NCAA Bylaw 13 Athletics Camps and Clinics Audit

Intercollegiate Athletics

February 2016

The University of Texas at Austin Office of Internal Audits

UTA 2.302 (512) 471-7117

The University of Texas at Austin Internal Audit Committee

Mr. William O’Hara, External Member, Chair Dr. Gregory L. Fenves, President Dr. Judith Langlois, Executive Vice President and Provost, ad interim Dr. Patricia L. Clubb, Vice President for University Operations Ms. Patricia C. Ohlendorf, Vice President for Legal Affairs Dr. Juan M. Sanchez, Vice President for Research Dr. Gage E. Paine, Vice President for Student Affairs Ms. Mary E. Knight, CPA, Associate Vice President and Interim Chief Financial Officer Mr. Paul Liebman, Chief Compliance Officer Mr. Cameron D. Beasley, University Information Security Officer Ms. Christine A. Plonsky, Women’s Athletics Director and Executive Senior Associate

Athletics Director for External Services Mr. Tom Carter, External Member Ms. Lynn Utter, External Member Ms. Susan Whittaker, External Member Mr. Michael W. Vandervort, Chief Audit Executive Mr. J. Michael Peppers, Chief Audit Executive, University of Texas System

The University of Texas at Austin Office of Internal Audits

* denotes project members

This report has been distributed to Internal Audit Committee members, the Legislative Budget Board, the State Auditor’s Office, the Sunset Advisory Commission, the Governor’s Office of Budget and Planning, and The University of Texas System Audit Office for distribution to the Audit, Compliance, and Management Review Committee of the Board of Regents.

NCAA Bylaw 13 Athletics Camps and Clinics

Project Number: 16.006

Chief Audit Executive: Michael Vandervort, CPA

Associate Director: Jeff Treichel, CPA

Assistant Directors: *Angela McCarter, CIA, CRMA Chris Taylor, CIA, CISA

Audit Manager: Brandon Morales, CISA, CGAP

Auditor III: Michael Hammond, CIA, CISA, CFE *Cynthia Martin-Hajmasy, CPA Ashley Oheim, CPA

Kelli Nichols, CPA

Auditor II: Stephanie Grayson *Miranda Pruett, CFE

Auditor I: Jason Boone *Bobby Castillo Kerri Jordan

Sr. IT Auditor: Tod Maxwell, CISA, CISSP

IT Auditor: Tiffany Yanagawa

OFFICE OF INTERNAL AUDITS THE UNIVERSITY OF TEXAS AT AUSTIN

1616 Guadalupe Street, Suite 2.302 ·Austin, TX 78701 • (512)471-7117 ·FAX (512)471-8099

February 29, 2016

President Gregory L. Fenves The University of Texas at Austin Office of the President P.O. Box T Austin, Texas 78713

Dear President F enves,

We have completed our audit of Athletics Camps and Clinics. Our scope included the policies, procedures, and controls in place during FY15 for Men's and Women's Basketball, Baseball, and Co-ed Swimming camps.

Based on the audit procedures performed, we conclude that Athletics has reasonable controls in most of the areas reviewed. However, opportunities for improvement were noted regarding Athletics Camps internal procedures. Our audit report provides detailed observations for the area under review. Suggestions are offered throughout the report for improvement in the existing control structure.

We appreciate the cooperation and assistance of Intercollegiate Athletics throughout the audit and hope that the information presented herein is beneficial.

Sincerely,

M�and�CPA Chief Audit Executive

cc: Institutional Audit Committee Members Ms. Nancy Brazzi!, Deputy to the President and Chief of Staff, Office of the President Mr. Michael Perrin, Athletics Director, Intercollegiate Athletics Ms. Christine Plonsky, Women's Athletics Director and Executive Senior Associate Athletics

Director for External Services, Intercollegiate Athletics Ms. Lori Hammond, Associate Athletics Director, Risk Management and Compliance Services,

Intercollegiate Athletics Mr. Luke Nelson, Manager of Intercollegiate Athletics Camps, Intercollegiate Athletics Ms. Patricia Ohlendorf, Vice President for Legal Affairs Mr. Jeff Treichel, Associate Director, Office oflntemal Audits

Athletics - NCAA Bylaw 13 Camps and Clinics February 2016

TABLE OF CONTENTS

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Scope, Objectives, and Procedures ..................................................................................... .2

Audit Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . -..... 7

Appendix ................................................................................................... : .......................... 8

Athletics - NCAA Bylaw 13 Camps and Clinics February 2016

EXE CUTIVE S UMMARY

Conclusion

Based on procedures performed, it appears that Intercollegiate Athletics (Athletics) has reasonable controls in most of the areas reviewed. However, opportunities for improvement were noted for Athletics Camps internal procedures. Five recommendations were made to enhance controls in this area.

Summary of Recommendations

Each issue has been ranked according to The University of Texas System Administration Audit Issue Ranking guidelines. Please see the Appendix for ranking definitions. The Office of Internal Audits identified two notable issues which led to the following recommendations:

• Background Checks (Audit Issue Ranking: High) • Required Safety Training (Audit Issue Ranking: High)

Three additional recommendations are provided, but are considered minor in significance.

Audit Scope and Objective The scope of this audit included the policies, procedures, and controls in place during the

FY15 men's and women's basketball, baseball and co-ed swimming camps season. The audit objective was to determine whether these camps were in compliance with The University of Texas at Austin policies, National Collegiate Athletic Association rules, and National Assessment and Accreditation Council Reasonable Standards.

Background Summary Each year, pursuant to its mission, Athletics facilitates numerous sports camps that serve the children of the State of Texas and beyond. The goal of these camps is to improve the skill sets of young athletes by providing them with access to top-level coaching and instruction. This audit reviewed men's and women's basketball, baseball and co-ed swimming camp programs. Over the summer of 2015, these four programs facilitated 39 camps serving over 4,100 campers, and employed 277 coaches and staff. Total revenue generated by these camp programs was approximately $1. 7 million.

This audit was conducted at the request of Athletics as a part of our Fiscal Year 2016 Audit Plan.

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BA CKGROUND

The University of Texas at Austin (UT Austin) Intercollegiate Athletics (Athletics) website states, "The Athletics Departments at The University of Texas at Austin are committed to The University's mission of achieving excellence in education, research, and public service. Specifically, the mission is focused on three interrelated communities: student-athletes, the UT Austin community, and the citizens of the State of Texas."

Each year, pursuant to its mission, Athletics conducts numerous sports camps that serve the children of the State of Texas and beyond. The goal of these camps is to improve the skill sets of young athletes by providing them with access to top-level coaching and instruction. This audit reviewed the men's and women's basketball, baseball and co-ed swimming camp programs. Over the summer of 2015, these four programs facilitated 39 camps serving over 4,100 campers, and employed 277 coaches and staff. Total revenue generated by these camp programs was approximately $1. 7 million.

UT Austin is a Division I member of the National Collegiate Athletic Association (NCAA). In accordance with legislation enacted by NCAA Article 2. 8. 1 Responsibility of Institution,

"Each institution shall comply with all applicable rules and regulations of the Association in the conduct of its intercollegiate athletics programs. It shall monitor its programs to assure compliance and to identify and report to the Association instances in which compliance has not been achieved." NCAA Bylaw 13.12 defines the many facets of camps and clinics, and provides the criteria to which Athletics must adhere to achieve compliance.

This audit was conducted at the request of Athletics as a part of our Fiscal Year 2016 Audit Plan.

S COPE, OBJECTIVES , AND PRO CEDURES

The scope of this audit included the policies, procedures, and controls in place during the FY15 men's and women's basketball, baseball and co-ed swimming camps. The audit objective was to determine whether camps and clinics comply with:

• UT Austin policies, • NCAA rules, and • National Assessment and Accreditation Council (NAAC) Reasonable Standards.1

To achieve this objective, the Office oflntemal Audits (Internal Audits):

• Evaluated camp program financials and controls; • Reviewed employee and student-athlete records; • Corresponded with relevant staff; and • Reviewed applicable policies and procedures.

1 http://www.nacda.com/naacc/naacc-reasonable-standards.html

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This audit was conducted in accordance with the International Standards for the

Professional Practice of Internal Auditing and with Government Auditing Standards.

The remainder of this report presents detailed observations and recommendations.

AUDIT RES ULTS

Based on procedures performed, it appears that Athletics has reasonable controls in most of the areas reviewed. However, opportunities for improvement were noted for Athletics Camps internal procedures.

Five recommendations were made in the following areas: background checks, employee training, and employment/description/admission forms.

Background Checks

Audit Finding Ranking: High

One ( 6 % ) of 15 baseball camp employees tested began work before completing the required annual background check process. In the previous year, the camp employee had completed the required annual background check, but 13 months' time had passed without a new background check. This may be due to a lapse in the review process. Without completion of background checks before the first day of camp, there is an increased risk to children at Athletics camps.

The University ofTexas System Policy 124 2. 5(c) states, "Youth camps shall ensure that for all employees and final applicants who will work at the camp, and all volunteers and student observers, who will regularly or frequently be at the camp are subject to a criminal background check each year. The check shall be conducted prior to permitting an individual to work, volunteer, or be present."

Recommendation #1: The camp director and/or camp coordinator should ensure current background checks are on file prior to employees' first day of camp.

Management's Corrective Action Plan: The camps and clinics coordinator has since incorporated a formula into the employee tracking Excel spreadsheet that automatically highlights outstanding background checks. This replaces the process of the camps and clinics coordinator, camp director, and human resources staff manually reviewing the dates on the spreadsheet and reduces the possibility of human error, which is what occurred in this instance.

Responsible Person: Human Resources Coordinator Planned Implementation Date: Immediately

Post Audit Review: Internal Audits will follow-up in the fourth quarter of FYI 6.

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Required Safety Training

Audit Finding Ranking: High

Two (13%) of 15 women's basketball camp employees tested began work before completing the required child protection training. This may be due to a lapse in the review process. Without completing the required training and examinations before beginning work, there is an increased risk to children at Athletics camps.

Section VII.D.2 of UT Austin's Handbook of Operating Procedures 3-1710 states, "Designated individuals must complete the Sexual Abuse and Child Molestation Awareness training and examination ... every two years. If the designated individual is a new employee or volunteer, they must complete the training before the program starts."

UT Austin's 2014 Departments of Intercollegiate Athletics Camp Policy Manual states, "In compliance with Texas State Bill 1414, all camp employees, regardless of job status, are required to successfully complete the campus program for minors training and examination program on sexual abuse and child molestation. Certification must be on file by the Camp Director and Camp Coordinator before the employee begins work."

Recommendation #2: The camp director and/or camp coordinator should ensure a current certificate of completion from an state approved training program2 (i.e. CW514 Child Protection Training, TrainRight, & Safe Sport) is on file prior to employees begirining work.

Management's Corrective Action Plan: The camps and clinics coordinator has since incorporated a formula into the employee tracking Excel spreadsheet that highlights outstanding trainings. This replaces the process of the camps and clinics coordinator, camp director, and human resources staff manually reviewing the dates on the spreadsheet and reduces the possibility of human error. The employment clearance process was reviewed at the February 9, 2016 camp directors meeting and will be reinforced with all camp directors again at the April 5, 2016 camp directors meeting. Employment status for all camps will also be reviewed going forward by the camps and clinics coordinator.

Responsible Person: Camps and Clinics Coordinator Planned Implementation Date: Immediately

Post Audit Review: Internal Audits will follow-up in the fourth quarter of FYI 6.

Camp/Clinic Description Forms

Audit Finding Ranking: Medium

Four (36%) of 11 baseball, one (50%) of two swimming, and three (60%) of five men's basketball camp/clinic description forms were not submitted 14 days prior to the start of their respective camp/clinic. This may be due to a lapse in the review process. Without

2 Texas Department of State Health Services Approved Training and Education Programs: https://www.dshs.state.tx.us/cpm/training.shtm

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submitting the camp/clinic description forms 14 days prior to the start of the event, there may be a delay on approval of the camps and a risk of loss of UT Austin funds.

UT Austin's 2014 Department of Intercollegiate Athletics Camp Policy Manual states, "Camp Directors must submit the Camp/Clinic Description Form - Part I & Part II to the Compliance Office no later than 14 days prior to the start of camp for approval by the Compliance Office."

Recommendation #3: The camp director and/or camp coordinator should ensure the Camp/Clinic Description Form is submitted to the Athletics Compliance Office no later than 14 days prior to the start of a camp.

Management's Corrective Action Plan: The ARM CS staff and camps and clinics coordinator will review and revise the policy requiring Camp/Clinic Description

Forms I and II be submitted 14 days prior to the start of a camp. The current policy has been more of a "guideline" to leave appropriate review time for the compliance staff and ensure the camp/clinic will operate in accordance with NCAA rules. Revising the policy will provide camp directors with appropriate flexibility to make changes to the camps based on the number of camp participants, employees, and other variable factors, which can subsequently change answers provided on the Camp/Clinic Description Forms. However, the policy will still require that the forms be submitted a set timeframe prior to the beginning of the camp to ensure appropriate review and resolution of potential issues.

Responsible Person: Camps and Clinics Coordinator, and Director of Athletics Risk Management and Compliance Services Planned Implementation Date: April 1, 2016

Post Audit Review: Internal Audits will follow-up in the fourth quarter ofFY16.

Camp/Clinic Student-Athlete Employment Forms

Audit Finding Ranking: Medium

Fourteen (100%) of 14 women's basketball, twelve (100%) of 12 men's basketball, seven ( 100%) of seven baseball, and three (20%) of 15 swimming student-athlete employment forms tested were not properly completed; forms were missing signatures, academic approval emails, or were not signed at least 14 days prior to the start of camp. This may be due to a lapse in the review process. Without submitting the student-athlete employment forms 14 days prior to the start of camp, the Compliance Office may not have sufficient time to review the forms against NCAA Bylaws, leading to a potential NCAA violation.

UT Austin's 2014 Department of Intercollegiate Athletics Camp Policy Manual states, " ... the Camp Director must submit a Camp/Clinic Student-Athlete Employment form to the Compliance Office for approval no later than 14 days prior to the start of camp. NCAA legislation requires that all University of Texas student-athletes currently enrolled obtain

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prior approval from the Athletics Director or his/her designee prior to start of the camp/clinic."

Recommendation #4: The camp director and/or camp coordinator should ensure the Camp/Clinic Student-Athlete Employment Form is submitted to the Athletics Compliance Office for each student-athlete no later than 14 days prior to the start of camp.

Management's Corrective Action Plan: The ARMCS staff, Athletics Student Services and camps and clinics coordinator will review and revise the policy requiring the Camp/Clinic Student-Athlete Employment Form be submitted 14 days prior to the start of a camp. The current policy has been more of a "guideline" to leave appropriate review time for the ARMCS and Athletics Student Services staffs to ensure the student-athlete's employment is in accordance with NCAA rules and academic time demands. Revising the policy to reduce the number of days the form must be submitted in advance of the camp will provide camp directors with appropriate flexibility to make changes to student-athletes employed at the camp based on the number of camp participants, employees needed, student-athlete academic schedules and time demands, and other variable factors. However, the policy will still require the form be submitted a set timeframe prior to the beginning of the camp to ensure appropriate review and resolution of potential issues prior to employment.

Responsible Person: Associate Athletics Director for Student Services, Camps and Clinics Supervisor, and Director of Athletics Risk Management and Compliance Services Planned Implementation Date: April 1, 2016

Post Audit Review: Internal Audits will follow-up in the fourth quarter of FYI 6.

Free or Reduced Camp Admission

Audit Finding Ranking: Medium One (100%) of one men's basketball, one (100%) of one women's basketball, and 12 (85%) of 14 baseball camp participants' Free or Reduced Camp Admission Forms were approved after the completion of the camp or were not available for review. This may be due to a lapse in the review process. Without submitting the Free or Reduced Camp Admission

Form prior to the start of camp, the Compliance Office may not have sufficient time to review the forms against NCAA Bylaws, leading to a potential NCAA violation pertaining to letter winners or recruits.

Bylaw 13.12.1.7.1 of the NCAA Manual 13-14 states, "An institution, members of its staff or representatives of its athletics interests shall not employ or give free or reduced admission privileges to a prospective student-athlete who is an athletics award winner or any individual being recruited by the institution per Bylaw 13. 02.13 .1."

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UT Austin's 2014 Department of Intercollegiate Athletics Camp Policy Manual states, " ... a Free or Reduced Camp Admission Form must be completed and approved by the Compliance Office and the Appropriate Athletic Director prior to the camp ... If approved by the Athletics Director, the approval form will be returned to the Compliance Office who will save a copy of the form and forward it to the Camp Director."

Recommendation #5: The camp director and/or camp coordinator should ensure the Free or Reduced Camp Admission Form is submitted to the Athletics Compliance Office prior to the start of camp for proper review and approval. Additionally, the camp director and/or camp coordinator should maintain a copy of the Free or Reduced Camp Admission Form.

Management's Corrective Action Plan: The ARM CS staff and camps and clinics coordinator will reinforce the free or reduced camp admission policy and approval procedure at the April 5, 2016 camp directors meeting. This will include a reminder to obtain free or reduced camp admission forms for Neighborhood Longhorns participants as there has been confusion over whether forms are required in these situations due to the fact that it is an institutional program. The ARM CS staff and camps and clinics coordinator will also review the Free or Reduced Admission form for enhancements that may reduce processing time and streamline the approval process.

Responsible Person: Camps and Clinics Supervisor and Director of Athletics Risk Management and Compliance Services Planned Implementation Date: April 5, 2016

Post Audit Review: Internal Audits will follow-up in the fourth quarter of FYI 6.

CON CLUS ION

Based on procedures performed, it appears that Athletics has reasonable controls in most of the camp areas reviewed. However, opportunities for improvement were noted for Athletics Camps internal procedures. Five recommendations were made to enhance controls in this area.

In accordance with directives from The University of Texas System Board of Regents, the Office of Internal Audits will perform follow-up procedures to confirm that audit recommendations have been implemented.

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APPENDIX

Audit Issue Ranking

Audit issues are ranked according to the following definitions, consistent with UT System Audit Office guidance. These determinations are based on overall risk to UT System, UT Austin, and/or the individual college/school/unit if the issues are left uncorrected. These audit issues and rankings are reported to UT System directly.

• Priority - A Priority Issue is an issue that, if not addressed immediately, has a high probability to directly impact achievement of a strategic or important operational objective of UT Austin or the UT System as a whole.

• High - An issue that is considered to have a medium to high probability of adverse effects to UT Austin either as a whole or to a significant college/school/unit level.

• Medium - An issue that is considered to have a low to medium probability of adverse effects to UT Austin either as a whole or to a college/school/unit level.

• Low - An issue that is considered to have minimal probability of adverse effects to UT Austin either as a whole or to a college/school/unit level. Issues with a ranking of "Low" are reported verbally to the unit and are not included in the final report.

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