Lamar University - Beaumont

An Audit Report on Management Controls at Lamar University - Beaumont

February 1998

Report Number 98-029

Overall Conclusion

Lamar University - Beaumont's (University) poor fiscal controls, lack of and/or failure to follow established policies and procedures, inadequate planning, and insufficient oversight from executive management have resulted in a material weakness in fiscal management, weaknesses in information and resource management, and significant problems in several University operations. These deficiencies impact the University's ability to ensure its mission and goals will be accomplished, that University assets will be adequately safeguarded, and that University resources will be used effectively and efficiently. Management has indicated that it has begun corrective actions to address some of the findings in this report.

Key Facts and Findings

• Several of the issues noted in this report have been previously identified by our office. The repetitive nature of these issues indicates that the University's efforts to improve operations have been incomplete and have not sufficiently addressed the root causes of the problems.
• The University has ignored or circumvented various federal regulations, Texas State University System and University policies and procedures, and sound business practices. This places the University's federal funding for financial aid programs at risk and has resulted in the inefficient use of various resources.
• While University management has eliminated the deficit in Intercollegiate Athletics, combined operating deficits in Pledged Enterprises and the Montagne Center have grown by 30 percent since fiscal year 1993 to $2,050,288 as of August 31, 1997. Other University funds have been used to underwrite operations in these areas along with related bond obligations. Ineffective management of various service department operations has resulted in combined losses for fiscal year 1997 totaling $345,475 and cumulative fund balance deficits totaling $881,389.
• Problems continue to persist in the University's new information systems as a result of inadequate implementation programs, lack of adequate oversight, and failure to adequately maintain underlying data. As a result, the University's information systems do not always provide quality information in support of executive decision-making.

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