Texas Southern financial audit shows ‘significant weakness’

Following the state audit of Texas Southern’s finances, reports indicate that ‘significant weakness’ has been found. Following the state auditor’s investigation into TSU’s finances in fiscal years 2023, 2024, and 2025, the report featured several findings.

First, per the findings, 97% of the sixty vendor records sampled by the auditor contained data that did not align with actual contract documentation. The institution neglected to provide physical oversight of its resources and has not conducted a mandatory annual inventory since 2019. Financial reporting was also considered unreliable and late in the findings, as the 2023 financial reports arriving at the state comptroller’s office were nearly a year behind schedule. The investigation also found clear failure in budgetary oversight, as the university neglected to adjust its budget accounts to reflect the reality of ongoing staffing shortages.

Lieutenant Governor Dan Patrick spoke about the investigations and the findings in a lengthy post on his X account, saying, “The results of the State Auditor’s report released today on Texas Southern University are beyond disturbing and show, at a minimum, a clear mismanagement of millions of taxpayer dollars over many years. The new TSU President, on the job for less than 2 years, agrees with the State Auditor’s findings and has expressed willingness to take corrective action. The Governor, Speaker, and I have already taken action by putting a stop to any spending on any contracts other than ongoing university expenses to keep the school open.”

He added, “It is my hope, for the sake of the students at the university, that TSU can continue. However, to do so, dramatic and permanent changes must occur immediately to comply with state standards. Millions upon millions of taxpayer dollars are not accounted for. The audit report states 83% of sampled assets cannot be located. I will do everything within my power to be sure that not one additional taxpayer dollar goes unaccounted for ever again at TSU.”

He ended the post, saying, “TSU is solely responsible for this fiasco. If TSU does not remedy the situation, the legislature will.”

The findings come after Patrick and Texas Governor Greg Abbott ordered the investigation into Texas Southern’s finances. TSU is the only public university in Texas independent of the Texas University System. TSU responded to the findings of the audit per KHOU 11, stating that they “provided recommendations to strengthen the compliance, integrity, and effectiveness of institutional, financial, and business processes, including asset management.”

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