The legal authority and operating control of the institution are clearly defined for the following areas within the institution's governance structure: fiscal stability of the institution.
Prairie View A&M University was created by Act of the15th Legislature in Texas on August 14, 1876. It was placed “under the supervision of the Agricultural and Mechanical College established at Bryan in 1871," now known as Texas A&M University  . As noted in Section 87.101 of the Texas Education Code (TEC), Prairie View A&M University is a coeducational state institution of higher education located in Waller County . It is a member of the Texas A&M University System . Section 87.102 of the TEC states: "The university is under the control and supervision of the board of directors of The Texas A & M University System. The board has the same powers and duties with respect to this university as are conferred on it by statute with respect to Texas A&M University." 
The responsibilities of governing boards is explained in TEC 51.352(5e) . According to the TEC, "Each member of a governing board has the legal responsibilities of a fiduciary in the management of funds under the control of institutions subject to the board's control and management."   This and other responsibilities of the Board are outlined in Texas A&M University System (TAMUS) Policy 02.01 Board of Regents . Under TAMUS Policy 27.04, the Board "is responsible for the approval of the annual operating budget."  Authorizations, limitations, and delegations of authority with respect to the annual operating budget as approved by the board are provided through this same policy  As noted in TAMUS Policy 27.03, the Board is specifically "responsible for approving annually, on or before September 1, an itemized budget covering the operations of each system member for the fiscal year beginning September 1." 
TAMUS Policy 27.04.01  delegates authority related to budget and fiscal changes to the Chancellor. The Chancellor may delegate certain of those authorities to the Presidents of academic universities … which includes authorization for budget and fiscal changes. Within this delegation includes the following duties and responsibilities related to fiscal stability:
*Develop legislative budget requests and submit to the chancellor for approval. The board will be provided with summary information for review after submission of these requests.
*Develop annual budgets for operation and construction and submit to the chancellor for recommendation and action by the board.
*Administer the business and financial management of the system member. The management function includes, but is not limited to, budget preparation and implementation, financial and property accounting, the auditing of all expenditures and bills presented for payment, and the preparation of such financial reports as may be required .
TAMUS Policy 21.01 notes that "Each system member chief financial officer has direct responsibility for the establishment of efficient and effective internal controls over the financial accounting system and financial reporting."  The University's president and vice president for business affairs send out memos and letters guiding the budgeting process   . The budget is approved by the Board of Regents .