At a Glance
- State audit finds $280M in unpaid invoices and inventory lapses at Texas Southern University.
- Governor Dan Patrick halts all non-essential TSU contracts.
- TSU pledges reforms after 200 vacancies and 97% vendor record mismatches.
- Why it matters: The findings threaten the university’s operations and student enrollment.
A state audit released this week revealed that Texas Southern University is grappling with deep financial and operational problems, prompting the governor to stop all new contracts outside essential expenses.
Audit Findings
The auditor’s report covered fiscal years 2023-2025 and highlighted that 97% of 60 vendors checked had records that did not match contract documentation. The university also failed to conduct a regular physical inventory since 2019, leaving assets unaccounted for.
- 700+ invoices totaling $280M linked to expired contracts.
- 800+ invoices worth $160M dated before purchase requests or approvals.
- Reports to the state comptroller were nearly a year late in 2023.
- Budget accounts did not reflect staffing shortages.
Response and Reforms
TSU President J.W. Crawford III sent a 12-page letter to State Auditor Lisa Collier on Dec. 22, outlining remedies and a commitment to strengthen internal controls. He cited about 200 vacancies, including in IT, that have deepened oversight gaps.
President J.W. Crawford III stated:
> “The University is committed to remediating the findings by the State Auditor’s Office. We are implementing initiatives to improve and strengthen processes and strengthen internal controls across all areas of our operations, both financially and operationally.”
- Adopted all auditor recommendations.
- Implemented regular inventory checks.
- Repaired contract documentation accuracy.
Historical Context
The audit echoes a 1999 review that issued 124 recommendations and a 2006 embezzlement case involving former president Priscilla Slade, who misappropriated $600,000.
| Year | Event |
|---|---|
| 1999 | 124 audit recommendations |
| 2003 | Grade-changing scandal |
| 2006 | Embezzlement by former president |
| 2020 | Admissions bribery scandal |
Over the past four decades, TSU has faced recurring financial scandals, from shoplifting allegations in 1992 to bribery in 2020, raising questions about governance.
Key Takeaways
- TSU’s financial mismanagement threatens its ability to operate.
- The governor has halted non-essential contracts to protect the university’s future.
- The university is pledging reforms and has begun adopting auditor recommendations.
With the state’s intervention and a renewed focus on accountability, TSU’s future now hinges on its ability to implement these reforms and keep its students on track.
