A Report on State Agency, University, and Community College District Compliance with the Public Funds Investment Act and Investment Reporting Requirements
July 2014
Report Number 14-039
Overall Conclusion
All state agencies and community college districts and some universities fully or substantially complied with the Public Funds Investment Act (Act) in fiscal year 2013. Additionally, all universities and most community college districts fully complied with higher education investment reporting requirements mandated by Rider 5, page III-241, the General Appropriations Act (83rd Legislature) and prescribed by the State Auditor's Office on its Web site at http://www.sao.texas.gov/InternalAudit/PublicFunds/.
With approximately $62.2 billion in investments as of August 31, 2013, it is important that state agencies, universities, and community college districts comply with statutes and investment reporting requirements designed to help the Legislature, the entities' boards, and the public ensure that state entities manage and disclose their investments appropriately. The following describes compliance by the type of entity for fiscal year 2013:
- Agencies. The 13 agencies subject to the Act were in full or substantial compliance with the Act.
- Universities. Eight of the 17 universities subject to the Act were in full or substantial compliance with the Act. Midwestern State University was noncompliant with the Act because it did not submit a compliance audit report. Sam Houston State University was noncompliant with the Act because it reported many significant deficiencies relating to the requirements of the Act. Lamar University, Lamar State College – Orange, Lamar State College – Port Arthur, Lamar Institute of Technology, Sul Ross State University, Texas State University, and Texas State University System were minimally compliant with the Act.
In addition, all 17 universities were in full compliance with the higher education investment reporting requirements.
- Community College Districts. All 50 community college districts subject to the Act were in full or substantial compliance with the Act.
In addition, 49 community college districts were in full compliance with the higher education investment reporting requirements. Vernon College was substantially compliant with the higher education investment reporting requirements.
- Universities not subject to the Act but still subject to the higher education investment reporting requirements. The University of Texas System Administration, Texas A&M University System Administration, Texas Tech University System Administration, and University of Houston System Administration are not subject to the Act but are still subject to the higher education investment reporting requirements. Those four university systems fully complied with the higher education investment reporting requirements.
In reviewing agencies, universities, and community college districts for compliance with the Act, auditors determined that some entities had not fully complied by the initial due date of January 1, 2014. In addition, auditors determined that a significant number of universities and community college districts had not fully complied with the higher education investment reporting requirements by December 31, 2013. However, after auditors contacted the agencies, universities, and community colleges and established a new due date of April 9, 2014, to allow them to achieve compliance, most of those entities either submitted the required information to the State Auditor's Office or posted it on their Web sites.