Minnesota auditor finds Byron Public Schools lacked proper spending documentation

Auditor: Improper spending at Byron Public Schools

The Minnesota Office of the State Auditor says Byron Public Schools is using funds improperly. FOX 9's Soyoung Kim has more.

(FOX 9) - Minnesota's auditor reviewed Byron Public Schools for spending during 2023 and 2024.

The state’s findings show a lack of proper supporting documentation for tens of thousands of dollars in credit card purchases.

Flagged for lack of money trail

The backstory:

The Minnesota Office of the State Auditor (OSA) announced findings of a financial review of Byron Public Schools.

An investigations' director with the state auditor’s office said a letter was issued to the school district dated Oct. 28 with the state’s findings.

Timeline:

The state auditor said concerns were raised regarding spending between July 1, 2023, through Dec.18, 2024.

What they're saying:

The OSA said it found roughly 30%, or $59,552, of the school district’s credit card purchases during the review period lacked proper documentation required by law. The findings also show the district used its credit card to buy gift cards, which the OSA notes is a generally unauthorized practice.

State Auditor Julie Blaha released a statement on the findings.

"The findings in the Byron review continue a troubling trend we have seen in local governments’ use of credit cards. Minnesota laws governing local government credit card purchases include safeguards to protect taxpayer funds from fraud, misuse, and error. Thorough documentation is a key safeguard, along with appropriate review and approval processes. Without the required documentation, governing bodies are hamstrung in ensuring public dollars are spent lawfully and prudently."

Local perspective:

Byron Schools also turned to taxpayers in the November election to help address budget challenges. Voters approved two funding referendum questions.

What's next:

The OSA has recommended the district maintain itemized records of all credit card purchases and adopt a formal policy for credit card use and board oversight.

The financial problems reviewed by the state auditor happened under the school district’s former leadership.

Blaha commended the school district’s new leadership for already beginning policy work. "That responsiveness bodes well for future internal controls and compliance," said Blaha.

FOX 9 has reached out to the new superintendent for comment.