In a recent government meeting, the Office of the Legislative Auditor presented two contrasting reports on the Minnesota State Academies for the Deaf and Blind (MSA), highlighting significant issues in financial operations and internal controls. The performance audit, which covered the period from July 2021 to December 2023, revealed a total of 12 findings, indicating that MSA generally failed to comply with legal requirements and lacked adequate internal controls.

Lori Lisen, Deputy Legislative Auditor, emphasized the importance of the findings, which spanned various operational areas, including oversight of site councils, payroll, and financial management. The audit found that the MSA's site councils did not meet as required by their bylaws, which hindered stakeholder engagement and feedback. Additionally, the academies did not monitor the financial activities of their affiliated foundations, a repeat finding from a previous audit in 2013.

The report also raised concerns regarding the superintendent's travel practices, noting that he approved his own travel expenses, which poses a conflict of interest. The audit identified instances of inadequate documentation for travel and personal trips that were improperly funded by the state.

Financial discrepancies were also highlighted, including issues with payroll processing and inventory management. The audit revealed that a significant portion of timesheets were completed by supervisors rather than employees, raising questions about accountability. Furthermore, MSA was found to have overreported expenditures related to special education funding, resulting in excess reimbursements.

The findings underscore the need for improved governance and oversight at the Minnesota State Academies, prompting recommendations for enhanced internal controls and compliance measures to ensure accountability and proper use of state funds. The governing board is urged to take immediate action to address these issues and restore confidence in the academies' financial operations.