Multiple Agencies
A Letter Report on State Entities' Compliance with the Texas Public Funds Investment Act
April 1998
Report Number 98-036
Overall Conclusion
Results of the individual audits performed by state agencies and universities subject to the Public Funds Investment Act (Act) reported substantial compliance with the requirements of the Act in fiscal year 1997. Independent audit reports of the majority of community college districts also disclosed compliance with the Act.
Key Facts and Findings
Twenty-nine out of 30 state agencies and universities subject to the Act reported overall compliance with the Act and their own investment policies. The status of compliance by the Texas Water Development Board could not be determined because no audit was performed. Several state agencies and universities also reported that significant progress had been made in correcting prior year audit findings.
Independent audits of 44 investing community college districts reported that 28 districts were in compliance with the Act. The compliance status at the remaining 16 districts could not be determined because the independent auditors' reports did not indicate compliance or noncompliance with the Act.
Although audit reports of Texas Southern University, Stephen F. Austin State University, the Texas National Guard Armory Board, and the Texas Department of Criminal Justice indicated overall compliance with the Act and investment policies, we noted significant items of noncompliance in the reports submitted by these entities. The entities should take the corrective action recommended in their audit reports. Additionally, four state agencies, two universities, and two community college districts identified specific instances of noncompliance with at least one requirement of the Act or their own established investment policies.
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