A Performance Audit
An Audit Report on the Distribution of the National Research University Fund
July 2018
Summary Analysis
The State Auditor’s Office obtained reasonable assurance that information the University of Texas at Dallas (University) reported to the Higher Education Coordinating Board (Coordinating Board) met the eligibility requirements for receiving National Research University Fund (Fund) appropriations. Auditors tested the University’s compliance with the statutory and Coordinating Board requirements as they existed during fiscal years 2016 and 2017 (see Appendix 3 for details on the requirements).
Additionally, the Coordinating Board had processes for collecting information from higher education institutions to determine whether they met the eligibility requirements to receive funds from the National Research University Fund. However, opportunities exist for the Coordinating Board to strengthen those processes by developing objective criteria to evaluate higher education institutions’ progress in meeting the requirement regarding freshman class academic achievement.
Although the University met the eligibility requirements, auditors also identified controls that the University should improve. Specifically:
- The University should strengthen its process for reviewing and approving expenditures of restricted research funds.
- The University should ensure that it maintains supporting documentation for expenditures.
The University reported to the Coordinating Board in November 2017 that it had met the eligibility requirements necessary. Auditors tested and verified the University’s compliance with the statutory and Coordinating Board requirements that were in effect during fiscal years 2016 and 2017.
The University had policies and procedures in place for expending restricted research funds. Those policies and procedures included reviews and approvals of transactions based on allowability. However, that review and approval was not always effective in identifying unallowable costs.
Additionally, the University should ensure that it maintains supporting documentation for expenditures it makes with restricted research funds.
The Coordinating Board had processes for collecting information from higher education institutions to determine whether they met the eligibility requirements to receive funds from the Fund. However, opportunities exist for the Coordinating Board to strengthen its process by developing objective criteria to evaluate higher education institutions’ progress in meeting the requirements regarding freshman class academic achievement.
Graphics, Media, Supporting documents