An internal audit of the Utah Schools for the Deaf and the Blind (USDB) Education Foundation prompted agency action to correct corporate filings, review bylaws, and require an external audit before the foundation resumes routine activity.

Assistant Superintendent Darren Nielsen told the Utah State Board of Education that the foundation’s articles of incorporation were listed as delinquent with the Department of Commerce in the audit. USBE’s business office updated those filings in August and the foundation scheduled a meeting for Nov. 14 to consider next steps, including whether the foundation should continue as an entity or pursue dissolution.

Nielsen said audit recommendations also call for the foundation to review and revise its bylaws, and he noted the foundation’s executive director submitted a resignation effective the day of the board meeting. He described the foundation’s role as separate from the USDB permanent trust and advisory council: the foundation — a 501(c)(3) organization established by USDB in 2012 — receives donations that some donors may prefer to route through a tax‑exempt nonprofit rather than a state donated‑funds account.

Scott (legal counsel) and USBE staff said the foundation’s annual external audit and a foundation‑level decision about continued existence were outstanding action items. Nielsen said the foundation historically raised roughly $100,000 annually, and that the executive director’s compensation had been about $50,000. He also described a donated funds account (9214) that USBE uses for gifts directly to the agency and said the audit noted possible duplication or overlap between donated funds and the foundation’s activities.

Why it matters: the foundation’s governance, filings and pending audit affect the agency’s ability to accept gifts in 501(c)(3) form and the channels donors use to support USDB students. The board cannot direct an independent 501(c)(3) to dissolve, but the board’s briefing and public discussion are intended to inform the foundation’s upcoming meeting and the legal counsel’s advice.

Speakers: Darren Nielsen, assistant superintendent for USDB; Scott (business office/legal counsel); Deborah Jacobson (briefly for context).

Clarifying details: Nielsen said the foundation has a meeting scheduled for Nov. 14 to address delinquent filings being corrected and bylaws; the executive director’s last day was the meeting day; historical donations averaged about $100,000 per year and executive director compensation had been about $50,000; USBE maintains a donated funds account (9214) that may overlap with foundation activity.

Provenance (transcript evidence): topic introduction — Nielsen: “The education foundation is a 501(c)(3) that was established by the schools for the deaf and blind in 2012…in the recent internal audit…there were concerns raised about the Education Foundation.” (tc 00:44:27); topic finish — Nielsen: “They have a meeting scheduled for November 14, which is their first meeting since prior to the release of the audit.” (tc 00:48:29).