2.11.1 Financial Resources

The institution has a sound financial base and demonstrated financial stability to support the mission of the institution and the scope of its programs and services.

The member institution provides the following financial statements: (1) an institutional audit (or Standard Review Report issued in accordance with Statements on Standards for Accounting and Review Services issued by the AICPA for those institutions audited as part of a systemwide or statewide audit) and written institutional management letter for the most recent fiscal year prepared by an independent certified public accountant and/or an appropriate governmental auditing agency employing the appropriate audit (or Standard Review Report) guide; (2) 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 (3) an annual budget that is preceded by sound planning, is subject to sound fiscal procedures, and is approved by the governing board.

Judgment of Compliance

PVAMU SACS Accreditation - Judgement Partial Compliance

Narrative of Compliance

Prairie View A&M University is a component of the Texas A&M University System (TAMUS). The University has a sound financial base, adequate physical resources, and the financial stability to support the mission of the University. The University effectively utilizes its fiscal resources to support the mission of the University.  It provides funding to the University’s academic programs and support service units through the annual budgeting process. In approximately March of each year, funding needs are identified and each unit plans for the development of the budget request for the upcoming year. Vice Presidents, Deans and department heads attend the President’s yearly presentation that identifies the scope, mission and strategic plans of the University. The Vice President of Business Affairs also assists with an administrator's meeting regarding the budget and activities that affect campus departments [1].

Budget guidelines are provided to each account manager as part of the annual operating budget packets issued to University departments. Budget packets [2] are also distributed via e-mail through the Office of Business Affairs Memoranda and these are maintained on the web in the Business Affairs Policy Library [3]. Other memoranda related to budget planning are also available for review from FY05 to the present [4] [5]. PVAMU’s operating budget [6] is submitted annually for approval by the Texas A&M University System (TAMUS) Board of Regents and is posted on PVAMU’s website [7] [8]. Copies of the annual operating budget are also available for public inspection on campus at the John B. Coleman Library.

The University’s annual financial report (AFR) is prepared in accordance with Generally Accepted Accounting Principles (GAAP) as set forth by the Governmental Accounting Standards Board (GASB) and is posted on the University’s website in the reports library [7] [8]. These reports include the AFR [9] and Annual Operating Budget [6]. As a component of the TAMUS, the University’s AFR is included in the TAMUS combined AFR and is posted on the TAMUS website [10]. In addition, the University’s AFR is a part of the State of Texas’ Comprehensive Annual Financial Report (CAFR), and the FY2008 State of Texas CAFR report is available on the Windows on State Government website [11]. The Texas Higher Education Coordinating Board also provided access to the report on the sources and uses of funds for the University [12].

The Texas A&M University System has established financial requirements to measure the financial strength for components within the Texas A&M University System—a Composite Financial Index (CFI). The FY2007 [13] and FY2008 [14] CFI ratios for PVAMU as document that the University has a strong financial base and meets the TAMUS established standards. The spreadsheet "Increase (Decrease) in Net Assets 2008-2007," [15] "Statement of Revenue, Expenses, and Changes in Net Assets 2008-2007," [16] "FY2008/FY2009 Budget Information," [17] and the "Two Year Financial Statement, 2008-2007" [18] display recent financial and budgetary information and document the sound financial base of the University.

The FY2009 audit requirement will be fulfilled by an audit report issued by the State Auditor’s Office prior to the on-site visit. Statewide audit reports are available through the State Auditor's Office [19] [20]. The most recent Statewide audits are available for review [21] [22] [23]. Because this FY2009 audit is not yet available from the state, the University is in partial compliance with this Core Requirement.

Prairie View A&M University has adequate physical resources to support its mission.  The Texas Higher Education Coordinating Board (THECB) annually updates the Academic Space Projection Model which shows space surplus and space deficit positions for Higher Educational institutions. According to the Fall 2008 Academic Space Projection Model [24], available on the THECB website, Prairie View A&M University shows a shortfall of only 1,344 square feet. Also available for review is the Fall 2007 Academic Space Projection Model [25].

Supporting Documentation and Links

Core Requirements 2.11.1

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