An Audit Report on the Bob Bullock Texas State History Museum
Report Number 12-016
The Bob Bullock Texas State History Museum (Museum) has effective controls over revenues and expenditures, and it generally complies with requirements for administering the Bob Bullock Texas State History Museum Fund (Museum Fund). Texas Government Code, Section 445.011, requires the Museum to the extent possible to pay for operating costs from revenues generated; however, it also authorizes the Legislature to appropriate funds for the Museum's operation. The total cost for the Museum in fiscal year 2011 was more than $13.1 million. According to the State Preservation Board's annual financial reports for fiscal years 2009 through 2011, the Museum's operating costs averaged $6,539,574 and its operating revenues averaged $6,288,848, resulting in an average annual operating deficit of $250,726. In addition, at least $6,935,844 in other Museum costs for fiscal year 2011 were paid from funding sources outside of operating revenues, including $6,056,466 for debt service related to the Museum's construction.
The Museum has controls in place to ensure that enterprise fund revenues are properly managed, safeguarded, and accounted for. The Museum accurately recorded and had sufficient supporting documentation for 99 percent of the revenue deposits tested from fiscal years 2010 and 2011.
There may be opportunities for the Museum to increase revenues. Specifically:
- The Museum was not able to show an IMAX feature film for 68 days in fiscal year 2011. According to Museum reports, IMAX feature films represented 45 percent of the Museum's admissions revenue in fiscal year 2011.
- The Museum's facility rental spaces were underutilized in fiscal year 2011. The Museum did not have any facility rentals for 229 days in fiscal year 2011.
The Museum properly authorized and supported its enterprise fund expenditures in fiscal years 2010 and 2011. The Museum had effective controls in place to help ensure that expenses and contracts related to the enterprise fund were properly recorded, authorized, and supported. All 30 expenditure transactions tested were properly authorized, recorded, and supported. In addition, 4 (80 percent) of the 5 contracts tested complied with Museum policies and procedures. One contract did not have documentation showing that the Museum had monitored the vendor's performance.
The Museum administered the Museum Fund in general compliance with applicable state laws and Museum policies and procedures. The Museum complied with statutory requirements in preparing an annual detailed report listing all revenues received and disbursed from the Museum Fund for fiscal years 2010 and 2011. In addition, the Museum recorded that it had earned $164,250 in net revenue in fiscal year 2010. However, the Museum had deposited only $100,000 of that revenue into the Museum Fund as of December 2011. Texas Government Code, Section 445.011, requires the Museum to transfer all net revenues into the Museum Fund. The Museum is authorized to spend all money it receives for any purpose connected with the Museum.
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