The only school system tailored to Utah’s thousands of deaf and blind students has mismanaged its funds and failed keep to accurate enrollment data, state school board auditors found.
The Utah Schools for the Deaf and Blind (USDB) appears to have been misdirecting funds meant to support specific students, according to the 83-page internal report publicly released Thursday by the Utah State Board of Education (USBE).
That’s largely due to a “lack of competence” in financial management, auditors wrote, which they say led to the Utah Schools for the Deaf and Blind exceeding its budget last fiscal year.
The report also found that in past years, USDB inflated its enrollment data. That “unreliable” data, auditors wrote, appears to have been cited in at least two studies as the school sought state funding for new facilities.
The school has since created a “reliable system” to track student data, auditors noted, but prior “projections and recommendations” based on earlier data “may be questionable,” they found.
Moving forward, auditors wrote, the USDB should “create a cohesive and intentional plan for achieving its objectives,” among other recommendations.
“Perceived extensive or ongoing lack of competence at the management level may also be perceived as lack of competence at the governance level, which may harm the Board’s reputation,” auditors wrote.
State board isn’t alone in reviewing the school
The USBE voted unanimously Thursday to publicly release the audit, which was previously considered a “protected draft” under Utah’s public records law but is now considered finalized.
The audit follows a law passed earlier this year that converted USDB from a “public corporation” to a “subdivision” of the state school board. When transitions like that happen, it’s standard practice for the state school board to conduct an internal financial audit, board documents state.
The investigation officially launched in April, with state board leaders opting to prioritize it alongside a separate audit of USDB that was earlier ordered by lawmakers.
In February, members of the Legislature’s Executive Appropriations Committee directed the state school board to work with the Education Interim Committee and the Public Education Appropriations Subcommittee to review USDB’s governance, its role within the public education system and more.
State Superintendent Molly Hart presented some initial findings at the Public Education Appropriations Subcommittee meeting last month, noting that USDB was $1.5 million over budget for fiscal 2025. She said that was largely due to a “lack of internal controls and proper oversight by USDB management.”
USDB’s Superintendent Joel Coleman has since stepped down. He announced his resignation, effective Aug. 31, in an email to USBE leadership on July 18 that did not mention the ongoing audits.
“As you can imagine, this deeply personal decision to step down comes after much reflection and counsel,” Coleman wrote in July. “While the current moment is challenging, I remain confident that the extraordinary educators and professionals at USDB will continue to serve these wonderful children with energy, integrity and compassion.”
Hart is taking over Coleman’s role in the meantime. Final findings and recommendations from the separate USDB review that state lawmakers ordered in February are supposed to be shared with Executive Appropriations Committee by Nov. 15.
Financial mismanagement
Among auditors’ findings were several instances of financial disorganization that at times amounted to violations of state law.
For example, USDB billed schools and districts for services — like educational interpreters — at rates up to 8% higher than those set by the Utah Legislature, auditors found.
Auditors also raised concerns that funds reserved for blind students and funds separately reserved for deaf students were not reaching their intended recipients.
The pools of money were instead “co-mingled,” according to the report, and “current expenditures from the trusts are questionable.”
Auditors are seeking a legal opinion from the Utah attorney general’s office to determine if any “diversion of funds” has occurred.
Unreliable reports
Auditors also identified repeated inconsistencies across various reports, data and records kept by USDB, which it is legally required to provide.
“An inherent requirement in providing a legally mandated report is to ensure the report is accurate and understandable,” the audit stated. “However, in many instances, the USDB’s annual report is neither accurate nor understandable.”
The audit noted serious errors with USDB’s reported enrollment data, which must be included in the annual report.
After auditors performed their own attendance analysis for the 2023-24 school year, they found USDB’s reported enrollment numbers were “consistently higher,” comparatively.
USDB says it serves more than 6,400 students across the state through its services and outreach programs, according to its website. While the majority of its students attend local schools, more than 360 attend USDB campuses in Ogden, Millcreek and Springville, as well as classrooms in St. George and in Price, the school says.