting period, the vehicle custodian will review the
report for accuracy and sign i n the cle signated space. Then, the completed re port
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 shou ld ensu re that adequate su pporting documentation
of e xpenses is submitted and mainta i ned fo r audit purposes.
Management Response: Bureau management considers a strong system of internal
accounting controls a high priority and has impleme nted procedures to ensure that
adequate su pporting documentation of expe nses is submitted and ma intained for audit
purposes.
In September o f 20 1 3, subsequent to the period being audited, we initiated a proce ss of
e lec tronica l ly scanning and storing aJI backu p documentation on a Bureau serve r. T he
scan ning is done by a nu mber of people in the Accounting unit, and are stored and
maintained on a secure Bureau server. Mileage re ports are maintained by Devin Krieg.
We regu larly spot c heck documentation to e nsure that files are available and readable. In
addition, a l l mileage files are typically accessed multi ple times in order to provide
re gular, monthly documentation of expenses fot· 20-30 projects. Under the cunont
syste m, i t wou ld be extremely unlikely for a missing mileage log scan to go u ndetected
be fore paper records have been discarded.
ImplementationDate: September 20 1 3
Post Audit Review: Interna l Audits is in the process ofconducting its post audit review.
I n accordance with directives from The UT System 3oard of Regents, Interna l Audits will
perform fol low-up procedures to confirm that the audit recommendation has been .implemented.
We apprec iate 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].
M V : 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
21
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 i sk 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 U T System a s 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 i s 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 probab ility 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 i ncluded in the final report.
-
-
-
22
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
To:
From:
Subject:
Date:
Dr. PhiHp (Uri) Treisman
Professor of Mathematics, College of Nat ral Sciences
�
d�
\
Mr. Michael Vandervort, CPA
(':f' Chief
�I
Audit Executive
/'
Memorandum-Executive Travel and Entertainment Expenses: Project # 1 5 .003
March 1 4, 20 1 6
The University of Texas System Audit Office requ ires that we perform an audit of travel and
entertainment expenses that have been reimbursed to, or that h ave 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 entertain ment expenses reimbursed to, or paid on behalf of, UT Austin ' s executive of ficers
during the period of September 1 , 20 1 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 directly 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
travel and entertainment ex penses;
•
Reviewed supporting documentation; and
•
Conducted testing on a sample of travel and entertainment expense s.
This au dit 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 12-2 0 1 3 t rave l and entertainment ex pense s reimbursed to or paid
on behalf of D r. T reisman from UT Austin's Departmental F inancial Information Net work .
Samples we re randomly selected and tested fo r the folJowing attributes:
•
Proper Approval,
•
Adequate Supporting Docu mentat ion,
•
Mathematical Accuracy,
•
Adequate and Appropriate Business Purpose,
•
Proper Recording,
23
Memorandum for Dr. Treisman
March 14, 20 1 6
Page 2 of2
•
•
•
Within Al lowable Limits,
Non-Rei mbursement 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 o f 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
ashley.ohei [email protected].
MV: sg
cc:
Mr. Richard Blount, D irector I l l , Charles A Dana Center for Science and
Mathematics Education
Mr. Jeff Treichel, Associate Director, Office of Internal Audits
24