That's certainly the concern that gave rise to this legislation. Not sure from your other posts if you are trying to argue the technicality that it is the University of Texas Foundation, and not the State Treasury that owns the gold that may or may not exist.
I have no reason to doubt that the University of Texas Investment Management Corporation has gold holdings, and if they say they're worth a billion dollars then I don't have any reason to doubt that either. But however much gold they have, it is not stored in the gold vault of the New York Federal Reserve Bank since the Fed does not provide service to private corporations. Based on what an earlier poster uncovered, the gold appears to be stored at the New York branch of HSBC.