79R8205 JRJ-D

By:  West, Royce                                                  S.B. No. 1184



A BILL TO BE ENTITLED

AN ACT

relating to an annual analysis and report by the Texas Higher 
Education Coordinating Board regarding financial information 
submitted by institutions of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 61.065, Education Code, is amended by 
amending Subsection (a) and adding Subsections (c) and (d) to read 
as follows:
	(a)  The comptroller of public accounts and the board jointly 
shall prescribe and periodically update a uniform system of annual
financial accounting and reporting for institutions of higher 
education, including definitions of the elements of cost on the 
basis of which appropriations shall be made and financial records 
shall be maintained.  The board may require institutions to report 
additional financial information as the board considers necessary.  
In order that the uniform system of financial accounting and 
reporting shall provide for maximum consistency with the national 
reporting system for higher education, the uniform system shall 
incorporate insofar as possible the provisions of the financial 
accounting and reporting manual published by the National 
Association of College and University Business Officers.  The 
accounts of the institutions shall be maintained and audited in 
accordance with the approved reporting system.
	(c)  The board shall review, analyze, and summarize the 
financial information reported annually by each institution of 
higher education under this section and, not later than May 1 of 
each year, shall report its analysis and summary of that 
information for the preceding year to each legislative standing 
committee and subcommittee with primary jurisdiction over higher 
education.
	(d)  A report by the board under Subsection (c) must 
accurately provide all of the sources and uses of the money received 
by each institution of higher education and must reflect the unique 
mission, structure, resources, and other circumstances of each 
category of institution.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.