Contact: Monty Jones, (512) 499-4363

Date: November 13, 2003

UT System News Release

U.T. System to Adopt Reforms Inspired by Sarbanes-Oxley

ODESSA - Changes in financial reporting and management that conform to the spirit of the federal Sarbanes-Oxley Act were approved today (Nov. 13) by The University of Texas System Board of Regents.

The federal law, passed in 2002 in response to management scandals at several corporations, was enacted to improve the reliability and accuracy of financial information reported by corporations.

The law does not apply to higher education institutions, but the U.T. System believes "it is prudent to adopt best practices that enhance the integrity of all aspects of the System's operations and provide full disclosure of its financial dealings in accordance with the spirit of Sarbanes-Oxley," said Robert A. Estrada, a regent from Dallas and chairman of the board's Audit, Compliance, and Management Review Committee.

The changes approved by the committee will clarify procedures for the preparation and certification of financial statements, establish a policy for off-balance-sheet items, modify the current code of ethics, and establish a whistleblower policy. A detailed list of these and other changes can be found in the agenda for the Board of Regents meeting at http://www.utsystem.edu/bor/agendabook/November03/11-03ACMRab.pdf.

In October, the U.T. System co-sponsored a national conference in Austin on implications of the Sarbanes-Oxley Act for higher education institutions. Also sponsoring the conference was the National Association of College and University Business Officers.