Multiple Agencies
A Report on University Formula Funding Reporting
August 1998
Report Number 98-069
Overall Conclusion
The primary objective of the engagement was to review the accuracy of the semester-credit-hour variable used in calculating the 1998-1999 formula funding appropriations. The semester-credit-hour variable impacts approximately 72.8 percent of the universities' 1998-1999 appropriations.
Key Facts and Findings
Based on this review of the accuracy of higher education formula funding data, the Legislative Budget Board does not need to adjust the 1998-1999 biennial formula-funded appropriations for the State's 35 universities. While approximately $2.9 million in errors were identified ($2.5 million overfunded and $0.4 million underfunded), no individual university's errors exceeded the allowable 2 percent error rate. The errors noted were either reported by the universities themselves or identified by the State Auditor's Office. Adjustments for individual universities are recommended only when the amount of the errors exceeds the 2 percent allowable error rate as stated in the General Appropriations Act of the 75th Legislature, Article III, Rider 20. The allowable error rate for all universities totals approximately $45 million.
Thirty-one of the 35 universities self-reported on the accuracy of their funding data. Twenty universities self-reported funding corrections totaling almost $2.9 million, and 11 universities reported no corrections needed. The universities are commended for self-reporting instances of noncompliance. These universities are taking the initiative to ensure the accuracy of reported data.
Seven universities were reviewed for compliance with formula funding laws, rules, and regulations. Two universities had errors totaling $61,768 ($8,649 overfunded and $53,119 underfunded). Based on our review, except for those errors already noted, nothing came to our attention that caused us to believe that the formula funding data at the seven universities are not presented accurately and in accordance with the General Appropriations Act or Texas Education Code.
Contact the SAO about this report.
Download the PDF version of this report. (.pdf)
HTML Equivalent (utilizing Adobe's PDF Conversion by Simple Form).