June 8, 1998 Members of the Legislative Audit Committee: We completed a management control audit of The University of Texas – Pan American (University), and we determined that the University has adequate controls necessary to ensure that its resources are used as intended. Minor issues in the areas of auxiliary enterprises, human resources, and revenues were uncovered during the audit. The University has responded positively to our recommendations and has either implemented or is in the process of implementing them. The objectives of this audit were to assess whether the University established the controls necessary to provide educational services, safeguard assets, use resources efficiently, and comply with applicable laws and regulations. The scope of this audit included the examination of the University’s policy management, information management, and resource management. In addition to the management control audit, we performed other audit work. Formula Funding Audit The University is in compliance with Formula Funding guidelines. Our testing for compliance with state laws and Texas Higher Education Coordinating Board rules did not identify any overfunding of semester credit hours at the University. Formula appropriations for the University for the 1998-1999 biennium are $68,319,781. Accreditation Audit We reviewed the University’s Current Funds for fiscal year 1997 to provide limited assurance for an accreditation review by the Southern Association of Colleges and Schools. Nothing came to our attention that would require the modification of the financial statements in order for them to be in conformity with generally accepted accounting principles. Compliance With the Historically Underutilized Business Program Audit procedures were also performed to determine the University’s compliance with the Historically Underutilized Business (HUB) program. We found that the University was making a good-faith effort to comply with the HUB program. Totaled certified HUB expenditures for fiscal year 1997 were $2.5 million. SAO Report No. 98-042
OFFICE OF THE STATE AUDITOR
TWO COMMODORE PLAZA
206 EAST NINTH STREET, SUITE 1900
LAWRENCE F. ALWIN, CPA
AUSTIN, TEXAS 78701
State Auditor
June 8, 1998
Members of the Legislative Audit Committee:
We completed a management control audit of The University of Texas – Pan American
(University), and we determined that the University has adequate controls necessary to ensure
that its resources are used as intended. Minor issues in the areas of auxiliary enterprises, human
resources, and revenues were uncovered during the audit. The University has responded
positively to our recommendations and has either implemented or is in the process of
implementing them.
The objectives of this audit were to assess whether the University established the controls
necessary to provide educational services, safeguard assets, use resources efficiently, and comply
with applicable laws and regulations. The scope of this audit included the examination of the
University’s policy management, information management, and resource management.
In addition to the management control audit, we performed other audit work.
Formula Funding Audit
The University is in compliance with Formula Funding guidelines. Our testing for compliance
with state laws and Texas Higher Education Coordinating Board rules did not identify any over-
funding of semester credit hours at the University. Formula appropriations for the University for
the 1998-1999 biennium are $68,319,781.
Accreditation Audit
We reviewed the University’s Current Funds for fiscal year 1997 to provide limited assurance for
an accreditation review by the Southern Association of Colleges and Schools. Nothing came to
our attention that would require the modification of the financial statements in order for them to
be in conformity with generally accepted accounting principles.
Compliance With the Historically Underutilized Business Program
Audit procedures were also performed to determine the University’s compliance with the
Historically Underutilized Business (HUB) program. We found that the University was making
a good-faith effort to comply with the HUB program. Totaled certified HUB expenditures for
fiscal year 1997 were $2.5 million.
SAO Report No. 98-042
Members of the Legislative Audit Committee
June 8, 1998
Page 2
The audits were conducted in accordance with Generally Accepted Auditing Standards and
Generally Accepted Government Auditing Standards.
Sincerely,
Lawrence F. Alwin, CPA
State Auditor
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