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Texas A&M University - Kingsville

An Audit Report on Management Controls at Texas A&M University - Kingsville

November 1998

Report Number 99-010

Overall Conclusion

Texas A&M University - Kingsville (University) in general manages its $65 million in current fund revenues effectively. This means that the University's business systems provide assurance that resources are spent appropriately in serving its 5,929 students.

Key Facts and Findings

  • Streamline the process for receiving and approving invoices. This improvement will help the University:
    • Pay vendor invoices within 30 days as required by state law. (TheUniversity did not pay 10 percent of the invoices we tested within 30 days.)
    • Avoid the interest payments that the State will add to late invoices beginning in fiscal year 2000.
    • Begin exploring savings with vendors by negotiating early payment discounts. (The range of possible discounts that our Office and the University estimate may be attainable, depending on vendor participation, is between $22,000 and $66,000.)
  • Use an independent collection agency to help it recover accounts receivables from students for tuition, fees, and room and board.
  • Improve the way it administers contracts.
  • Strengthen controls over its $31 million of property. Currently, the University does not have a system in place to ensure it protects its property and equipment.
  • Improve management of its human resources. Good management of human resources helps the University attract, retain, and train qualified employees. In turn, qualified personnel help the University fulfill its purpose. In fiscal year 1997, the University invested 47.9 percent ($28 million) of its current fund expenditures in salaries and wages to compensate its workforce. Specifically, the University needs to:
    • Monitor and track employee training and development.
    • Effectively implement the new performance appraisal system.
    • Remove confidential information from personnel files to comply with law.

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