Texas Southern University's financial troubles have reached a critical point, with a state audit revealing significant weaknesses in its financial management. The audit, released this week, highlights how entire departments have bypassed established purchase guidelines, and the university has failed to enforce proper contract and accounting procedures. This has led to a series of concerning findings, including discrepancies in vendor records, a lack of regular physical inventory, and late, inaccurate financial reporting.
But here's where it gets controversial: Lt. Gov. Dan Patrick has called the audit 'beyond disturbing' and has taken swift action. He, along with Gov. Greg Abbott and House Speaker Dustin Burrows, has halted all non-essential spending by the university on contracts. Patrick has also requested a Texas Rangers investigation into any potential criminal activity, which is still ongoing.
Patrick's concern is for the students, hoping that the university can recover. However, he has made it clear that if the issues are not addressed, the legislature will step in. The state auditor's office examined the university's finances and accounting for the past three fiscal years, uncovering a web of financial mismanagement.
Among the findings: 97% of the 60 vendors checked had records that didn't match contract documentation, and there were inaccuracies throughout. There was also a complete lack of a regular physical inventory procedure, with the last annual inventory conducted in 2019. Financial reporting was frequently late and inaccurate, with reports reaching the state comptroller's office nearly a year late in 2023.
TSU President J.W. Crawford III has acknowledged the issues and committed to addressing them. In a letter to the state auditor, Crawford outlined the steps the university has taken to correct the deficiencies. However, he also noted that staffing shortages, with around 200 vacancies, have exacerbated the problems with financial oversight since the last audit in 2006.
This isn't the first time Texas Southern University has faced financial and operational challenges. A 1999 review by the state comptroller's office identified 124 recommendations for improvement. Over two decades, the university has struggled with declining enrollment, financial audits, potential losses of federal funding, and contingency appropriations by the Texas Legislature to cover cash-flow shortages.
In 2006, former university president Priscilla Slade was charged with embezzling over $600,000 from the school, allegedly spending it on personal items. Other operational issues have also persisted, including a cheating scandal in 2003 and allegations of bribery and kickbacks in the law school admissions process in 2020, leading to the ousting of the sitting president at the time.
The legislature has tried to help the school year after year, but it appears the promised improvements in accounting practices and contracting have not been realized. As the investigation continues, the future of Texas Southern University hangs in the balance, with the students' best interests at the forefront of the debate.
