Texas A&M University System: Administrative and General Offices
An Audit Report on Management Controls at Texas A&M University and the System Offices
Report Number 95-041
Management's override of policies and procedures, laws, and channels of communication have eroded the effectiveness of control systems designed to protect resources from misuse and safeguard assets. This breakdown in controls has contributed to poor decision making, ineffective use of resources, weak oversight of operations, and a general lack of accountability. The results have been increased costs of operations, unlawful activities by some members of executive management, increased risks and liabilities associated with System and University operations, and negative publicity.
The development of the cogeneration project was impaired by mismanagement. This project was to be the largest capital project in the University's history (estimated cost of $75 to $120 million). Management s override of controls increased the risks to the System and University that the cogeneration project would fail. The project was terminated, prior to completion, in June 1994.
The University has not managed its risks and liabilities associated with contracting for services. Consultant services for almost $1 million were rendered without a contract in place. A contract for more than $300,000 has exceeded its dollar limit by more than double, without the appropriate approval of management.
Not all departments are following University policies and procedures relating to human resources management. The Human Resources Department does not have monitoring processes to determine departmental compliance with applicable policies and procedures. In fiscal year 1994, the University expended nearly $261 million in salaries, wages and benefits for its 7,500 employees.
Duplication of data entry into the various automated administrative systems creates inefficiencies for the University. If departments were able to eliminate processing duplicate transactions, the University could redirect approximately $1 million each year to more productive uses.
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