Lee Jackson statement


As the statement included with UNT System’s recently filed continuing disclosure annual report says, UNT System elected to conduct an external audit of financial statements for fiscal year ending August 31, 2014, in order to evaluate and improve financial reporting processes, transactions, and internal controls. In preparation for this external audit, UNT System engaged an accounting firm to perform pre-audit services, including an analysis of the financial reporting processes and controls. It was through this work and that of our Internal Audit Department that the issues described in the disclosure were identified.

Our analysis is ongoing and until it is complete we cannot reasonably estimate the potential financial impact of the issue. We are working with the offices of the Texas State Auditor and State Comptroller to bring these issues to resolution.

If at any point in the future it is determined that UNT received any excess state funding through the state funded benefits program, then that situation will be discussed with all involved state officials and I am confident the University will be able to offer a satisfactory corrective action plan. Because the financial reviews are still underway, no such discussions have begun.

We also recently met with our banks and rating agencies to provide an update. These briefings focused on the overall financial condition of UNT and the UNT System. We advised the rating agencies and others that we will disclose additional and more conclusive details about UNT’s revenue and financial record issues as soon as they are clear.

In the meantime, UNT will review the schedule of construction and financing of all pending capital projects and consider the best methods to continue design and development.

With leadership and support from the UNT System Board of Regents, several major financial improvements were initiated in 2012 and 2013, before the full extent of current issues were discovered. These reforms included the commitment to an annual external audit and consolidation of the accounting staff members from several campuses into a

new, unified System Controller’s office that will lead implementation of additional financial controls. We are in the second and final year of a major project to upgrade our current PeopleSoft financial software, implementing all modules of that software including budget and position control applications, and efficiently produce status reports.

Neal Smatresk statement regarding the current budget issues:

I am in the process of identifying the size of UNT’s current year deficit, and we will adjust our budgets as needed in the near future.

We’ll deal with our budget challenges through some belt tightening and reorganization. We can sustain some modest corrections before the end of the year and they won’t be borne on the backs of our students.

The University of North Texas is in strong shape in spite of some poor budgetary practices in the past. We’ll make adjustments and continue to grow and serve our students and the region.

Sign up to vote on this title
UsefulNot useful