Functional Phonics, a curriculum resource developed by the Center for Applied Research and Educational Improvement (CAREI) at the University of Minnesota, is currently sold to school districts. These and other sales, along with research grants, support CAREI as a soft-money research center at the University of Minnesota. 

Functional Phonics sales aim to provide funding to support the overseeing staff and further enhance the program's development. Neither state nor federal funds were utilized in the development of Functional Phonics. Furthermore, the staff at CAREI do not receive any royalties based on the sales of the Functional Phonics program. 

In collaboration with the Minnesota Department of Education, CAREI partnered to identify five curricula for inclusion on an approved state list eligible for funding. To ensure transparency and impartiality, CAREI employed an independent panel of consultants who were not affiliated with CAREI to review Functional Phonics using a structured rubric. No staff member from CAREI had any involvement in this review process. 

This disclosure aims to maintain transparency and assure stakeholders of CAREI's commitment to integrity, impartiality, and ethical practices in the evaluation and promotion of Functional Phonics and other educational initiatives