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TSU Passes Important Milestone

In the past, I've kept you updated on issues dealing with Texas Southern University. I am happy to share an article that the Houston Chronicle ran on Saturday detailing TSU's completion of a successful financial audit.

I applaud TSU and President John Rudley for passing this important milestone, which is the first step toward regaining full accreditation. This is also great news for TSU students who will still be eligible for federal financial aid. Now that the audit is complete, and TSU knows where it stands financially, they can focus on educational issues and its academic programs.

I will continue to keep you up to date on TSU and the progress of our efforts, as I continue to work on the long-term success, independence and prosperity of Texas Southern University.

TSU celebrates after audit shows no irregularities

By JEANNIE KEVER Copyright 2009 Houston Chronicle

One year after taking office as president of Texas Southern University, John Rudley was able to announce that the school has passed a major milestone: A financial audit is complete, the first step toward regaining full accreditation.

“The cloud has been lifted from over our heads,” Rudley said Friday.

The letter from auditors Belt Harris & Associates announcing the results was filled with the dry prose of the accounting profession, but Rudley said that was good news. Auditors reported no irregularities. “Our books are clear,” he said.

The report was almost two years in the making. A preliminary audit in May 2007 found problems such as bookkeeping errors and inadequate controls, and auditor Deloitte & Touche said it couldn’t complete the work because so many records were missing.

The Southern Association of Colleges and Schools placed TSU on probation in December 2007, mainly because of the financial mess. Without accreditation, the school’s academic programs would lose credibility and students would not be eligible for federal financial aid.

Belle Wheelan, president of the association’s commission on colleges, said the audit report will be considered when the commission meets in June.

At that point, Rudley said, he expects the commission’s attention to shift to educational issues, especially TSU’s library. TSU has asked the Legislature for $46 million in tuition revenue bonds to build and equip a new library.

Rudley said the school will remain on probation until 2010, but the audit is a sign “that we have turned the corner.”
It wasn’t easy.

Jim McShan, vice president for finance at TSU, said the bank statements hadn’t been balanced for more than two years when he began work late last summer. Lower-level business office staffers issued paychecks and paid bills but didn’t know how to use the computer software to create a trustworthy financial statement, he said.

With the audit complete, McShan said, TSU now knows where it stands financially. “It’s actually in better shape than I thought it would be,” he said.

TSU has an annual operating budget of $143 million, of which $80 million comes from the state, with the rest from tuition and fees, federal grants and other sources.

jeannie.kever@chron.com