State auditor finds more problems at TSU

A new report from the Texas State Auditor's office focuses on TSU's endowments, claiming that the university spent at least $285,934 from the principal of some of its endowments, which are supposed to remain untouched. More might have been spent, too, but it was impossible for auditors to find out "because of the university's poor record keeping."

The bad record keeping and spent principal on some of the university's 78 endowments, which total $23 million, were only part of the criticism in the state report yesterday; it also cited TSU's unproductive investment practices, lack of monitoring on whether donors' restrictions were observed and inequitable distribution of endowments. According to the report, donors who funded endowments before 2001 had no written agreements specifying restrictions (many such donations come with restrictions on where the donated funds can be used, an important condition for some donors). Further, some university records of contributions are inaccurate or "significantly incomplete," the report says. As for investments, the report says TSU has distributed 5 percent of the market value of endowment investments every year for the past five years, though the university was losing money at a rate of 1.4 percent. And the distribution rate from the endowment pool to individuals ranged from less than half a percent to about 6.5 percent — that, we suppose, would be the "inequitable" part.

The report, of course, comes on the heels of ex-President Priscilla Slade's dismissal and indictment, and weird stories like the instructor who never got paid. (If you're looking for the school's dirty laundry, check out Call of Da Wild. But don't blame us for any new words you learn.) And it's not the first time TSU has had financial problems — just look at the last few years: In 1989, the state threatened to take TSU over if the school didn't correct its "gross fiscal mismanagement," but then, in early 1990, lawmakers declared the school was back on the right financial track. In 1996, state auditors found that the school had grossly mismanaged student financial aid; the next year, lawmakers threatened to put TSU under one of the state university systems if it didn't get its problems solved by mid-1998. In February 1999, auditors reported little had been done to correct big financial and administrative problems at TSU, but by April, officials said things were going to be just fine — again. And later that year, the school hired Slade as its president.

And now, here we are again. Which leaves us wondering: When will it all stop? These problems affect so many people — TSU students, faculty, staff, alumni, state officials, taxpayers — that we can't help but think someone's eventually going to get fed up. Aren't they?