June 29, 1998 Members of the Legislative Audit Committee: Southwest Texas State University, Texas A&M University - Commerce, and Texas A&M University - Galveston continue to make necessary enhancements to their control systems and overall operations, as recommended in previous audit reports. These changes will reduce the risk of wasting resources and failing to achieve goals and objectives. To determine current management control issues at Texas A&M University - Galveston, we reviewed internal audit reports for fiscal years 1996, 1997, and 1998. Texas A&M University Galveston management needs to continue the high-level of commitment to action plans, as demonstrated by (1) its initiation of a strategic planning process with a committee reviewing all non-academic services and (2) its increased promotion of student recruitment efforts. Texas A&M University - Galveston has been under reorganization in recent years and has made progress towards improving management goals in certain problem areas identified in the internal audit reports. Administrative control for its financial and accounting operations was transferred to the Vice President for Finance and Controller of Texas A&M University - College Station. A new Vice President and Chief Executive Officer was appointed for Texas A&M University Galveston. Progress towards improving management controls in certain problem areas, such as auxiliary enterprises and enrollment has taken place. Texas A&M University - Galveston continues to make the management control improvements recommended in the internal audit reports. The internal audit departments of both Texas A&M University - College Station and the Texas A&M University System continue to be involved in projects at Texas A&M University - Galveston. Based on this information, no further State Auditor activity is necessary at this time in order to allow the university time to implement planned improvements. Report No. 98-048

June 29, 1998 Members of the Legislative Audit Committee: Southwest Texas State University, Texas A&M University - Commerce, and Texas A&M University - Galveston continue to make necessary enhancements to their control systems and overall operations, as recommended in previous audit reports. These changes will reduce the risk of wasting resources and failing to achieve goals and objectives. To determine current management control issues at Texas A&M University - Galveston, we reviewed internal audit reports for fiscal years 1996, 1997, and 1998. Texas A&M University Galveston management needs to continue the high-level of commitment to action plans, as demonstrated by (1) its initiation of a strategic planning process with a committee reviewing all non-academic services and (2) its increased promotion of student recruitment efforts. Texas A&M University - Galveston has been under reorganization in recent years and has made progress towards improving management goals in certain problem areas identified in the internal audit reports. Administrative control for its financial and accounting operations was transferred to the Vice President for Finance and Controller of Texas A&M University - College Station. A new Vice President and Chief Executive Officer was appointed for Texas A&M University Galveston. Progress towards improving management controls in certain problem areas, such as auxiliary enterprises and enrollment has taken place. Texas A&M University - Galveston continues to make the management control improvements recommended in the internal audit reports. The internal audit departments of both Texas A&M University - College Station and the Texas A&M University System continue to be involved in projects at Texas A&M University - Galveston. Based on this information, no further State Auditor activity is necessary at this time in order to allow the university time to implement planned improvements. Report No. 98-048

June 29, 1998 Members of the Legislative Audit Committee: Southwest Texas State University, Texas A&M University - Commerce, and Texas A&M University - Galveston continue to make necessary enhancements to their control systems and overall operations, as recommended in previous audit reports. These changes will reduce the risk of wasting resources and failing to achieve goals and objectives. To determine current management control issues at Texas A&M University - Galveston, we reviewed internal audit reports for fiscal years 1996, 1997, and 1998. Texas A&M University Galveston management needs to continue the high-level of commitment to action plans, as demonstrated by (1) its initiation of a strategic planning process with a committee reviewing all non-academic services and (2) its increased promotion of student recruitment efforts. Texas A&M University - Galveston has been under reorganization in recent years and has made progress towards improving management goals in certain problem areas identified in the internal audit reports. Administrative control for its financial and accounting operations was transferred to the Vice President for Finance and Controller of Texas A&M University - College Station. A new Vice President and Chief Executive Officer was appointed for Texas A&M University Galveston. Progress towards improving management controls in certain problem areas, such as auxiliary enterprises and enrollment has taken place. Texas A&M University - Galveston continues to make the management control improvements recommended in the internal audit reports. The internal audit departments of both Texas A&M University - College Station and the Texas A&M University System continue to be involved in projects at Texas A&M University - Galveston. Based on this information, no further State Auditor activity is necessary at this time in order to allow the university time to implement planned improvements. Report No. 98-048

June 29, 1998 Members of the Legislative Audit Committee: Southwest Texas State University, Texas A&M University - Commerce, and Texas A&M University - Galveston continue to make necessary enhancements to their control systems and overall operations, as recommended in previous audit reports. These changes will reduce the risk of wasting resources and failing to achieve goals and objectives. To determine current management control issues at Texas A&M University - Galveston, we reviewed internal audit reports for fiscal years 1996, 1997, and 1998. Texas A&M University Galveston management needs to continue the high-level of commitment to action plans, as demonstrated by (1) its initiation of a strategic planning process with a committee reviewing all non-academic services and (2) its increased promotion of student recruitment efforts. Texas A&M University - Galveston has been under reorganization in recent years and has made progress towards improving management goals in certain problem areas identified in the internal audit reports. Administrative control for its financial and accounting operations was transferred to the Vice President for Finance and Controller of Texas A&M University - College Station. A new Vice President and Chief Executive Officer was appointed for Texas A&M University Galveston. Progress towards improving management controls in certain problem areas, such as auxiliary enterprises and enrollment has taken place. Texas A&M University - Galveston continues to make the management control improvements recommended in the internal audit reports. The internal audit departments of both Texas A&M University - College Station and the Texas A&M University System continue to be involved in projects at Texas A&M University - Galveston. Based on this information, no further State Auditor activity is necessary at this time in order to allow the university time to implement planned improvements. Report No. 98-048

OFFICE OF THE STATE AUDITOR
TWO COMMODORE PLAZA
206 EAST NINTH STREET, SUITE 1900 LAWRENCE F. ALWIN, CPA
AUSTIN, TEXAS 78701
State Auditor
June 29, 1998
Members of the Legislative Audit Committee:
Southwest Texas State University, Texas A&M University - Commerce, and Texas A&M
University - Galveston continue to make necessary enhancements to their control systems and
overall operations, as recommended in previous audit reports. These changes will reduce the risk
of wasting resources and failing to achieve goals and objectives.
To determine current management control issues at Texas A&M University - Galveston, we
reviewed internal audit reports for fiscal years 1996, 1997, and 1998. Texas A&M University -
Galveston management needs to continue the high-level of commitment to action plans, as
demonstrated by (1) its initiation of a strategic planning process with a committee reviewing all
non-academic services and (2) its increased promotion of student recruitment efforts. Texas
A&M University - Galveston has been under reorganization in recent years and has made
progress towards improving management goals in certain problem areas identified in the internal
audit reports. Administrative control for its financial and accounting operations was transferred
to the Vice President for Finance and Controller of Texas A&M University - College Station. A
new Vice President and Chief Executive Officer was appointed for Texas A&M University -
Galveston. Progress towards improving management controls in certain problem areas, such as
auxiliary enterprises and enrollment has taken place.
Texas A&M University - Galveston continues to make the management control improvements
recommended in the internal audit reports. The internal audit departments of both Texas A&M
University - College Station and the Texas A&M University System continue to be involved in
projects at Texas A&M University - Galveston. Based on this information, no further State
Auditor activity is necessary at this time in order to allow the university time to implement
planned improvements.
Report No. 98-048

Members of the Legislative Audit Committee
June 29, 1998
Page 2
We appreciate the time and assistance provided by the management and staff members of these
universities throughout our review. Although we determined that no further State Auditor
activity is necessary at this time, we will continue to monitor progress at Southwest Texas State
University, Texas A&M University - Commerce, and Texas A&M University - Galveston, and
will provide assistance as necessary.
Sincerely,
Lawrence F. Alwin, CPA
State Auditor
rmn
cc:
Dr. Jerome H. Supple, President, Southwest Texas State University
Mr. William Nance, Vice President for Finance and Support Services, Southwest Texas
State University
Ms. Yvonne Eixmann, Director of Internal Audit and Advisory Services, Southwest Texas
State University
Dr. Ray M. Bowen, President, Texas A&M University - College Station
Mr. William B. Krumm, Vice President for Finance and Controller, Texas A&M
University - College Station
Mr. Charley B. Clark, Director of Department of Internal Audit, Texas A&M
University - College Station
Dr. Barry Thompson, Chancellor, Texas A&M University System
Mr. Richard Lindsey, Vice Chancellor for Finance and Operations, Texas A&M
University System
Mr. Frank R. Clark, Sr., Director of Internal Audit Department, Texas A&M University
System
Dr. Keith McFarland, Interim President, Texas A&M University - Commerce
Ms. Mitzi Money, Assistant Vice President for Business and Administration, Texas A&M
University - Commerce
Dr. W. Michael Kemp, Vice President and Chief Executive Officer, Texas A&M
University - Galveston