The Minnesota Zoo has not been properly reporting the donations it receives from the public, according to a state audit released Wednesday.
The Office of the Legislative Auditor, which reviewed some of the zoo's finances over the past four years, said the zoo didn't properly account for the money it got from donations and didn't have the controls in place to ensure it had been spent in the way donors were promised.
The audit also found that the zoo regularly extended contracts with its three major vendors without soliciting public bids. The zoo also gave some of its employees free tickets to an annual concert series at the zoo, a violation of state laws that prohibit employees from accepting gifts from vendors, according to the audit.
The issues could be cleaned up with tighter controls and clearer documentation of how donated money is kept and spent, said Chris Buse, deputy legislative auditor.
"We certainly didn't see any evidence of fraud, waste or abuse, or an intent to misspend any money," Buse said. "Just that there are some opportunities to clean up controls."
Tracking the zoo's finances is more complex than at most state agencies because it works in partnership with a private foundation called the Minnesota Zoo Foundation.
Both the foundation and the zoo have the same president, John Frawley, but they operate under separate boards.
State law requires that any donations to the zoo be kept in a state treasury account overseen by the zoo's board. But almost all of the zoo's fundraising is run by the private foundation.