Gov. Greg Abbott calls for criminal investigation into Texas Southern University’s finances

HOUSTON – Texas Governor Greg Abbott and Lieutenant Governor Dan Patrick are calling for investigations into Texas Southern University after the state auditor allegedly found thousands of unauthorized invoices totaling hundreds of millions of dollars.

Patrick posted a letter from the Texas State Auditor on X, which details the findings of an ongoing audit. The audit has been going on for the last few months.

“Over the weekend, I was informed of disturbing information suggesting the misuse of state funds. We reached out to the State Auditor on Saturday for an update on the audit. The information I had been given appeared to be accurate,” Patrick said on X. “This morning, the auditor confirmed that thousands of unauthorized invoices totaling hundreds of millions of dollars have been identified.”

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In the letter, the auditor listed 743 invoices totaling $282.2 million for vendors whose contracts were listed in the contract database as expired. In addition, 8,144 invoices totaling approximately $158 million with invoice dates prior to their requisition dates were also discovered.

“In addition, the University did not have valid contracts for some transactions sampled by auditors. The contracts were either expired, not signed, or did not clearly cover the services or goods purchased. Further, the University did not follow its procurement procedures for any of the transactions sampled; those procedures required the creation and approval of requisitions prior to invoice payments,” the letter states.

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The Texas State Auditor’s Office has not responded to KPRC 2’s request for comment.

“The legislature has continued year-after-year to try to help the school. It appears the legislature has been misled over this time period on promised improvements in accounting practices and contracting. Based on today’s audit update, I am calling for a Texas Ranger investigation of TSU. I am asking the Rangers to work in concert with the State Auditor to determine if there are violations of state law,” Patrick said.

Hours after Patrick made the request, Abbott‘s office issued a statement, directing the Texas Department of Public Safety and the Texas Comptroller of Public Accounts to launch investigations into TSU’s finances.

“The Texas State Auditor uncovered significant financial and operational issues with Texas Southern University’s accounting procedures, alleging the potential misappropriation of hundreds of millions of dollars,” Abbott said. “Today, I directed the Texas Rangers to launch an investigation and called on the Texas Comptroller of Public Accounts to assist them in their efforts to fully analyze their finances. Waste, fraud, and abuse will not be tolerated. TSU’s Board of Regents and all university officials must fully cooperate with these investigations to ensure taxpayer dollars are not squandered.”

TSU Response

TSU released the following statement:

Texas Southern University has cooperated with the state auditor in evaluating our processes. The University enacted corrective measures prior to the release of the interim report, including a new procurement system. We look forward to gaining clarity and continuing to work with the state auditor to ensure transparency for all taxpayers of Texas.

On Wednesday, TSU President J.W. Crawford III released the following letter on behalf of the university:

Dear Texas Southern University Community,

You may have seen recent media coverage regarding Texas Southern University. As your president, I want to provide reassurance and clarity.

While Texas Southern has not yet received the interim audit report, it has fully cooperated with the Office of the State Auditor in its evaluation of the University’s financial processes. Our own internal assessment, initiated before the Auditor’s engagement, had already identified process deficiencies. Although these stem from prior years, they impact our current activities. We are continuously working to improve. These deficiencies were discussed transparently in the audit process. With the full support of the Board of Regents, we welcomed the Auditor’s independent evaluation as an opportunity to strengthen reforms already underway.

Later this week, I will meet with the State Auditor’s Office to review the interim report. I view their work not as criticism, but as an important complement to our commitment to continuous improvement.

Consistent with our obligations as stewards of public resources, Texas Southern began addressing these concerns prior to the Auditor’s involvement. To strengthen fiscal governance and ensure these weaknesses are corrected, the University has implemented a series of corrective measures, including:

• Implementing a new procurement system with integrated checks and balances;
• Enforcing compliance with existing policies and procedures;
• Updating training requirements for all staff and administrators involved in procurement; and
• Reviewing all contract execution and verifying appropriate documentation.

When I addressed members of the legislature last year, I said I came to Texas Southern to build trust. Trust is not given; it is earned. We respect and welcome the assistance of the state’s oversight bodies and remain committed — alongside our Board of Regents — to good judgment, accountability, and transparency as we continue to strengthen our systems, processes, practices, and behaviors.

Board Chair James Benham recently affirmed:“The Board remains committed to building confidence in Texas Southern University’s stewardship of public resources and fulfilling our mission to provide quality higher education to our students. We believe that full cooperation and transparency are essential to trust and to securing Texas Southern’s future as a vital institution for Texas.”

I wholeheartedly share that commitment. Together, we will continue moving Texas Southern University forward as we work to ensure that our financial practices meet the highest standards of integrity and efficiency. Our dedication to transparency, collaboration and continuous improvement is how we will strengthen public confidence and secure a bright, sustainable future for our university.

Analysis of the letter

An independent forensic accountant reviewed the letter and shared insight with KPRC 2 News.

“What it identifies is that there’s a deficiency in the internal control structures. And those types of deficiencies are the types of things that could allow for misappropriation so that there’s an environment in which there’s a possibility that there could be misspent funds, but the letter itself does not identify specifically any funds that have been misspent,” said Scott Bayley, president of Accumyn Consulting.

Bayley said if there has been any fraud or misspent funds, he would have expected that to be noted in the letter. Regardless, he said the findings shouldn’t be taken lightly.

“These are not frivolous type allegations that have made. The fact that amounts might have been spent before the requisition was approved, those types of things, that would give a taxpayer concern,” Bayley said. “It’s not unusual to find a breakdown in internal procedures in any organization and a breakdown in internal procedure does not in and of itself mean that there’s been actual misapplication of funds or fraud, although the environment exists for that type of activity to take place.”

State auditors are expected to meet with university leaders later this week.

The full audit report has not yet been released.