SACS Principles of Accreditation

Section II: COC Core Requirement

2.11 The institution has a sound financial base, demonstrated financial stability, 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 systemwide or statewide audit) and written institutional management letter for the most recent fiscal year prepared by an independent certified public accountant and/or an appropriate governmental auditing agency employing the appropriate audit (or Standard Review Report) guide; (b) a statement of financial position of unrestricted net assets, exclusive of plant assets and plant-related debt, which represents the change in unrestricted
net assets attributable to operations for the most recent year; and (c) an annual budget that is preceded by sound planning, is subject to sound fiscal procedures, and is approved by the governing board.



JUDGMENT OF COMPLIANCE

Partial Compliance.

NARRATIVE/JUSTIFICATION FOR JUDGMENT OF COMPLIANCE

(a) Standard Review Report
All public institutions in the State of Texas are covered by a single statewide audit. Since 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 Institute of Certified Public Accountants (AICPA) Statements on Standards for Accounting and Review Services.

(b) Statement of Financial Position of Unrestricted Net Assets
Texas A&M International University possesses sufficient financial resources to support all of its programs as indicated by the Statement of Financial Position of Unrestricted Net Assets, exclusive of plant assets and plant related debt which represents the change in unrestricted net assets attributable 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 stability 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 upon the 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 accomplishment of system 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 Texas A&M 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 Instructions. The requirements and recommendations that guide the preparation of the Annual Operating Budget are provided in these documents. Texas A&M International University uses the System Budget Guidelines provided to develop a budget calendar and outline any additional instructions.

University Budget Process

  1. Each college/school and major division determines their programmatic needs and priorities.
  2. The University provides programmatic needs at the Programmatic Review conducted by the Finance Committee of the Board of Regents.
  3. The System Budget Guidelines are prepared by the System staff for approval by the Board of Regents.
  4. Board of Regents approved System Budget Guidelines are provided to the University by the System Office of Budgets and Accounting.
  5. University lump sum budget scenarios are prepared for the President by the Office of Budget, Payroll, Grants and Contracts.
  6. 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.
  7. 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.
  8. 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.
  9. 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 of 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).
  10. Overall University budget requests are discussed with the Budget Committee. The President approves the final budget.
  11. The Annual Operating Budget is submitted to the System Office of Budgets and Accounting for review and compilation.
  12. The Annual Operating Budget is approved by the Board of Regents.

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 Auditor's Standard Review Report.





SUPPORT DOCUMENTATION


SOURCE

LOCATION/Special Instructions

Business Office, Comptroller, Reports, Financial Reports

http://www.tamiu.edu/adminis/comptroler/reports.shtml

Texas A&M University System Executive Management Report

http://tamusystem.tamu.edu/documents/pdfs/semr/archives/
2004Q2/ 04_2_TAMIU.pdf
Adobe Acrobat File

Backup Link:

http://www.tamiu.edu/archives/04_2_TAMIU.pdf Adobe Acrobat File

The Texas A&M University System Policy 27.03: Annual Operating Budget Process

http://sago.tamu.edu/policy/27-03.htm

Backup Link:

http://www.tamiu.edu/archives/sago-policy-27-03.htm

The Texas A&M University System Policy 27.04: Budget Authorizations, Limitations, and Delegations of Authority

http://sago.tamu.edu/policy/27-04.htm

Backup Link:

http://www.tamiu.edu/archives/sago-policy-27-04.htm

Annual Operating Budget http://www.tamiu.edu/adminis/payroll/budget.htm#op
Certified Minute Order, Approval of Fiscal Year 2005 Operating Budgets http://www.tamiu.edu/archives/cert-minute-order.pdf Adobe Acrobat File
The Texas A&M University System Budget Guidelines

http://www.tamiu.edu/adminis/payroll/main/
2005budgetinstructionsa&m.pdf
Adobe Acrobat File

Budget Instructions

http://www.tamiu.edu/adminis/payroll/main/
budgetinstructions.pdf
Adobe Acrobat File



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