2.11 The institution has a sound financial base, demonstrated
and adequate physical resources to support the mission of the
institution and the scope of its programs and services.
The member institution
provides the following financial statements: (a)
an institutional audit (or Standard Review Report issued in accordance
with Statements on Standards for Accounting and Review Services
issued by the AICPA for those institutions audited as part of a
or statewide audit) and written institutional management letter
for the most recent fiscal year prepared by an independent certified
accountant and/or an appropriate governmental auditing agency
employing the appropriate audit (or Standard Review Report) guide;
a statement of financial position of unrestricted net assets, exclusive
plant assets and plant-related debt, which represents the change in
net assets attributable to operations for the most recent year; and
(c) an annual budget that is preceded by sound planning, is subject
sound fiscal procedures, and is approved by the governing board.
JUDGMENT OF COMPLIANCE
NARRATIVE/JUSTIFICATION FOR JUDGMENT OF COMPLIANCE
(a) Standard Review Report
institutions in the State of Texas are covered by a single statewide audit.
there is no separate audit prepared for Texas A&M
International University, the State Auditor prepares, with assistance
from the Texas A&M University System Office of Internal Audit, a
Standard Review Report. It is prepared in accordance with American
Certified Public Accountants (AICPA) Statements on Standards for Accounting
and Review Services.
(b) Statement of Financial Position of Unrestricted Net Assets
International University possesses sufficient financial resources to support
all of its programs as indicated by the Statement
Position of Unrestricted Net Assets, exclusive of plant assets and plant
related debt which represents the change in unrestricted net assets
to operations for FY 2004. The Annual Financial Report (Business
Office, Comptroller, Reports, Financial Reports) is
reviewed by the Chief Financial Officer (CFO) and the Chief Executive
Officer (CEO) to provide insight into the financial
of Texas A&M International University. Additionally the CFO receives
summarized financial information quarterly that includes
a net change in fund balances. (Texas
A&M University System
Executive Management Report) Since the State of Texas operates
under the Single Audit concept, the State Auditor will now complete the
Standard Review Report after the end of the Fiscal Year (August 31) and
availability of the Annual Financial Statement.
(c) Annual Budget
The Annual Budget Process for Texas A&M
International University, as defined by The
Texas A&M University System Policy 27.03: Annual
Operating Budget Process, states that budgets should be
in compliance with the Board approved guidelines; that they support the
missions, goals and objectives consistent with strategic plans; and that
they represent sound fiduciary management of system resources. The
Texas A&M University System Policy 27.04: Budget Authorizations,
Limitations, and Delegations of Authority provides
definitions, authorizations, limitations, delegations of authority,
and reporting requirements with respect to the Annual
Operating Budget as approved by The
University Board of Regents.(Certified
Minute Order, Approval of Fiscal Year 2005 Operating Budgets) The
System authors two documents that guide the budget process: The
Texas A&M University
System Budget Guidelines and Texas
A&M International University Budget
The requirements and recommendations that guide the preparation of the
in these documents. Texas A&M International University uses the System
Budget Guidelines provided to develop a budget calendar and outline any
University Budget Process
- Each college/school and major division determines their programmatic
needs and priorities.
- The University provides programmatic needs at the Programmatic
Review conducted by the Finance Committee of the Board of Regents.
- The System Budget Guidelines are prepared by the System staff for
approval by the Board of Regents.
- Board of Regents approved System Budget Guidelines are provided to
the University by the System Office of Budgets and Accounting.
- University lump sum budget scenarios are prepared for the President
by the Office of Budget, Payroll, Grants and Contracts.
- The President, with input from the Executive Council (Budget Committee)
and the Vice President for Finance and Administration, outlines the
overall level of available revenue.
- The Office of Budget, Payroll, Grants and Contracts prepares and
provides University budget instructions along with previous year
budget data and
appropriate budget forms to each Vice President.
- Each Vice President provides budget instructions to Budgetary Unit
Heads for the development of their budget requests. The Budgetary Unit
Head’s request is submitted to the appropriate Vice President
who prioritizes requests and submits recommendations to the President.
- All approved budgets are reviewed by the Office of Budget, Payroll,
Grants and Contracts for accuracy, consistency with historical trends,
and growth. Any recommended changes or deviations submitted by Budgetary
Unit Heads for review include supporting justification. The Office
Budget, Payroll, Grants and Contracts enters budget information per account
into the Financial & Accounting Management Information System
(FAMIS) Budget Module and the Budget/Payroll/Personnel System (B/P/P).
- Overall University budget requests are discussed with the Budget
Committee. The President approves the final budget.
- The Annual Operating Budget is submitted to the System Office
of Budgets and Accounting for review and compilation.
- The Annual Operating Budget is approved by the Board
Plan for Compliance
The Texas State Auditor's Office will complete their work in late fall
or early spring and thereafter will provide the University with the Statement
of Financial Position of Unrestricted Assets. Upon receipt, this information
will be provided to the Commission on Colleges along with the Texas State
Standard Review Report.