An Audit Report on Selected Contracts at The University of Texas System
The University of Texas System Administration (System Administration) has implemented procedures for contract planning, procurement, and formation. In addition,
it ensured that its Supply Chain Alliance (Alliance), an internal group purchasing organization, followed those procedures when planning, procuring, and forming System
Administration contracts. However, it did not ensure that it had documented contract monitoring processes in place for the Alliance to enforce contract terms.
The System Administration's procedures address the applicable contract-related requirements of Texas Education Code, Section 51.9337, and Texas Government Code, Chapter 2261,
Subchapter F. However, the System Administration should strengthen its process to ensure that all contracts are reported as required by the General Appropriations Act.
The System Administration planned, procured, and formed the selected Alliance contracts in accordance with applicable requirements; however, it should strengthen controls
over required disclosures. In addition, the System Administration should strengthen controls over monitoring and oversight of its Alliance contracts to ensure that contract
terms are enforced.
Jump to Overall Conclusion
The System Administration implemented policies and procedures to address the applicable contract-related requirements in Texas Education Code Section 51.9337,
and Texas Government Code, Chapter 2261, Subchapter F.
Jump to Chapter 1-A
The System Administration did not consistently report contracts to the Legislative Budget Board (LBB) in accordance with the General Appropriations Act.
In addition, the System Administration did not always accurately report contract information to the LBB.
Jump to Chapter 1-B
The System Administration complied with applicable statutes and System Administration policies and procedures to plan, procure, and form the selected Alliance
contracts awarded to Dell Marketing LP and SHI Government Solutions for personal computers and the contract awarded to Fisher Scientific Company, LLC for distribution
of laboratory supplies and equipment. However, the Alliance did not ensure that the nepotism disclosure form required by Texas Government Code, Section 2262.004, was
completed and retained for 2 (8 percent ) of 26 evaluators for the Dell Marketing LP and SHI Government Solutions contracts.
Jump to Chapter 2
The Alliance did not enforce the terms of its monitoring provisions in the audited contracts. The Alliance includes a monitoring provision in all of its
contracts with suppliers that requires quarterly business reviews and identifies the key business and performance metrics that must be met, when a corrective
action plan is necessary, and the outcomes of not meeting a corrective action plan. Those terms also specify when the quarterly business reviews should be
performed and the information that should be provided by suppliers during those reviews. However, the Alliance did not consistently perform those quarterly
reviews or obtain the required supplier-submitted reports for the audited contracts.
Jump to Chapter 3-A
The System Administration did not have a process in place to oversee the administrative fees included in some of its Alliance contracts.
In addition, the Alliance did not have documented policies and procedures for its oversight of the administrative fees for suppliers that it includes
in some of its contracts. Those administrative fees are used to fund Alliance expenditures, and the Alliance distributes remaining funds to the institutions
that use the contracts.
Jump to Chapter 3-B
Graphics, Media, Supporting documents