Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Corrections
Special Review: MINNCOR Industries and
Minnesota Correctional Education Foundation

 

Financial Audit Division Report 06-21 Released July 27, 2006

Key Findings:
  • The Department of Corrections did not adequately resolve a conflict of interest involving three MINNCOR employees who attended a National Football League game as guests of a vendor.

  • MINNCOR Industries did not comply with state statutes or department policies when it disposed of surplus property.

  • The Department of Corrections did not have statutory authority to establish the Minnesota Correctional Education Foundation.

  • Conflicts of interest from having public officials serving on the foundation board have not been appropriately addressed.

  • The Department of Corrections may not have complied with federal grant requirements.

  • The Department of Corrections inappropriately transferred $60,500 from MINNCOR to the Minnesota Correctional Education Foundation. 
The audit report contained a total of eight findings - three relating to MINNCOR business practices and five relating to the department’s relationship with the Minnesota Correctional Education Foundation.
   Audit Scope:

In response to allegations, we conducted a special review of MINNCOR Industries, the correctional industry program for the Department of Corrections for the period July 1, 2003, through March 31, 2006.  Our review included the Minnesota Correctional Education Foundation. 


Background:

MINNCOR Industries provides inmates an opportunity to acquire certain knowledge and skills prior to release.  MINNCOR operates in eight correctional facilities and produces various products and services, which it sells to state agencies, local units of government, and businesses. 

In 2004, the Department of Corrections established the Minnesota Correctional Education Foundation, a nonprofit organization that supports the department’s postsecondary education program for inmates.    

More Information

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