university of houston system internal auditing …...aug 02, 2019 · the internal audit program...

UNIVERSITY OF HOUSTON SYSTEM

INTERNAL AUDITING DEPARTMENT

ANNUAL INTERNAL AUDIT PLAN

and

RISK ASSESSMENT

Fiscal Years 2020 - 2022


Internal Auditing Department Houston, Texas 77204-0930 (713)743-8000Fax: (713)743-8015

MEMORANDUM

TO: Mr. Peter Taaffe Chair, Audit and Compliance Committee

Dr. Renu Khator Chancellor/President, UHS/UH

FROM: Don F. Guyton Chief Audit Executive

DATE: August 2, 2019

SUBJ: Annual Internal Audit Plan - Fiscal Years 2020-2022

Attached for your review and approval is the UHS Internal Auditing Department Annual Internal Audit Plan for Fiscal Years 2020-2022 (Audit Plan). The Audit Plan has been prepared to meet the requirements of the Board of Regents directives and the Texas Internal Auditing Act (Texas Government Code, Chapter 2102), as amended. The Texas Internal Auditing Act requires the Board of Regents to approve the Audit Plan and periodically review the resources dedicated to the Internal Audit program and determine if adequate resources exist to ensure that risks identified in the annual risk assessment are adequately covered within a reasonable time frame. The Internal Audit resources are described in Section 2 of the Audit Plan, and the risk assessment is included in Section 8 of the Audit Plan. Risk assessment techniques were employed to identify auditable areas and to ensure that the accounting systems and controls, the administrative systems and controls, and other major systems and controls are reviewed on a periodic basis. Coverage of key departments and functions at planned intervals has been designed into the plan to assure that no significant auditable area has been overlooked.

Each auditable area has been evaluated as to its risks and other functions which might determine the urgency and frequency for performing an audit. In addition to an analytical review of all significant financial data for each university, the risk evaluation and scheduling process included requests for input from all university presidents, fiscal officers, and other key personnel. Once the risk assessment was completed, each auditable area was included in the audit schedule for the next three fiscal years or later.

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Included in Section 5 of the Audit Plan is a listing of brief audit objectives for each auditable area. These objectives relate to overall internal controls, efficiency of operations and compliance with laws and regulations, and Board of Regents and/or management policies and procedures. Recommendation: The Audit Plan should be flexible and periodically adjusted to adapt to changes in the audit environment. These changes include new or revised laws or regulations and changes in existing operations or activity levels. The Audit and Compliance Committee should approve these periodic changes to the Audit Plan. I recommend that the Board of Regents approve the attached Audit Plan, including the Internal Audit Resources, and delegate approval for periodic changes to the Audit Plan to the Audit and Compliance Committee. DFG:rh Attachment

UNIVERSITY OF HOUSTON SYSTEMINTERNAL AUDITING DEPARTMENT

ANNUAL INTERNAL AUDIT PLANFY 2020-2022

Table of Contents

Description Section

Executive Summary 1

Summary of Man-Hours / Man-Hour Assumptions 2

Audit Team 3

Auditable Areas 4

Audit Objectives 5

Three-Year Audit Schedule 6

Frequency of Audit Activity 7

Risk Assessment 8

Executive Summary

Section 1

1

University of Houston System Annual Internal Audit Plan, FY 2020-2022

Executive Summary

Background: The Texas Government Code, Board of Regents Audit and Compliance Committee Charter, and Board of Regents Audit Policy require the Internal Auditing Department to prepare a risk based audit plan and present it to the Board of Regents for approval. The methodology we use in preparing this analysis consists of the following phases: (1) identification of auditable areas, (2) input from management, and (3) a risk assessment. Matters that we consider in establishing audit work schedule priorities include (a) the date and results of the last audit; (b) financial exposure; (c) potential loss and risk; (d) requests by management; (e) major changes in operations, programs, systems, and controls; and (f) opportunities to achieve operating benefits. During the risk assessment, we assign numerical risk factors depending upon the following: (1) reason for the audit, (2) administrative oversight, and (3) date last audited. Identification of Auditable Areas: Auditable areas can be categorized in each of the following categories:

1. Annual Assistance to External Auditors • State Auditor’s Office (SAO): Projects included in the SAO’s annual audit plan

and special projects upon request • External CPA firms: Audits of Houston Public Media, Endowment Fund,

Athletics, Charter School, Cancer Prevention and Research Institute of Texas grants, and SACS accreditation reviews

• Other State/Federal/External Sponsor Auditors 2. Annual Activities/Mandates

• Follow-up activity required by the Institute of Internal Auditors (IIA) Standards • Chancellor/Board of Regents Travel and Entertainment reimbursements requested

by Board of Regents/Chancellor • Special projects and police investigations required by university policy and IIA

Standards • Texas Higher Education Coordinating Board: Facilities Audit (5 year cycle) • NCAA Rules-Compliance and football attendance audits required by NCAA rules • Construction: Construction procurement process, new construction (outsourced) • Contracts greater than $1 million requiring Board of Regents’ approval • Board of Regents Annual Procurement Report • Contract Administration • State Benefits Proportionality

3. Departmental Reviews: These compliance reviews test 12 different areas of compliance for system and university policies. These reviews are conducted every 5 years for all departments within the system. Many of the policies tested are directly related to internal controls. See Attachment A for a listing of all departmental reviews by college/division together with pertinent data on each college/division.

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4. Functional Reviews: These engagements are operational reviews for efficiency/effectiveness and are conducted for all divisions and service organizations within the system.

5. Information Technology Reviews: The security reviews are required by Texas Administrative Code, and various other information technology areas are addressed based on risk.

Resource Allocation: The Internal Audit Resources allocated to each of these areas for fiscal years FY 2020-2022 are as follows: Departmental Resources: The Texas Internal Auditing Act requires the Board of Regents to approve the Audit Plan and periodically review the resources dedicated to the Internal Audit program and determine if adequate resources exist to ensure that risks identified in the annual risk assessment are adequately covered within a reasonable time frame. The Internal Audit Team is comprised of a Chief Audit Executive, Assistant Chief Audit Executive, two Managers, an Audit Supervisor, one Senior Auditor, six Staff Auditors, and two Executive Administrative Assistants. The FY 2020 salary budget is $1,405,818, plus fringe, and the M&O budget is $172,539 (including $100,000 of funding for co-sourced information technology audits). Input from Management: A series of meetings are scheduled with key management personnel throughout the system and with the Chair of the Audit and Compliance Committee to identify sensitive or high exposure areas and to identify high risk functions, information technology, and compliance areas that are hot topics in the higher education industry that should be scheduled for review. Comments are also requested on the Internal Audit Plan and Risk Assessment from all Audit and Compliance Committee members at the August Audit and Compliance Committee meeting. See Attachment B for a schedule of these meetings. Risk Assessment: The risk assessment is used to develop an audit plan for performing audit projects in risk areas over a specified time to minimize the risk of losses to the University; to prioritize audit projects by the level of risk; to use our audit staff and time in an effective and efficient manner; and to determine the nature, timing, and extent of audit steps and procedures in direct relation to the amount and nature of the risk. After performing the preliminary risk assessment, the following areas received the highest risk rank (25-20). All of these areas are scheduled for review during FY 2020-2022.

FY 2020 FY 2021 FY 2022 Mandatory 5,420 4,560 4,820 High Priority 3,700 4,200 4,800 Other 4,528 4,888 4,028 Total Hours 13,648 13,648 13,648

3

Scheduled Unscheduled

Accounts Payable (FY 2020) Enrollment Management (FY 2020) Property Management (FY 2022)

Note: A separate information technology risk assessment has been prepared and these audits have been prioritized and scheduled as explained in the Audit Coverage Matrix in the last section of this document (p. 8-3-7). Conclusion: The Annual Internal Audit Plan and Risk Assessment help provide the Audit and Compliance Committee with assurance that it is providing the necessary oversight over the quality and integrity of the accounting, financial reporting practices, system of internal controls, university management practices, and the direction of the internal auditing function.

ATTACHMENT A

AUDIT COVERAGE MATRIXDEPARTMENTAL REVIEWS

4

OperationsExpenditures

RestrictedExpenditures FTEs FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

UH Academic Affairs/Provost 57,039,314 1,585,437 193 X UH Administration & Finance 130,672,287 17,800,663 1,353 XUH Gerald D. Hines College of Arch. and Des. 6,645,220 564,248 59 XUH Kathrine G. McGovern College of the Arts 15,748,463 4,017,350 190 XUH Athletics 40,760,235 6,993,701 179 XUH C.T. Bauer College of Business 44,555,437 11,078,063 385 X UH Chancellor/President 4,342,243 93,264 21 XUH College of Education 16,034,460 6,607,063 237 X UH Cullen College of Engineering 39,406,907 26,510,593 485 X UH Graduate College of Social Work 5,308,557 5,352,304 78 X UH Honors College 5,249,187 1,217,895 64 XUH Conrad N. Hilton College of Hotel & Rest. Mgmt. 14,169,681 3,092,450 96 X UH Law Center 24,827,133 2,868,783 273 XUH College of Liberal Arts & Social Sciences 57,660,754 12,662,744 1,007 XUH University of Houston Libraries 20,801,773 373,080 117 X UH College of Medicine 6,647,138 19,993 29 XUH College of Natural Sciences & Mathematics 57,361,956 32,050,662 548 X UH College of Nursing 3,565,233 448,351 28 XUH College of Optometry 22,338,451 6,974,955 224 XUH College of Pharmacy 20,838,149 7,470,078 179 XUH Research 73,205,709 6,554,480 275 X X UH Student Affairs & Enrollment Services 141,422,101 92,608,016 528 XUH College of Technology 16,861,982 1,997,869 169 X UH University Advancement 14,566,081 200,804 153 X UH University Marketing, Comm, & Media 5,129,923 0 40 X

845,158,374 249,142,846 6,911

UHCL Administration & Finance 15,260,772 5,000 188 XUHCL Business 10,799,640 3,820 139 X UHCL Education 6,871,405 296,779 102 X UHCL Human Sciences & Humanities 11,110,452 810,637 204 XUHCL President's Office 2,648,050 16,636 30 X UHCL Provost's Office 34,270,809 13,248,843 403 X UHCL Science and Engineering 11,395,877 1,171,334 176 X

92,357,005 15,553,049 1,244

UHD Academic & Student Affairs 34,210,850 33,771,005 264 X UHD Administration & Finance 30,697,716 0 281 X UHD Business 18,126,155 484,283 221 XUHD Employment Svc & Operations 1,541,319 0 17 X UHD Humanities & Social Sciences 13,597,485 129,232 265 X UHD President's Office & Advancement 4,583,909 11,003 25 X UHD Public Service 7,892,238 725,874 105 X UHD Sciences & Technology 10,789,265 1,212,907 174 XUHD University College 4,188,146 995,517 62 X

125,627,083 37,329,821 1,415

UHV Administration & Finance 6,330,543 0 114 X UHV Arts & Sciences 5,520,001 16,365 80 X UHV Business Administration 6,289,441 246,603 52 X UHV Education 3,845,335 260,237 52 XUHV Student Affairs 1,295,297 0 24 XUHV President's Office 4,174,150 25,913 37 X UHV Provost & Enrollment Management 12,224,064 8,634,370 114 X UHV University Advancement & External Rel. 527,834 0 15 X

40,206,665 9,183,488 488

FY 2019 BUDGET

University College/Division Name

ATTACHMENT B

SCHEDULED MEETINGS WITH MANAGEMENT BOR Audit and Compliance Committee Peter Taaffe UHS/UH Chancellor/President Renu Khator Michael Johnson UHS/UH Administration & Finance Jim McShan Raymond Bartlett Emily Messa General Counsel Dona Cornell UH Provost/Academic Affairs Paula Short Sabrina Hassumani UH Research Amr Elnashai Cris Milligan Pam Muscarello Claudia Neuhauser Kirstin Holzschuh Beverly Rymer UH Student Affairs Richard Walker Mara Affre Devi Bala Keith Kowalka Dan Maxwell William Munson Floyd Robinson Don Yackley

UHCL Senior Management Ira Blake Steve Berberich Mark Denney Usha Mathew UHD Senior Management Juan Sanchez Munoz Eric Link David Bradley Ivonne Montalbano Stefany Records Chris Rodney Johanna Wolfe UHV Senior Management Robert Glenn David Cockrum Wayne Beran Val Walden UH Administration & Finance Sandra Armstrong Devi Bala Kevin Draper Barbara Duarte Neil Hart Karin Livingston David Oliver UHS/UH Information Technology Dennis Fouty

Summary of Effort (Hour Assumptions)

Section 2

University of Houston SystemInternal Auditing Department

Annual Audit PlanSummary of Effort (Hours)

2 - 1

Activity Fiscal Year

2020 2021 2022

Mandatory 5,420 4,560 4,820

High Priority 3,700 4,200 4,800

Other 4,528 4,888 4,028

Total Direct Audit Hours 13,648 13,648 13,648

University of Houston SystemInternal Auditing Department

Annual Internal Audit PlanEffort (Hour Assumptions)

2 - 2

Audit

Available Effort Manager Supervisor Senior Auditor Staff

Vacations 96 96 96 96 Holidays (14 days) 112 112 112 112 Sick Leave 40 40 60 40 Professional Training 60 60 60 60 In-house Training 40 40 20 20 Professional Organizations 20 20 16 16 Indirect Audit Hours: Administrative 500 500 184 40 Direct Audit Hours 1,212 1,212 1,532 1,696

Total Hours Available 2,080 2,080 2,080 2,080

Allocable Direct Audit Hours

Direct Audit Hours By Position 1,212 1,212 1,532 1,696

Staff Size By Position 2 1 1 6 Employee Turnover/Attrition - - - 1.0 Available Staff Size 2.0 1.0 1.00 5.0

Subtotal 2,424 1,212 1,532 8,480

Total Direct Audit Hours 13,648

University of Houston System Internal Auditing Department

Annual Internal Audit Plan

Departmental Resources

2-3

The Texas Internal Auditing Act requires the Board of Regents to approve the

Audit Plan and periodically review the resources dedicated to the Internal Audit program and determine if adequate resources exist to ensure that risks identified in the annual risk assessment are adequately covered within a reasonable time frame. In our opinion, the resources dedicated to the Internal Auditing program are adequate.

FY 2019 Departmental Resources: • Personnel: Chief Audit Executive, Assistant Chief Audit Executive, two Audit

Managers, one Audit Supervisor, one Audit Senior, six Staff Auditors, and two Executive Administrative Assistants • Salary Budget: $1,385,940 plus fringe • M&O Budget: $172,539 (including $100,000 of funding for co-sourced

information technology audits)

Estimated FY 2020 Departmental Resources: • Personnel: Chief Audit Executive, Assistant Chief Audit Executive, two Audit

Managers, one Audit Supervisor, one Audit Senior, six Staff Auditors, and two Executive Administrative Assistants • Salary Budget: $1,405,818 plus fringe • M&O Budget: $172,539 (including $100,000 funding for co-sourced information

technology audits) Organization Chart: The departmental organization chart is attached.

2-4 7/29/19

Don GuytonCHIEF AUDIT EXECUTIVE

Russ HoskensASSISTANT CHIEF AUDIT

EXECUTIVE

Sandra DahlkeEXEC. ADMIN.

ASSISTANT

Brandee O’NealMANAGER

Emily TranSTAFF AUDITOR

II

Tamara DavisSTAFF AUDITOR

II

Elias McClellanSTAFF AUDITOR

I

Eric PorterSTAFF AUDITOR

II

AUDIT AND COMPLIANCE COMMITTEE

CHANCELLOR

Kim GerrySTAFF AUDITOR

II

Randy WongMANAGER Tony Moreno

SUPERVISOR

Jeff CollierSENIOR

AUDITOR

Connie Applebach

STAFF AUDITOR II

Barbara WhiteEXEC. ADMIN.

ASSISTANT

UNIVERSITY OF HOUSTON SYSTEM INTERNAL AUDITING

ORGANIZATION CHART

Audit Team

Section 3


Internal Audit Team

3 - 1

Don F. Guyton, C.P.A., Chief Audit Executive, began working in the UHS Internal Auditing

Department in his current position on October 1, 1987. Other experience includes: five years of Big Four public accounting experience, three years of controller experience in industry, and three years of experience as a commissioned officer in the U.S. Army. He received a M.B.A. degree from the University of New Orleans where he was a member of Beta Gamma Sigma. He is a member of the American Institute of Certified Public Accountants (AICPA), Texas Society of Certified Public Accountants (TXCPA), and the Institute of Internal Auditors (IIA). He is a past president of the Texas Association of College and University Auditors (TACUA).

Russell G. Hoskens, C.P.A., C.I.A., C.F.E., C.I.S.A., Assistant Chief Audit Executive, began

working in the UHS Internal Auditing Department in his current position on June 30, 1997. Other experience includes: eleven years of internal audit experience, including two years as an audit manager at the University of Texas Medical Branch at Galveston. He received a M.B.A. degree (concentration in Internal Auditing) from Louisiana State University. He is a member of the AICPA, the IIA, the Association of Certified Fraud Examiners (ACFE), and the Information Systems Audit and Control Association (ISACA). He is also a past president of the TACUA.

Randy Wong, C.I.A., Manager, began working in the UHS Internal Auditing Department on July 3,

2017. Other experience includes thirteen years of internal and external audit experience, including two years of Big Four public accounting experience. He is a member of the IIA.

Brandee O’Neal, C.I.A., Manager, began working in the UHS Internal Auditing Department on July

11, 2011. Other experience includes ten years of internal audit and accounting experience at the Texas Department of Criminal Justice. She received a M.B.A. degree from Sam Houston State University. She is a member of the IIA.

Tony Moreno, C.F.E., C.G.A.P, Supervisor, began working in the UHS Internal Auditing Department

on October 10, 2005. Other experience includes nine years of internal audit experience and ten years of banking experience. He received B.S. degrees in Economics and Anthropology from the University of Houston. He is a member of the IIA and the ACFE.

Jeff Collier, Senior Auditor, began working in the UHS Internal Auditing Department on February

18, 2018. Other experience includes three years of Big Four Public Accounting experience and 16 years of finance and human resources experience in intercollegiate athletics. He received a M.B.A., degree in Accounting from Baylor University. He is a member of the IIA.

Eric Porter, Staff Auditor II, began working in the UHS Internal Auditing Department on February

17, 2014. Other experience includes two years of internal auditing experience at the Texas Department of Criminal Justice and twenty years of experience in the transportation, real estate, and energy industries. He received a B.B.A. degree in Finance, M.B.A. degree, and a M.S. degree in Accounting from the University of Houston. He is a member of the IIA.

Emily Tran, Staff Auditor II, began working in the UHS Internal Auditing Department on December

14, 2015. Other experience includes fourteen years of compliance audit/analyst experience in


Internal Audit Team

3 - 2

the insurance industry. She received a B.B.A. in Marketing from the University of Houston-Downtown. She is a member of the IIA.

Tamara Davis, Staff Auditor II, began working in the UHS Internal Auditing Department on January

25, 2016. Other experience includes nine years as a financial examiner. She received a B.B.S. from the University of Houston-Downtown. She is a member of the IIA.

Connie Applebach, Staff Auditor II, began working in the UHS Internal Auditing Department on

January 9, 2017. Other experience includes ten years previous experience with the UHS Internal Auditing Department and two years with the Texas A&M University System Internal Auditing Department. She received a B.B.A degree in Accounting from Lamar University. She is a member of the IIA and ISACA.

Kim Gerry, Staff Auditor II, began working in the UHS Internal Auditing Department on May 28,

2019. Other experience includes over four years of public accounting experience. She received a M.S. degree in Accounting from the University of Houston-Clear Lake. She is a member of the IIA and the ACFE.

Elias McClellan, C.F.E., Staff Auditor I, began working in the UHS Internal Auditing Department on

July 29, 2019. Other experience includes over fourteen years of accounting, financial, and auditing experience. He received a B.S. degree from the University of Houston. He is a member of the IIA and the ACFE.

Sandra Dahlke, C.A.P., Executive Administrative Assistant, began working in the UHS Internal

Auditing Department on July 9, 2012. Other experience includes over 40 years of administrative professional experience, including experience at the UH Law Center, a K-12 private school, and a global engineering and construction firm. She is a Certified Administrative Professional (CAP).

Barbara White, Executive Administrative Assistant, began working in the UHS Internal Auditing

Department on July 29, 2019. Other experience includes more than 30 years of administrative professional experience with various Fortune 500 companies which include engineering, construction, aerospace, energy, and public relations and advertising firms. She received an Associate’s Degree from San Jacinto College and a B.A. in Humanities from the University of Houston-Clear Lake.

Professional Certifications: C.P.A. – Certified Public Accountant C.I.S.A. – Certified Information Systems Auditor C.I.A. – Certified Internal Auditor C.A.P. – Certified Administrative Professional C.F.E. – Certified Fraud Examiner C.G.A.P. – Certified Government Auditing Professional

Auditable Areas / Audit Activities

Section 4

UNIVERSITY OF HOUSTON SYSTEM INTERNAL AUDITING DEPARTMENT INTERNAL AUDIT PLAN, FY 2020-2022

AUDITABLE AREAS

ANNUAL ASSISTANCE/MANDATES & SYSTEM-WIDE AUDITS

4 - 1

ANNUAL ASSISTANCE / MANDATES Annual External Audits - Liaison Athletics – NCAA Cancer Prevention and Research Institute of Texas Grants Charter School Endowments Houston Public Media Regional Accreditation Reviews (SACS) Athletics Football Attendance Audit NCAA Rules-Compliance

Contract Administration, including compliance with TEC 51.9337 Follow-up Audit Procedures Special Projects Annual Audit Plan/Risk Assessment Annual Internal Audit Activity Report Annual Procurement Report Construction: Construction Procurement Process and New Construction (Outsourced) Contracts greater than $1 million requiring Board of Regents’ Approval Internal Audit Quality Assurance Management Requests Police Investigations State Auditor’s Office - Liaison State-wide and Other Audits State Benefits Proportionality Texas Higher Education Coordinating Board Facilities Audits Travel Expenditures Board of Regents’ Travel & Entertainment Chancellor/President’s Travel & Entertainment


AUDITABLE AREAS

ANNUAL ASSISTANCE/MANDATES & SYSTEM-WIDE AUDITS

4 - 2

SYSTEM-WIDE AUDITABLE AREAS

Academic Fees Accounts Payable Athletics Auxiliary Contract Administration Budgeting Campus Card College / Division Departmental Reviews Endowments Facilities Management

- Minor Planned Projects - Space Management

Facilities Planning & Construction Financial Reporting Formula Funding General Accounting Human Resources Information Technology Institutional Compliance Programs Investment Management Library Parking Payroll Police Departments Property Management (Fixed Assets) Real Estate Services Student Accounting & Receivables Support Organizations Travel and Entertainment Expenditures University Advancement College Operations Hilton Hotel Optometry Clinic Small Business Development Center NSM Research Stores Enrollment Services Admissions Financial Aid Registrar Campus Solutions Services

Procurement Procurement Cards/Travel Cards Purchasing Contract Administration Research

Business Operations Center for Innovation and Partnerships Contracts & Grants Administration Intellectual Property Management Office of Technology Transfer and Innovation

- Center for Innovation and Partnerships - Intellectual Property Management

Research Centers and Institutes - Advanced Manufacturing Institute - Center for Carbon Management in Energy - Center of Data Assessment and IT - Health Research Institute - Hewlett Packard Enterprise Data Science

Institute - Humana Integrated Health System Sciences

Institute - Hurricane Resilience Research Institute - Texas Center for Superconductivity at the

University of Houston - Texas Inst. For Measurement, Evaluation,

and Statistics Research Information Center Research Oversight Committees Time and Effort Reporting

Student Housing Student Services Campus Recreation Childcare Health Center Student Center Veterans Services

Audit Objectives

Section 5


AUDIT OBJECTIVES

5 - 1

ANNUAL ASSISTANCE / MANDATES: Annual External Audits (Athletics – NCAA, Endowments, Houston Public Media, Charter School, Cancer Prevention and Research Institute of Texas Grants, and Regional Accreditation Reviews (SACS)) To provide assistance, as requested, to external auditors to expedite the audit and reduce audit costs to the university. Annual Procurement Report To review the Annual Procurement Report to help ensure that the report preparation methodology appears to be reasonable and the report satisfies the Board of Regents annual reporting requirement for procurement activity.

Athletics – Football Attendance Audit To verify attendance at football games to comply with NCAA legislation. Athletics – NCAA Rules-Compliance To determine the adequacy of the Athletic Department’s NCAA Rules-Compliance Program. Board of Regents’ Travel & Entertainment To determine whether expenditures for travel and entertainment for the members of the Board of Regents were appropriately documented and allowable under university/Board of Regents policies. Chancellor/President’s Travel & Entertainment To determine whether expenditures for travel and entertainment for the Chancellor/President were appropriately documented and allowable under university/Board of Regents policies. Construction Procurement Process To determine whether UHS is complying with its policies and procedures and the Texas Education Code in selecting its contractors for its major construction projects.

Contract Monitoring To determine whether UHS is complying with state rules and regulations regarding the

administration of contracts.


AUDIT OBJECTIVES

5 - 2

Contracts Greater Than $1 million Requiring Board of Regents’ Approval To determine whether UHS is complying with its policies and procedures and other statutes and

regulations in awarding revenue or expenditure contracts greater than $1 million. Follow-up Reviews To determine whether appropriate action is taken on reported audit findings. Special Projects

Annual Audit Plan/Risk Assessment Annual assessment to determine the university's areas of risk and scheduling audits of these areas with the resources available to the Internal Auditing Department.

Annual Internal Audit Activity Report Annual activity report provides a summary of internal audit activities performed during the fiscal year, including explanations for significant deviation from the approved audit plan.

Internal Audit Quality Assurance

Procedures performed to ensure that the Internal Auditing Department complies with The International Standards for the Professional Practice of Internal Auditing as promulgated by the Institute of Internal Auditors.

Management Requests Projects requested by management that arise due to events within the university. Provide auditing expertise in review of systems and procedures and provide recommendations for improvements to internal controls.

Police Investigations Projects assigned by the UH-System Chancellor or Board of Regents or that arise due to unexpected events within the university. Provide auditing expertise in review of systems and procedures and provide recommendations for improvements to internal controls related to police investigations such as theft or other fraud.


AUDIT OBJECTIVES

5 - 3

State Auditor's Office

Liaison – State-wide and Other Audits Provide assistance to the State Auditor’s Office to expedite the audit. State Benefits Proportionality

To determine whether benefits paid proportional by fund are being reported in compliance with state regulations. Texas Higher Education Coordinating Board

Facilities Audits

To determine accurate reporting of space and space needs, including confirming the following: 1) data reported in the institution’s Facilities Inventory, 2) construction projects have received the necessary approvals, and 3) cost, funding, and space for all completed projects.

SYSTEM-WIDE AUDITABLE AREAS: Academic Fees To determine whether procedures help ensure academic fees are properly recorded and expended appropriately and are in compliance with state laws and regulations. Accounts Payable

To determine whether the accounts payable system has adequate internal controls to provide assurance that only bona fide university expenditures are paid, there is adequate documentation and proper approvals. To ascertain that procedures ensure accurate recording and reporting of liabilities. Athletics To determine that there are adequate internal controls to help ensure that departmental resources are being effectively and efficiently utilized and the department’s activities comply with statutes, regulations, and university policies.


AUDIT OBJECTIVES

5 - 4

Contract Administration To determine whether all executed contracts are in accordance with university policies and that monitoring procedures are in place to help ensure compliance with contract obligations. Budgeting To determine whether budget activities were being performed under an adequate system of internal controls to assure the reliability and integrity of the university’s budgetary data. Campus Card To determine whether there are adequate internal controls to help ensure that funds on the campus card are accounted for appropriately. College Operations To determine whether there are adequate internal controls to help ensure that departmental resources are being effectively and efficiently utilized and the department’s activities comply with statutes, regulations, and university policies. Departmental Reviews To determine whether departments are conducting financial and administrative activities in compliance with university policies. Enrollment Services To determine whether the admissions and registration process is effective and efficient and meets the students’ and institution’s needs. Endowments To determine whether endowment income was expended in accordance with the terms of the endowment agreement. Facilities Management To determine whether there are adequate internal controls to help ensure that departmental and university resources are being effectively and efficiently utilized and activities comply with statutes, regulations, and university policies.


AUDIT OBJECTIVES

5 - 5

Facilities Planning & Construction To determine whether there are adequate internal controls to help ensure that departmental and university resources for major and minor construction projects are being effectively and efficiently utilized and activities comply with statutes, regulations, and university policies. Financial Aid

To determine whether the university is in compliance with federal and state regulations and university policy.

Financial Reporting To determine whether activities are performed under an adequate system of internal controls to help ensure the reliability and integrity of the information contained in the university’s financial reports and that reports are prepared in accordance with statutes, regulations, and university policies.

Formula Funding To determine whether procedures are in place to help ensure that the data provided to the Coordinating Board is accurate, complete and in the format prescribed. General Accounting To determine whether activities are performed under an adequate system of internal controls to help ensure that transactions are recorded in the general ledger in accordance with university policies. Human Resources To determine whether there are adequate internal controls to help ensure that departmental resources are being effectively and efficiently utilized and the department’s activities comply with statutes, regulations, and university policies.

Information Technology

To determine whether there are adequate internal controls to help ensure that departmental resources are being effectively and efficiently utilized and the department’s activities comply with statutes, regulations, and university policies. Institutional Compliance Programs (May be Conducted by External Peer Review Team) To determine whether programs are designed and functioning effectively.


AUDIT OBJECTIVES

5 - 6

Investment Management To determine whether there are adequate internal controls over the investment of non-endowed

funds to help ensure compliance with statutes, regulations, and university policies. Library To determine whether there are adequate internal controls to help ensure that departmental resources are being effectively and efficiently utilized and the department’s activities comply with statutes, regulations, and university policies. Parking To determine whether there are adequate internal controls to help ensure that departmental resources are being effectively and efficiently utilized and the department’s activities comply with statutes, regulations, and university policies. Payroll To determine whether only bona fide university employees are being paid their approved wages and that payroll procedures comply with Board and university policies and state and federal law. Police Department To determine whether there are adequate internal controls to help ensure that departmental resources are being effectively and efficiently utilized and the department’s activities comply with statutes, regulations, and university policies. Procurement/Travel Cards To determine whether procurement/travel cards are being used for University purchases and that reconciliations are being performed in a timely manner. Property Management (Fixed Assets) Review the Property Management System methods of recording, safeguarding, and accounting for fixed assets (including the Wortham House and other facilities owned/leased by the university). Purchasing To ascertain whether the purchasing system has adequate internal controls and procedures which result in obtaining the desired product at the optimum price, in the requested quantity, at the right time and place.


AUDIT OBJECTIVES

5 - 7

Real Estate Services To determine whether there are adequate internal controls to help ensure that departmental resources are being effectively and efficiently utilized and the department’s activities comply with statutes, regulations, and university policies. Research To determine whether there are management practices in place to help ensure that contracts and grants are being managed in compliance with state and federal regulations and university policies and procedures. Student Accounting and Receivables To determine whether resources are being effectively and efficiently deployed under an adequate system of internal controls to help ensure student accounts are being billed, collected, and written off in compliance with statutes, regulations, and university policies. Student Housing To determine whether there are adequate internal controls to help ensure that departmental resources are being effectively and efficiently utilized and the department’s activities comply with statutes, regulations, and university policies. Student Services To determine whether there are adequate internal controls to help ensure that departmental resources are being effectively and efficiently utilized and the department’s activities comply with statutes, regulations, and university policies. Support Organizations To determine whether the amount recorded in the university’s books and records agree with the corresponding amounts included in the support organization’s audited financial statements and IRS Form 990 and to determine whether the foundations are complying with their agreements with the board of regents. Travel and Entertainment Expenditures To determine whether travel and entertainment expenditures comply with Board and university policies and state regulations.


AUDIT OBJECTIVES

5 - 8

University Advancement To determine whether there are adequate internal controls to help ensure that departmental resources are being effectively and efficiently utilized and the department’s activities comply with statutes, regulations, and university policies.

Three-Year Audit Schedule, FY 2020 - 2022

Section 6

UNIVERSITY OF HOUSTON SYSTEMINTERNAL AUDITING DEPARTMENTINTERNAL AUDIT PLAN, FY 2020-2022

SCHEDULED AUDITS - FY 2020

6-1-1

BUDGETAUDIT ACTIVITY HOURS

MANDATORY (5,420 hours)Annual External Audits - Liaison 40Annual Procurement Report 100Athletics - Football Attendance Audit 100Athletics - NCAA Rules-Compliance 400Board of Regents Travel & Entertainment, FY 2020 200Chancellor/President's Travel & Entertainment, FY 2020 200Construction and Other Contracts Requiring Board of Regents Approval 500Contract Monitoring - Licensing/Trademarks 500Follow-up Reviews 400Joint Admission Medical Program (UHD) 100Special Projects/Police Investigations 2,000State Auditor's Office Liaison

Audit Assistance - General 40Follow-up Reports 40

State Benefits Proportionality, FY 2018-2019 (System-wide) 300THECB Facilities Development Project Review 500

HIGH PRIORITY (3,700 hours)Accounts Payable (System-wide) 1,200Enrollment Management (System-wide) 1,200Executive Travel 600Financial Aid, Designated Tuition Set Aside (System-wide) 600Information Technology (Co-Sourced) 100

Cybersecurity Follow-up/TAC 202Education Resource CenterGeneral Controls - Research

OTHER (2,860 hours)Departmental Reviews (2,160 hours)

UH Gerald D. Hines College of Architecture 100UH Athletics 100UH Chancellor/President 100UH College of Optometry 100UH Texas Center for Superconductivity, Follow-up 100UHCL Administration & Finance 460UHCL Business 100UHCL Human Sciences & Humanities 100UHCL Science & Engineering 100UHV Administration & Finance 340UHV Student Affairs 340UHV Provost and Enrollment Management 220

Information Technology (900 hours)Computer Assisted Auditing Techniques 500IT - Review and Monitor of IT Systems (High Priority Projects) 200

1,668

Total Hours Scheduled for Fiscal Year 2020 13,648

INITIATED DURING FY 2019 - TO BE COMPLETED/REPORTED IN FY 2020


FY 2019 AUDITS IN PROGESS AT YEAR-END

6-1-2

Budget

Hours

Projects Initiated During FY 2019, But Not Completed 1,668

Board of Regents Travel & Entertainment, FY 2019 Chancellor/President's Travel & Entertainment, FY 2019Contract Administration (System-wide)Departmental Reviews UH College of Liberal Arts & Social Sciences UHD Business UHD Sciences & TechnologyFacilities Management (System-wide)Financial Aid, Scholarships (System-wide)Information Technology (Co-Sourced) External Vulnerability and Penetration Testing Information Technology Governance Third Party Risk Management

AUDIT ACTIVITY



6-1-3


MANDATORY (4,560 hours)Annual External Audits - Liaison 40Annual Procurement Report 100Athletics - Football Attendance Audit 100Board of Regents Travel & Entertainment, FY 2021 200Chancellor/President's Travel & Entertainment, FY 2021 200Construction and Other Contracts Requiring Board of Regents Approval 500Contract Monitoring - Academic Partnerships 500Follow-up Reviews 400Quality Assurance Reviews

Internal Quality Assurance Review 100External Quality Assurance Review 40

Special Projects/Police Investigations 2,000State Auditor's Office Liaison Audit Assistance - General 40 Follow-up Reports 40State Benefits Proportionality, FY 2020 (System-wide) 300

HIGH PRIORITY (4,200 hours)Campus Card (System-wide) 500Contracts and Grants Administration - COGR (System-wide) 1,200Police Departments (System-wide) 1,200Title IX (System-wide) 1,200Information Technology (Co-Sourced) 100

Education Resource CenterPCI-DSS Compliance Security Event Monitoring


UH Academic Affairs/Provost 340UH College of Education 160UH Graduate College of Social Work 100UH Conrad N. Hilton Hotel and Restaurant Management 100UH College of Medicine 200UH College of Nursing 100UHCL Provost's Office 640UHD Academic & Student Affairs 340UHD University College 220UHV President's Office 280UHV University Advancement & External Relations 100


1,608





6-1-4


MANDATORY (4,820 hours)Annual External Audits - Liaison 40Annual Procurement Report 100Athletics - Football Attendance Audit 100Athletics - NCAA Rules-Compliance 400Board of Regents Travel & Entertainment, FY 2022 200Chancellor/President's Travel & Entertainment, FY 2022 200Construction and Other Contracts Requiring Board of Regents Approval 500Contract Monitoring - Shuttle Bus Services 500Follow-up Reviews 400Special Projects/Police Investigations 2,000State Auditor's Office Liaison Audit Assistance - General 40 Follow-up Reports 40State Benefits Proportionality, FY 2021 (System-wide) 300

HIGH PRIORITY (4,800 hours)Parking (System-wide) 1,200Payroll, Follow-up 500Property Management (System-wide) 1,200Student Services (System-wide) 1,200UH Purchasing 600Information Technology (Co-Sourced) 100

Education Resource CenterLearning Management System Single Sign-on Central Authentication


UH University Advancement 100UH University Marketing, Communications, and Media Relations 100UHCL Education 100UHCL President's Office 100UHD Administration and Finance 400UHD Employment Services & Operations 100UHD President's Office and Advancement 160UHV Arts & Sciences 100UHV Business Administration 160UHV Education 100


1,908



FREQUENCY OF AUDIT ACTIVITY

Frequency AnalysisFieldwork Scheduled, FY 2020 - 2022

Reports Issued, FY 2015 - 2019

Section 7


FREQUENCY OF AUDIT ACTIVITYINTERNAL AUDIT PLAN, FY 2020-2022

UNIVERSITY OF HOUSTON

7-1-1

Auditable AreaFY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 LATER

ANNUAL ASSISTANCE / MANDATES Annual External Audit Liaison - Athletics X X XAnnual External Audit Liaison - Charter School X X XAnnual External Audit Liaison - CPRIT X X XAnnual External Audit Liaison - Endowments X X XAnnual External Audit Liaison - Houston Public Media X X XAthletics - Football Attendance Audit 13-13 14-14 15-15 16-18 17-23 18-11 19-15 X X XAthletics - NCAA Rules-Compliance 13-31 15-25 16-22 18-22 19-18 X XSAO Liaison - State-wide & Other Audits X X XSAO - Regional Accreditation Reviews (SACS) XTHECB - ARP/ATP Grants XTHECB - Facilities Audits 15-24 XTHECB - Technology Workforce Development X

SYSTEM-WIDE AUDITSAcademic Fees XAccounts Payable XAthletics (See Mandates above and Division Audits below) X X XAuxiliary Contract Administration 13-19Budgeting 19-19 XCampus Card XCollege/Division (See College & Division Audits below) X X XContract Administration XContracts & Grants Administration (See Research below) XEndowments 13-05, 13-06

13-11, 13-2413-25

15-14, 15-29 15-30

17-06, 17-16, 17-22

X

Enrollment Management SP13-03 SP19-02 XFacilities Management SP15-05 X XFacilities Planning & Construction 15-28

SP15-07SP17-02 X

Financial Aid 16-29 18-12 XFinancial Reporting XFormula Funding XGeneral Accounting 18-07 XHuman Resources 19-23 XInformation Technology (See Information Technology below) 13-36 14-27 15-33 X X XInstitutional Compliance Programs XInvestment Management XLibrary (see College Audits below) XParking XPayroll 18-28 X

WORKSCHEDULED

WORK PERFORMEDAudit Rpt. No./Special Project Rpt. No.

X = Work In-Progress/Scheduled




7-1-2


WORKSCHEDULED



Police Department XProcurement Cards/Travel Cards 14-26 XProperty Management (Fixed Assets) XPurchasing XReal Estate Services SP17-06 X XStudent Accounting & Receivables SP13-07 SP14-02 15-07 SP16-01 XStudent Housing 18-08 XStudent Services (See Student Services below) XSupport Organizations XTravel and Entertainment Expenditures 13-32 XUniversity Advancement (Also see Division Audits below) X

COLLEGE AUDITSGerald D. Hines College of Architecture and Design SP14-09 15-17 SP17-01

SP17-05X

Katherine G. McGovern College of the Arts 19-25 XC.T Bauer College of Business SP14-04

14-10 18-13 X

College of Education 17-07 XCullen College of Engineering 13-30 SP15-09 18-24 XGraduate College of Social Work 17-09 XHonors College 14-11 19-13 XConrad N. Hilton College of Hotel & Restaurant Management 17-08 XLaw Center 14-23 19-26 XCollege of Liberal Arts & Social Sciences 15-10 X XUniversity of Houston Libraries 13-35 18-17 XCollege of Natural Sciences & Mathematics SP13-05 14-16 19-04 XCollege of Nursing XCollege of Optometry 16-16 XCollege of Pharmacy 14-22 19-14 XCollege of Technology 14-07 18-18 X

DIVISION AUDITSAcademic Affairs/Provost SP14-05 16-28 XAdministration & Finance SP13-12 SP-01, SP-02

SP-03, SP-0416-21 19-24 X

Athletics SP13-10 15-32 XChancellor/President 15-31 XCollege of Medicine XResearch SP13-04 14-05 19-05 X




7-1-3


WORKSCHEDULED



Student Affairs & Enrollment Services SP13-09 15-12 SP16-04 SP17-03SP17-04

19-20 X

University Advancement 13-26 17-11, SP-07 XUniversity Marketing, Communications, & Media Relations 17-17 X X

INFORMATION TECHNOLOGYInformation Technology (Schneider Downs) Education Resource Center X X X Learning Management System X BSR Advance IT18-01 X Cybersecurity Assessment IT18-02 X Disaster Recovery and Availability X Document Retention Compliance X Effort Reporting X External Vulnerability and Penetration Testing X FISMA Compliance X HIPAA Compliance X Incident Response X

Information Technology Audit Risk Assessment X X Information Technology General Controls X Information Technology General Controls - Research X IT Governance X X Malware and Anti-Virus X Mobile Apps / Devices X PCI-DSS Compliance X

PeopleSoft IT19-01 X Physical Access IT17-01 X Resource Planning X Security Event Monitoring X Single Sign-On Central Authentication X Social Media X System Development Lifecycle X Third Party Risk Management

Information Technology Security Operations SP14-08 XTexas Administrative Code 202 14-28 XTier 1 Projects (High Priority) X X XTier 2 Projects (Medium Priority) XTier 3 Projects (Low Priority) X

RESEARCHBusiness Operations XContract and Grants Administration SP14-06 X




7-1-4


WORKSCHEDULED



Office of Technology Transfer and Innovation XResearch Centers and Institutes (See Research Centers below) XResearch Information Center XResearch Oversight Committees XTime and Effort Reporting X

RESEARCH CENTERSAdvanced Manufacturing Institute XCenter for Advanced Computing & Data Systems SP13-08 SP14-03 17-21Center for Carbon Management in Energy XCenter of Data Assessment and IT XHealth Research Institute XHewlett Packard Enterprise Data Science Institute XHumana Integrated Health System Sciences Institute XHurricane Resilience Research Institute XTexas Center for Superconductivity at the Univ. of Houston 13-03 XTexas Institute for Measurement, Evaluation, and Statistics XTexas Obesity Research Center 14-05

STUDENT SERVICESCampus Recreation XChildcare Center XHealth Center XUniversity Center X

OTHER AUDITS:Cash Handling Reviews XIT - PeopleSoft Student Acad. & Admin., Data Conversion XMedical Billings XNational Research University Fund XPrivacy/Information Security XResearch - JAMP 13-07 16-12 19-10 XResearch - CPRIT 14-20 X



UNIVERSITY OF HOUSTON-CLEAR LAKE

7-1-5


ANNUAL ASSISTANCE / MANDATES SAO Liaison - State-wide and Other AuditsSAO - Regional Accreditation Reviews (SACS) XTHECB - ARP/ATP Grants THECB - Facilities Audits XTHECB - Technology Workforce Development

SYSTEM-WIDE AUDITSAcademic Fees XAccounts Payable XAthletics (N/A)Auxiliary Contract Administration 13-18Budgeting 19-19 XCampus Card XCollege/Division (See School & Division Audits below) X X XContract Administration XContracts & Grants Administration (Sponsored Programs) 13-34 XEndowments 14-17 XEnrollment Management XFacilities Management X XFacilities Planning & Construction XFinancial Aid 13-33 18-12 XFinancial Reporting XFormula Funding 15-18 XGeneral Accounting 18-07 XHuman Resources 19-23 XInformation Technology (UCT) 16-24 X X XInstitutional Compliance Programs XInvestment Management (N/A)Library XParking XPayroll 18-28 XPolice Department XProcurement Cards/Travel Cards XProperty Management (Fixed Assets) XPurchasing X XReal Estate Services X XStudent Accounting & Receivables 15-11 X


X = Work In-Progress/ScheduledWORK

SCHEDULED



UNIVERSITY OF HOUSTON-CLEAR LAKE

7-1-6



X = Work In-Progress/ScheduledWORK

SCHEDULED

Student Housing XStudent Services XSupport Organizations (N/A)Travel and Entertainment Expenditures XUniversity Advancement X

COLLEGESBusiness 16-15 XEducation 13-21 17-34 XHuman Sciences and Humanities 16-07 XScience & Engineering 16-08 X

DIVISIONSAdministration & Finance 15-27 SP19-01 XPresident's Office 13-14 17-28 XProvost's Office SP13-13 16-30 X

REARCH CENTEREnvironment Institute of Houston 13-29 X

OTHER AUDITSCash Handling Reviews XResearch - JAMP 16-11 19-11 X



UNIVERSITY OF HOUSTON-DOWNTOWN

7-1-7


ANNUAL ASSISTANCE / MANDATESSAO Liaison - State-wide & Other AuditsSAO - Regional Accreditation Reviews (SACS) XTHECB - ARP/ATP Grants XTHECB - Facilities Audits X

SYSTEM-WIDE AUDITSAcademic Fees XAccounts Payable XAthletics (N/A) Auxiliary Contract Administration 13-17Budgeting XCampus Card XCollege/Division (See College & Division Audits below) X XContract Administration XContract and Grants Administration XEndowments 14-25 XEnrollment Management XFacilities Management X XFacilities Planning & Construction XFinancial Aid 13-23 SP15-08 18-12 XFinancial Reporting XFormula Funding 16-23 XGeneral Accounting 18-07 XHuman Resources SP16-05 19-23 XInformation Technology SP13-11 16-17 X X XInstitutional Compliance Programs XInvestment Management (N/A)Library XParking XPayroll 18-28 XPolice Department XProcurement Cards/Travel Cards XProperty Management (Fixed Assets) XPurchasing X XReal Estate Services X XStudent Accounting & Receivables 15-20 XStudent Housing (N/A)

WORKSCHEDULED





UNIVERSITY OF HOUSTON-DOWNTOWN

7-1-8


WORKSCHEDULED



Student Services XSupport Organizations (N/A)Travel and Entertainment Expenditures XUniversity Advancement X

COLLEGESBusiness 14-24 X X

Humanities and Social Sciences 14-15 18-23 XPublic Service SP16-08 18-19 XSciences and Technology 14-21 X XUniversity College 17-20 X

DIVISIONSAcademic & Student Affairs 13-12 17-19 XAdministration & Finance 13-22 17-18 XEmployment Services & Operations 17-27 XPresident's Office & Advancement 17-26 X

OTHER AUDITSCash Handling Reviews XContracts and Grants - JAMP 14-06 17-10 X



UNIVERSITY OF HOUSTON-VICTORIA

7-1-9


ANNUAL ASSISTANCE / MANDATESSAO Liaison - State-wide and Other AuditsSAO - Regional Accreditation Reviews (SACS) XTHECB - Facilities Audits X

SYSTEM-WIDE AUDITSAcademic Fees XAccounts Payable XAthletics XAuxiliary Contract Administration 13-20Budgeting 19-19 XCampus Card XCollege/Division (See School & Division Audits below) X X XContract Administration XContract and Grants Administration 14-04 XEndowments 15-26 XEnrollment Management XFacilities Management X XFacilities Planning & Construction XFinancial Aid 18-12 XFinancial Reporting XFormula Funding 15-19 XGeneral Accounting 18-07 XHuman Resources 19-23 XInformation Technology (Computing Services) 16-25 X X XInstitutional Compliance Programs XInvestment Management (N/A)Library XParking XPayroll 18-28 XPolice Department XProcurement Cards/Travel Cards XProperty Management (Fixed Assets) XPurchasing X XReal Estate Services X XStudent Accounting & Receivables 15-16 XStudent Housing SP15-06 18-03 X

WORKSCHEDULED





UNIVERSITY OF HOUSTON-VICTORIA

7-1-10


WORKSCHEDULED



Student Services XSupport Organizations (N/A)Travel and Entertainment Expenditures XUniversity Advancement X

SCHOOLSArts & Sciences SP16-07 17-32 XBusiness Administration SP13-01

SP13-02SP13-06

SP16-02SP16-03

17-29 SP18-01 X

Education 17-33 X

Nursing X

DIVISIONSAdministration & Finance 16-06 XPresident's Office 17-04 XProvost & Enrollment Management 16-05 XStudent Affairs 16-04 XUniversity Advancement 17-05 X



UNIVERSITY OF HOUSTON-SYSTEM

7-1-11


Annual Procurement Report X X XBoard of Regents' Travel 13-08 14-09 15-05 16-09 17-13 18-05 19-06 X X XChancellor/President's Travel 13-09 14-08 15-04 16-10 17-12 18-06 19-07 X X XConstruction Procurement Process/Contracts > $1 Million 13-02, 13-16

13-2814-02, 14-13

14-1915-02, 15-0915-21, 15-23

16-02, 16-14, 16-20, 16-27

17-02, 17-15, 17-25, 17-31

18-02, 18-10, 18-16, 18-21

19-02, 19-09, 19-17, 19-22

X X X

Contract Monitoring 16-32 18-25, 18-26 19-02, 19-09, 19-17

X X X

Consumable/Resale Inventory Follow-up Audit Procedures 13-01, 13-15

13-2714-01, 14-12

14-1815-01, 15-0815-13, 15-22

16-01, 16-13, 16-19, 16-26

17-01, 17-14, 17-24, 17-30

18-01, 18-09, 18-15, 18-20

19-01, 19-08, 19-16, 19-21

X X X

Internal Auditing Quality Assurance/Peer Review 15-34 18-14 XNon-Compliance Report 13-10 14-03 15-03 16-03 17-03 18-04 19-03 X X XSAO Liaison X X XState Benefits Proportionality 15-06 16-31 18-27 X X XWortham House - Fixed Asset Inventory X

WORKSCHEDULED



UNIVERSITY OF HOUSTON SYSTEMINTERNAL AUDITNG DEPARTMENT

AUDIT REPORTS ISSUED

REGULAR REPORTS

7-2-1

REPORT # TITLEAR2019-01 Follow-up Status Report - Actions Scheduled for Implementation from 7/1/18 to 9/30/18AR2019-02 Construction and Other Contracts Requiring BOR ApprovalAR2019-03 UHS Annual Non-Compliance Report - Departmental Reviews, FY 2018AR2019-04 UH College of Natural Sciences and Mathematics, Departmental ReviewsAR2019-05 UH Division of Research, Departmental ReviewsAR2019-06 UHS Board of Regents' Travel and Entertainment, FY 2018AR2019-07 UHS/UH Chancellor/President's Travel and Entertainment, FY 2018AR2019-08 Follow-up Status Report - Actions Scheduled for Implementation from 10/1/18 to 12/31/18AR2019-09 Construction and Other Contracts Requiring BOR ApprovalAR2019-10 UH Joint Admissions Medical Program, FY 2018AR2019-11 UHCL Joint Admissions Medical Program, FY 2018AR2019-12 UHS Contract Administration - Pouring RightsAR2019-13 UH Honors College, Departmental ReviewAR2019-14 UH College of Pharmacy, Departmental ReviewAR2019-15 UH Athletics, Football Attendance - 2018 SeasonAR2019-16 Follow-up Status Report - Actions Scheduled for Implementation from 1/1/19 to 3/31/19AR2019-17 Construction and Other Contracts Requiring BOR ApprovalAR2019-18 UH Athletics, NCAA Rules-ComplianceAR2019-19 UHS BudgetingAR2019-20 UH Division of Student Affairs and Enrollment Services, Departmental ReviewsAR2019-21 Follow-up Status Report - Actions Scheduled for Implementation from 4/1/19 to 6/30/19AR2019-22 Construction and Other Contracts Requiring BOR ApprovalAR2019-23 UHS Human ResourcesAR2019-24 UH Division of Administration and Finance, Departmental ReviewsAR2019-25 UH Kathrine G. McGvoern College of the Arts, Departmental ReviewAR2019-26 UH Law Center, Departmental ReviewsIT2019-01 UHS Review of Oracle PeopleSoft Application System

AR2018-01 Follow-up Status Report - Actions Scheduled for Implementation from 7/1/17 to 9/30/17AR2018-02 Construction and Other Contracts Requiring BOR ApprovalAR2018-03 UHV Student HousingAR2018-04 UHS Annual Non-Compliance Report - Departmental Reviews, FY 2017AR2018-05 UHS Board of Regents' Travel and Entertainment, FY 2017AR2018-06 UHS/UH Chancellor/President's Travel and Entertainment, FY 2017AR2018-07 UHS General AccountingAR2018-08 UH Student HousingAR2018-09 Follow-up Status Report - Actions Scheduled for Implementation from 10/1/17 to 12/31/17AR2018-10 Construction and Other Contracts Requiring BOR Approval



REGULAR REPORTS

7-2-2

REPORT # TITLEAR2018-11 UH Athletics, Football Attendance - 2017 SeasonAR2018-12 UHS Financial Aid, Non-Title IVAR2018-13 UH C.T. Bauer College of Business, Departmental ReviewsAR2018-14 UHS Internal Assessment of Internal AuditingAR2018-15 Follow-up Status Report - Actions Scheduled for Implementation from 1/1/18 to 3/31/18AR2018-16 Construction and Other Contracts Requiring BOR ApprovalAR2018-17 UH University Libraries, Departmental ReviewAR2018-18 UH College of Technology, Departmental ReviewsAR2018-19 UHD College of Public Service, Departmental ReviewAR2018-20 Follow-up Status Report - Actions Scheduled for Implementation from 4/1/18 to 6/30/18AR2018-21 Construction and Other Contracts Requiring BOR ApprovalAR2018-22 UH Athletics, NCAA Rules-ComplianceAR2018-23 UHD College of Humanities and Social Sciences, Departmental ReviewsAR2018-24 UH Cullen College of Engineering, Departmental ReviewsAR2018-25 UHS Contract Administration - Food ServicesAR2018-26 UHS Contract Administration - Bookstore ServicesAR2018-27 UHS State Benefits Proportionality, Fiscal Years 2015-2017AR2018-28 UHS PayrollIT2018-01 Review of the Advance Donor Management System (Confidential)IT2018-02 UHS Cybersecurity Audit (Confidential)

AR2017-01 Follow-up Status Report - Actions Scheduled for Implementation from 7/1/16 to 9/30/16AR2017-02 Construction and Other Contracts Requiring BOR ApprovalAR2017-03 Annual Non-Compliance Report, FY 2016AR2017-04 UHV President's Office, Departmental ReviewsAR2017-05 UHV University Advancement, Departmental ReviewAR2017-06 UH University Advancement, EndowmentsAR2017-07 UH College of Education, Departmental ReviewsAR2017-08 UH Conrad N. Hilton College of Hotel & Restaurant Management, Departmental ReviewAR2017-09 UH Graduate College of Social Work, Departmental ReviewAR2017-10 UHD Joint Admissions Medical Program, FY 2016AR2017-11 UH University Advancement, Departmental ReviewAR2017-12 UHS/UH Chancellor/President's Travel & Entertainment, FY 2016AR2017-13 UHS Board of Regents' Travel & Entertainment, FY 2016AR2017-14 Follow-up Status Report - Actions Scheduled for Implementation from 10/1/16 to 12/31/16AR2017-15 Construction and Other Contracts Requiring BOR ApprovalAR2017-16 UH College of Liberal Arts and Social Sciences, EndowmentsAR2017-17 UH University Marketing, Communication and Media Relations, Departmental Review



REGULAR REPORTS

7-2-3

REPORT # TITLEAR2017-18 UHD Administration and Finance, Departmental ReviewsAR2017-19 UHD Academic and Student Affairs, Departmental ReviewsAR2017-20 UHD University College, Departmental ReviewsAR2017-21 UH Center for Advanced Computing and Data Systems, Follow-upAR2017-22 UH College of the Arts, EndowmentsAR2017-23 UH Athletics, Football Attendance - 2016 SeasonAR2017-24 Follow-up Status Report - Actions Scheduled for Implementation from 1/1/17 to 3/31/17AR2017-25 Construction and Other Contracts Requiring BOR ApprovalAR2017-26 UHD Office of the President and University Advancement, Departmental ReviewAR2017-27 UHD Employment Services and Operations, Departmental ReviewAR2017-28 UHCL Office of the President, Departmental ReviewAR2017-29 UHV School of Business Administration, Departmental ReviewsAR2017-30 Follow-up Status Report - Actions Scheduled for Implementation from 4/1/17 to 6/30/17AR2017-31 Construction and Other Contracts Requiring BOR ApprovalAR2017-32 UHV School of Arts and Sciences, Departmental ReviewAR2017-33 UHV School of Education, Health Professions, and Human Development, Dept. Rev.AR2017-34 UHCL College of Education, Departmental ReviewIT2017-01 Review of the Electronic Access System (Confidential)

AR2016-01 Follow-up Status Report - Actions Scheduled for Implementation from 7/1/15 to 9/30/15AR2016-02 Construction and Other Contracts Requiring BOR ApprovalAR2016-03 Annual Non-Compliance Report, FY 2015AR2016-04 UHV Enrollment Management and Student Affairs, Departmental ReviewsAR2016-05 UHV Office of Provost, Departmental ReviewsAR2016-06 UHV Division of Administration and Finance, Departmental ReviewsAR2016-07 UHCL School of Human Sciences and Humanities, Departmental ReviewAR2016-08 UHCL School of Science and Computer Engineering, Departmental ReviewAR2016-09 Board of Regents' Travel & Entertainment, FY 2015AR2016-10 Chancellor/President's Travel & Entertainment, FY 2015AR2016-11 UHCL Joint Admissions Medical Program, FY 2015AR2016-12 UH Joint Admissions Medical Program, FY 2015AR2016-13 Follow-up Status Report - Actions Scheduled for Implementation from 10/1/15 to 12/31/15AR2016-14 Construction and Other Contracts Requiring BOR ApprovalAR2016-15 UHCL School of Business, Departmental ReviewAR2016-16 UH College of Optometry, Departmental ReviewAR2016-17 UHD Information Security StandardsAR2016-18 UH Athletics, Football Attendance - 2015 SeasonAR2016-19 Follow-up Status Report - Actions Scheduled for Implementation from 1/1/16 to 3/31/16



REGULAR REPORTS

7-2-4

REPORT # TITLEAR2016-20 Construction and Other Contracts Requiring BOR ApprovalAR2016-21 UH Division of Administration and Finance, Departmental ReviewsAR2016-22 UH Athletics, NCAA Rules-ComplianceAR2016-23 UHD Formula FundingAR2016-24 UHCL Information Security StandardsAR2016-25 UHV Information Security StandardsAR2016-26 Follow-up Status Report - Actions Scheduled for Implementation from 4/1/16 to 6/30/16AR2016-27 Construction and Other Projects Requiring BOR ApprovalAR2016-28 UH Office of Academic Affairs and Provost, Departmental ReviewsAR2016-29 UH Designated Tuition Set AsideAR2016-30 UHCL Office of the Provost, Departmental ReviewsAR2016-31 UHS State Benefits ProportionalityAR2016-32 UHS Compliance Review - Texas Education Code, Section 51.9337

AR2015-01 Follow-up Status Report - Actions Scheduled for Implementation from 7/1/14 to 9/30/14AR2015-02 Construction Award Status ReportAR2015-03 Annual Non-Compliance Report, FY 2014AR2015-04 Chancellor/President's Travel & Entertainment Expenditures, FY 2014AR2015-05 Board of Regents' Travel & Entertainment Expenditures, FY 2014AR2015-06 UHS State Benefits ProportionalityAR2015-07 UH Student Accounting and ReceivablesAR2015-08 Follow-up Status Report - Actions Scheduled for Implementation from 10/1/14 to 12/31/14AR2015-09 Construction Award Status ReportAR2015-10 UH College of Liberal Arts & Social Sciences, Departmental ReviewsAR2015-11 UHCL Student Accounting and ReceivablesAR2015-12 UH Division of Student Affairs and Enrollment Services, Departmental ReviewsAR2015-13 Follow-up Status Report - Actions Scheduled for Implementation from 1/1/15 to 3/31/15AR2015-14 UH College of Technology, EndowmentsAR2015-15 UH Athletics, Football Attendance - 2014 SeasonAR2015-16 UHV Student Accounting and ReceivablesAR2015-17 UH College of Architecture, Departmental ReviewAR2015-18 UHCL Formula FundingAR2015-19 UHV Formula FundingAR2015-20 UHD Student Accounting and ReceivablesAR2015-21 Construction and Other Projects Requiring BOR ApprovalAR2015-22 Follow-up Status Report - Actions Scheduled for Implementation from 4/1/15 to 6/30/15AR2015-23 Construction and Other Projects Requiring BOR ApprovalAR2015-24 THECB/UHS Facilities Development Projects Review



REGULAR REPORTS

7-2-5

REPORT # TITLEAR2015-25 UH Athletics, NCAA Rules-ComplianceAR2015-26 UHV EndowmentsAR2015-27 UHCL Administration and Finance, Departmental ReviewsAR2015-28 UH Facilities Planning and ConstructionAR2015-29 UH Honors College, EndowmentsAR2015-30 UH College of Pharmacy, EndowmentsAR2015-31 UHS/UH Chancellor/President, Departmental ReviewAR2015-32 UH Athletics, Departmental ReviewAR2015-33 Information Technology Audit Activity Report, FY 2015AR2015-34 UHS Internal Assessment of Internal Auditing



SPECIAL PROJECT REPORTS

7-2-6

REPORT # TITLESP2019-01 UHCL Administration and Finance - SAO Hotline Complaint No. 19-0425SP2019-02 UH Enrollment Management - SAO Hotline Complaint No. 19-1329SP2019-03 UH Moores School of Music - UH Jazz Festival

SP2018-01 UHV School of Business Adminisration - SAO Hotline Complaint No. 17-2412SP2018-02 UHD College of Science and Technology - SAO Hotline Complaint No. 18-1739

SP2017-01 UH College of Architecture, SICSA Special ProjectSP2017-02 UH Facilities - SAO Hotline Complaint No. 17-1431SP2017-03 Former Student, Use of UH Email - SAO Hotline Complaint No. 17-1925SP2017-04 Former Student, Use of UH Email - SAO Hotline Complaint No. 17-1925 (Revised)SP2017-05 UH College of Architecture, Professor's Salary ReviewSP2017-06 UH Katy Real Estate Purchase NegotiationsSP2017-07 UH University Advancement / Real Estate Services Policies and Procedures

SP2016-01 UH Office of Student Business Services - SAO Hotline Complaint No. 16-0070SP2016-02 UHV School of Business - SAO Hotline Complaint No. 15-1246SP2016-03 UHV School of Business, Conflict of Interest - SAO Hotline Complaint No. 16-0509SP2016-04 UH Student Affairs - SAO Hotline Complaint No. 16-0945SP2016-05 UHD Employee Services & Operations - SAO Hotline Complaint No. 16-1402SP2016-06 University of Tennessee Quality Assessment ReviewSP2016-07 UHV School of Arts & Sciences, Biology LabSP2016-08 UHD College of Public Service, Criminal Justice CenterSP2016-09 UHS Leave/Travel Assertions

SP2015-01 UH Stadium HEAF ExpendituresSP2005-02 UH Facilities and Event Management ServicesSP2015-03 UH Facilities Management CostsSP2015-04 UH Student Issues - SFAC/MOUSP2015-05 UH Facilities - SAO Hotline Complaint No. 15-0996SP2015-06 UHV Housing DevelopmentSP2015-07 UH Facilities - SAO Hotline Complaint No. 15-1532SP2015-08 UHD Financial Aid - SAO Hotline Complaint No. 15-1957SP2015-09 UH College of Engineering - SAO Hotline Complaint No. 15-1756

8-1 Risk Assessment Methodology

8-2 Risk Assessment

8-3 Audit Coverage Matrices

INTERNAL AUDIT RISK ASSESSMENT

Section 8

RISK ASSESSMENT METHODOLOGY

Section 8-1

UNIVERSITY OF HOUSTON SYSTEM INTERNAL AUDITING DEPARTMENT


8 - 1 - 1

Each year, the Internal Auditing Department prepares a risk assessment, as required by The International Standards for the Professional Practice of Internal Auditing which states that its plan of engagements should be based on a risk assessment, undertaken at least annually, and that the input of senior management and the board should be considered in this process. Risk is defined as the probability that an event or action may adversely affect the organization or activity under audit. The purpose of our risk assessment is to develop an audit plan for performing audit projects in risk areas over a specified time to minimize the risk of losses to the University; to prioritize audit projects by the level of risk; to use our audit staff and time in an effective and efficient manner; and to determine the nature, timing, and extent of audit steps and procedures in direct relation to the amount and nature of the risk. The risk methodology we use consists of three phases: (1) identification of auditable areas; (2) input from management; and (3) a risk assessment. We also considered an auditable area's impact on the accomplishment of the University's goals and objectives during our risk assessment. Matters that we consider in establishing audit work schedule priorities include: (a) the date and results of the last audit; (b) financial exposure; (c) potential loss and risk; (d) requests by management; (e) major changes in operations, programs, systems, and controls and (f) opportunities to achieve operating benefits. The auditable areas audit cycle is as follows: SACS Accreditation Reviews every 10 years (see 8-3-1); and NCAA Rules-Compliance (see 8-3-2), Financial Aid (see 8-3-3 and 8-3-4), College/Division, Departmental Reviews (see 8-3-5), Endowments (see 8-3-6), Information Technology (see 8-3-7) and Auxiliary Contract Administration (see 8-3-8) receive an annual audit for a portion of the coverage areas. The College/Division, Departmental Reviews are scheduled at least once every 5 years. These reviews test compliance with the universities’ policies and procedures for the following 12 areas noted below.

• management oversight • policies, procedures, required training, and reporting • cost center management • payroll • human resources • change funds and cash receipts • procurement and travel cards • departmental expenses • contract administration • property management • scholarships • research



8 - 1 - 2

RISK ASSESSMENT: In the attached Risk Assessment, we assigned levels of risk by use of a number rating system. The first step was to define the risk factors. We decided on the following risk factors: (1) reason for the audit, (2) administrative oversight, and (3) date last audited. These risk factors were assessed as follows:

(1) Reason for the Audit: Each auditable area was assigned a value of 5 for one of the following reasons: auditor preference (the complexity of information systems, the impact of compliance issues, knowledge of management practices, results of last audit, and public relations exposure) or management request.

(2) Administrative Oversight: We decided on the following factors to assess oversight

risk: (1) budgeted sources of funds, (2) budgeted uses of funds, (3) total expenditures, (4) total income, and (5) total asset values. Values were assigned from 0 to 10 (0 - < $10,000,000; 1 to 9 – increments of $10,000,000; 10 - > $100,000,000).

(3) Date Last Audited: Values assigned for date last audited were from 0 to 10. A

value of 10 was assigned for an auditable area that has not been audited or was audited 10 or more years ago. Values below 10 were assigned based on how many years since the last audit.

All risk factors for each auditable area were combined resulting in a total risk factor. After performing the preliminary risk assessment, the following areas received the highest risk rank (25-20). All of these areas are scheduled for review during FY 2020-2022.

Scheduled Unscheduled

Accounts Payable (FY 2020) Enrollment Management (FY 2020) Property Management (FY 2022)

RISK ASSESSMENT

Section 8-2


UNIVERSITY OF HOUSTON SYSTEMSYSTEM-WIDE AUDITS

RISK ASSESSMENT

8-2-1

FY2020-2022 YearsTotal Administrative Administrative SinceRisk Auditor Management Oversight Oversight Last

Auditable Area Rank Preference Request Risk Level Dollars Audit FY 2020 FY 2021 FY 2022 Later

Property Management (Fixed Assets) 20 10 1,271,416,530 10 XEnrollment Management 20 10 637,873,544 10 XAccounts Payable 20 10 332,215,175 10 XFacilities Planning & Construction 19 5 10 300,730,653 4 XFormula Funding 19 5 10 209,447,739 4 XFinancial Reporting 17 10 1,972,745,453 7 XAcademic Fees 17 7 79,658,166 10 XParking 17 5 2 20,831,044 10 XPayroll 16 5 10 668,839,354 1 XContract & Grants Administration 16 10 110,866,912 6 XCampus Card 16 5 1 18,366,179 10 XFinancial Aid 15 5 10 383,031,174 0 XContract Administration 15 5 10 332,215,175 0 XFacilities Management 15 5 10 134,261,683 0 XStudent Accounting & Receivables 14 10 637,873,544 4 XInvestment Management 14 4 45,002,164 10 XStudent Housing 14 5 5 3 37,125,659 1 XStudent Services 13 3 37,095,081 10 XLibrary 13 3 31,090,773 10 XCollege Operations 11 4 44,920,362 7 XPolice Departments 11 1 17,230,069 10 XBudgeting 10 10 2,036,700,000 0 XGeneral Accounting 10 10 1,890,423,916 0 XCollege/Division Departmental Reviews 10 10 1,409,940,702 0 X X XPurchasing 10 10 332,215,175 0 XHuman Resources 10 10 169,821,876 0 XInstitutional Compliance Programs 10 0 0 10 XInformation Technology 9 5 4 49,982,470 0 X X XSupport Organizations 9 0 0 9 XUniversity Advancement 7 6 61,100,000 1 XProcurement Cards / Travel Cards 7 2 27,214,970 5 XTravel and Entertainment Expenditures 6 0 7,212,383 6 XAthletics 4 4 43,581,834 0 X X XEndowments 4 2 28,667,609 2 XReal Estate Services 0 0 8,319,335 0 X

Reason For Audit


UNIVERSITY OF HOUSTONSYSTEM-WIDE AUDITS

RISK ASSESSMENT

8-2-2

FY2020-2022 Total UHS UH YearsTotal Administrative Administrative Administrative Administrative SinceRisk Auditor Management Oversight Oversight Oversight Oversight Last

Auditable Area Rank Preference Request Risk Level Dollars Dollars Dollars Audit FY 2020 FY 2021 FY 2022 Later

Property Management (Fixed Assets) 20 10 992,840,691 22,386,957 970,453,734 10 X Enrollment Management 20 10 462,596,688 0 462,596,688 10 XAccounts Payable 20 10 273,958,972 2,893,183 271,065,789 10 XFacilities Planning & Construction 19 5 10 155,303,917 0 155,303,917 4 XFormula Funding 19 5 10 147,970,938 1,545,470 146,425,468 4 XFinancial Reporting 17 10 1,660,674,951 142,771,434 1,517,903,517 7 XPayroll 16 5 10 500,130,470 8,738,374 491,392,096 1 XParking 16 5 1 18,075,715 0 18,075,715 10 XCampus Card 16 5 1 17,039,929 0 17,039,929 10 XContract Administration 15 5 10 271,065,789 0 271,065,789 0 XFinancial Aid 15 5 10 234,617,922 0 234,617,922 0 XAcademic Fees 15 5 52,617,187 0 52,617,187 10 XStudent Accounting & Receivables 14 10 462,596,688 0 462,596,688 4 XInvestment Management 14 4 40,723,159 12,020,631 28,702,528 10 XStudent Services 12 2 24,588,277 0 24,588,277 10 XLibrary 12 2 20,781,880 0 20,781,880 10 XGeneral Accounting 11 10 1,253,758,829 249,349,060 1,004,409,769 1 XCollege Operations 11 4 44,920,362 0 44,920,362 7 XPolice Departments 11 1 11,456,442 0 11,456,442 10 XBudgeting 10 10 1,493,000,000 59,500,000 1,433,500,000 0 XCollege/Division Departmental Reviews 10 10 1,087,634,089 0 1,087,634,089 0 X X XPurchasing 10 10 273,958,972 2,893,183 271,065,789 0 XHuman Resources 10 10 121,970,350 2,592,050 119,378,300 0 XContract & Grants Administration 10 10 102,803,204 0 102,803,204 0 XInstitutional Compliance Programs 10 0 0 0 0 10 XStudent Housing 9 5 3 34,687,891 0 34,687,891 1 XSupport Organizations 9 0 0 0 0 9 XFacilities Management 8 5 3 31,095,571 0 31,095,571 0 XInformation Technology 7 5 2 25,605,186 0 25,605,186 0 X X XProcurement Cards / Travel Cards 7 2 21,068,547 117,658 20,950,889 5 XUniversity Advancement 6 5 56,600,000 2,100,000 54,500,000 1 XTravel and Entertainment Expenditures 6 0 6,147,404 18,079 6,129,325 6 XAthletics 4 4 41,880,613 0 41,880,613 0 X X XEndowments 4 2 26,319,517 2,086,783 24,232,734 2 XReal Estate Services 0 0 8,150,606 0 8,150,606 0 X

Reason For Audit


UNIVERSITY OF HOUSTON-CLEAR LAKESYSTEM-WIDE AUDITS

RISK ASSESSMENT

8-2-3



Property Management (Fixed Assets) 20 10 145,328,047 10 XFinancial Reporting 17 10 119,645,592 7 XEnrollment Management 15 5 58,292,063 10 XParking 15 5 0 845,229 10 XCampus Card 15 5 0 0 10 XPayroll 12 5 6 63,580,381 1 XFacilities Planning & Construction 12 5 3 36,113,377 4 XGeneral Accounting 11 10 280,261,773 1 XCollege/Division Departmental Reviews 11 10 110,166,982 1 X X XFormula Funding 11 5 2 23,526,959 4 XAccounts Payable 11 1 19,281,251 10 XAcademic Fees 11 1 10,663,626 10 XBudgeting 10 10 170,400,000 0 XStudent Services 10 0 4,545,768 10 XLibrary 10 0 4,277,905 10 XPolice Departments 10 0 1,862,838 10 XInvestment Management 10 0 1,644,161 10 XProcurement Cards / Travel Cards 10 0 1,118,223 10 XInstitutional Compliance Programs 10 0 0 10 XStudent Accounting & Receivables 9 5 58,292,063 4 XFinancial Aid 9 5 4 40,284,742 0 XFacilities Management 8 8 85,363,043 0 XTravel and Entertainment Expenditures 8 0 437,549 8 XContract Administration 6 5 1 19,281,251 0 XInformation Technology 5 5 0 6,609,422 0 X X XEndowments 5 0 889,848 5 XReal Estate Services 5 5 0 0 0 XPurchasing 1 1 19,281,251 0 XHuman Resources 1 1 18,270,665 0 XUniversity Advancement 1 0 1,300,000 1 XContract & Grants Administration 0 0 2,854,845 0 XAthletics 0 0 0 0College Operations 0 0 0 0 Student Housing 0 0 0 0Support Organizations 0 0 0 0

Reason For Audit


UNIVERSITY OF HOUSTON-DOWNTOWNSYSTEM-WIDE AUDITS

RISK ASSESSMENT

8-2-4



Property Management (Fixed Assets) 19 9 95,484,345 10 XEnrollment Management 19 9 90,538,712 10 XFinancial Reporting 17 10 155,350,098 7 XParking 15 5 0 1,675,000 10 XCampus Card 15 5 0 0 10 XStudent Accounting & Receivables 13 9 90,538,712 4 XPayroll 13 5 7 77,819,996 1 XFinancial Aid 12 5 7 79,140,245 0 XAccounts Payable 12 2 27,243,837 10 XGeneral Accounting 11 10 323,971,019 1 XCollege/Division Departmental Reviews 11 10 162,749,478 1 X XAcademic Fees 11 1 12,470,921 10 XBudgeting 10 10 238,800,000 0 XStudent Services 10 0 5,049,768 10 XLibrary 10 0 4,564,369 10 XPolice Departments 10 0 3,470,783 10 XProcurement Cards / Travel Cards 10 0 3,211,140 10 XContract & Grants Administration 10 0 2,914,516 10 XInvestment Management 10 0 1,989,855 10 XInstitutional Compliance Programs 10 0 0 10 XFacilities Planning & Construction 9 5 52,213,359 4 XTravel and Entertainment Expenditures 8 0 448,023 8 XContract Administration 7 5 2 27,243,837 0 XFormula Funding 7 5 2 24,510,248 0 XInformation Technology 6 5 1 15,318,441 0 X X XEndowments 5 0 1,063,154 5 XReal Estate Services 5 5 0 12,225 0 XPurchasing 2 2 27,243,837 0 XHuman Resources 2 2 20,818,151 0 XFacilities Management 1 1 14,685,202 0 XUniversity Advancement 1 0 2,800,000 1 XAthletics 0 0 0 0College Operations 0 0 0 0Student Housing 0 0 0 0Support Organizations 0 0 0 0

Reason For Audit


AUDIT PLAN, FY 2020-2022

UNIVERSITY OF HOUSTON-VICTORIASYSTEM-WIDE AUDITS

RISK ASSESSMENT

8-2-5



Campus Card 15 5 0 1,326,249 10 XFacilities Planning & Construction 14 5 5 57,100,000 4 XProperty Management (Fixed Assets) 13 3 37,763,448 10 XEnrollment Management 12 2 26,446,081 10 XAccounts Payable 11 1 11,731,115 10 XStudent Housing 11 5 5 0 2,321,421 1 XBudgeting 10 10 134,500,000 0 XFinancial Reporting 10 3 37,074,813 7 XFormula Funding 10 5 1 13,439,594 4 XAcademic Fees 10 0 3,906,432 10 XStudent Services 10 0 2,911,268 10 XProcurement Cards / Travel Cards 10 0 1,817,060 10 XLibrary 10 0 1,466,619 10 XInvestment Management 10 0 644,988 10 XParking 10 0 235,100 10 XInstitutional Compliance Programs 10 0 0 10 XPolice Departments 10 0 0 10 XPayroll 8 5 2 27,308,507 1 XTravel and Entertainment Expenditures 8 0 179,407 8 XFinancial Aid 7 5 2 28,988,265 0 XAthletics 7 0 1,701,221 7 XStudent Accounting & Receivables 6 2 26,446,081 4 XContract Administration 6 5 1 11,731,115 0 XCollege/Division Departmental Reviews 5 4 49,390,153 1 X X XInformation Technology 5 5 0 2,449,421 0 X X XGeneral Accounting 4 3 32,432,296 1 XEndowments 4 0 395,090 4 XPurchasing 1 1 11,731,115 0 XUniversity Advancement 1 0 400,000 1 XHuman Resources 0 0 8,762,710 0 XFacilities Management 0 0 3,117,867 0 XContract & Grants Administration 0 0 2,294,347 0 XReal Estate Services 0 0 156,504 0 XCollege Operations 0 0 0 0Support Organizations 0 0 0 0

Reason For Audit


AUDIT COVERAGE MATRICES

INDEX 1. SACS Accreditation Reviews 2. NCAA Rules-Compliance 3. Financial Aid – Schedule 4. Financial Aid – Award Amounts 5. Departmental Reviews 6. Endowments

7. Information Technology

8. Auxiliary Contract Administration

Section 8-3


AUDIT COVERAGE MATRIXSACS 10 YEAR ACCREDITATION REVIEWS

8-3-1

UH UHCL UHD UHVYear 10 Year 10 Year 10 Year 10 Year

2020 20212022 X 20232024 X20252026 X20272028 X 2029203020312032 X2033

CAMPUS

Note: SACS Regional Accreditation Reviews are required every 10 years. The reviews are performed by external auditors.


AUDIT COVERAGE MATRIXNCAA RULES-COMPLIANCE

8-3-2

Audit Areas FY 2020 FY 2021 FY 2022 FY 2023 FY 2024Major Areas

Eligibility - Initial-Eligibility Certification X X - Continuing-Eligibility Certification X X - Transfer-Eligibility Certification X XFinancial Aid Administration XRecruiting - Off-Campus X - On-Campus X

Other AreasGovernance & Organization XAcademic Performance Program X XCamps and Clinics XInvestigations and Self-Reporting Rules Violations XRules Education XAthletic Apparel and Equipment XComplimentary Admissions XStudent-Athlete Vehicles XRepresentatives of the University's Athletics Interests XPlaying and Practice Seasons X XStudent-Athlete Employment XAmateurism/Elite Student-Athletes X XCoaching Staff Limits and Contracts XHead Coach Responsibility XIndividuals Associated with Prospects X X

Note: NCAA Bylaw 22.2.1.2.(e) - …the institution shall demonstrate that: … at least once every four years, its rules-compliance program is the subject of evaluation by an authority outside of the athletics department. This bylaw was rescinded as of February 2013. However, the Athletics Compliance Department continues to follow the remaining NCAA bylaws as part of their compliance operations.


AUDIT COVERAGE MATRIXFINANCIAL AID

8-3-3

AUDIT AREAS FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Title IVPell GrantsFederal Direct Loan Program Perkins Loans College Work-Study Supplemental Education Opportunity Grants TEACH Grant

Non-Title IVScholarships XDesignated Tuition (15%) - Set Aside XOther Non-Title IV X

Note: Waiting on further guidance from the Department of Education for Title IV audit requirements. The Southern Association of Colleges and Schools has indicated that Title IV audits will be required of institutions in conjunction with their accreditation review.


FINANCIAL AID PROGRAMSTOTAL AWARDS

8-3-4

Federal FamilyEducation

Loan Program

FederalDirect Loan

Program Pell Grants Perkins LoansCollege

Work-Study

SupplementalEducation

OpportunityGrants

TEACHGrant

TotalTitle IV

Financial AidEntity/Year $ Awards $ Awards $ Awards $ Awards $ Awards $ Awards $ Awards

UH

2013 N/A $172,531,087 $53,526,012 $1,456,759 $1,328,953 $1,000,000 $51,000 $229,893,8112014 N/A $162,259,752 $51,490,996 $63,768 $1,329,684 $1,055,234 $32,977 $216,232,4112015 N/A $164,627,000 $54,860,338 $79,962 $1,457,192 $1,130,012 $34,220 $222,188,7242016 N/A $172,912,337 $56,238,765 $46,490 $1,610,023 $998,041 $34,792 $231,840,4482017 N/A $178,394,561 $57,996,235 $6,500 $1,462,989 $1,243,075 $23,749 $239,127,1092018 N/A $181,165,180 $67,848,701 N/A $1,676,012 $1,349,265 $12,138 $252,051,2962019 N/A $173,797,524 $73,822,408 N/A $1,934,449 $1,252,451 $19,097 $250,825,929

UHCL2013 N/A $35,416,173 $7,867,066 $67,000 $111,587 $197,915 $247,651 $43,907,3922014 N/A $31,621,768 $7,657,532 $52,000 $143,815 $118,766 $228,374 $39,822,2552015 N/A $30,905,917 $8,609,251 $20,000 $154,374 $138,500 $174,995 $40,003,0372016 N/A $27,864,461 $8,917,260 $32,200 $154,394 $167,000 $188,333 $37,323,6482017 N/A $28,477,676 $9,574,537 $31,802 $154,284 $207,000 $155,762 $38,601,0612018 N/A $30,153,217 $11,249,595 $8,000 $146,493 $251,063 $240,013 $42,048,3812019 N/A $31,322,518 $12,231,203 N/A $195,263 $191,402 $231,380 $44,171,766

UHD2013 N/A $52,876,329 $26,294,178 N/A $306,207 $465,399 N/A $79,942,1132014 N/A $49,973,546 $26,465,051 N/A $310,022 $376,525 N/A $77,125,1442015 N/A $54,851,693 $27,206,868 N/A $313,512 $452,579 N/A $82,824,6522016 N/A $55,774,055 $24,712,245 N/A $402,149 $440,517 N/A $81,328,9662017 N/A $58,529,759 $24,625,711 N/A $519,651 $455,392 N/A $84,130,5132018 N/A $58,529,758 $27,337,990 N/A $412,475 $494,410 N/A $86,774,6332019 N/A $53,138,612 $27,507,469 N/A $474,738 $700,000 N/A $81,820,819

UHV2013 N/A $21,082,561 $5,028,439 N/A $120,131 $93,726 $18,322 $26,343,1792014 N/A $21,217,151 $5,457,117 N/A $113,279 $78,840 $20,078 $26,886,4652015 N/A $21,071,875 $5,938,981 N/A $137,589 $120,697 $26,871 $27,296,0132016 N/A $19,802,353 $6,088,092 N/A $146,225 $154,372 $25,966 $26,217,0082017 N/A $20,306,729 $6,413,577 N/A $173,564 $148,250 $20,504 $27,062,6242018 N/A $21,613,520 $7,871,136 N/A $173,317 $177,169 $23,746 $29,858,8882019 N/A $21,774,989 $7,871,592 N/A $186,994 $232,645 $22,788 $30,089,008

NOTE 1: Award amounts were provided by Financial Aid Directors.NOTE 2: Award amounts for FY 2019 are as of August 2019.


AUDIT COVERAGE MATRIXDEPARTMENTAL REVIEWS

8-3-5

OperationsExpenditures

RestrictedExpenditures FTEs FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

UH Academic Affairs/Provost 57,039,314 1,585,437 193 X UH Administration & Finance 130,672,287 17,800,663 1,353 XUH Gerald D. Hines College of Arch. and Des. 6,645,220 564,248 59 XUH Kathrine G. McGovern College of the Arts 15,748,463 4,017,350 190 XUH Athletics 40,760,235 6,993,701 179 XUH C.T. Bauer College of Business 44,555,437 11,078,063 385 X UH Chancellor/President 4,342,243 93,264 21 XUH College of Education 16,034,460 6,607,063 237 X UH Cullen College of Engineering 39,406,907 26,510,593 485 X UH Graduate College of Social Work 5,308,557 5,352,304 78 X UH Honors College 5,249,187 1,217,895 64 XUH Conrad N. Hilton College of Hotel & Rest. Mgmt. 14,169,681 3,092,450 96 X UH Law Center 24,827,133 2,868,783 273 XUH College of Liberal Arts & Social Sciences 57,660,754 12,662,744 1,007 XUH University of Houston Libraries 20,801,773 373,080 117 X UH College of Medicine 6,647,138 19,993 29 XUH College of Natural Sciences & Mathematics 57,361,956 32,050,662 548 X UH College of Nursing 3,565,233 448,351 28 XUH College of Optometry 22,338,451 6,974,955 224 XUH College of Pharmacy 20,838,149 7,470,078 179 XUH Research 73,205,709 6,554,480 275 X X UH Student Affairs & Enrollment Services 141,422,101 92,608,016 528 XUH College of Technology 16,861,982 1,997,869 169 X UH University Advancement 14,566,081 200,804 153 X UH University Marketing, Comm, & Media 5,129,923 0 40 X

845,158,374 249,142,846 6,911

UHCL Administration & Finance 15,260,772 5,000 188 XUHCL Business 10,799,640 3,820 139 X UHCL Education 6,871,405 296,779 102 X UHCL Human Sciences & Humanities 11,110,452 810,637 204 XUHCL President's Office 2,648,050 16,636 30 X UHCL Provost's Office 34,270,809 13,248,843 403 X UHCL Science and Engineering 11,395,877 1,171,334 176 X

92,357,005 15,553,049 1,244

UHD Academic & Student Affairs 34,210,850 33,771,005 264 X UHD Administration & Finance 30,697,716 0 281 X UHD Business 18,126,155 484,283 221 XUHD Employment Svc & Operations 1,541,319 0 17 X UHD Humanities & Social Sciences 13,597,485 129,232 265 X UHD President's Office 4,583,909 11,003 25 X UHD Public Service 7,892,238 725,874 105 X UHD Sciences & Technology 10,789,265 1,212,907 174 XUHD University College 4,188,146 995,517 62 X

125,627,083 37,329,821 1,415

UHV Administration & Finance 6,330,543 0 114 X UHV Arts & Sciences 5,520,001 16,365 80 X UHV Business Administration 6,289,441 246,603 52 X UHV Education 3,845,335 260,237 52 XUHV Student Affairs 1,295,297 0 24 XUHV President's Office 4,174,150 25,913 37 X UHV Provost & Enrollment Management 12,224,064 8,634,370 114 X UHV University Advancement & External Rel. 527,834 0 15 X

40,206,665 9,183,488 488

FY 2019 BUDGET

University College/Division Name



AUDIT COVERAGE MATRIXENDOWMENTS

8-3-6

No. ofEndowments

Market Value as of 8/31/18

IncomeDistributed

FY 2018 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

University of Houston:Administration & Finance 1 1,662 - XAdvancement 1 1,489,434 (100,804) XGerald D. Hines College of Architecture and Design 18 7,260,026 (265,528) X Athletics 44 6,559,121 (243,701) XC. T. Bauer College of Business 135 81,076,533 (2,943,175) XCollege of Nursing 5 1,093,044 (1,030) College of Education 70 3,489,527 (123,692) XCullen College of Engineering 118 35,063,427 (1,241,900) XGraduate College of Social Work 32 10,344,090 (273,105) X Honors College 53 9,207,630 (317,771) XConrad N. Hilton College of Hotel and Restaurant Mgmt. 53 4,606,467 (172,244) X Katherine G. McGovern College of the Arts 113 60,806,670 (2,192,464) XCollege of Liberal Arts & Social Sciences 191 38,850,614 (1,350,289) XCollege of Law 11 1,811,437 (66,860) X University of Houston Libraries 79 9,177,938 (340,510) X College of Medicine 1 1,003,525 - Non College Specific 200 137,582,140 (3,489,111) XCollege of Natural Sciences & Mathematics 69 18,702,266 (633,945) XCollege of Optometry 37 8,655,041 (262,430) X College of Pharmacy 97 4,832,035 (106,842) X President 5 2,406,429 (92,876) XOffice of the Provost 22 50,700,273 (1,940,806) XResearch 13 25,641,435 (895,632) XStudent Affaris 10 819,841 (25,374) X College of Technology 40 3,056,504 (95,094) X

Total - University of Houston 1,418 524,237,109 (17,175,183)

University of Houston-Clear Lake 178 24,438,688 (889,396) X

University of Houston-Downtown 100 32,467,226 (1,063,154) X

University of Houston-Victoria 93 12,222,470 (450,535) X

System Administration 21 117,605,881 (4,495,622) X

TOTAL - UH SYSTEM ENDOWMENT FUND 1,810 710,971,374 (24,073,890)

Endowment Category



AUDIT COVERAGE MATRIXINFORMATION TECHNOLOGY

8-3-7

Component Audit Priority FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022UHS PeopleSoft 1 X UHS Information Technology General Controls - Research 2 XUHS Physical Access 3 XUH BSR Advance 4 X

UHS Single Sign-On Central Authentication 5 XUHS Malware and Anti-Virus 6UHS Learning Management System 7 XUH Cybersecurity Assessment 8 X XUH Disaster Recovery and Availability 9

UHS Third Party Risk Management 10 XUHS External Vulnerability and Penetration Testing 11 XUHS Effort Reporting 12UHS HIPAA Compliance 13UHS PCI-DSS Compliance 14 XUHS FISMA Compliance 15UH Information Technology General Controls - UH 16

UHCL Information Technology General Controls - UHCL 17UHD Information Technology General Controls - UHD 17UHV Information Technology General Controls - UHV 17UHS System Development Life Cycle 18UHS Mobile Apps / Devices 19UHS Incident Response 20UHS Security Event Monitoring 21 XUHS IT Governance 22 XUHS Resource Planning 23UHS Document Retention Compliance 24UHS Social Media 25

Note: The IT Audit Universe and related Risk Assessment was prepared by our Co-Sourced Information Technology auditor on March 22, 2016.


AUDIT COVERAGE MATRIXCONTRACT MONITORING

8-3-8

Audit Areas FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Academic Partnerships XBookstore X Food Service X Licensing/Trademarks X Maintenance, Repair and Ops. Inv. Office SuppliesOutsourced Facilities ManagementPouring Rights X Shuttle Bus Services XTemporary ServicesUtilities

university of houston system internal auditing …...aug 02, 2019 · the internal audit program...

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