ST PAUL, Minn. — The Hmong College Prep Academy Board will meet Monday night after a state investigation found the school failed to recover more than $4.3 million of public funds between September 2019 and April 2021.
According to an Oct. 18 report from the Office of the State Auditor, an investigation started after the agency received concerns about a $5 million investment by the school in 2019.
“Hmong College Prep Academy failed to comply with Minnesota law regarding school investments. As a result, they could not account for the whereabouts of $4.3 million in public funds,” State Auditor Julie Blaha said in a statement. “Because education is vital to the success of our kids and communities, schools can’t afford to take big risks with the resources that fund them.”
Based on their investigation, the OSA discovered three things:
- The school's $5,000,000 investment did not comply with Minnesota law regarding permissible investments of public funds
- The school failed to recover $4,315,238 of these public funds during the review period (September of 2019 through April of 2021)
- The investment appeared to be inconsistent with the school's own investment policy
The Hmong College Prep Academy is a K-12 charter school located in St. Paul. It was chartered by and operates under a charter contract with its authorizer, Bethel University.
"The HCPA is actively managing and resolving a number of administrative and governance issues with our authorizer Bethel University," the school said in a statement to KARE 11.
A spokesperson from Bethel University said in a statement, "We are committed to promoting transformative education in our surrounding communities, and we continue to partner with HCPA’s board on next steps that support organizational health, student success, and the long-term educational interests of the community HCPA serves. As part of this process, we provided HCPA with a corrective action plan and recommendations for improved operations, compliance, and internal controls. We also continue to work with the Minnesota Department of Education and the Minnesota Office of the State Auditor to provide information and fulfill our role as authorizer of HCPA in their investigations."
The OSA says Bethel University's corrective action plan "appeared reasonable and appropriate" in light of the school's actions with Woodstock Capitol Investment.
According to OSA, the report was forwarded to the Hennepin County Attorney in accordance with Minnesota Statute § 6.51.
In a letter to families on Oct. 21, the HCPA Board confirmed Superintendent Dr. Christianna Hang had communicated her intent to step down from her role. After the board met for a special session meeting Monday, the school released a statement saying it had accepted Hang's resignation.
"A transition team for Hmong College Prep Academy, which includes the board, school administration and staff will take a number of steps to move our school leadership forward," the statement read in part. "HCPA's school operations and high-quality instruction will continue as normal."
The state has sent its report to the Ramsey County Attorney's Office, which could possibly take action against the school.