Texas Tech University is in partial compliance with Comprehensive Standard 3.10.2.  

Texas Tech University does not conduct complete annual audits (See the Office of Finance and Administration response to this comprehensive standard for information on audit policies and practices). The Office of Audit Services performs audits of specific components of the university operation as mandated by federal and state law, as indicated during an annual risk assessment process, and/or as requested by the board of regents or management. A complete financial statement review for fiscal year 2003-2004 will be conducted by the Texas State Auditor’s Office. The fiscal year for the university runs from September 1 to August 31, and the university’s books will close in October for fiscal year 2003-2004.  The State Auditor’s report and management letter should be available on or about January 15, 2005. Texas Tech University will be in compliance with Comprehensive Standard 3.10.2 when these documents become available.

University budgets for FY 2000, 2001, 2002, 2003, and 2004 are available on line at http://www.irs.ttu.edu/Reports/StateReports/TTU/OBudget/default.htm.

Action Plan:

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

SACS Off-Site Committee Finding: 

3.10.2   The institution provides financial statements and related documents, including multiple measures for determining financial health as requested by the Commission, which accurately and appropriately represent the total operation of the institution. 

___       Compliance
_X_      Non-compliance
___       Did not review 

Comments:   

No financial audit reports have been provided. 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 report from the texas State Auditor with respect to the fiscal year ended August 31, 2004 is available at http://www.irim.ttu.edu/SACSFocusReport/StateAuditorsReport.pdf. As previously noted, the State of Texas conducts an annual global audit, so annual audits for the university are not available. We offer the university’s Annual Financial Reports to the Texas State Auditor’s Office in place of formal audits. These reports are available for the past 5 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.  

The documents cited above, along with statements provided in the original compliance certification support our contention that the financial health of the university is satisfactory.