2007 Reaffirmation Teams :: 3.2.2.2 - 2007 Reaffirmation Teams

2007 Reaffirmation Teams

3.2.2.2 - 2007 Reaffirmation Teams

The legal authority and operating control of the institution are clearly defined for the following areas within the institution's governance structure: fiscal stability of the institution.

Compliance Judgment

Compliance

Narrative

The legal authority and operating control that govern the fiscal stability of The University of Texas at Dallas (UT Dallas) are clearly defined in UT Dallas’ governance structure as outlined by state laws, The University of Texas System (UT System) policies, and local UT Dallas policies and procedures. The legal authority of UT Dallas to operate as an institution of higher education is codified in Sections 51.352 [1] and 65.31 [2] of the Texas Education Code, wherein the UT System Board of Regents is “authorized and directed to govern, operate, support, and maintain each of the component institutions that are now or may hereafter be included in a part of The University of Texas System.” As to fiscal control, Section 61.065 of the Texas Education Code requires the Texas comptroller of public accounts and the Texas Higher Education Board (THECB) to “prescribe and periodically update a uniform system of financial accounting and reporting” and to do so incorporating “in so far as possible…the provisions of the financial accounting and reporting manual published by the National Association of College and University Business Officers [3]. Chapter 13 of the THECB Rules sets forth the procedures for budget approval and financial reporting for institutions in Texas [4], and Series 20501 of the UT System Board of Regents’ Rules and Regulations establishes UT Dallas’ accounting, budget, and legislative request policies [5]. The policy states that all accounting records and procedures must be approved by the institution’s chief business officer (vice president for business affairs) and the UT System executive vice chancellor for business affairs. Furthermore, the executive vice chancellor for business affairs is responsible for each institution’s internal funding controls, and the Board of Regents must approve the rules and procedures for budget administration. These rules and procedures are included in all completed budgets.

UT Dallas’ Budget/Human Resources Policy details budgeting processes and procedures with regards to personnel [6]. UT Dallas’ Finance Procedural Documentation Manual provides the policies and procedures regarding fund accounting, contracts and grants accounting, reconciliation, cost accounting, financial reporting [7]. The Business Procedures Memorandums, Accounting and Finance, Budgeting and Expenditure Control, Personnel, and Purchasing are codified in UT Dallas’ Administrative Policies and Procedures Manual [8].

At UT Dallas, the Office of Finance, under the direction of the associate vice president for finance and controller, is responsible for managing the overall accounting, treasury, financial services, and financial reporting operations of the university. The associate vice president for budget and resource planning is responsible for the budget development and fiscal budgetary controls. Both associate vice presidents report to the vice president for business affairs [9]. Once the president and the president’s cabinet have reviewed the annual operating budget and once the president has approved the budget, it is sent to UT System for review and approval by the UT System Board of Regents. The UT System Board of Regents approved the fiscal year 2007 operating budget at the August 9-10, 2006, Board of Regents’ meeting [10]. In accordance with Series 20501, the FY 08 budget will be approved at the August 22-23, 2007, Board of Regents meeting [5].

The UT Dallas Office of Audit and Compliance is responsible for the internal auditing and compliance functions that further ensure UT Dallas’ fiscal stability [11]. The director of audit and compliance reports to the president and has additional reporting responsibilities to the UT System Audit and Compliance offices and the UT System Board of Regents [12]. Each year, the director of audit and compliance prepares an Annual Audit Plan [13] and a Compliance Action Plan [14] based on a risk assessment process. The annual plans and risk assessments are approved by the UT Dallas Audit and Compliance Committee [15] and the UT System Board of Regents.

Chapter 2102 of the Texas Government Code (TGC) [16] requires all Texas agencies and institutions to establish an internal audit function that complies with The Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing [17] and Governmental Auditing Standards [18]. The Act requires a report of internal audit activities each year [19] [20] to be submitted to the Texas State Auditor’s Office. UT System Policy 129 further defines internal auditing procedures for all UT System institutions [21], and The Action Plan to Enhance Institutional Compliance serves as the governing document for all UT System institutional compliance functions, including UT Dallas [22]. The Office of Audit and Compliance publishes the previous six years of annual audits on its website [23].

The Texas Internal Auditing Act requires that external quality assurance reviews be performed on the Office of Internal Audit every three years to ensure compliance with Auditing Standards. The most recent external quality assurance review was March 1, 2007 [24]. While not required, peer reviews of the compliance function are performed periodically based on best practices and suggested by the UT System Compliance Office. The most recent peer review was performed in 2003 [25], and the next review is scheduled for fiscal year 2008.

Supporting Documents

Footnote Document
[1]Texas Education Code 51.352 Responsibility of Governing Boards
PDF Document, 2 Pages, 9.21 KB (bylaw1013)
[2]Texas Education Code 65.31 General Powers and Duties
PDF Document, 1 Page, 10.65 KB (bylaw1058)
[3]Texas Education Code 61.065 Reporting; Accounting
PDF Document, 1 Page, 7.52 KB (bylaw1027)
[4]THECB Chapter 13 Financial Planning TOC
PDF Document, 3 Pages, 70.04 KB (rule1029)
[5]Series 20501, Board of Regents, Accounting Operating Budget and Legislative Appropriation Requests
PDF Document, 3 Pages, 16.54 KB (rule1025)
[6]UT Dallas Budget/Human Resources Policy FY07
PDF Document, 17 Pages, 63.30 KB (policy1102)
[7]UT Dallas Finance Procedural Documentation Manual Website
PDF Document, 1 Page, 16.51 KB (statement1256)
[8]Business Affairs Policy and Procedure manual
PDF Document, 1 Page, 62.04 KB (manual1050)
[9]Organizational Chart, Business Affairs
PDF Document, 1 Page, 21.89 KB (chart1119)
[10]UT System Board of Regents August 9-10 2006
PDF Document, 293 Pages, 5.47 MB (minutes1047)
[11]Office of Audit and Compliance Homepage
PDF Document, 1 Page, 36.24 KB (statement1008)
[12]Audit and Compliance, Organizational Chart
PDF Document, 1 Page, 7.55 KB (chart1023)
[13]UT Dallas Fiscal Year 2007 Audit Work Plan detailing development of a standardized audit plan
PDF Document, 44 Pages, 9.49 MB (plan1037)
[14]UT Dallas Institutional Compliance Action Plan for FY 2007
PDF Document, 2 Pages, 33.39 KB (plan1038)
[15]UT Dallas Audit and Compliance Committee Online Roster
PDF Document, 1 Page, 42.45 KB (roster1008)
[16]Texas Government Code Chapter 2102 Texas Internal Auditing Act
PDF Document, 4 Pages, 50.05 KB (bylaw1028)
[17]International Standards for the Professional Practice of Internal Auditing
PDF Document, 12 Pages, 46.64 KB (manual1029)
[18]GAO Government Auditing Standards
PDF Document, 211 Pages, 867.61 KB (manual1028)
[19]UT Dallas Annual Internal Audit Report FY05
PDF Document, 27 Pages, 213.66 KB (report1017)
[20]UT Dallas Annual Internal Audit Report 2006
PDF Document, 32 Pages, 380.52 KB (report1156)
[21]UT System Policy UTS 129 Internal Audit Activities
PDF Document, 6 Pages, 71.91 KB (policy1093)
[22]Action Plan for Compliance
PDF Document, 7 Pages, 120.19 KB (statement1172)
[23]UT Dallas Office of Audit and Compliance Website - provides reports of internal audit activity from 2001 – 2006
PDF Document, 1 Page, 31.42 KB (report1011)
[24]UT Dallas Quality Assurance Review of the Internal Audit Function
PDF Document, 24 Pages, 1.09 MB (report1338)
[25]UT Dallas Peer Review of the Institutional Compliance Program
PDF Document, 7 Pages, 101.40 KB (report1194)
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