Texas A&M University System
An Audit Report on the Role and Usage of the Texas A&M Research Foundation (A Nonprofit Organization)
September 1999
Report Number 99-001
Overall Conclusion
The Texas A&M University System (System) member agencies should keep better track of the total costs to administer research grants and contracts in house. The total costs of administering research grants and contracts were not readily identifiable by the System member agencies. This information provides data for making decisions about which administrative option is most cost effective: administering the contracts and grants themselves or outsourcing the administration to the Texas A&M Research Foundation (Foundation). Determining accurate costs can identify opportunities for improved efficiencies, which can maximize the use of research dollars.
Of the four main users of the Foundation, one (Texas A&M University) outsources most of its research administration. The other three (Texas Agriculture Experiment Station, Texas Engineering Experiment Station, and Texas Transportation Institute) administer most of their research themselves.
Key Facts and Findings
Complete and accurate cost information will help the member agencies make better decisions about who should administer the grants and contracts. When we analyzed the grants and contracts administrative costs provided by the Texas Agriculture Experiment Station, the Texas Engineering Experiment Station, and the Texas Transportation Institute, we noted several inconsistencies, including:
- Wide variances between agencies in the average cost per project raise questions about the completeness of the data.
- Employee benefits were estimated at 22 to 24 percent of salaries, lower than the 40 percent average stated in a recent study of state agencies.
The Foundation administers almost half of the System's research ($117 million in fiscal year 1997, of the more than $241 million of total research). Research is one of the primary components of Texas A&M University's mission, and it is the primary reason the Texas Agriculture Experiment Station, the Texas Engineering Experiment Station, and the Texas Transportation Institute exist.
If the Foundation does not effectively administer research grants and contracts, there is an increased risk that:
- Noncompliance with grants and contracts provision could result in lost funding.
- Equipment and property could be lost or stolen.
- Setbacks to the research efforts could occur, resulting in the potential loss of talented faculty members (principal investigators).
Contact the SAO about this report.
Download the PDF version of this report. (.pdf)
HTML Equivalent (utilizing Adobe's PDF Conversion by Simple Form).