Compliance Certification Report

3.2.2.2
The legal authority and operating control of the institution are clearly defined for the following area within the institution's governance structure: the fiscal stability of the institution. (Governing Board Control)
√ Compliant
Partially Compliant
Non-Compliant
Narrative:
The legal authority and operating control of the fiscal stability of the institution are clearly defined by the UT System Board of Regents (1). All accounting records and procedures are subject to approval by the chief business officer and the Executive Vice Chancellor for Business Affairs. The Vice Chancellor for Business Affairs is also responsible for establishing internal controls to ensure that funds are expended and recorded appropriately. Operating budgets for UTMB are approved annually by the Board within the budget estimates of income prepared by UTMBís chief finance officer and president and are approved by the Executive Vice Chancellor for Health Affairs, the Executive Vice Chancellor for Academic Affairs, the Vice Chancellor for Business Affairs, and the Chancellor.

The legal authority and operating control of the fiscal stability of UTMB are also defined by the Texas Education Code, which authorizes the Texas Higher Education Coordinating Board (THECB) to evaluate the information requirements of the state for the purposes of maintaining a uniform system of financial accounting and reporting consistent with national standards (2). The governing board of each institution must approve an itemized current operating budget on or before September 1 of each year and copies furnished to the Board, the Governorís Budget and Planning Office, the Legislative Budget Board, and the Legislative Reference Library by December 1 of each fiscal year (3).

This system of legal authority and operating control has resulted in UTMB having a sound financial base, long-term financial stability, and adequate fiscal and physical resources to support the mission of the institution, including education and its programs and services as described in detail in Core Requirement 2.11.
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Source
1
Regents' Rules and Regulations, Series 20501, Accounting, Operating Budgets, and Legislative Appropriation, Sections 1-8
www.utsystem.edu/bor/rules/20000Series/20501%202004%2012%2010%2001.doc
2
Texas Education Code, Chapter 61, Texas Higher Education Coordinating Board, Subchapter C, Powers and Duties of the Board, Section 61.065, Reporting; Accounting
http://tlo2.tlc.state.tx.us/statutes/ed.toc.htm
3
Texas Higher Education Coordinating Board Rules and Regulations, Chapter 13, Financial Planning, Subchapter C. Budgets, Sections 13.40-13.47
http://www.thecb.state.tx.us/Rules/tac3.cfm?Chapter_ID=13&SubChapter=C