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Audit Faults Minnesota Gambling Council

27 May 2005

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 draft report said the review's objective was to answer two questions:

"- Did the Minnesota Council on Compulsive Gambling comply with the requirements of its state and city contracts?

"- Did the Minnesota Department of Human Services and the city of Duluth adequately monitor the Council on Compulsive Gambling's compliance with their contracts?

"The report suggests that the answer to both questions is 'no.'…"

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