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Board hears FY26 finance briefing: revenues up, audit underway and FTEs budgeted but not yet filled
Summary
Finance staff reported FY26 half-year results showing about 38% of budget spent, exam/licensing revenues up about 6% year-over-year, and that 11 appropriation-funded FTEs are included in budget projections though many positions remain unfilled; the State Auditors Office fieldwork is underway.
The agency’s finance director reported to the board that FY26 finances are tracking well and that a state audit is nearing the end of fieldwork.
At the March 4 meeting Finance reported that after six months the agency had spent roughly 38% of its FY26 budget. Exam, licensing and registration revenues for the first six months were about $2.3 million, an increase of roughly $131,000 (6%) compared with the same period last year. Administrative penalty receipts were reported near $159,000 for the six-month period — slightly down year-over-year.
Staff noted that the FY26 projections include 11 additional FTEs authorized by the legislature and that salaries for those positions are included in the $2.9 million figure that was shown in the materials; the agency has not yet hired all 11 positions. The finance director said two positions (for Harlingen) will not be filled this year and that hiring timing shifts expenditure patterns.
The State Auditors Office has been conducting an audit of the agency’s financial operations; finance staff said field work is largely complete and an audit report is expected after the auditors finish their analysis.
Board members said they were encouraged by a reduction in penalties for late renewals, which they interpreted as better compliance by licensees and improved online account use. Staff said revenue from penalties cannot be used to augment the agency’s operating budget; those funds are remitted to the state.
Next steps: finance will continue to report quarterly results and staffing/hiring progress; auditors will finalize their report and staff expects to receive audit recommendations in due course.
