A state audit revealed that Texas Southern University (TSU) mishandled millions in taxpayer dollars due to widespread financial and operational failures, prompting threats of legislative intervention.
Lt. Gov. Dan Patrick, who requested the investigation, warned that the university could face closure if reforms aren’t implemented immediately.
The Texas State Auditor’s December report exposed years of financial mismanagement at TSU.
Among the most damning findings: auditors couldn’t locate 83% of the sampled assets, valued at $3.2 million.
The publicly funded state college paid 743 invoices to vendors with expired contracts. Another 8,144 vendor invoices were incorrectly dated, suggesting systemic procurement failures.
TSU hadn’t conducted a physical inventory since 2019, violating annual requirements.
Financial statements arrived months late, with one report misstating debt payments by $86.5 million in 2023.
The audit also found the university failed to restrict access to financial systems despite having established safeguards.
“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,” Patrick said in a statement posted on X. “… Millions upon millions of taxpayer dollars are not accounted for. The audit report states 83% of sampled assets cannot be located.”
Patrick’s warning carried an explicit threat: “I will do everything within my power to be sure that not one additional taxpayer dollar goes unaccounted for ever again at TSU. … If TSU does not remedy the situation, the legislature will.”
TSU’s president, who has led the university for less than two years, accepted the state’s findings. The school agreed to implement sweeping reforms by September.
The university will deploy JAGGAER, a new procurement and management system. Staff in financial positions must complete mandatory training, and all policies contributing to the failures will undergo review.
TSU will also establish an Audit Response Committee and hire an enterprise risk manager. These positions aim to ensure lasting solutions to the financial chaos.
The university serves thousands of students in Houston. Its fate now depends on whether administrators can implement reforms before lawmakers consider more drastic action.
