A state audit has revealed significant financial weaknesses at Texas Southern University, citing widespread failures in purchasing controls, contract oversight and accounting practices.
The Texas Tribune reported that Lt. Gov. Dan Patrick described the audit findings as "beyond disturbing."
Patrick said state leadership has moved to restrict university spending while corrective steps are taken, initiating a halt to most TSU contract spending except for expenses necessary to keep the university operating.
Texas Southern University, with an enrollment of around 8,000 students, is one of the nation's largest historically Black colleges.
Preliminary findings released in November showed more than 700 invoices totaling over $280 million tied to vendors with expired contracts, along with more than 800 invoices worth nearly $160 million dated before purchases were formally requested or approved.
The audit reviewed TSU's finances for fiscal years 2023, 2024 and 2025, and examined the university's financial reporting processes for fiscal years 2023 and 2024.
Auditors found that records for 97% of 60 vendors reviewed did not match contract documentation, with inaccuracies throughout the available contract data.
The audit also found that TSU has not conducted a full physical inventory of its assets since 2019, limiting its ability to properly account for and protect university property.
Financial reporting problems were cited as well, including reports submitted to the state comptroller's office nearly a year late in 2023.
Auditors further found that the university failed to properly adjust budget accounts to reflect staffing shortages.
Patrick previously requested a Texas Rangers investigation into potential criminal wrongdoing at TSU, and that investigation remains ongoing.
"It is my hope, for the sake of the students at the university, that TSU can continue," Patrick wrote on X. "TSU is solely responsible for this fiasco. If TSU does not remedy the situation, the legislature will."
In a Dec. 22 letter to State Auditor Lisa Collier, TSU President J.W. Crawford III said the university is committed to addressing the findings and improving internal controls.
"The University is committed to remediating the findings by the State Auditor's Office," Crawford wrote, adding that the school is implementing initiatives to strengthen financial and operational processes.
Crawford said approximately 200 vacant positions, including key roles in information technology, have worsened oversight challenges and contributed to long-standing structural weaknesses.
Patrick said Crawford agrees with the audit findings and has been working with the state auditor's office to correct the deficiencies.