The affiliation agreement is the result of a voter-approved 2012 ballot proposition, which resulted in a 5-cent property tax increase to fund a new medical school, a news release said.
“This report is part of our larger approach to how we’ll manage this relationship going forward,” said Mike Geeslin, president and CEO of Central Health, in the news release. “Using sound business diligence, our goal is to ensure accountability to the public.”
The presentation of the report followed directly after a public hearing of Central Health’s fiscal year 2017-18 budget, during which several community members said they believed the organization was not transparent enough about how it spends the $35 million given to Dell Medical School annually.
Lawyer Fred Lewis said he was at a meeting with the County Commissioner’s Court on Tuesday. He said the court was displeased because the organization had not submitted an itemized list of expenditures.
“How can y’all spend hundreds of millions of dollars and don’t know how it’s spent?” he said.
Central Health initiated the agreed-upon procedures engagement, performed by Travis County’s external audit firm Atchley & Associates LLP, to issue a report of findings based on 11 specific financial areas including:
- Financial reporting processes,
- The University of Texas at Austin (the University) allocated costs related to Central Health-funded expenditures,
- Review of payroll records to determine if costs comply within the Affiliation Agreement’s definition of permitted investments,
- Segregation of Central Health funds reported by the University, and
- Determination that unspent funds were appropriately reported and invested by the University, and income from the investments was allocated back to Central Health funds.
The agreed-upon procedures engagement began in July. The report was presented by auditors from Atchley & Associates Wednesday to the Central Health Board of Managers.
During the presentation of the finding, board member Cynthia Valadez expressed displeasure with the work done by the firm and frustration that the firm could not provide a more detailed report of the audit.
Board chair Katrina Daniel told Valadez that auditors do not usually provide the detailed account of their work that she was requesting.
