Skip to main content Skip to office menu Skip to footer
3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota Department of Education
and Metropolitan Educational Cooperative Service Unit
Administration of Grant Funds


Financial Audit Division Report 04-42 Released October 14, 2004

Key Findings:

  • The Minnesota Department of Education did not use a competitive process when awarding the Project LEAD grant.
  • Department of Education employees were inappropriately involved in Metro ECSU management decisions, including hiring staff and renting space. The department should work with Metro ECSU to resolve questioned costs and reimburse the federal grant account $25,110 for inappropriate salary charges and $16,539 for inappropriate rent charges.
  • Metro ECSU did not ensure fair and equitable access to contracting opportunities and did not adequately administer consulting services. Metro ECSU should repay the department $7,000 in consultant service costs that were inappropriately charged to the Project LEAD grant.
The report contained a total of 3 findings relating to internal control and legal compliance.

   Audit Scope:

Audit Period:
July 1, 2000, through October 3, 2003

Programs Audited:

  • Leadership Education and Development Project (Project LEAD)


Metropolitan Educational Cooperative Service Unit (Metro ECSU) is a nonprofit organization that received a majority of its funding through state and federal grants from the Minnesota Department of Education. The department awarded approximately $2 million in federal funds to Metro ECSU for Project LEAD.

Office of the Legislative Auditor, Room 140, 658 Cedar St., St. Paul, MN 55155 : or 651‑296‑4708