Anoka Times

A new state report has found that the University of Minnesota has misallocated millions of dollars in grants. 

The legislative audit found a state-funded grant program within the university wrongfully awarded those funds, raising red flags throughout the state.

The state audit has raised concerns about transparency within both the university and grant program. The report, conducted by the Office of the Legislative Auditor (OLA), found numerous grant allocation discrepancies as well as concerns regarding a conflict of interest with the University’s Regenerative Medicine Minnesota (RMM) program.

“The state allocated $4.5 million to the program in its first year in 2014 and $4.35 million every year after, totaling nearly $22 million in grants as of this month,” Minnesota Daily reported. “An appropriations law enacted by the Legislature in 2014 requires the grants to be awarded for research, clinical translation and commercialization. The audit found that 52% of education grants were allocated as K-12 grant, which auditors concluded violated the appropriation law. In some cases, grant money went to expenses including activity books and youth science camps.”

The RMM contested the audit in a Jan. 8 letter, stating that their spending was legal.

“We believe the conclusions reached by OLA carry judgments that reach beyond the governing legislation and thereby do a disservice to the diligence and good faith of those advancing the mission of the RMM partnership,” the letter reads.

OLA audit director Lori Leysen said the key is to make sure that anyone receiving state funding for grants spends the money appropriately.

The RMM board has since issued a statement that proposed suspending K-12 grant awards indefinitely and adjusting the grant proposal review process despite continuing to dispute the allegations.

“This statewide, bipartisan initiative has made great strides in advancing regenerative science, training the workforce of the future, rolling out clinical trials and investing in new biotechnology,” the statement reads. “Regenerative Medicine Minnesota looks forward to working with the Legislature and the people of our state as we pursue next generation regenerative therapies for the benefit of all Minnesotans.”

Sen. Jim Abeler, a member of the Senate Higher Education Finance and Policy Committee, called the findings “extremely disappointing.”

“As nice as it is to educate grade schoolers on science, that's not the point,” Abeler said. “Certainly we don't want to dictate what they do, but we're the only voice the taxpayers and the people of Minnesota have to the U to guide them.”