An Audit Report on Selected Entities' Compliance with Requirements Relating to Historically Underutilized Businesses and Purchases From People With Disabilities
December 2004
Report Number 05-016
Overall Conclusion
All of the 11 entities audited have implemented some elements of the State's historically underutilized business (HUB) program, which is designed to encourage state entities to make contracting opportunities available to qualified HUBs. Of the 11, the Department of Family and Protective Services and Texas State University-San Marcos were fully compliant with HUB requirements. The University of Texas Health Science Center at Houston, the Department of State Health Services, the Texas A&M University System Health Science Center, the Alcoholic Beverage Commission, the State Board for Educator Certification, and the Texas Education Agency were substantially compliant. Three entities-Lamar University, the Soil and Water Conservation Board, and the Department of Agriculture-had minimal compliance. Since the end of the audit period (fiscal year 2003), these three entities all report that they have begun implementing our recommendations.
In fiscal year 2003, the Texas Building and Procurement Commission reported that the State paid approximately $1.2 billion to HUBs out of $9 billion in procurement categories that are eligible for HUB participation.
Furthermore, of the 11 entities audited, 10 fully complied with requirements related to purchasing from people with disabilities by making purchases from the Texas Industries for the Blind and Handicapped (TIBH) when available. While the Texas A&M University System Health Science Center substantially complied with the requirements, it did not make purchases from TIBH when available in approximately 5 percent of the items tested.
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