Texas Tech University is in partial compliance with Comprehensive Standard 3.10.1 

Texas Tech University is able to demonstrate a history of financial stability. As an institution whose annual financial information is audited as part of a statewide audit, Texas Tech University will obtain a review in accordance with AICPA Statements on Standards for Accounting and Review Services for its financial statements for the year ending August 31, 2004. The Texas State Auditor’s Office will conduct the review and will issue a Standard Review Report and institutional management letter. The target date for submission of the review report and management letter to SACS is January 15, 2005.  The State Auditor’s Office does issue management letters on the state level, which would include Texas Tech University. However, no weaknesses were noted in Texas Tech University fiscal management for FY 2002 or FY 2003.  

Summary budgets for FY 2004 and the previous 4 fiscal years are available at http://www.irs.ttu.edu/Reports/StateReports/TTU/OBudget/default.htm. and the general university budgeting process is described in a pdf file at Board of Regents Rules, Chapter 7, Section 07.04, pp. 13-17 http://www.depts.ttu.edu/oppol/Chapter07.pdf.  

The market value of Texas Tech University’s endowment was $222,757,095 at the end of FY 2002-2003 and $239,802,451 on May 31, 2004. The university’s endowment investment policy is available in pdf form in Board of Regents Rules, Chapter 9, Investments, Endowments, and Income Producing Lands, Section 09.02, pp. 15-28 (http://www.depts.ttu.edu/oppol/Chapter09.pdf). A partial listing of endowment for the 2003-2004 fiscal year, by category, is available on line at (http://www.irim.ttu.edu/SACSFocusReport/TexasTechUniversityEndowmentList.pdf) and http://www.irim.ttu.edu/SACSFocusReport/TexasTechUniversityFoundationEndowment.pdf). For additional information on management of endowments see the Office of Finance and Administration response to this comprehensive standard. 

Adequate funding of programs is a somewhat nebulous concept. Many program directors and faculty might respond that their programs are not adequately funded because they see unmet needs. However, if one uses performance-based criteria, the university is clearly fulfilling its teaching, research, and service missions. Therefore, funding levels must be adequate to accomplish the mission. However, this is not to say that higher funding levels would not make it possible to improve instructional programs, engage in more research, and provide more public service. For more information on the university perspective on adequacy of funding see the Office of Finance and Administration response to this comprehensive standard. 

Presentation of the audit report and management letters will bring the university into compliance with Comprehensive Standard 3.10.1. 

Action Plan:

Texas Tech University will submit the required financial documentation to SACS as soon as it becomes available.

SACS Off-Site Committee Finding: 

3.10.1   The institution’s recent financial history demonstrates financial stability.  

___       Compliance
_X_      Non-compliance
___       Did not review 

Comments:   

Although there is a statement that there were no weaknesses noted in fiscal management for FY2002 and 2003, there are no copies of the financial audits provided for those years. The institution notes that it is in partial compliance and will be in compliance when “Presentation of the audit report and management letters bring the university into compliance with Comprehensive Standard 3.10.1.”    

TTU Response:  

The State of Texas conducts an annual global state audit, which makes it difficult to disaggregate information on a single institution. Therefore, the director of the university system’s Office of Audit Services requested a review by the State Auditor’s office for the fiscal year ending August 31, 2004. This review is on line at http://www.irim.ttu.edu/SACSFocusReport/StateAuditorsReport.pdf. For previous years we offer the university’s Annual Financial Reports,  submitted to the State Auditor’s Office. These documents contain the same financial information as the State Auditor’s Report and are available on line for the past five fiscal years at http://www.irs.ttu.edu/Reports/StateReports/TTU/Financial/default.htm.

The university’s annual budget is on-line at: http://www.irs.ttu.edu/Reports/StateReports/TTU/OBudget/default.htm.