A Compliance Audit
A Report on Agencies’, Higher Education Institutions’, and Community Colleges’ Compliance with Public Funds Investment Act and Rider 5, General Appropriations Act, Reporting Requirements
June 2021
Summary Analysis
All agencies, higher education institutions, and community colleges subject to Texas Government Code, Chapter 2256, the Public Funds Investment Act (Act), reported that they complied with the Act for the reporting period ending August 31, 2019. Additionally, higher education institutions, including universities, university systems, and community colleges, are subject to the reporting requirements of Special Provisions Relating Only to State Agencies of Higher Education (Rider 5), page III-261, General Appropriations Act (86th Legislature), and prescribed by the State Auditor’s Office. All of those institutions complied with Rider 5. Entities subject to the requirements of the Act, Rider 5, or both reported total investment holdings of $118.5 billion as of August 31, 2020.
It is important to note that the entities provided the information in this report and that the State Auditor’s Office did not independently verify this information.
For the compliance reporting period ended August 31, 2019, all entities subject to the Act submitted the required compliance audit reports. Of the 13 agencies subject to the Act, 11 agencies submitted reports that indicated full compliance with the Act. Two agencies submitted reports that indicated they were substantially compliant with the Act.
All four higher education institutions provided compliance audit reports for the compliance period ending August 31, 2019. Two institutions provided reports from which auditors determined that they were substantially compliant with the Act. Two institutions provided reports from which auditors determined that they were minimally compliant with the Act.
All four institutions provided reports from which auditors determined that they were fully compliant with Rider 5.
Of the 50 community colleges in Texas, all 50 provided compliance audit reports for the reporting period ending August 31, 2019. Of the 50 community colleges, 47 fully complied and 3 substantially complied with the Act.
In reviewing the community colleges’ websites, 49 fully complied with the reporting requirements of Rider 5. One community college substantially complied because of a minor omission related to the review, approval, and publication of its investment policies.
The agencies, higher education institutions, and community colleges reviewed reported total investment holdings of $118.5 billion as of August 31, 2020. Specifically:
- The 13 agencies subject to the Act reported investments of $38.6 billion as of August 31, 2020.
- The four higher education institutions subject to the Act reported total investments of $402.5 million as of August 31, 2020.
- The 50 community colleges subject to the Act reported total investments of $3.8 billion as of August 31, 2020.
- The seven higher education institutions that are not subject to the Act reported investments of $75.7 billion as of August 31, 2020.
Graphics, Media, Supporting documents