Texas Southern University has \u201csignificant\u201d financial weaknesses, the result of whole departments bypassing established purchase guardrails and the university failing to enforce established contract and accounting procedures, a state audit released this week reveals. <\/p>\n
Lt. Gov. Dan Patrick<\/a> on Wednesday called the audit \u201cbeyond disturbing.\u201d He added that his office, together with Gov. Greg Abbott<\/a> and House Speaker Dustin Burrows<\/a>, has ended any spending by TSU on contracts other than ongoing university expenses needed to keep the school open.<\/p>\n Patrick previously requested a Texas Rangers investigation<\/a> into any potential criminal wrongdoing at TSU, one of the nation\u2019s largest historically Black colleges, and that probe is continuing. <\/p>\n \u201cIt is my hope, for the sake of the students at the university, that TSU can continue,\u201d Patrick wrote on the social media site X. \u201cTSU is solely responsible for this fiasco. If TSU does not remedy the situation, the legislature will.\u201d<\/p>\n The state auditor\u2019s office examined TSU\u2019s finances and accounting for fiscal years 2023, 2024 and 2025, as well as taking a deep dive into its financial reporting process for fiscal years 2023 and 2024. <\/p>\n Among the findings: <\/p>\n Records for 97% of the 60 vendors the state auditor checked did not match corresponding contract documentation. What contract data information there was, had inaccuracies throughout. <\/p>\n<\/li>\n A complete lack of a regular physical inventory procedure. The last time an annual inventory on the university\u2019s physical assets was conducted was in 2019. \u201cSignificant deficiencies in the University\u2019s asset management functions prevented it from accurately accounting for and protecting its assets,\u201d the state audit revealed.<\/p>\n<\/li>\n Frequently late and inaccurate financial reporting with reports getting to the state comptroller\u2019s office nearly a year late in 2023.<\/p>\n<\/li>\n A failure to shore up budget accounts to reflect staffing shortages. <\/p>\n<\/li>\n<\/ul>\n In a Dec. 22 letter addressed to State Auditor Lisa Collier, TSU President J.W. Crawford III laid out a list of remedies the school has taken in the last year while also stating the school\u2019s commitment to correcting the deficiencies.<\/p>\n \u201cThe University is committed to remediating the findings by the State Auditor\u2019s Office,\u201d Crawford\u2019s 12-page response stated. \u201cAs an institution, we are implementing initiatives to improve and strengthen processes and internal controls across all areas of our operations, both financially and operationally.\u201d<\/p>\n Crawford also noted that some 200 vacancies, some in key positions like the IT department, have exacerbated the problems with financial oversight since the last audit of the university was done in 2006. Those critical vacancies have \u201cfostered longstanding structural weaknesses that have had cascading effects over the intervening years, driving operational vulnerabilities and contributing significantly to the deficiencies identified in the audit.\u201d<\/p>\n Patrick noted in his post on X that Crawford agrees with the state audit findings and has been working with the state auditor\u2019s office to fix the deficiencies. <\/p>\n In November, the state auditor\u2019s office released preliminary findings revealing more than 700 invoices totaling more than $280 million were tied to vendors whose contracts had expired in the contract database. And more than 800 invoices worth nearly $160 million were dated before the purchase were officially requested or approved.<\/p>\n The Houston university, which has an enrollment of about 8,000 students has had a history of financial and operational problems dating back more than 40 years. <\/p>\n This week\u2019s audit is reminiscent of a 1999 review by the state comptroller\u2019s office. In that case, then Deputy Comptroller Billy Hamilton conducted a review of the school and delivered a list of 124 <\/a>recommendations to then Gov. George Bush and Lt. Gov. Rick Perry.<\/p>\n \u201cFor more than two decades, TSU has experienced serious financial and management difficulties,\u201d Hamilton wrote more than 25 years ago. \u201cMost recently, these difficulties include declining student enrollment, critical financial audits, potential losses of federal funding, and contingency appropriations by the Texas Legislature to cover anticipated cash-flow shortages.\u201d <\/p>\n In 2006, former university president Priscilla Slade was charged with embezzling more than $600,000 from the school, which she allegedly spent on china, furniture, and landscaping for her home.<\/p>\n Other operational problems have also persisted, dating back to the 1990s. <\/p>\n In 1992, the famed \u201cOcean of Soul\u201d band was dissolved<\/a> after several members \u2014 including those who were not students \u2014were accused of shoplifting during a school-sponsored trip to Japan. <\/p>\n\n