MINNEAPOLIS, MINN. — Newly unredacted portions of an investigative report indicate that Minneapolis Public Schools' top accountant, Aaron Gilbert, independently withheld $3 million in payments intended for a retiree health care trust account. The district's lack of internal financial controls facilitated these actions, according to the report.

The law firm Greene Espel, which produced the report, stated, "In sum, the evidence points to Ms. Gilbert as the decisionmaker." The report also says she was "evasive during her interview and generally did not come off as a credible witness." Gilbert's last day of employment with Minneapolis Public Schools was May 14.

In November 2024, emails show Gilbert sought authorization to transfer 95% of the typical monthly payment to the healthcare trust but received no response. Without authorization, Gilbert directed another employee to make the reduced payment. This action was repeated in December 2024. For the first six months of 2025, Gilbert received authorization for reduced payments. However, in July 2025, she made a reduced payment without authorization.

A human resources department employee observed the unusual transactions in May 2025 and escalated concerns. The district's general counsel and superintendent became aware of the withheld funding in August 2025. When Gilbert transferred the full amount of withheld funds, plus interest, to the trust, she directed additional financial transactions involving the district's investment account and bond proceeds. According to Greene Espel, "This series of transactions suggests that Ms. Gilbert had an intent to deceive."

On January 2, Minneapolis Public Schools informed finance department employees, including Gilbert, Senior Finance Officer Ibrahima Diop, and Executive Director of Finance Tariro Chapinduka, that they would not be reporting to work indefinitely. The investigative report also stated that its investigators could not determine whether district funds had been misused, even after hiring a forensic accountant. The district transferred the full amount of withheld funds, plus interest, to the retiree health care trust account ten months after the unusual transactions began.

The district's annual audit has warned about a lack of appropriate internal controls for over a decade. The district told the Reformer in April that an internal review had not discovered any misuse of funds. The external auditor informed investigators that the annual financial audit would not have detected the withheld payments.

Diop's last day of employment was January 30. Chapinduka's last day was February 17. Chapinduka stated that she was asked to resign, saying, "I said, 'Resign for what?' Because I didn't do anything wrong." Chapinduka had started at the district after the improper withholding commenced. Diop resigned for a job in Milwaukee that was later rescinded after reports regarding issues in the finance department.

Since January, Minneapolis Public Schools has been paying the Center for Effective School Operations over $68,000 per month to augment staffing in the district's finance department. The district has implemented new wire transfer procedures involving four separate individuals, but has not added staff to address the lack of segregation of duties cited in the audit. Minneapolis Public Schools was assessed millions in fines by the IRS for late filings.