THE UNIVERSITY OF TEXAS AT TYLER. Fiscal Year Audit Plan

Transcription

1 THE UNIVERSITY OF TEXAS AT TYLER Fiscal Year Audit Plan Adopted July 14, 2017

2 Annual Audit Plan Fiscal Year 2018 Table of Contents TABLE OF CONTENTS... 1 OVERVIEW... 2 INSTITUTIONAL AUDIT COMMITTEE... 3 STAFFING AND BUDGET... 4 CHANGE IN MANAGEMENT... 5 FOLLOW-UP OF AUDIT RECOMMENDATIONS... 5 RESERVE... 5 APPENDIX A ~ AUDIT PLAN APPENDIX B ~ RISK LIST AND SCORING APPENDIX C ~ AVAILABLE AUDIT HOURS APPENDIX D ~ FIVE YEAR HISTORY 1

3 Annual Audit Plan Fiscal Year 2018 Overview (UT Tyler) Fiscal Year (FY) 2018 Audit Plan (Audit Plan) is a description of the internal audit activities that will be performed by the UT Tyler Office of Audit Services in FY The Audit Plan was developed In accordance with the following: The Institute of Internal Auditors' (IIA) Standard 2000 (Performance Standards), 1 Texas Internal Auditing Act (Texas Government Code 2102) 2, The University of Texas System (UT System) Policy Number 129 3, and The UT System Audit Office guidelines. This audit plan allows the Chief Audit Executive (CAE) at UT Tyler to carry out the responsibility of the Office of Audit and Consulting Services in accordance with IIA Standards and under the direction of the Institutional Audit Committee (IAC). Our overall objective is to develop a standardized audit plan, consistent with the Internal Audit Charter and with UT Tyler s mission and goals. The University has completed and implemented an Enterprise Risk Management process. The Risk List and Scoring included in this plan reflects the results of discussion with UT Tyler and UT System Executive Management and consideration of prior year high risk areas. The Audit Plan for FY 2018 reflects the results of these assessments and includes risk based projects as available hours allow. In preparation of the Audit Plan, input was received from members of UT Tyler's Institutional Audit Committee, UT Tyler Executive Management, UT System Audit Department, and other UT Tyler personnel. To prepare the audit plan, we followed the UT System Risk Assessment and Annual Audit Plan Procedure. A copy of this document is on file in the Office of Audit and Consulting Services. In addition to approval from the UT Tyler Institutional Audit Committee, the Audit Plan requires several additional levels of review and approval: UT System Chief Audit Executive; UT System Audit, Compliance, and Risk Management Committee; and UT System Board of Regents. Despite the number of approvals, formal approval of the Audit Plan rests with the Institutional Audit Committee. Additionally, the audit plan will be shared with the UT Tyler Institutional Compliance Advisory Council, Texas State Auditor s Office, and other interested parties

4 Annual Audit Plan Fiscal Year 2018 Institutional Audit Committee The Institutional Audit Committee is comprised of the following members: Mr. Wayne Barton, CPA, Squyres, Johnson, Squyres & Co, LLP; Chair of IAC Ms. Mary Barr, Retired Compliance Director, UT Tyler; Mr. John D Anna, Executive Vice President and Chief Strategic Officer, Brookshire Grocery Company; Dr. Michael Tidwell, President; Dr. Amir Mirmiran, Provost and Vice President for Academic Affairs; Mr. William O Donnell, Vice President for Business Affairs; Dr. Howard Patterson, Vice President for Student Affairs; Dr. Sherri Whatley, Vice President for Technology and Chief Information Officer; Mr. Michael Donley, Chief Legal Officer; Ms. Erika Sampson, Compliance Officer; Dr. Gus Gordon, Professor of Accounting; Ms. Jessi Reel, Student Development Specialist; Ms. Lou Ann Viergever, Executive Director of Audit and Consulting Services; and Mr. Mike Peppers, Chief Audit Executive, UT System. 3

5 Annual Audit Plan Fiscal Year 2018 Staffing and Budget During FY 2017, the Office of Audit Services consisted of Lou Ann Viergever, Executive Director of Audit and Consulting Services / Chief Audit Executive (CAE); Karen Chudej, Senior Auditor II; and Lynn Harris, Internal Auditor II. There are no known personnel changes for FY The CAE is a Certified Public Accountant (CPA), Certified Internal Auditor (CIA) and is Certified in Risk Management Assurance (CRMA). Future training for the department will focus on internal audit guidance including data analytics, regulatory compliance, information technology, and higher education emerging risks Audit Staffing Levels The expected budget for the Office of Audit Services for the FY 2018 is approximately $17,000 excluding salaries and related benefits Audit Budget Excluding Salaries and Benefits

6 Annual Audit Plan Fiscal Year 2018 Change in Management The 1994 Action Plan to Enhance Internal Controls requires that an audit be performed whenever there is a change in budget authority. The purpose of these audits is to provide a consulting service to the new manager by reviewing internal controls and transactions in the department and provide information to assist the new manager in maintaining an adequate system of internal controls and fulfilling future responsibilities as budget authority. The IAC has requested that a Quality Assurance Review (QAR) will be conducted by the Compliance Department for any changes in management, and audits will only be performed as deemed necessary based on the results of the QAR or as requested by the audit committee for high-level departments. Follow-up of Audit Recommendations Implementation of audit recommendations is the responsibility of management. Follow-up procedures assess the implementation of recommendations and evaluate the adequacy and timeliness of corrective action. As directed by the IAC, audit procedures include validation (testing) of the implementation of audit recommendations and are limited to inquiry for the implementation of management memo recommendations. Follow-up will also be conducted to determine the status of recommendations from outside reviews on high risk areas as deemed necessary by the IAC. Follow-up of recommendations is conducted throughout the year and reported to the IAC during quarterly meetings. Reserve Hours have been reserved for projects yet to be determined. These projects may be requested by UT System, the IAC, and Executive Management. 5

7 FY 2018 Annual Audit Plan Project Name Budget General Objective/Description Risk Based Projects Account Reconciliations Change in Management - VP for University Advancement*, VP for Research*, VP for Marketing, Dean of Engineering, Director of International Programs*, Director of Human Resources, and others as changes occur. Financial Aid Information Technology Administrative Privileges Information Technology Access Management PeopleSoft Balance Forward Research Programs Student Housing Revenues University Advancement Endowment Compliance Annual Report University Pines Housing Financial Review 130 Test departmental account reconciliations for adequacy, timeliness and appropriate approval as required by the UT Tyler Internal Controls High Risk Monitoring Plan. 400 Conduct audit and consulting procedures and provide training due to changes in management for high-level executive departments. Will request Compliance Department to conduct Quality Assurance Reviews for all and High Risk Monitoring Plan Inspections for areas designated as high risk as noted by *. 50 Follow up on Department of Education Review recommendations. 50 Validation of IT Management assertions regarding Administrative Privileges granted to campus employees. 50 Validation of controls and processes related to access removal for part-time personnel who are no longer employed. 60 Assist Financial Reporting Department with data analytics to determine accuracy of balances forward from FY 2017 to FY Verify compliance with time and effort reporting, indirect costs and other research requirements. 200 Verify housing revenues are accurately billed and properly recorded. 50 Provide consulting assistance and review of Endowment Compliance Annual Report required by UT System that summarizes expenditures and balances of endowed accounts. 150 Conduct review and testing to determine if UT Tyler is receiving the correct amount of income in accordance with the management contract. Risk Based Projects Subtotal 1340

8 FY 2018 Annual Audit Plan Required Audits (External and/or Internal) Annual Financial Report - UTS Assurance 150 Verify compliance with UTS "Policy on the Annual Financial Report" by testing completion of the certification process and other policy requirements. Annual Financial Report - External Audit for FY 2017 Annual Financial Report - External Audit Interim Procedures for FY Conduct procedures requested by UT System and Deloitte, the UT System-wide external auditor. Prior years included completion of IT Questionnaire and limited review of bank account reconciliations and a variance analysis. 80 Conduct interim procedures requested by external auditor in preparation for stand-alone audit / review required by SACS. Senate Bill 20 Compliance Assessment 40 Complete annual assessment to verify compliance with purchasing and contract regulations. Required Audits Subtotal 290 Risk Based Consulting Projects Compliance Department Coordination and Assistance 120 Coordination with Compliance Officer for High Risk Monitoring Plans, Inspection Reports, Quality Assurance Reviews, and other audit and compliance related projects. Attendance and presentations at Institutional Compliance Advisory Council. Executive Management Consulting Innovation Academy Annual Financial Audit and Board Meetings PeopleSoft Assistance and Review Southern Association of Colleges and Schools Accreditation Steering Committee (SACS) Training Provided by Internal Audit to Institutional Departments and Employees UT Tyler Institutional Committees and Meetings Preparation and Participation 150 Consulting and advisory services for Executive Management related to Strategic Plan and other areas of interest. Meetings with Executive Management as requested. 40 Assist Innovation Academy Charter School during annual external audit required by Texas Education Agency. Attend board meetings and consult on financial and other issues. 40 Conduct testing and procedures as requested by UT Tyler Executive Management, UT Tyler Financial Reporting and Budget Office, and UT System Audit Office. 50 Serve on UT Tyler committee attending monthly meetings, gathering data, and reviewing reports as requested. 120 Present training and assistance to University employees to increase understanding of and compliance with rules and regulations. 160 Participation in various campus groups and meetings including University Council, University Staff Advisory Council, Wesley Foundation Student Organization, and attendance at campus events. Consulting Projects Subtotal 680

9 Investigations Follow Up Follow-Up: Quarterly procedures Investigations Subtotal 300 Follow Up Subtotal 280 Risk Based Reserve Carry Forward of FY 2017 Audits and Additional Requests Development - Operations Internal Audit Annual Report Annual Risk Assessment and Audit Plan General Reserve Subtotal 215 Computer and Software Maintenance and Updates External Quality Assessment Review External Quality Assessment Review - Recommendation Implementation Institutional Audit Committee Meeting Preparation and Participation Internal Quality Assurance and Improvement Program and Management of the Internal Audit Department State Auditor's Office and UT System Requests and Meetings Development - Operations Subtotal 1045 FY 2018 Annual Audit Plan 300 Conduct and assist with investigations. 280 Follow-up of recommendations from internal audits and external reviews, including Texas Administrative Code (TAC 202) audit conducted in FY 2017 which focused on information security controls. 215 Hours reserved for unanticipated audits, and other requests and activities that may arise. As specific engagements become known, these hours will be reallocated to the applicable categories. 45 Preparation of the required annual report of internal audit activities as required by the State Auditor's Office. 200 Development of annual risk assessment and audit plan in accordance with UT System guidelines. 100 Updating and maintenance of computers and software, including TeamMate auditing software, IDEA Data Analytics software, as well as audit workpaper templates and department website. 50 Complete External Quality Assessment with Independent Validation. 40 Implement recommendations from the External Quality Assessment. 300 Preparation and participation at quarterly audit committee meetings and additional meetings with committee members as considered necessary. 130 Ongoing attentiveness and awareness of UT Tyler, UT System, State, Federal accounting and auditing guidelines, and related issues. Review and update of department policies and procedures manuals. Management and oversight of the Internal Audit Department and staff. 180 Completion of UT System and State Auditor requests. Includes coordination and assistance for required external or UT System audits and attendance at UT System meetings.

10 FY 2018 Annual Audit Plan Development - Initiatives and Education Auditor Training and Continuing Professional Education Professional Organizations and Presentations UT System Audit Office Initiatives Participation 260 Continuing education and training of staff (including travel), specifically to obtain and maintain accounting and auditing license and certifications. 80 Service on the East Texas Chapter of CPA's Board of Directors and Continuing Education Committee. Presentations to professional organizations and UT Tyler auditing classes. 120 Participation in UT System-wide internal audit initiatives. Development - Initiatives and Education 460 Total Budgeted Hours 4610 Administrative/Indirect/"Below the Line" General Administration 570 Holidays and Campus Closings 348 Vacation & Sick Leave 712 Total Hours - Administrative 1630 Total Hours 6240