The legal authority and operating control of the institution are clearly defined for the following areas within the institution’s governance structure: (Governing Board Control)

JUDGMENT: Compliant

STATEMENT OF RATIONALE FOR JUDGMENT OF COMPLIANCE

Legal authority and operating control for the fiscal stability of Southwest Texas Junior College rests with the SWTJC Board of Trustees and is clearly defined in the following SWTJC Policies:

• BAA (Legal), which outlines the roles and responsibilities of  Board members; and
• BBE (Legal), which vests fiduciary authority in Board members.

BAA (Legal) and BBE (Legal) derive their foundational legal authority from Texas Education Code 51.352(e), which states that “(E)ach member of a governing board has the legal responsibilities of a fiduciary in the management of funds under the control of institutions subject to the board’s control and management.”

The SWTJC Board of Trustees’ authority in institutional fiscal matters related to setting tuition, setting ad valorem taxes, and authorizing bonds is further defined in the Texas Education Code 130.084, 130.121, and 130.122. Evidence of SWTJC Board action with respect to issues of fiscal oversight of the College is presented below:

• Setting of student tuition – Minutes of Board meeting of March 21, 2014
• Adopting of annual property tax rate – Minutes of Board meeting of September 18, 2014
• Issuing bond – Minutes of Board meeting of February 20, 2014
• Approval of finance plan for issuance of above bond – Minutes of Board meeting of September 18, 2014
• Approving of annual operating budget - Minutes of Board meeting of June 19, 2014
• Receiving and approving of annual audit – Minutes of Board meeting of November 20, 2014

The Board reviews, addresses, and approves monthly unaudited financial statements, revisions to the budget, and other financial issues related to the fiscal stability of the institution at regular board meetings and budget workshops. The Board contracts with an independent auditing firm to conduct an annual audit. The current auditing firm is Ede & Company, LLC.

Evidence

SWTJC Policy BAA (Legal) Board Legal Status, Powers Duties, Responsibilities
SWTJC Policy BBE (Legal) Board Members Authority
Texas Education Code 51.352 (e) Responsibilities of Governing Boards
Texas Education Code 130.084 Powers and Duties
Texas Education Code 130.121 Tax Assessment and Collection
Texas Education Code 130.122 Tax Bonds and Maintenance Tax
Board of Trustees Minutes, March 21, 2014
Board of Trustees Minutes, September 18, 2014
Board of Trustees Minutes, February 20, 2014
Board of Trustees Minutes, September 18, 2014
Board of Trustees Minutes, June 19, 2014
Board of Trustees Minutes, November 20, 2014