|Financial Audit Division Report 17-03
|Released January 19, 2017
The Perpich Center for Arts Education (center) is an executive branch agency of the State of Minnesota. Its mission is to provide all Minnesota students the opportunity to develop and integrate their artistic and academic abilities to their highest potential. The center operates a public residential arts high school for approximately 200 eleventh and twelfth grade students who enroll from communities across the state. In July 2013, the center took over management of Crosswinds Arts and Science School (Crosswinds), a public, year-round arts and science integration school for sixth grade through tenth grade students. Effective July 2014, legislation officially conveyed management of the school to the center.1
In addition, the center provides resources to educators and teaching artists throughout Minnesota to support and improve instructional practices in and through the arts. The center also operates the Perpich Arts Library, an information and resource center for students, faculty, staff, and the general public.
The Perpich Center for Arts Education did not have adequate internal controls over its financial management and did not always comply with the legal requirements we tested.
The center resolved one of the six audit findings from the prior audit report;2 the center ensured that the Perpich Foundation filed proper reports with the Attorney General’s Office.3 We were unable to determine the center’s resolution of another finding about the need for board approval for certain contracts; our testing did not identify any contracts requiring board approval.
However, the center failed to resolve the other four prior audit findings. In this report, we repeat three findings related to capital asset inventory and purchases; receipt processing; and payroll. Our overall conclusion for this audit shows that the center did not resolve the remaining prior audit finding; it did not adequately assess its financial risks or monitor the effectiveness of its internal controls.
1 Laws of Minnesota 2014, chapter 294, art. 2, sec. 20, subd. 2.
2 Office of the Legislative Auditor’s Financial Audit Division Report 12-18, Perpich Center for Arts Education, issued August 30, 2012.
3 The Perpich Foundation is a 501 (c) 3 nonprofit organization established to support and improve Minnesota’s K-12 education in and through the arts. The foundation accomplishes its mission primarily through financial and administrative support of the Perpich Center for Arts Education.