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Texas Freezes TSU Contract Spending After Audit Finds Pervasive Control Failures

TSU leadership plans a JAGGAER procurement rollout by September under intensified oversight.

Overview

  • The State Auditor's December report detailed major weaknesses across finances, procurement, asset management, financial reporting, and IT access at Texas Southern University.
  • Auditors could not locate 83% of sampled assets totaling $3.2 million, and the university has not performed the required annual physical inventory since 2019.
  • Procurement testing flagged 8,144 misdated invoices, 743 payments to vendors on expired contracts, and data mismatches in 97% of a 60‑vendor sample.
  • Financial statements were late and error‑filled, including an $86.5 million misstatement of 2023 debt principal and poorly restricted access to financial systems.
  • Gov. Greg Abbott, Lt. Gov. Dan Patrick, and House leadership halted non‑essential contracts as TSU adopts policy reviews, mandatory training, an Audit Response Committee, and an enterprise risk manager, with a Texas Rangers inquiry continuing.