Texas Southern University
1994 Statewide Financial and Compliance Audit
Report Number 95-103
Overall Conclusion
The University has made progress in implementing corrective measures to resolve the material weakness identified in the 1993 student financial aid audit, such as reorganizing the Student Financial Aid Office and acquiring the services of a consultant. However, the University has not developed and distributed current written policies and procedures for its student financial aid operations. As a result, the University cannot ensure that it is resolving the material weakness identified in the fiscal year 1993 audit and that its daily operations are consistent and in compliance with federal regulations. In addition, the University did not fully comply with the state laws when entering into a $300,000 contract related to student financial aid. We performed limited follow-up procedures and will conduct a complete review of the federal student financial aid programs in fiscal year 1995 to determine if the material weakness has been resolved. The University received approximately $35 million in federal student financial aid funds for fiscal year 1994.
The University's bond schedules and bond related Notes to the Financial Statements in the 1994 Annual Financial Report are materially correct and in conformity with the Comptroller's reporting requirements. At August 31, 1994, the University reported three outstanding bond issues, totaling $23.9 million.
Key Findings
Texas Southern University has not developed and distributed current written policies and procedures to improve the control environment over the student financial aid operations. As a result, the University cannot ensure that it is resolving the material weakness in controls over student financial aid.
Texas Southern University did not fully comply with the state law when entering into a $300,000 personal services contract. The University did not obtain prior approval from the State's General Services Commission.
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