PRIVILEGED AND CONFIDENTIAL

TEXAS SOUTHERN UNIVERSITY
Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

DATE:

March 10, 2020 (POINT IN TIME ASSESSMENT)

FROM:

Ms. Charla Parker-Thompson, Chief Audit Executive

SUBJECT:

INVESTIGATION OF ALLEGATIONS OF ADMISSIONS AND FINANCIAL
AID IMPROPRIETIES WITHIN THE THURGOOD MARSHALL SCHOOL OF
LAW RESULTING IN FINDINGS OF IMPROPRIETY IN THE STUDENT
ENROLLMENT AND PAYMENT POLICY AT TEXAS SOUTHERN
UNVERSITY; IMPROPRIETIES IN FUNDS DESIGNATED FOR THE
THURGOOD MARSHALL SCHOOL OF LAW; IMPROPER COMINGLING OF
THURGOOD MARSHALL SCHOOL OF LAW ADMISSIONS FUNDS WITH
THE TEXAS SOUTHERN UNIVERSITY FOUNDATION; AND VIOLATIONS
OF THE TEXAS SOUTHERN UNIVERSITY PRESIDENT’S EMPLOYMENT
CONTRACT.

I.
INTRODUCTION & SUMMARY OF ALLEGATIONS
On or about October 3, 2019, the Dean of the Thurgood Marshall School of Law (“TMSL”)
requested the Texas Southern University (“TSU” or the “University”) Chief Audit Executive
(“CAE”) to conduct an audit of the Admissions and Financial Aid, External Affairs, and Law
Library functions within the TMSL. During the Due Diligence/Discovery period, a Whistleblower
informed the Texas Southern University Board of Regents (“TSU BOR”) of numerous alleged
violations of University policies, criminal activities within the TMSL, and other alleged
improprieties specific to admissions and enrollment practices. The Whistleblower complaint
alleged improprieties in Admissions practices and diversion/misappropriation of state funds in the
TMSL. In response, members of the TSU BOR’s Executive Committee met with the Harris County
District Attorney’s Office (“DA”) to disclose the matter. To ensure protection of the
Whistleblower under the Texas Whistleblower Act, the TSU BOR also provided the
Whistleblower’s letter to the DA’s office at their request. Further, the TSU BOR submitted the
Public Corruption Official Sworn Complaint to the Public Corruption Division on October 29,
2019.

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TEXAS SOUTHERN UNIVERSITY
Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

The contents of this document reveal updates from the CAE and third-party investigators, who
identified certain violations of University and TSU BOR policies within the TMSL and TSU. Such
violations include: admissions and enrollment, financial improprieties, comingling of funds,
withholding of information and/or obstruction related to the investigations, and personnel and
management matters. After updates by the CAE and third-party investigators of their preliminary
findings, the CAE and TSU BOR Counsel found violations of the TSU President’s (“President”)
contract, Section VII (F) which defines, in part, “Cause” for termination of the Contract as: “(6)
failure to promptly advise and fully report to the Board any matter known by the President that
tends to bring public disrespect, contempt or ridicule upon the University, or (7) any act that creates
a material adverse effect on the reputation and/or brand of the University.”
The CAE and third-party investigators found several instances where President and/or senior
executive administration failed to promptly and fully report to the TSU BOR matters known by
President that tend to bring public disrespect, contempt or ridicule upon the University or acts that
create a material adverse effect on the reputation and/or brand of the University, which is a
violation of President’s employment contract. Particularly, President should have promptly fully
notified the TSU BOR of the matters related to: 1) the Former TMSL Assistant Dean of
Admissions and Financial Aid’s separation, including the alleged pay for admissions by a student;
2) the actions of a former transfer student and his multiple threats to take legal action against the
University and informing the media of allegations of impropriety; 3) actions and/or directives to
subordinates to take action that violated directives of the TSU BOR regarding personnel
procedures pending the audit committee investigation, and obstruction or intent to obstruct the
TSU BOR audit committee investigation and/or the protection of the whistleblower; 4)
entertainment expenses paid through the Texas Southern University Foundation (“TSU
Foundation”) rather than the University entertainment expense reimbursement process as outlined
in Section V (I) of President’s contract (and MAPP 03.07.04 – Official Functions and
Discretionary Expenditures); 5) failure to fully inform the entire TSU BOR of the primary reason
for a former Law School Interim Dean’s resignation, who resigned because he was improperly
directed by President and his subordinate to engage in acts that violate University policy; 6) failure
to take action regarding personnel matters in accordance with University policy; and (7) failure to
follow TSU BOR policy prior to changing admission requirements and standards.
To date, the following regulatory agencies have either undertaken a formal investigation(s) and/or
have been briefed about matters at the University:
•
•
•
•

Federal Bureau of Investigation (FBI)
Harris County District Attorney’s Office (HCDA)
Office of the Inspector General, Department of Education (OIG/DOE)
Scholastic Programs Division, Department of Education (DOE)
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TEXAS SOUTHERN UNIVERSITY
Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

•
•
•
•

Southern Association of Colleges and Schools/Commission on Colleges (SACS/COC)
The American Bar Association (ABA)
Texas State Auditor’s Office (SAO)
The Texas Rangers, Texas Department of Public Safety (Rangers)

TSU Administrators are actively working to support the agencies as they continue their own
reviews of these matters.
II.
BACKGROUND
2.1

On or about September 6, 2019, Dean and Professor of Law at the Thurgood Marshall
School of Law (“TMSL Dean”) since July 8, 2019, dismissed the TMSL Assistant Dean of
Admissions and Financial Aid from the TMSL due to performance issues. Former TMSL
Assistant Dean of Admissions and Financial Aid served in this role from January 11, 1999
through September 20, 2019. [See Chronology: Friday September 6, 2019]

2.2

TMSL Dean observed students who were not formally enrolled at the law school attending
orientation and/or attending classes. The students either had character and fitness issues;
incomplete admission files; and/or did not meet the academic eligibility requirements to be
enrolled in the law school. As a result, TMSL Dean offered Former TMSL Assistant Dean
of Admissions and Financial Aid the opportunity to resign instead of termination. Former
TMSL Assistant Dean of Admissions and Financial Aid failed to submit a letter of
resignation; therefore, the termination letter was issued as final. [See Chronology: Friday
September 9, 2019]

2.3

After Former TMSL Assistant Dean of Admissions and Financial Aid’s dismissal, TMSL
Dean made several other discoveries including a student who allegedly paid $14,000 to
Former TMSL Assistant Dean of Admissions and Financial Aid for admission to the law
school; and theft or misappropriation of law school funds. Particularly, application fees and
seat deposits paid by students were being inappropriately deposited into a TSU Foundation
fund in violation of the Texas General Appropriations Act. TMSL Dean discovered
$13,456.25 in cashier’s checks or money orders designated as deposits into the law school’s
LEAP Program under Former TMSL Assistant Dean of Admissions and Financial Aid’s
desk calendar. Additionally, $31,600 in LEAP deposits remain unaccounted for. Upon
discovery of these issues, TMSL Dean hired a consultant to perform a three-day ‘state-ofthe-office’ review to ascertain tasks that needed immediate attention. [See Chronology:
Friday September 9, 2019; and September 16 – 18, 2019]

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TEXAS SOUTHERN UNIVERSITY
Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

2.4

On October 3, 2019, TMSL Dean submitted a Request for Audit services of the Admissions
and Financial Aid, External Affairs, and Law Library functions within the TMSL to TSU’s
CAE via email. The decision to submit this request was made solely by TMSL Dean, who
stated she was never directed by President or Provost to investigate these matters. [See
Chronology: September 15, 2019, and September 20 – 30, 2019]

2.5

Upon confirmation of the reported allegations in 2.3 above, the CAE informed the TSU
BOR Chairman of the matter. On October 25, 2019, certain TSU BOR Executive
Committee members, the CAE, and TSU BOR Counsel reported the allegations to the Harris
County DA’s Office. On the same day, the TSU BOR held the regularly scheduled meeting
where these matters were discussed in executive session. After the TSU BOR meeting, key
members of the executive committee met with President to inform him of the abovementioned allegations and the complete disclosure to the DA’s office regarding the pay-forplay and admission improprieties, to which he responded “we knew about the pay-for-play,
and we fired the guy”; however, he did not report the matter to the TSU BOR nor to law
enforcement. According to President’s contract, “Cause” as herein used is defined as (1)
commission of a felony, (2) commission of a misdemeanor involving moral turpitude that
materially impairs President’s ability to discharge his duties hereunder, (3) fraud, (4)
embezzlement, (5) theft, or (6) failure to promptly advise and fully report to the TSU BOR
any matter known by President that tends to bring public disrespect, contempt or ridicule
upon the University, or (7) any act that creates a material adverse effect on the reputation
and/or brand of the University. [See Chronology: Friday, October 25, 2019, and President’s
Contract, Section IV]

2.6

Later, on October 28, 2019, a Whistleblower letter was sent to the TSU BOR Chairman
formally requesting protection under the Texas Whistleblower Act. The letter reaffirmed
allegations previously disclosed to the TSU BOR, including allegations of pay-for-play,
acceptance of students who did not meet admissions standards, and misuse of the donor
dollars gifted to the University. Most notably, the Whistleblower letter alleged President’s
full knowledge of the allegations. In response, the TSU BOR hired third-party investigators
to review admissions and financial aid processes and hired a specialized employment law
firm to assist the CAE with the school’s internal investigation interviews. Also, the TSU
BOR called a special meeting to inform the TSU Administrative staff of the DA’s report,
the school’s internal investigation, the Whistleblower letter, to request that they refrain from
interfering with the investigation, to preserve and not destroy any evidence, and that the
Personnel Standing Committee of the TSU BOR would be reviewing all proposed
terminations and demotions to protect the Whistleblower’s employment. [See Chronology:
Friday, November 1, 2019]
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TEXAS SOUTHERN UNIVERSITY
Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

2.7

Although senior executive administration were specifically directed not to interfere with the
investigation, several attempts to gain insight into the investigation were made.
Specifically, senior executive administration made several requests of TMSL Dean, on
behalf of President, to provide information related to the investigation. Also, it was later
discovered that the email account of Former TMSL Assistant Dean of Admissions and
Financial Aid had been deleted. When the TSU BOR requested the name of the individual
who deleted the email account, the administration delayed provision of access. By the time
the access was granted to the third-party technical forensic team in January 2020, the access
logs had been overwritten and the login user (responsible for account deletion on September
9, 2019) could not be identified. There were instances whereby senior executive
administration did not cooperate or were otherwise delayed in providing information. [See
Chronology: Monday, December 9, 2019]

2.8

To date, the CAE’s investigation, in conjunction with third-party investigators hired to
investigate admissions and financial aid improprieties within the law school, has been able
to confirm many of the Whistleblower allegations. The Whistleblower letter, in part, alleges
the following:
•
•
•
•

•
•
•
•

•

a law student paid $10,000 to cure character and fitness issues so that the student could
sit for the Bar;
many students had been admitted who did not meet the school’s GPA and LSAT
requirements;
President did not report Former TMSL Assistant Dean of Admissions and Financial
Aid’s criminal behavior to law enforcement;
a transfer student was improperly admitted to the law school and was later dismissed
by TMSL Dean. That student complained to President, and Provost who later enrolled
the student in different graduate school program to gain his silence;
students are frequently admitted to programs in violation of admission requirements at
the direction of President or Provost;
several students had failing grades changed, however Special Assistant to the President
quashed the investigation and the students were not disciplined;
reported enrollment numbers are often inflated and do not reflect accurate numbers
after students are dropped for nonpayment;
to avoid sending contracts over $100,000 to the TSU BOR for approval, President often
has such contracts signed by the TSU Foundation, and there is no accounting of
expenses and net funds actually raised for scholarships;
scholarships are often given to students with GPAs below 2.0 to inflate enrollment
numbers; and
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TEXAS SOUTHERN UNIVERSITY
Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

•

a $3,000,000 trust donated to be used by the School of the Pharmacy has not been used
for such purposes, but instead was used to purchase the Tiger House.
III.
EXECUTIVE SUMMARY OF INVESTIGATION FINDINGS

3.1

Thurgood Marshall School of Law
A. Admissions/Enrollment:
Of these allegations, the CAE and third-party investigators have identified several
students admitted to the law school who did not meet the minimum admissions
requirements. Many of these students received scholarships although they had low
GPAs and/or LSAT scores. After Former TMSL Assistant Dean of Admissions and
Financial Aid’s departure, TMSL Dean discovered admission irregularities.
Specifically, TMSL Dean discovered three scenario anomalies with five first-year law
students (1Ls) during the 2019 Fall Semester.
1. Students with Incomplete Files or who Failed to Meet Eligibility
Requirements:
a) Two applicants were not on official class rosters but were attending first-year
classes. TMSL Dean determined that the two applicants’ files were incomplete.
However, upon completion of their admissions files, the two students were
properly enrolled.
b) Also, two additional students did not meet the initial academic eligibility
requirements for enrollment in the law school (LSAT score of at least 140 and
a GPA of 2.5 or greater). TMSL Dean consulted with the first student and the
student withdrew from the program voluntarily. When TMSL Dean consulted
with the second student (who had an LSAT score of 125), she advised him that
he was being removed from the TMSL program and that he would need to
retake the LSAT and reapply for consideration for Fall 2020. The student
explained that he understood but asked whether the $14,000 he paid the Former
TMSL Assistant Dean of Admissions and Financial Aid to attend the program
would be refunded.
2. Student with Character and Fitness Issues:

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Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

a) TMSL Dean discovered an applicant who was attempting to be accepted into
the law school as a third-year (3L) student versus a first-year (1L) transfer
student. The applicant did not disclose character and fitness issues on his
application; however, TMSL Dean discovered significant character and fitness
issues related to the student. Former TMSL Assistant Dean of Admissions and
Financial Aid told TMSL Dean that he was unaware of the character and fitness
issues related to the applicant.
b) As a result, TMSL Dean revoked the applicant’s admission due to his falsified
application. The TMSL Admissions Council seconded the revocation. On or
about August 30, 2019 the student met with Provost, TMSL Dean, and Former
TMSL Assistant Dean of Admissions and Financial Aid in an effort to refute
the revocation of his admission. The student provided TMSL Dean with
authenticated email correspondence between him and Former TMSL Assistant
Dean of Admissions and Financial Aid stating, “if you keep the information in,
I cannot help you”. Also, TMSL Dean determined that Former TMSL Assistant
Dean of Admissions and Financial Aid directed and allowed the student access
to his student file to remove evidence related to his character and fitness
matters. President, Provost, and Special Assistant to the President indicated that
they gave TMSL Dean the support that she needed to proceed with terminating
Former TMSL Assistant Dean of Admissions and Financial Aid upon
authentication of the email correspondence. However, the decision to submit a
request for Audit of the Admissions and Financial Aid, External Affairs, and
Law Library areas was made solely by TMSL Dean, who stated she was never
directed by President or Provost to initiate the engagement of the CAE to
investigate these matters. In a formal interview with TSU BOR Counsel and
the CAE, President asserted that he did not know about any fiscal impropriety,
and still does not know. There are inconsistencies with these statements per the
multiple interview sessions.
c) Also, the CAE was never contacted by President nor senior executive
administration to initiate an audit or investigation into the above law school
matters. It should be noted that during President’s tenure, approximately
eighteen special projects (inclusive of investigations) were presented directly
by President to the CAE. Typically, matters needing review/investigation begin
either with verbal dialogue and/or a meeting with President and senior executive
administration to address the issue; then, they are followed up with a more
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Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

formal request detailing the potential issue for review or investigation. The
CAE would then prepare the project scope, review objectives, and develop the
project plan. Here, President’s failure to notify the CAE directly regarding
these matters was atypical; as these matters indicated fraud and were reported
by TMSL Dean to President and senior executive administration. However,
neither TMSL Dean, nor the CAE received any directives from President to
initiate an audit or investigation.
3. Failure to Review All Applications In 2019 – 2020 Class:
a) For the 2019 – 2020 class, there were over 507 completed applications that
were never reviewed and thus, no decision made regarding them. Many of these
applicants had strong entering credentials and had even called President and
Provost complaining that they had applied and received no response from the
TMSL. It was discovered that these applications were not acted upon at all. Of
these applications, approximately 365 were presumptive admits and thus, the
TMSL lost an opportunity to have students that could have improved its
entering class credentials.
B. Financial Improprieties:
1. Inadequate Scholarship Awards:
Many students received scholarships although they had low GPAs and/or LSAT
scores. Most notably, the third-party investigators identified a scheme where
students not eligible for federal financial aid were granted scholarships large
enough to receive substantial refunds. The initial review and investigation were for
the current TMSL students for academic years 2017/18, 2018/19, 2019/20 (3L, 2L,
1L) who were awarded over $3.2 million in TMSL scholarships.
During the course of the investigation, control deficiencies were determined within
the Admissions and Financial Aid disbursement processes, that in the aggregate,
constitute a significant deficiency 1, as a single individual was the sole authority
over these critical processes. Specifically, there was no written policy for awarding
1

A significant deficiency is defined as a deficiency or combination of deficiencies in internal control that are important
enough to merit attention by those responsible for oversight so that immediate control procedures can be implemented
to provide reasonable assurance that a misstatement or omission in the relevant financial statement assertions is
prevented or detected by the controls in a timely manner. [Source(s): Government Auditing Standards by the U.S.
General Accounting Office (GAO). Public Company Accounting Oversight Board (PCAOB), Auditing Standard No.
5.]

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Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

scholarships at TMSL. These scholarships were awarded to students at the
discretion of the Former TMSL Assistant Dean of Admissions and Financial Aid.
There were at least seventeen 2L and 3L students identified who have received over
$430,000 in scholarships yet they had low entering credentials and/or were ranked
in the bottom 50% of their class. One of these students has curved out of the TMSL
program after receiving $41,500 in scholarships.
Additionally, it was determined that at least six students were in communication
with Former TMSL Assistant Dean of Admissions and Financial Aid regarding a
financial impropriety scheme whereby these students were instructed to remit funds
to Former TMSL Assistant Dean of Admissions and Financial Aid in exchange for
enrollment and/or financial aid. The funds remitted by the students to Former
TMSL Assistant Dean of Admissions and Financial Aid were in large part, either
cash payments or the students remitted amounts from their refunds as instructed by
Former TMSL Assistant Dean of Admissions and Financial Aid.
a) Students 1 and 2 have confirmed that they were instructed to obtain cashier’s
checks made payable to Former TMSL Assistant Dean of Admissions and
Financial Aid in the exact refund amounts they received. The total of these
cashier’s checks was approximately $73,658.
b) Students 3 and 4 claimed that they were also instructed by Former TMSL
Assistant Dean of Admissions and Financial Aid to remit their refunds to him,
which totaled approximately $18,372. However, Former TMSL Assistant Dean
of Admissions and Financial Aid was no longer with the TMSL when the
refunds were issued to the students.
c) Student 5, who was admitted to the TMSL but failed to meet the eligibility
requirements, alleged that the student’s parents sold a vehicle for $10,000 and
withdrew from the bank another $4,000 and gave the $14,000 in cash to Former
TMSL Assistant Dean of Admissions and Financial Aid. In turn, the student
alleged that Former TMSL Assistant Dean of Admissions and Financial Aid
would place $14,000 in his account by way of scholarship, and he would be
admitted into the law school. During the investigation, it was determined that
designated appropriated funds of $14,000 were placed in Student 5’s account.
d) Student 6 claimed that he gave Former TMSL Assistant Dean of Admissions
and Financial Aid approximately $16,200 as well as concert and airline tickets
in order to obtain admission to the TMSL. Student 6 also claimed that Former
TMSL Assistant Dean of Admissions and Financial Aid instructed him to
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Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

remove character and fitness information from his application file in order to
be admitted. Student 6 stated he informed President and Provost of these issues;
as a result, the student was placed into a graduation program of the student’s
choosing.
Based on the findings with the current TMSL students (3L, 2L, 1L), an additional
seven years of information for scholarships awarded to students from Fall 2010
through 2017 was reviewed. Testing during the investigation revealed that the
financial impropriety scheme was discovered and evident in academic year 20152016, and there were unusually large scholarships awarded at TMSL. For the same
time period, eight former TMSL students were identified who received scholarships
that were significantly larger than the tuition (in-state or out-of-state) for the
semester and/or rounded dollar amounts that warrant further review. These eight
former TMSL students received approximately $416,325 in scholarships. Two of
the eight students received approximately 42% of the scholarships and one
student’s record reflects their application for admission was in fact denied/rejected.
C. Diversion of State Funding to Account Outside of University’s Control:
1. During the discovery phase of the investigation, pertinent matters directly
implicating the mishandling, misappropriation or possible theft of state funds was
found. The anticipated revenue in the TMSL Admissions and Financial Aid Office
for the Fall 2019 was estimated as $115,700 minimally.
2. Former TMSL Assistant Dean of Admissions and Financial Aid promised to submit
a financial reconciliation of the unreconciled finances, which was never provided.
Former TMSL Assistant Dean of Admissions and Financial Aid directed TMSL
Dean to (under) the desk calendar in said Assistant Dean’s office, where $13,456.25
was recovered. Former TMSL Assistant Dean of Admissions and Financial Aid
advised TMSL Dean that monies were given to the TMSL Director of External
Affairs as well. Upon consultation with TMSL External Affairs, it was determined
that an external fund at the TSU Foundation existed and from October 2018 through
September 2019, public funds totaling $95,621.50 were initiated by Former TMSL
Assistant Dean of Admissions and Financial Aid and deposited into the TSU
Foundation General Operating Account. Funds within the TSU Foundation are
generally private funds and the comingling of private and public funding through
this mechanism is prohibited. Additionally, these misdirected funds were not used
in strict conformity with the Texas General Appropriations Act because these funds
were not allocated back to student’s accounts at the University, and a reconciliation
was not performed of the students’ accountability for payment of these fees. Again,
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Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

Former TMSL Assistant Dean of Admissions and Financial Aid did not submit the
financial reconciliation nor did he return to the TMSL; therefore, approximately
$31,600 remains unreconciled.
D. Withholding of Information/Obstruction:
1. Electronic Mail:
a)

During the investigation, there was a point in time when Former TMSL
Assistant Dean of Admissions and Financial Aid’s core email and active
directory accounts were removed. It is the understanding of the CAE and thirdparty investigators that Former TMSL Assistant Dean of Admissions and
Financial Aid’s emails were automatically archived after 30 days but could not
be recovered because the backup files were deleted and/or moved from their
designated folder. Upon inquiry, the Office of Information Technology
(“OIT”) team stated that someone with intimate knowledge and system
privileges moved Former TMSL Assistant Dean of Admissions and Financial
Aid’s email folder from an “active” to a “root” directory. This demonstrates a
deliberate attempt to hide and prevent access to these emails. At that time, the
OIT team was unable to identify who moved the file folder. Additionally, due
to the absence of an updated technical asset inventory, some of Former TMSL
Assistant Dean of Admissions and Financial Aid’s technology assets could not
be located.

b)

The OIT team was instructed by senior executive administration not to
communicate with third-party investigators on the matter.

2. Attempts made by Senior Executive Administration to Coordinate
Information Prior to the Interview Period:
Update information relative to the investigation was shared by TMSL Dean to
President and senior executive administration in various update sessions from the
removal of Former TMSL Assistant Dean of Admissions and Financial Aid
(September 2019) through the initiation of the discovery investigative phase
(October 2019). As TMSL Dean provided updates to the senior executive
administration during discovery, she was not given a course of action by them as
critical findings were uncovered. Additionally, during planning discussions in
preparation for the TSU BOR regular meeting in October 2019 through the
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Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

conclusion of the actual October TSU BOR regular meeting, senior executive
administration did not discuss a plan to disclose discovery matters to the TSU BOR.
Multiple iterations of a cease-and-desist letter from TSU BOR Counsel by way of
the CAE were issued to senior executive administration as they pressured TMSL
Dean to produce/present a timeline of investigation details during the discovery
period.
3. Personnel & Management Matters:
During August 2019, preparatory meetings were held, led by TMSL Dean, and
supported by President, Provost, and Special Assistant to the President to address
approach and presentation to be utilized in the upcoming ABA Meeting in Chicago,
Illinois. Attendees to the ABA Meeting in Chicago included: TMSL Dean,
President, Provost, Special Assistant to the President, Former TMSL Assistant
Dean of Admissions and Financial Aid, and TMSL Associate Dean of Academic
Affairs. [A Regent was interested in attending the ABA Meeting but was
encouraged not to attend] Relevant Note: The prior ABA Meeting attendance
included: Acting TMSL Dean, President, Provost, Former Chairman of TSU BOR,
and Special Assistant to the President. President indicated that a ‘holistic approach’
is utilized for TMSL admissions consideration where other factors are considered
to the LSAT score of 140 - inclusive of the LEAP program, essays, etc. President
indicated that he was not aware of any false statements that have been made to the
ABA from anyone within the institution. This is noteworthy as a Former Interim
TMSL Dean shared that he was encouraged by President to submit a report to a
third-party consultant who would then author the information as their own; the
Former Interim TMSL Dean did not acquiesce and later resigned.

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Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

3.2

Texas Southern University
A. Admissions/Enrollment:
1. The Whistleblower Letter:
The Whistleblower letter alleges that President inflated enrollment numbers, and a
key witness discussed an alleged scheme ranging from open enrollment to the
placement of funding on the student’s accounts (at times without their knowledge)
through the census date to ensure a certain reportable number. Testing by the CAE
and third-party investigators of these matters continues to be in progress.
This is relevant because during the investigative process, there were instances
where President asserts that “we were cleared” from any admissions improprieties,
and references were made to a conclusion letter submitted by the Texas Higher
Education Coordinating Board (“THECB”) on a different, but similar matter
regarding admissions practices at the undergraduate level.
2. THECB Complaint:
a) In November 2018, an anonymous complaint was submitted to the THECB by
a complainant stating that they were an employee within TSU enrollment
services, and they were concerned with the admissions practices utilized within
the unit. An excerpt from the complaint is disclosed in Section 3.2, A. 1. 2.
Section 3.2, A. 1. 2.
“The institution is not adhering to its own admission policies. The Staff
were strongly encouraged to admit "all" students even if they did not meet
the institutions admission requirements both transfer and incoming
freshman. If you look at 2017-2018 and this current 2018-2019, I believe
you will see where the fraud took place.”
b) Additionally, Special Assistant to the President was named as the person
responsible for this area in the complaint; and he served as the Senior Associate
Vice President for Enrollment Management Services during that time. The Due
Diligence Evaluation Review determined that a clause existed in the admissions
policy allowing for the evaluation of other measures for applicants who did not

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TEXAS SOUTHERN UNIVERSITY
Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

meet the academic eligibility criteria; measures of which were determined to
include the following (in 2017 and 2018):
•
•
•

Sliding scale;
Successful completion of the Summer of Success (academic
preparatory) program; and
Senior management approval for selective applicants.

These scenarios were not approved by the TSU BOR; and additional
information has come to light that warrants additional testing in this area.
Incomplete and/or deficient information was provided to the audit function
during the initial review; thus, certain elements are being revisited along with
new attributes.
c) While two of the three scenarios for admissions consideration noted above were
disclosed in the conclusive Due Diligence Evaluation Review Report
(“Report”), controls deficiencies were addressed that were indicated as having
the potential to rise to the level of significant deficiency if unmitigated. The
Report also noted that a review of the revised Admissions practices would be
revisited subsequent to Fall 2019 semester to evaluate the operability and
effectiveness of additional controls implemented from 2018 through 2019.
Section 1. Board Authority, Powers and Duties; Subsection 1.2 Duties and
Responsibilities, Item 6 of the Texas Southern University Board of Regents
Bylaws identifies a responsibility of the BOR to:
•

Set campus admissions standards consistent with the standards and
mission of the institution and considering the admission standards of
similar institutions nationwide having a similar role and mission as
determined by the THECB.

To reiterate, the scenarios by which admissions exceptions were made to the enrollment
of first-time freshmen and/or transfer students in Fall 2017 and Fall 2018 were not
approved by the TSU BOR. Additionally, during the course of the TMSL investigation,
an interviewee from the TMSL identified an alleged admissions/enrollment scheme;
and because lookback testing from the Due Diligence Evaluation Review (submitted in
May 2019) is currently in progress, the lookback elements and certain additional
attributes have been included in the retesting phase. This lookback and additional
attribute direct testing continues to be in progress.
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Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

B. Personnel and Management Matters:
MAPP 02.05.03 TSU’s Discipline and Termination Policy identifies the Senior
Associate Vice President of Human Resources and Payroll Services as the initiation
point for the hiring authority to contact for personnel actions including (but not limited
to): suspension with pay; suspension without pay; transfer, demotion and/or salary
reduction for disciplinary reasons; dismissal or involuntary termination.
The termination process for the professional whom senior executive administration
believed to be the Whistleblower did not originate with the Senior Associate Vice
President for Human Resources and Payroll Services, and President did not admit to
the intended termination of this employee in formal statements. Additionally, it is
noteworthy that Senior Associate Vice President for Human Resources and Payroll
Services (“HR”) identified multiple personnel actions that did not initiate with HR (nor
was HR consulted until after the action was completed); which poses a significant,
unmitigated litigation risk to the University. Due to conflicts of interest by senior
executive administration, the Personnel Standing Committee Chair of the TSU BOR
received reports from the TSU General Counsel who began a review of personnel
actions for the protection of the Whistleblower. HR identified other critical personnel
anomalies after the legal review process was put in place. Three termination scenarios
intended by senior executive administration were reversed by HR with the assistance
of TSU General Counsel during the investigative period after HR and CAE determined
university policies and procedures were not being followed in connection with such
terminations. These personnel actions remain subject to review on the merits by new
management.

IV.
VIOLATIONS OF CONTRACT, POLICY, AND PROCEDURES
4.1

University Policy Violations
A. MAPP 02.05.06 II (a-h) and (o):
Fraudulent or Dishonest Activities: (a) Theft of funds, securities, supplies or any
other asset; (b) Fraud; (c) Bribery/rebate/kickback; (d) Misapplication, destruction,
removal or concealment of property, or conflicts of interest; (e) Illegal or fraudulent
handling or reporting of money transactions; (f) Forgery or alteration by employees of
student related items such as grades, transcripts; (g) Disclosing confidential
information the employee is routinely privy to at the University; (h) Any apparent
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Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

violation of Federal, State, or local laws related to dishonest activities; or (o) Any
similar or related activity.

B. MAPP 02.05.05 III (A, B, H):
Ethics and Conflicts of Interest Policy: Standards of Ethical Conduct – A. Employees
shall put forth honest effort in the performance of their duties; B. Employees shall not
us their public offices for private gain; and H. Employees shall not disclose confidential
information , information that is excepted from public disclosure under the Texas
Public Information Act (Texas Government Code, Chapter 552), or information that
has been ordered sealed by a court, that was acquired by reason of the employee’s
official position.
C. MAPP 02.05.03 V. E (4):
Progressive Discipline: E. Transfer, Demotion and/or Salary Reduction for
Disciplinary Reasons: (4) The supervisor will notify the employee in writing of the
transfer, demotion and/or reduction in pay, the reasons for this action, and the effective
date of the action.
D. MAPP 02.05.03 VI. A (1) and (3-5):
A. Dismissal or Involuntary Termination: (1) Supervisors are authorized to initiate an
action to terminate an employee with prior approval of the Associate Vice President of
Human Resources or a designated appointee, such as the Director of Human Resources,
and after consulting with legal counsel; (3) Dismissal from employment may occur
immediately after consulting with and receiving the written approval by Human
Resources; (4) The employee must be given written notice of the dismissal; and (5) The
prescribed personnel action form confirming the dismissal must be processed within
24-hours of receiving the notice. Any written response to the dismissal may be
submitted to the Associate VP of Human Resources.
E. Official Functions and Discretionary Expenditures:
MAPP 03.07.04 II. B. – Policy Statement. B. In most cases, designated funds or
certain unrestricted auxiliary funds shall be used for payment of expenditures for
official functions and discretionary items. Payment may be authorized from restricted
or sponsored project funds only where allowed by the donor or the terms of the contract
or grant. State-appropriated funds cannot be expended for entertainment expenses,
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Department of Internal Audit, Assurance & Compliance Services
Office of Internal Audit & Assurance
3100 Cleburne Street ♦ Houston, TX 77004 ♦ (713) 313-7454

alcoholic beverages, gifts, service awards costing over $50, etc. (General
Appropriations Act, Article 3, Section 51, Texas Constitution). Agency funds, which
are not owned by the university, are not subject to the requirements of this policy.
However, departments that administer agency funds should expend those funds
prudently
MAPP 03.07.04 A. – Procedures. A. Expenditures for meals, alcoholic beverages, or
tickets to cultural, athletic, or social events may not be reimbursed through the petty
cash process. These expenses require reimbursement through the Accounts Payable
process.
MAPP 03.07.04 V (A-D) and (H-I) – Required Documentation. Expenditures
related to official University function and discretionary items may be paid or
reimbursed only if accomplished by the complete documentation listed below. All
documents will be reviewed by the responsible processing department prior to
processing. A. A detailed description of the nature and purpose of the official functions,
noting honoree(s); B. Date(s) and location of the function; C. Name(s) of the
participants, both guests and employees, and their titles, institutional affiliations, and/or
relation to the university for groups of ten or fewer. For larger groups, the name(s) of
the honored guest(s) must be provided, together with the number of persons attending
and the general relationship of the guests to the university; D. A specific, clear, and
meaningful statement of the benefit of this function to the mission of the university. A
general and broad statement will not be accepted; H. Original invoices or receipts (or
copies of certified by the vendor) covering all expenditures for which payment is being
requested; and I. Employees who make out-of-pocket official function and
discretionary expenses must provide receipts and any additional information provided
to the business office within sixty days of the event.
4.2

Relevant TSU BOR Bylaws
Board Authority, Powers and Duties
Section 1.2 (6) – Duties and Responsibilities: The Board sets campus admissions standards
consistent with the role and mission of the institution and considering the admission
standards of similar institutions having a similar role and mission as determined by the Texas
Higher Education Coordinating Board (THECB).

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