FISCAL YEAR 2013
INTERNAL AUDIT ANNUAL
REPORT
Andrew S. Groover, M.Ed., CPA, CIA, CICA, CISA, CFE
Director of Internal Audits
October 30, 2013
TEXAS WOMAN’S UNIVERSITY
OFFICE OF INTERNAL AUDITS
TEXAS WOMAN'S UNIVERSITY
MEMBERS OF THE BOARD OF REGENTS
Sue Schrier Bancroft, Chair and Presiding Officer
Mary Pincoffs Wilson, Vice Chair and Assistant Presiding Officer
Lola Chriss
Anna Maria Farias, Esq.
Debbie Gibson
Ann Scanlon McGinity, Ph.D.
Nancy Painter Paup
George R. Schrader
Melissa D. Tonn, M.D.
Joleesia Berry (Student Regent)
OFFICERS OF THE UNIVERSITY
Ann Stuart, Ph.D., Chancellor and President
Robert Neely, Ph.D., Provost and Vice President for Academic Affairs
Brenda Floyd, Ed.D., Vice President for Finance & Administration
Richard Nicholas, Ph.D., Vice President for Student Life
OFFICE OF INTERNAL AUDITS
Andrew S. Groover, M.Ed., CPA, CIA, CICA, CISA, CFE
Director of Internal Audits
TEXAS WOMAN’S UNIVERSITY
OFFICE OF INTERNAL AUDITS
TABLE OF CONTENTS
I.
Compliance with House Bill 16: Posting the Internal Audit Plan, Internal Audit
Annual Report, and Other Audit information on Internet Web site ...................... 1
II.
Internal Audit Plan for Fiscal Year 2013 .................................................................. 1
III.
Consulting Services and Non-Audit Services Completed........................................ 1
IV.
External Quality Assurance Review ..................................................................... 2-5
V.
Internal Audit Plan for Fiscal Year 2014 ............................................................... 6-7
VI.
External Audit Services Procured in Fiscal Year 2013 ............................................ 7
VII. Reporting Suspected Fraud and Abuse .................................................................. 7
October 30, 2013
Members of the Board of Regents, Texas Woman's University
Dr. Ann Stuart, Chancellor and President, Texas Woman's University
Ms. Kate McGrath, Governor’s Office of Budget, Planning, and Policy
Mr. Ed Osner, Legislative Budget Board
Internal Audit Coordinator, State Auditor’s Office
Mr. Ken Levine, Sunset Advisory Commission
A report on the activity of Texas Woman's University's Office of Internal Audits for fiscal
year 2013 follows. This report fulfills the requirements of Texas Government Code
(Texas Internal Auditing Act), Sections 2102.009 and 2102.0091. The report provides
information on the audit plan, audits completed, external quality assurance review, and
other internal auditing activities.
For further information about the contents of this report, please contact our Office at
940-898-3260 or by email at agroover@twu.edu.
Andrew S. Groover, M.Ed., CPA, CIA, CICA, CISA, CFE
Director of Internal Audits
Internal Audit Annual Report for Fiscal Year 2013
I.
Compliance with House Bill 16: Posting the Internal Audit Plan, Internal
Audit Annual Report, and Other Audit information on Internet Web site
The Office of Internal Audits has posted the Fiscal Year 2014 approved audit plan and
the Fiscal Year 2013 Internal Audit Annual Report on the Office of Internal Audits
website. http://www.twu.edu/internal-audits/. Upon receipt from the State Auditor’s Office
of guidelines for posting summaries required by House Bill 16, the Office of Internal
Audits will update the posting to include the following information on the Web site:
A “detailed summary of the weaknesses, deficiencies, wrongdoings, or other
concerns raised by the audit plan or annual report.”
A “summary of the action taken by the agency to address concerns, if any, that
are raised by the audit plan or annual report.”
II.
Internal Audit Plan for Fiscal Year 2013
Report
Number
13-01
13-02
13-03
13-04
13-05
13-06
13-07
13-08
13-09
13-10
13-11
13-12
Report
Date
1/7/2013
11/19/2012
1/11/2013
2/20/2013
1/10/2013
6/20/2013
3/29/2013
6/18/2013
4/18/2013
10/7/2013
10/7/2013
9/12/2013
Report Title
Complete
Student Development
Ethics Program
Texas Administrative Code 202
Review of Financial Statements for SACS
Academic Financial Services
Libraries
Institutional Development
Dental Hygiene
Facilities Development Projects
Human Resources
Student Union
Multihazard Emergency Operations Plan
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
There were three deviations from the FY 2013 audit plan as follows:
Information Technology Governance – Not completed as the development and
implementation of the new IT Governance structure was not completed during FY 2013.
THECB Grant – Professional Nursing Shortage Reduction Program – This grant did not
meet the expenditure amount of $500,000 to require an audit based on Texas Administrative
Code 22.508.
Facilities Development Projects – Added to the FY 2013 audit plan per Texas Higher
Education Coordinating Board requirements.
III.
Consulting Services and Non-audit Services Completed
No consulting services or non-audit services were performed or completed during
fiscal year 2013.
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Internal Audit Annual Report for Fiscal Year 2013
IV.
External Quality Assurance Review (Peer Review)
Page 2
Internal Audit Annual Report for Fiscal Year 2013
Page 3
Internal Audit Annual Report for Fiscal Year 2013
Page 4
Internal Audit Annual Report for Fiscal Year 2013
Page 5
Internal Audit Annual Report for Fiscal Year 2013
V.
Internal Audit Plan for Fiscal Year 2014
The fiscal year 2014 audit plan was prepared using risk assessment techniques that
identify the individual audits to be conducted during the year. The risk factors included:
- Years since last audit
- Statutory Requirements/Government
Regulations
- Loss/Litigation potential
- Materiality/Size
- Cost savings/Revenue potential
- Prior recommendations
- Multiple campus locations
- Complexity/Changes/Technology
- Visibility/Public Image
- Other concerns
The audits were chosen from high, medium and low risk areas, with greater emphasis
given to the higher risk areas. This allows for broad audit coverage of campus areas,
while concentrating on areas of higher risk. As a result, the following 14 areas were
chosen for audit and approved by the TWU Board of Regents on August 16, 2013.
Audit
Information Technology Governance
Client Services
FERPA (Family Educational Right and Privacy Act)
Life Safety Code
PCI/DSS (Payment Card Industry/Data Security Standard)
Tuition and Fees
Institutional Review Board
Academic College or Department (tbd)
Contracted Services
Financial Aid
Investments (Public Funds Investment Act)
Printing and Mailing Services
Conference Services
Discretionary Funds
Annual internal audit report
Internal quality assurance review
Follow-up audits
Special Projects
Administrative
Professional Development
Holidays
Vacation
Sick Leave
TOTAL
Director
200
250
15
15
15
15
15
15
225
15
15
225
15
15
Assistant
Director Auditor I
10
0
10
0
250
0
225
0
225
0
0
300
225
0
0
225
10
0
250
0
0
250
10
0
0
225
0
150
Total
210
260
265
240
240
315
240
240
235
265
265
235
240
165
1050
1215
1150
3415
40
120
120
120
242
40
120
132
96
0
5
120
120
232
40
120
132
96
0
5
120
120
333
40
120
96
96
40
130
360
360
807
120
360
360
288
1030
865
930
2825
2080
2080
2080
6240
Risk areas ranked as “high” but not scheduled to be audited during fiscal year 2014.




Colleague (student system for the University)
Oracle – Human Resources module
Property and Surplus
Cash & Cash Receipts
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Internal Audit Annual Report for Fiscal Year 2013


















VI.
Construction
Multihazard Emergency Operations Plan
Oracle – Financial module
Research Grants
Teaching & Learning with Technology
Athletics
Bonds
Clery Act
Environmental Safety & Health
Public Safety (Police)
Texas Administrative Code 202
Travel
Building Maintenance
Procurement Cards
Red Flags Rule (FTC)
Scholarships
Time and Effort Reporting
Vehicles
External Audit Services Procured in Fiscal Year 2013
No external audit services during fiscal year 2013.
VI.
Reporting Suspected Fraud and Abuse
Actions taken to implement the requirements of:
Fraud Reporting. Article IX, Section 7.09. Fraud Reporting, General Appropriations
Act (83rd Legislature, Conference Committee Report).

TWU has placed a link on the TWU homepage that states “Report Fraud,
Waste, or Abuse in Texas”. This link takes the user directly to the State
Auditor’s Office webpage for reporting fraud, waste, and abuse. The Office of
Internal Audits has also paced the same link on its webpage.

TWU has also incorporated into its “Fraud and Fraudulent Activities” policy
information on how to report suspected fraud involving state funds to the
State Auditor’s Office. This information includes a link to the State Auditor’s
Office website http://sao.fraud.state.tx.us.
Texas Government Code, Section 321.022, Coordination of Investigations.

TWU has procedures incorporated into its “Fraud and Fraudulent Activities”
policy to ensure that the State Auditor’s Office is notified of any fraud, waste,
or abuse of state funds received by the University.
Page 7