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Texas Tech University System

An Audit Report on Management Controls at Texas Tech University System

February 2000

Report Number 00-012

Overall Conclusion

Texas Tech University (University) should improve contract administration and strategic planning for research, which have a direct impact on the University's plan to grow as a higher education institution with increased focus on research. The University's current operating budget exceeds $380 million. In addition, Texas Tech University Health Sciences Center (Health Sciences Center) should consider using complete cost information in decisions on managed care contracts (fiscal year 1999 revenues of $12 million) issued through its non-profit corporation.

Key Facts and Findings

  • Monitoring and training weaknesses in contract administration create risk that Texas Tech University will pay for services or products it has not received or that do not meet expected quality or performance levels. University management promptly took steps to address these weaknesses.

  • The lack of detailed action plans and monitoring could delay the Texas Tech University's progress toward becoming a "Top 100" research institution.

  • Texas Tech University Health Sciences Center does not have complete cost information to use in decisions on managed care contracts issued through its non-profit corporation, Texas Tech Physician Associates.

  • Texas Tech University began to improve recruitment and selection processes, after completing the State Auditor's Office human resources self-assessment.

  • Strengths in other operational areas surfaced during the audit:

    • Texas Tech University has adequately addressed and implemented investment recommendations from SAO Report No. 97-036, February 1997.
    • Texas Tech University Health Sciences Center appears to have established effective strategic planning and regional oversight processes.
    • It appears that Texas Tech University System executives adequately planned for the transition to formal system status.

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