Higher Education Coordinating Board
An Audit Report on University Formula Funding Reporting
October 1996
Report Number 97-009
Overall Conclusion
The State's 35 universities are 99.4 percent accurate in reporting semester credit hours. Of the almost $2 billion appropriated by semester credit hours, $11.6 million was overfunded.
Key Facts and Findings
Audit testing, which included performing tests of compliance with state laws and Texas Higher Education Coordinating Board rules, identified an estimated $8.7 million in overfunding. The remaining $2.9 million in overreporting of semester credit hours was identified by the universities.
Significant weaknesses relating to the overreporting of semester credit hours were noted at Texas Southern University, Prairie View A&M University, University of Houston, and The University of Texas at El Paso.
The installment collection requirements are not applied consistently for courses added after the initial registration period. In addition, the terminology used in the various rules and regulations regarding the collection of tuition and fees is not consistent.
A review of the reported actual fiscal year 1994 education and general revenues noted that the amounts are materially accurate. These amounts were also used to request appropriations for the 1996-1997 biennium.
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