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Problem Gambling Organization Audit Finds Problems

MINNESOTA – As reported by the Duluth News Tribune: "A draft report from the legislative auditor finds that the Minnesota Council on Compulsive Gambling received payments for costs not allowed under state or city contracts, that the council's work didn't meet state expectations, and that the city of Duluth did not include key accountability provisions in its contracts with the council.

"The report will be forwarded to the Minnesota attorney general, who is responsible for recovering state money and negotiating individual claims, according to a letter that accompanies the report.

"The special review was conducted after the Office of the Legislative Auditor received complaints about the gambling council's management practices and the quality of its services.

"…Together, the state and the city have been the gambling council's biggest financial supporters, giving more than $2.3 million during the past decade for programs designed to warn about the dangers of compulsive gambling.

"…The audit recommends the council work with the city to resolve more than $75,000 in questioned contract costs.

"The draft audit determined that the gambling council did not submit annual financial reports to the city detailing how it spent city money as required in its contracts…"

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