Texas Gov. Greg Abbott has ordered an investigation into Texas Southern University on Monday after a state audit allegedly found evidence of financial mismanagement. Lt. Gov. Dan Patrick has mentioned a potential freeze on TSU’s state funding, although no further details have been shared, according to the Texas Tribune.
Why was an investigation launched into Texas Southern University?
State auditor Lisa Collier said the audit was started in May, in which her office found a shortage in staff contributed to “significant financial and operational weaknesses related to asset management, procurement and contracting, and financial reporting,” according to The Houston Chronicle. The audit reportedly found a lack of annual physical inventories, as well as an asset tracking system that was incomplete, outdated and inconsistently maintained.
The office found issues with contracts. It found 743 invoices worth about $282.2 million for vendors whose contracts had expired and 8,144 invoices worth $158 million with invoice dates that were too early. Some transactions did not have valid contracts due to expiration, lack of signature, or an inability to cover the services purchased.
Collier added that the financial statements for the 2023 and 2024 fiscal years were completed 10 months and four months past the deadlines.
“These aren’t clerical mistakes; they’re systemic failures that demand answers,” Acting Texas Comptroller Kelly Hancock said in a statement, adding that he finds the report to be “alarming.”
Abbott said in a statement that the “potential misappropriation of hundreds of millions of dollars” and “waste, fraud, and abuse will not be tolerated,” according to The Texas Tribune.
TSU said it was cooperating with the state auditor and that it had acted corrective measures prior to the release of the report.
“Texas Southern University has cooperated with the state auditor in evaluating our processes,” university officials said in a statement. “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.”
Collier will reportedly meet with TSU officials on Thursday to discuss the results of the audit.
Over the last few months, the Texas State Auditor has been auditing Texas Southern University. They have been reviewing TSU’s financial processes, procurement operations, and inventory records.
— Office of the Lieutenant Governor Dan Patrick (@LtGovTX) November 10, 2025
Over the weekend, I was informed of disturbing information suggesting the misuse of… pic.twitter.com/c93sBTO826
Texas Southern University has faced allegations of mismanagement of funds in the past
In 2020, sitting president Austin Lane was ousted after allegations of bribery and kickbacks in the law school admissions process surfaced. Students with low academic credentials were admitted and given scholarships of over $430,000. Cashier’s checks and money orders were later found in one admission official’s desk calendar, according to an internal investigation.
“The legislature has continued year-after-year to try to help the school,” Patrick tweeted. “It appears the legislature has been misled over this time period on promised improvements in accounting practices and contracting.”
TSU is set to receive $123 million in state funding in the 2026 fiscal year, which supports a $248 million operating budget.