Millions missing from Aggie athletics

COLLEGE STATION, Texas (AP) - An internal investigation at Texas A&M shows the athletic department failed to account for millions of dollars between September 2007 and December 2008.

In a 25-page report, auditors say the department “requires significant improvement in its financial controls and processes.”  Six accountants from the A&M system performed the internal audit.

Two high-ranking A&M officials said Wednesday that athletic director Bill Byrne's job was not in jeopardy based on the findings.

In his weekly online column, Byrne wrote “during the period under audit, they believed that we had limited monitoring of, and limited accountability for, daily financial operations. And during that time, the auditors were correct.”

The report also says the department did not prepare a balance sheet, and therefore “financial reporting activities performed by the Athletic Department do not provide a complete picture of its financial position.”

“In fiscal year 2008, over $2.5 million in revenues and expenses were not included in the department's financial statements,” the audit says. “The exclusions included $1.1 million in revenues and expenses routed through the 12th Man Foundation and $1.4 million of product revenues and expenses provided from athletic apparel contracts.”

The audit reviews the department's fiscal problems on a multitude of fronts and summarizes, “These weaknesses have hindered the Athletic Department's ability to achieve and maintain financial stability.”

Byrne wrote that he has fixed the problems by changing management in the business office and that he is “confident that our business operations are being conducted effectively and efficiently today."