November 15, 1996 Mr. Enos Cabell, Jr., Chairman Board of Regents of Texas Southern University 4103 Frost Lake Ct. Missouri City, Texas 77459 Dear Mr. Cabell: In response to your August 1996 request, the State Auditor’s Office has conducted a financial and operational review at Texas Southern University (University). Neither proactive leadership nor fundamental oversight systems are in place to prevent a future financial crisis and to ensure accountability for the achievement of fiscal and administrative goals. The University does not currently have the information systems necessary to provide accurate, timely data required for monitoring and decision-making, nor the human resources support necessary to build reliability and effectiveness in the implementation of policies and procedures. As a result, Texas Southern University is projected to incur operating deficits totaling over $8 million during fiscal year 1997 unless radical changes are instituted in the University’s financial management practices. The potential shortfall is primarily a result of the University’s inability to collect two major sources of revenue on a timely basis; federal student financial aid and grants receivable. Although the Board of Regents and management have begun to address the revenue shortfall, they must move from crisis management to demonstrating sustained progress in achieving defined goals and objectives. Our review included an examination of cash flows, financial controls, and management systems such as human resources and information management. Also at the request of the University, the State Auditor’s Office assisted University management in addressing a crisis in financial aid. These efforts included assisting with the University’s corrective action plan for re-engineering the Financial Aid Department and addressing federal noncompliance issues. LACK OF UNIVERSITY ACCOUNTABILITY SYSTEMS CONTRIBUTE TO CRISIS MANAGEMENT Comprehensive internal oversight systems are not in place to provide early warning of fiscal crisis and promote achievement of the University’s mission. Specifically, current human resource, financial, and information systems do not consistently support goals and strategies that have University-wide impact.

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November 15, 1996 Mr. Enos Cabell, Jr., Chairman Board of Regents of Texas Southern University 4103 Frost Lake Ct. Missouri City, Texas 77459 Dear Mr. Cabell: In response to your August 1996 request, the State Auditor’s Office has conducted a financial and operational review at Texas Southern University (University). Neither proactive leadership nor fundamental oversight systems are in place to prevent a future financial crisis and to ensure accountability for the achievement of fiscal and administrative goals. The University does not currently have the information systems necessary to provide accurate, timely data required for monitoring and decision-making, nor the human resources support necessary to build reliability and effectiveness in the implementation of policies and procedures. As a result, Texas Southern University is projected to incur operating deficits totaling over $8 million during fiscal year 1997 unless radical changes are instituted in the University’s financial management practices. The potential shortfall is primarily a result of the University’s inability to collect two major sources of revenue on a timely basis; federal student financial aid and grants receivable. Although the Board of Regents and management have begun to address the revenue shortfall, they must move from crisis management to demonstrating sustained progress in achieving defined goals and objectives. Our review included an examination of cash flows, financial controls, and management systems such as human resources and information management. Also at the request of the University, the State Auditor’s Office assisted University management in addressing a crisis in financial aid. These efforts included assisting with the University’s corrective action plan for re-engineering the Financial Aid Department and addressing federal noncompliance issues. LACK OF UNIVERSITY ACCOUNTABILITY SYSTEMS CONTRIBUTE TO CRISIS MANAGEMENT Comprehensive internal oversight systems are not in place to provide early warning of fiscal crisis and promote achievement of the University’s mission. Specifically, current human resource, financial, and information systems do not consistently support goals and strategies that have University-wide impact., report, November 15, 1996; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc810308/: accessed August 18, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.