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

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1 System Nine Universities. Six Health Institutions. Unlimited Possibilities. System Audit Office 210 W. 6th Street, Suite B.140E, Austin, Texas 7870 I Phone: Fax: December 15, 2015 The Univer.;ity of Texas at Arlington The Univer.;ity of Texas at Austin The Univer.;ity of Texas at Brownsville at Dallas at El Paso - Pan American of the Permian Basin at San Antonio lhe University of Texas at 'I)'ler lhe University of Texas Southwestern Medical Center 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 M. D. Ander.;on Cancer Center The Univer.;ity of Texas Health Science Center at 'I)'ler Ms. Deborah S. Hanna, Chair Capital of Texas Chapter 3429 Executive Center Dr. #100 Austin, TX Dear Ms. Hanna: Attached is the Report of Revenues and Expenditures (cash basis) for the Fiscal Year ended August 31, 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, 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, System Randy F. Wallace, Associate Vice Chancellor, Controller & Chief Budget Officer Alan Werchan, Assistant Budget Officer, System

2 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 AUSTIN, TX (512)

3 System Audit Office Audit Report December 2014 BACKGROUND (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: 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. 1. In 2006, the Lieutenant Governor requested (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 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: 1

4 System Audit Office 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, CRITERIA The "Agreement Between the Texas Council on Alzheimer's Disease and Related Disorders and System." The term of this contract is from September 1, 2013 through August 31, 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, 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 Chief Audit Executive Eric J. P ski, CPA, CIA Assistant Director of Audits 2

5 System Audit Office 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 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 Consulting Contracts: Hinds Service Contract Ristine Service Contract UT System - Fiscal Agent Services External Advisory Committee Miscellaneous Expenses: Conference/Training/Business Meeting Communicati ons/v ideo/w eh/printing Office Supplies/Equipment Courier/Postage Rent Individual Travel Reimbursements Total Expenditures Cash Balance Available at August 31, 2014*: $ $ 33, ,230, ,240, , , , , (3,086.22) ,982, , , , , , , ,081, * Of the reported cash balance at August 31, 2014, a total of $43, was committed to accrued obligations that were paid in FY