'Beyond disturbing': TSU audit shows millions in mishandled tax dollars, Lt. Gov. Patrick says

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Texas Southern University (Photo: FOX 26 Houston)

HOUSTON - Texas Southern University underwent a state audit recently, and Lt. Gov. Dan Patrick, who requested the original investigation into the school, says the results were shocking. 

The university was found to have major, long-running gaps in financial reporting, which is among the issues Patrick says culminated in the mishandling of millions of Texas tax dollars. 

TSU state audit

The audit report, released in December by the Texas State Auditor's office, exposes major weaknesses in the finances and operations of TSU. 

According to the report, TSU did not abide by internal safeguards, manifesting in poor asset management, non-compliance in procurement, and deficiencies in financial reporting. 

Some of the key findings in the report were laid out as follows:

Procurement processes: The report says 8,144 instances were found in which vendor invoices were incorrectly dated. Another 743 invoices were paid to vendors with expired contracts. 

Asset management: Out of a sampling of assets, the university couldn't find and provide 83 percent of those requested in the audit. Those assets totaled $3.2 million. A physical inventory of assets, which is meant to be annual, had not been conducted since 2019.

Financial reporting: Financial statements from the past couple years were found to have been submitted months after they were due. Some submissions were riddled with errors, such as misstating debt principal payments by $86.5 million in 2023. 

Information technology: It was found that TSU did not restrict access to their financial systems properly, despite safeguards being established. 

A sign to the entrance on the Texas Southern University campus, Wednesday, Jan. 5, 2022 in Houston. (Photo by Karen Warren/Houston Chronicle via Getty Images)

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Dan Patrick reaction

What they're saying:

Patrick released a statement earlier this week on X, formerly Twitter, voicing his disappointment in the school. He implied that if the issues aren't fixed, the school could come to an end.

The statement reads, in part, as follows:

"It is my hope, for the sake of the students at the university, that TSU can continue. However, to do so, dramatic and permanent changes must occur immediately to comply with state standards. Millions upon millions of taxpayer dollars are not accounted for. The audit report states 83% of sampled assets cannot be located. 

I will do everything within my power to be sure that not one additional taxpayer dollar goes unaccounted for ever again at TSU. 

TSU is solely responsible for this fiasco. If TSU does not remedy the situation, the legislature will."

AUSTIN, TEXAS - JUNE 23: Texas Lieutenant Governor Dan Patrick speaks at a press conference at the Texas Capitol on Monday, June 23, 2025 in Austin, Texas. Patrick hosted a press conference in response to Texas Governor Greg Abbott?s decision to veto

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TSU agrees to state's terms

According to Patrick, the school's president, who's been on the job for less than two years, has agreed with the state's findings and agreed to take action. 

The report says the school will implement a new procurement and management system called JAGGAER, which is expected to be in place by September. 

They'll also review all policies that may have contributed to the errors and complete mandatory training with staff in related positions. 

Finally, an Audit Response Committee will be established, and an enterprise risk manager will be hired. These roles will aim to ensure a sustained remedy to the problems.