Multiple Agencies
A Report on State Entities' Compliance With the Public Funds Investment Act
July 2000
Report Number 00-033
Overall Conclusion
For fiscal year 1999, state entities subject to the Public Funds Investment Act (Act) continued to report substantial compliance with the Act's requirements. Compliance is important to protect the $11.7 billion (up from $9.2 billion in 1998) the entities invest. These entities individually manage relatively small funds and therefore may not have access to investment expertise. Since fiscal year 1996 when entities began submitting audit reports, we have noted steady improvement in compliance.
Key Facts and Findings
- Twenty-eight of 29 state agencies and universities subject to the Act reported general compliance with the Act. As in prior years, the remaining entity, Texas Southern University (TSU), reported compliance. However, TSU identified significant deficiencies in five of the six compliance areas. The market value of these entities' investments was approximately $10.7 billion as of August 31, 1999.
- Of 50 community college districts, 48 reported compliance with the Act. Reports from the remaining two districts did not include statements on compliance. The market value of all the districts' investments was $1.0 billion as of August 31, 1999.
- State entities invested most of their funds in investment classes authorized under the Act. Only $12.7 million (0.1 percent) of state entity funds is currently invested in derivatives.
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