Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary


Financial Audit Report


Perpich Center for Arts Education

July 1, 1997, through June 30, 2000


The Perpich Center for Arts Education (the center) operated within available financial resources and generally complied with legal provisions and management's authorizations. The center made some improvements in its financial management practices since our last audit. However, we found the following issues.

Key Findings:

  • The center did not properly account for state grant funds. We recommended that the center return certain grant funds to the state's General Fund, comply with the terms of all grant contracts, and structure its accounting records to separately account for each grant award and identify related grant expenditures and any remaining cash balance.
  • The center lacked control over its fixed assets. We recommended that the center develop comprehensive fixed asset policies and procedures to ensure that it adequately safeguards and accounts for its investment in fixed assets.
  • The executive director did not appropriately update his economic interest statement. In his most recent statement, he did not disclose the speaker fees he received from art organizations for outside speaking engagements on his own time. We recommended that he submit a revised economic interest statement to the Campaign Finance and Public Disclosure Board.
  • The center inappropriately paid per diems to two board members. Statutes prohibited the payments to the board members due to their full-time employment with the University of Minnesota. One board member reimbursed the center for the payments. We recommended that the center collects reimbursement from the other board member, and ensures that board members are aware of the per diem restrictions.

The Perpich Center for Arts Education is a state agency that consists of: the Arts High School (a statewide, tuition-free, public high school for 11th and 12th grades); the Professional Development Institute (which provides comprehensive teaching and learning skills to Minnesota students, teachers and artists); and the Research, Assessment and Curriculum Program (which initiates and facilitates research and creates educational products and services related to student achievement, assessment of student work, curriculum development, and best instructional practices using the arts). The scope of the audit included revenues, payroll, administrative expenditures, and grant expenditures.

More Information

Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155