General
A Financial Review of The Commission on Human Rights
February 2002
Report Number 02-023
Overall Conclusion
There was gross fiscal mismanagement at the Commission on Human Rights (the Agency) from fiscal year 1998 through May 31, 2001. During this period, the Agency significantly mismanaged its fiscal responsibilities and put state and federal funds at risk of loss and abuse.
Texas Government Code, Section 2104.001, specifies four criteria that result in gross fiscal mismanagement:
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Failure to keep adequate fiscal records.
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Failure to maintain proper control over assets.
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Failure to discharge fiscal obligations in a timely manner.
- Misuse of state funds.
The Agency met all four of the above criteria.
Key Facts and Findings
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As a result of gross fiscal mismanagement, the Agency provided unreliable financial information to legislative budget committees and Commissioners. For example, the expenditure information by strategy in the Agency's 1998-1999, 2000-2001, and 2002-2003 Legislative Appropriations Requests (LARs) was misleading because it did not reflect the true expenditures for each strategy. Unreliable financial information impairs the Legislature's ability to appropriate funds effectively and the Commissioners' ability to properly monitor the Agency.
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In addition to providing unreliable financial information, the Agency did not spend funds in accordance with restrictions in a federal contract, the Texas Constitution, applicable state regulations, and the General Appropriations Act.
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The Agency's redirection of its expenditure disbursements and revenue deposits distorted any relationship between expended funds and the outcomes of the services it provided. However, it is important to note that, according to the Agency, it has failed to perform 69 percent of its statutorily required reviews of state agency and higher education institution personnel policies. These reviews are intended to help reduce the number of employment discrimination complaints filed with the Agency. Therefore, the Agency's failure to conduct these reviews is a critical shortcoming.
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