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Multiple Agencies

A Review of Selected Entities for Compliance with State Historically Underutilized Business Requirements

February 1999

Report Number 99-025

Overall Conclusion

In fiscal year 1998, 13 of 14 entities reviewed for compliance with state Historically Underutilized Business (HUB) requirements demonstrated good-faith efforts to purchase goods and services from HUB vendors. This means that, while the 13 entities may not have met all statewide goals for money spent with HUBs, they made a reasonable effort to achieve the goals.

Key Facts and Findings

  • The 14 entities reviewed spent $15,610,337 with HUB vendors (those recognized as being underutilized within six categories of expense) in fiscal year 1998, approximately a 12 percent HUB participation rate.

  • Nine of the 14 entities exceeded the statewide HUB participation goal in at least one expenditure category.

  • Texas Woman's University (University) did not demonstrate a good faith effort, so we referred it to the General Services Commission for assistance. If the University does not improve its HUB program, the General Appropriations Act allows the Legislative Budget Board to revoke the University's delegated purchase authority in fiscal year 2000.

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