Minnesota State Academies for the Deaf and the Blind

Report Summary

Minnesota State Academies for the Deaf and the Blind

Performance Audit

Financial Audit Division

November 2024

Conclusion

The Minnesota State Academies generally did not comply with the significant finance-related legal requirements we tested and generally did not have adequate internal controls. We identified a number of instances of noncompliance and internal control weaknesses. The list of findings below and the full report provide more information about these concerns.

Findings and Recommendations

Finding 1

The Minnesota State Academies’ site councils did not meet in accordance with their bylaws. (p. 12)

Recommendations

The Minnesota State Academies’ site councils should meet in accordance with their bylaws.
The Minnesota State Academies’ governing board should ensure that the site councils meet in accordance with their bylaws.

Finding 2

Prior Audit Finding Unresolved. The Minnesota State Academies did not monitor the financial and legal activities of its affiliated foundations, as required by the contracts. (p. 14)

Recommendations

The Minnesota State Academies should monitor the financial and legal activities of its affiliated foundations, as required by the contracts.
The Minnesota State Academies should strengthen its internal controls to ensure it monitors the financial and legal activities of its affiliated foundations.

Finding 3

The Minnesota State Academies did not process payroll in accordance with state policy. (p. 19)

Recommendations

The Minnesota State Academies should process payroll in accordance with state policy.
The Minnesota State Academies should strengthen its internal controls to ensure it processes payroll in accordance with state policy.

Finding 4

The Minnesota State Academies did not always purchase goods or services in accordance with state policy. (p. 26)

Recommendations

The Minnesota State Academies should purchase goods or services in accordance with state policy.
The Minnesota State Academies should strengthen its internal controls to ensure it complies with state policy.

Finding 5

The Minnesota State Academies superintendent approved his own travel. (p. 28)

Recommendation

Finding 6

The Minnesota State Academies did not always comply with state policy when paying for the superintendent’s travel expenses. (p. 29)

Recommendations

The Minnesota State Academies should pay travel expenditures only in accordance with state policy.
The Minnesota State Academies should collect, from the superintendent, the state money used for personal travel.
The Minnesota State Academies should strengthen its internal controls to ensure it pays for travel in accordance with state policy.

Finding 7

The Minnesota State Academies did not document that it managed its imprest cash accounts in accordance with its policy. (p. 34)

Recommendations

The Minnesota State Academies should document that it manages its imprest cash accounts in accordance with its policy.
The Minnesota State Academies should strengthen its internal controls to ensure it manages its imprest cash accounts in accordance with its policy.

Finding 8

The Minnesota State Academies did not manage its assets in accordance with state policy and did not keep an accurate record of its physical inventory. (p. 35)

Recommendations

The Minnesota State Academies should manage its assets in accordance with state policy and keep an accurate record of its physical inventory.
The Minnesota State Academies should develop internal policies and procedures to ensure it manages its assets in accordance with state policy.

Finding 9

The Minnesota State Academies did not document the timely deposit of its receipts. (p. 40)

Recommendation

Finding 10

The Minnesota State Academies overreported expenditures to the Minnesota Department of Education. As a result, the Minnesota Department of Education overpaid the Minnesota State Academies. (p. 41)

Recommendations

The Minnesota State Academies should accurately report expenditures to the Minnesota Department of Education.
The Minnesota State Academies should return to the Minnesota Department of Education the reimbursements received as a result of the overreported expenditures.
The Minnesota State Academies should strengthen its internal controls to ensure it accurately reports expenditures to the Minnesota Department of Education.

Finding 11

The Minnesota State Academies did not always properly document its reconciliation between its submitted medical claims and the reimbursements from the Department of Human Services. (p. 42)

Recommendations

The Minnesota State Academies should properly document its reconciliation of third-party billing claims submitted with the reimbursements it receives.
The Minnesota State Academies should strengthen its internal controls to ensure it receives accurate third-party billing reimbursements.

Finding 12

The Minnesota State Academies did not always obtain approval from Minnesota Management and Budget prior to accepting donations, as required by state statutes. (p. 44)

Recommendations

The Minnesota State Academies should obtain approval from Minnesota Management and Budget prior to accepting all donations, as required by state statutes.
The Minnesota State Academies should strengthen its internal controls to ensure it accepts donations in accordance with state statutes.

More Information

Full Report (PDF)

Full Report (TXT)

Full Report (RTF)

Office of the Legislative Auditor - Financial Audit Division

Report Summary