Q&A regarding shortcomings in governance and internal control at the former IDT

Over the past year, Mälardalen University has carried out extensive analytical and investigative work to identify shortcomings in governance and internal control during the period 2022–2025 at the former School of Innovation, Design and Engineering (IDT). This work identified, among other things, a substantial financial deficit and it also became evident that IDT had not complied with the regulatory framework and internal procedures governing the University.

As a public authority, the University has a responsibility to act on identified irregularities, and this work is currently under way. Since 1 January, the University has implemented a completely new organisational structure, which is one of several initiatives aimed at addressing the identified problems.

In light of the ongoing work related to shortcomings in governance, internal control and compliance, three questions are therefore addressed to Anna Letterstål, Dean of the Faculty of Engineering and Health Sciences, who is leading an organisational change process to address these serious shortcomings.

1. What actually happened at IDT?

During the period 2022–2025, a significant financial deficit developed within the academy as a result of compounded shortcomings in leadership, regulatory compliance, governance and follow-up. As the measures the academy had been tasked with regarding implementing measures to address the financial deficit proved insufficient, the Vice-Chancellor initiated special measures ahead of the turn of the year 2024/2025. An Acting Dean of School was appointed with the task of reviewing the operations and initiating the necessary changes, and throughout last year an intensive programme of analysis and corrective actions was carried out. Large parts of the shortcomings were traced to the former academy’s research activities in Västerås.

As of 1 January 2026, the former IDT’s activities are part of all three departments within the Faculty of Engineering and Health Sciences, and I, as Dean, have a specific mandate to lead the continued analysis and corrective work. The faculty management has, among other things, established that the previously accumulated deficit amounts to SEK –16.8 million for education and SEK –44.4 million for research.

2. And what happens now?

Further measures are currently under way to ensure sound governance and internal control and to achieve long-term financial balance. The intention is for the accumulated deficit to be fully repaid by the end of 2030. The organisational changes are expected to affect the former IDT’s activities across all three departments of the Faculty, but will have the greatest impact on operations in Västerås, particularly within the Embedded Systems research area. In addition to measures aimed at restoring financial balance, efforts are required to ensure positive cultural development and robust leadership, governance, internal control and regulatory compliance.

The new faculty organisation introduced on 1 January is intended, to a greater extent than the organisational model we have left behind, to promote the delivery of high-quality education and research. The University, and thus everyone working within it, has a responsibility to actively contribute to meeting the requirements of the Ordinance on Internal Governance and Control. This ensures that operations are conducted and function in a reliable manner, in compliance with regulations, and that irregularities are eliminated as well as prevented. Where deviations are suspected, the university has an obligation to address them, and in cases of suspected serious deviations, this may require specific investigative measures.

I have appointed a project manager and a project group that, through two sub-projects, are leading a project-based effort to define the need for organisational change and, in collaboration with relevant functions, develop a plan for implementing the work. I expect to make decisions on the organisational changes before the end of April. This will then be followed by continued measures relating both to the organisational changes and to the action plan for leadership, governance, internal control and regulatory compliance. The main focus will be on the Department of Computer Science and Engineering (IDD), but achieving financial balance and implementing the action plan also concerns the Faculty’s other two departments. It is also a matter about strengthening both leadership and followership; together we need to find new ways of working – it should be easy to do the right thing.

3. How has the leadership acted in this matter?

The University management has identified the problems and has also taken action to address a difficult situation, both financially and culturally. As a University, we have obligations both as an employer and as a public authority. We have a good overview, and now we need to act on the information available to us. Universities operate in a trust-based sector and apply trust-based governance and management, which is the prevailing model within the state employer policy. However, if regulations are systematically and deliberately circumvented, particularly in overly closed environments, it can unfortunately take quite some time before this is uncovered. It is therefore of utmost importance that our operations are characterised by openness and transparency, and that everyone has the conditions to act on early warning signs.

The leadership has acted since the problems were identified, and the measures were intensified when the extent of the combined shortcomings became clear during 2025. We now need to establish sound working processes so that all employees feel secure in their roles. Our recent internal reorganisation is a response to this, alongside the reorganisation of University Administration and Services; adding to this the ongoing work on management induction and training; clarification of processes related to research applications and workload planning; the project on the integrated quality assurance system; and the new intranet currently under development. These are all important pieces of the puzzle in ensuring robust leadership, governance, internal control and regulatory compliance.