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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota State Academies


Financial Audit Division Report 05-56 Released December 22, 2005

Overall Conclusion:

The Minnesota State Academies did not adequately control local bank account and imprest cash activities. In addition, the academies did not comply with numerous finance-related legal provisions relating to the purchasing process.

Key Findings:

  • The academies did not adequately segregate key duties for several types of financial transactions.
  • The academies did not maintain appropriate supporting documentation for many local bank account transactions.
  • The academies did not comply with the Department of Finance’s and internal procedures relating to imprest cash bank accounts.
  • The academies received excess grant revenue because of inaccurate reporting of some salary information to the Department of Education.
  • The academies did not follow the state’s procurement guidelines.
The report contained 13 findings related to internal control and legal compliance. The academies resolved three of four prior audit findings. The recommendations for the fourth finding were partially implemented, and the issue is included in Finding 2.
   Audit Scope:

Audit Period:
July 1, 2000, through June 30, 2004

Programs Audited:
  • Banking and Imprest Cash Activities
  • Grant Revenue
  • Employee Payroll Expenditures
  • Administrative Expenditures

Agency Background:

The mission of the Minnesota State Academies is to promote the highest level of self-sufficiency possible for the deaf/hard of hearing and blind/visually impaired students in Minnesota. The academies consist of two separate public schools. They educate enrolled/non-enrolled students or support other public schools to educate students to develop social skills, leadership skills, and specialized skills, such as sign language and Braille.

The academies’ operations are funded through state appropriations and grants. During our audit period, state appropriations averaged about $10.5 million per year, and grants averaged about $1.8 million.


More Information

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