Urgent Update: Minnesota Auditor Uncovers $59K Mismanagement at Byron Schools

UPDATE: A recent audit has revealed that Byron Public Schools in Minnesota mismanaged over $59,552 in taxpayer funds due to improper credit card documentation during the fiscal year 2023-24. The Minnesota auditor’s office disclosed these findings in a public statement on November 20, 2024, underscoring serious compliance issues that could impact community trust.

The audit reviewed financial practices from July 1, 2023, to December 18, 2024, revealing that nearly 30% of the school district’s credit card transactions—amounting to $199,633—lacked adequate receipts or itemization as mandated by law. Additionally, the audit flagged the unauthorized purchase of gift cards totaling at least $4,392 at a local convenience store, raising red flags about the district’s financial oversight.

“These findings continue a troubling trend in local governments’ use of credit cards,” warned Auditor Julie Blaha. “Safeguards are in place to protect taxpayer funds from fraud, misuse, and error, but without proper documentation, we cannot ensure public dollars are spent lawfully.”

The auditor’s investigation highlights critical gaps in Byron Public Schools’ financial management processes. Following the release of the audit, Superintendent Nate Walbruch responded promptly, stating that the district has already implemented comprehensive protocols aimed at enhancing financial controls. “We have taken action on these items prior to the review by the State Auditor’s Office,” Walbruch noted, emphasizing that these adjustments go beyond surface-level changes.

Among the newly established protocols, the district has canceled credit cards and introduced a P-card policy, which includes additional controls to limit spending and increase accountability. Walbruch clarified that while the gift cards were intended for school expenses, such practices deviate from standard financial protocols.

“I commend the new school district staff for already beginning work on such a policy,” Blaha remarked, expressing optimism for future compliance and internal controls. The auditor’s findings come at a time when public scrutiny of the district’s finances is heightened, as Byron Public Schools has faced leadership changes and financial inconsistencies in recent months.

The urgency of the situation is underscored by a troubling history within the district’s financial management. In an email to the community back in October 2024, then-Superintendent Mike Neubeck acknowledged issues with incomplete financial records, stating that some data had not been processed correctly. The district has seen a revolving door of financial directors, further complicating the situation.

As of April 2025, Byron Public Schools has hired new leadership under Walbruch, aiming to restore financial integrity and public trust. However, the road ahead includes rigorous oversight and compliance measures to prevent future mismanagement.

Going forward, residents and stakeholders will be watching closely as Byron Public Schools implements these new protocols and addresses the auditor’s recommendations. The district’s commitment to transparency and accountability will be crucial in regaining the community’s confidence.

This emerging situation is a stark reminder of the importance of rigorous financial oversight in public institutions. As Byron navigates these challenges, all eyes are on the school district to ensure that taxpayer funds are managed responsibly and effectively.