A Performance Audit
An Audit Report on Financial Processes at Texas Southern University
December 2025
Overview
Texas Southern University (University) had significant weaknesses in its financial processes related to procurement, asset management, and financial reporting. The University did not consistently comply with established procurement processes; for example, University departments ordered directly from vendors without first obtaining the required approvals and budget checks, which creates legal and financial obligations for the University. In addition, the University could not locate or determine the value of all its assets because it did not have a complete and accurate asset inventory.
The University’s financial reporting was delayed and contained errors, limiting stakeholders’ ability to make informed decisions. Staffing gaps in critical functions contributed to poor asset oversight and the financial reporting issues.
The University had certain information technology processes in place to safeguard its data; however, it did not appropriately restrict access to its financial system.
SIGNIFICANT WEAKNESSES IN FINANCIAL AND OPERATIONAL PROCESSES
- The University had significant weaknesses in its procurement processes. | pg. 4
- The University did not ensure that assets were properly safeguarded—50 (83 percent) of 60 sampled assets could not be located. Additionally, the University did not maintain an accurate and complete listing of assets. | pg. 6
- The University did not submit timely and accurate financial information to the Office of the Comptroller of Public Accounts. | pg. 8