An Audit Report on Enrollment Reporting by Texas Public Community, State, and Technical Colleges
September 2005
Report Number 06-003
Overall Conclusion
With one exception, Texas public community, state, and technical colleges' (colleges) errors in base-period enrollment data are within the 2 percent error rate allowed by Rider 8, page III-198, the General Appropriations Act (79th Legislature, Regular Session).
Five colleges (9 percent) underreported base-period contact hours equal to $8,026 of funding, while 48 colleges (84 percent) overstated base-period enrollment data equal to $2,924,617 of funding. Four colleges (7 percent) reported no errors. In total, colleges self-reported $2,916,591 in net over-funding. Total formula funding appropriations to the colleges for the 2006-2007 biennium were $1,755,613,035.
A funding adjustment of $794,631 may be necessary to reallocate funding originally allocated to Cisco Junior College because that college overestimated its eligible contact hours. The Higher Education Coordinating Board may reallocate the funds at the direction of the Legislative Budget Board. In a separate letter to Cisco Junior College, we recommended changes to improve the reliability of its student data and strengthen the protection of automated systems and data. Cisco Junior College management agreed with our recommendations and reports that it is taking corrective action by (1) adding edit checks to improve the accuracy of its enrollment reports, (2) retaining documentation of installment agreements for students' payment of tuition, and (3) strengthening the security of its automated systems and data.
The State Auditor's Office subjected the reported information to analytical tests and other procedures, including on-site reviews at six colleges. During these site visits, we conducted interviews and obtained detailed data from the student information systems to perform further analysis on the accuracy of the reporting. Based on these tests and the colleges' self-reported errors, and because colleges have historically not exceeded the allowed 2 percent error rate, we did not conduct a comprehensive audit of any colleges contact hours. The colleges are still subject to an audit of contact hours in conjunction with any other work that might be performed by the State Auditor.
We also identified areas in which colleges' internal controls can be improved and communicated that information to the appropriate colleges.
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