January 4, 2026
NEWS DIGEST
by Brandon Waltens
Good morning,
A final audit released by the State Auditor’s Office on New Year’s Eve confirms sweeping financial and operational failures at Texas Southern University, including the inability to locate the vast majority of sampled assets and years of noncompliance with basic procurement and financial reporting requirements.
According to the audit, 50 of 60 sampled assets—83 percent—could not be located, despite being recorded in the university’s official accounting system.
Auditors reported that the missing assets had a combined purchase value of $3.2 million and warned that the lack of inventories, inaccurate records, and staffing gaps created a high risk that university property could be lost, stolen, or misused without detection.
The report found that TSU had not conducted a required annual physical inventory since at least 2019 and maintained incomplete and inaccurate asset records across multiple systems. In some cases, assets continued to be depreciated even after being auctioned, written off, or reimbursed by insurance, including a university bus valued at more than half a million dollars.
Auditors also detailed extensive breakdowns in the university’s procurement process.
TSU routinely paid vendors without approved requisitions, processed invoices tied to expired contracts, and failed to ensure required bids, quotes, or board approvals were in place before purchases were made.
In one review, auditors identified 743 invoices paid on expired contracts and more than 8,000 invoices dated before the corresponding requisitions were approved, confirming that purchases were frequently made outside required controls.
Financial reporting failures compounded the problems.
The audit found that TSU submitted required financial statements months late and provided inaccurate data to the Texas Comptroller’s Office, including misstatements of tens of millions of dollars in bond repayment figures.
Auditors said the delays and errors limited transparency and hindered the state’s ability to rely on the university’s financial information.
In response to the audit’s release, Lt. Gov. Dan Patrick said the findings were “beyond disturbing” and reflected years of mismanagement involving taxpayer funds.
University leadership agreed with the state auditor’s recommendations and outlined a multi-year corrective action plan.
Featured
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Real Texans
In this week's edition of Real Texans, David Stokely—a reformed convict whose Houston-area Christian ministry focuses on protecting at-risk youth—warns about the dangers of explicit materials that are denied to prisoners but remain available to children in school libraries.
New interviews with REAL TEXANS every Sunday!
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