The Minnesota State Board of Trustees convened on May 20, 2025, to discuss critical issues affecting the state's higher education system, with a particular focus on the upcoming fiscal year audit plan and the implications of emerging technologies like artificial intelligence (AI) on student readiness for the workforce.

One of the key discussions centered around the fiscal 2026 audit plan, which aims to address various enterprise risks. Trustee Sharon raised concerns about the criteria used to prioritize projects, specifically highlighting the importance of AI readiness. The response from the audit team emphasized a collaborative approach in determining project priorities, which includes input from the chancellor and other leadership. While AI readiness was deemed important, it was noted that the project had been postponed due to higher priority items, reflecting the ongoing challenge of resource allocation within the system.

Trustee Huebsch further questioned the management of third-party technology vendors, advocating for a more structured approach to assessing vendor security and performance. The audit team acknowledged the need for a tiered assessment strategy, particularly for critical systems that handle sensitive data. This discussion underscored the board's commitment to maintaining robust cybersecurity measures as technology continues to evolve.

The meeting also touched on broader workforce concerns, particularly the challenges faced by graduates in securing employment in a rapidly changing job market influenced by AI. Trustee Rick emphasized the need for the board to prepare students to effectively utilize AI in their future careers rather than resisting its integration. This sentiment was echoed by other trustees, who recognized the urgency of equipping students with the skills necessary to thrive in an increasingly automated workforce.

In addition to these discussions, the board reviewed the accomplishments of the past year, noting that 92% of the fiscal 2025 audit plan had been completed. However, challenges remain, particularly regarding resource constraints and the need for ongoing professional development within the audit team. The board acknowledged that Minnesota State is currently under-resourced compared to its peers, raising concerns about the ability to maintain high standards in internal auditing and compliance.

As the meeting concluded, the board voted to approve the internal audit plan for 2026, recognizing the need for flexibility in addressing the evolving landscape of higher education and the associated risks. The discussions highlighted the board's commitment to ensuring that Minnesota's higher education system remains responsive to the needs of students and the workforce, while also navigating the complexities of financial and operational challenges.