Relating to the reporting of allegations of fraud, waste, abuse, or other malfeasance in the use of public resources by public and private institutions of higher education for the purpose of compliance monitoring by the Texas Higher Education Coordinating Board.
The bill modifies Section 61.035 of the Education Code, requiring institutions to collaborate with internal audit offices and notify the THECB about audits related to funds administered by the board. Additionally, it introduces new subsections that specify the obligations of institutions regarding reporting these allegations, ultimately aiming to build a more robust framework for overseeing financial activities and to promote greater institutional integrity.
House Bill 3444 aims to enhance transparency and accountability within public and private institutions of higher education in Texas by mandating the reporting of allegations related to fraud, waste, abuse, or other forms of malfeasance regarding the use of public resources. The bill seeks to ensure that the Texas Higher Education Coordinating Board (THECB) is notified of any relevant audits and allegations, thereby facilitating better compliance monitoring of how funds allocated by the board are managed and spent.
While proponents of the bill argue that these measures are necessary to guard against financial mismanagement and substance abuse of public resources, there are concerns about the potential for increased bureaucratic oversight. Critics have suggested that imposing stringent reporting requirements may burden institutions, particularly smaller private colleges that may not have the same resources as larger universities. This has led to debates about the balance between effective oversight and the autonomy of educational institutions.