A Performance 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 2022
Summary Analysis
All agencies, higher education institutions, and community colleges subject to the Public Funds Investment Act (Texas Government Code, Chapter 2256) provided compliance audit reports indicating that they fully or substantially complied with the Act for the biennial period ending on January 1, 2022. Additionally, higher education institutions, including universities, university systems, and community colleges, are subject to the reporting requirements established in the Special Provisions Relating Only to State Agencies of Higher Education (Rider 5), Section 6, Subsection 5, page III-269, General Appropriations Act (87th 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 $142.6 billion as of August 31, 2021.
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.
Of the 12 agencies subject to the Act, 6 submitted reports that indicated full compliance with the Act and 6 submitted reports indicating they were substantially compliant.
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All four higher education institutions determined to be subject to the Act provided compliance audit reports for the biennial period ending on January 1, 2022. One institution provided a report that indicated it fully complied with the Act. Three institutions provided reports from which auditors determined that they substantially complied with the Act.
All four of the higher education institutions determined by auditors to be subject to the Act, as well as all seven higher education institutions determined by auditors to be exempt from the Act, were fully compliant with Rider 5 requirements.
Jump to Higher Education Institutions Subject to the Act and Rider 5
Jump to Higher Education Agencies Subject to Rider 5
Of the 50 community colleges tested, all 50 provided compliance audit reports in accordance with the Act for the biennial period ending January 1, 2022. Of these, 48 reports indicated full compliance with the Act and 2 indicated substantial compliance.
In reviewing the community colleges’ websites, auditors determined that all 50 fully complied with the reporting requirements of Rider 5.
The agencies, higher education institutions, and community colleges reviewed reported total investment holdings of $142.6 billion as of August 31, 2021. Specifically:
- The 12 agencies subject to the Act reported investments of $41.4 billion as of August 31, 2021.
- The four higher education institutions subject to the Act reported total investments of $484.2 million as of August 31, 2021.
- The 50 community colleges subject to the Act reported total investments of $4.5 billion as of August 31, 2021.
- The seven higher education institutions that are not subject to the Act reported investments of $96.2 billion as of August 31, 2021.
Graphics, Media, Supporting documents