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 (or Standard Review Report issued in accordance with Statements on Standards for Accounting and Review Services issued by the AICPA for those institutions ed as part of a systemwide or statewide ) and written institutional management letter for the most recent fiscal year prepared by an independent certified public accountant and/or an appropriate governmental ing agency employing the appropriate (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.
OFF-SITE REVIEW COMMITTEE COMMENTS
The institution has not yet furnished the committee ed financial statements or a statement of financial position of unrestricted net assets, exclusive of plant assets and plant-related debt. The institution has noted that this information will not be supplied until late fall of this year or early spring of 2005. The institution did supply information supporting that an annual budget is prepared that is preceded by sound financial planning, approved by the governing board and subject to sound fiscal procedures. However, since the institution did not submit a standard review report or ed financial report, it needs to provide such a report or financial report for FY 2004, to demonstrate financial stability.
JUDGMENT OF COMPLIANCE
NARRATIVE/JUSTIFICATION FOR JUDGMENT OF COMPLIANCE
Action: Received the required information from the Texas State Auditor for the year ending August 31, 2004.All 37 Texas public institutions of higher education are part of a State of Texas statewide audit. This audit is performed by the Texas State Auditor’s Office and is an external review of the institution. Attached is the statement of unrestricted net assets, exclusive of plant assets and plant-related debt.
The Review of Texas A&M International University for the Southern Association of Colleges and Schools included the State Auditor’s Review Report which was conducted in accordance with the Southern Association of Colleges and Schools’ (Southern Association) Criteria for Accreditation. The State Auditor’s Review Report was provided by John Keel, CPA, Texas State Auditor, and states:
“The accompanying statements were prepared to present the financial position and the changes in financial position and cash flows of the University. These statements were prepared pursuant to criteria of the Southern Association for supplementary special reports by institutions in states that conduct statewide audits.
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. This report is intended for use by the Board of Regents of Texas A&M University System, management of the University, and the Southern Association.” (Texas State Auditor’s Review Report)
Also included in the Review are:
“ In the course of our review, which was substantially less in scope than an audit, we did not find that material modifications needed to be made to the financials statements in order for them to be in conformity with generally accepted accounting principles.”
In summary, the Review provides that “ The financial position of the University is sound in light of the reductions in state appropriations. The University has been able to continue to grow in facilities, students, and academic programs. The University will continue to manage this growth while monitoring the economic and political climates.”