ST. PAUL — An audit of a Minnesota school technology collaborative has found a lack of oversight and widespread mismanagement of funds.

The independent forensic audit looked at financial records of Technology and Informational Educational Services from July, 1, 2011, to June 30 of this year. The audit was requested by group leaders, who were concerned about the organization’s finances.

The group, called TIES, is a collaborative of 49 school districts. It was created in 1967 to provide technology and services many districts use to collect lunch payments or other fees. It also provides professional development to teachers statewide at events throughout the year.

TIES has a $32 million annual budget and is projecting a $2.8 million deficit.

Dan Luth, chairman of the TIES executive committee, said the organization is working to address issues raised in the audit.

“I think this process will strengthen the organization,” Luth said. “TIES will continue to provide excellent service to our member school districts and other customers.”

Legislative Auditor Jim Nobles said the state will examine the group’s finances.

“I think there’s certainly a need for some follow-up by someone at the state, and it could be either the state auditor or the legislative auditor, and we’ll sort that out and get more details about what occurred from the audit firm,” Nobles said. “They need accountability because they’re spending public money.”

Among other things, the audit found:

There was little oversight of cash collected when the TIES parking lot was used for events at the Minnesota State Fairgrounds. Auditors were told that on one occasion an employee took a bag of money home and later wrote a $1,121 check back to the group to cover it.

There was poor management of contracts, including unsigned documents.

The group paid $47,808 over a year and a half to a telephone company it no longer used.