Abbott, Patrick Order Rangers Probe After Audit Finds Major Financial Failures at TSU
Gov. Greg Abbott and Lt. Gov. Dan Patrick have directed the Texas Rangers and the Comptroller’s Office to launch investigations into Texas Southern University’s finances after the state auditor uncovered widespread failures in financial oversight.
The move follows revelations that the Houston-based HBCU processed thousands of invoices without valid contracts, raising concerns over potential misuse of taxpayer funds.
Patrick, who released portions of the state auditor’s letter on X, said the findings showed “disturbing information suggesting the misuse of state funds.” He noted that the legislature had long supported TSU financially but “appears to have been misled” about the university’s accounting reforms.
According to State Auditor Lisa Collier, staffing shortages in TSU’s financial offices contributed to “significant delays in financial reporting, poor asset oversight, and weak contracting processes.” Among the audit’s findings:
- 743 invoices totaling $282.2 million were tied to vendors with expired contracts.
- 8,144 invoices worth $158 million were dated before purchase requisitions were approved.
- TSU filed its 2023 financial report 10 months late and its 2024 report four months late.
Collier said these deficiencies created an environment where “misspent funds could occur,” even though the letter did not confirm specific acts of fraud.
In a statement, Texas Southern University said it has “cooperated with the state auditor in evaluating our processes” and has “enacted corrective measures, including a new procurement system.” University officials added that they “look forward to continuing to work with the state auditor to ensure transparency for all taxpayers of Texas.”
Forensic accountant Scott Bayley, who reviewed the auditor’s letter, said the report highlights “serious internal control deficiencies” but does not prove money was stolen. “It’s not unusual to find breakdowns in internal procedure,” Bayley noted, “but those breakdowns create an environment that allows misappropriation to happen.”
Patrick indicated he plans to discuss with Abbott and House Speaker Dustin Burrows a potential freeze on TSU’s state funding pending further review. Such a move could have major implications for the university’s 8,000 students and staff.
This isn’t the first time TSU’s finances have come under scrutiny. In 2020, an internal probe led to the ousting of then-president Austin Lane after investigators uncovered bribery and kickback schemes in the law school’s admissions process.
As the audit continues, state auditors are expected to meet with TSU leadership this week. The full audit report has yet to be released.
