P.O. Box 111, Duluth, MN 55801

Key concerns about systemic problems with the DNR’s publicly funded motorized trail program were addressed today in a report by the Minnesota State Auditor. Auditor Pat Anderson, in releasing today’s report on Dave Dill, his snowmobile club, Voyageur Trail Society, and the City of Orr said that "numerous problems" where found involving $80,000 in state public snowmobile trail grants administered by the city for Dill’s club.

The state audit report finds that the City of Orr misused public trail funds. The report states the "City should not represent on the grant application form that funds will be used for trail construction and maintenance, when in reality funds will be used for other purposes". During the course of the auditor’s three month investigation it was discovered that the City of Orr was directing $5000 in public trail funds annually to the American Legion to settle a pull-tab gambling turf war between Representative Dave Dill’s snowmobile club, Voyageur Trail Society and the legion. In releasing today’s report, Auditor Pat Anderson, said that while DNR rules make it legal for the City of Orr to use funds for non-program purposes, that this is "very bad policy" and that the "DNR is wrong" to have such a policy.

The state audit report also finds that while statutory conflicts of interest were not found in Dave Dill’s dual role as Program Director of the Voyageur Trail Society and Orr City Administrator, as the club’s local government sponsor and fiscal agent, the "city should not assign grant oversight responsibilities to employees who also manage a club receiving grant funds". In her comments Auditor Anderson said "clearly an appearance of conflicts of interests were found" and that while Rep. Dave Dill’s behavior was not illegal he and the City of Orr "should have known better". Today’s state audit report "mirrors the Office of the Legislative Auditor’s [Program Evaluation Report: State-Funded Trails for Motorized Recreation] recommendation that… ‘[a]s a good oversight practice, trail sponsors should maintain an ‘arms-length’ relationship with the clubs they oversee". Jeff Brown, Executive Director of Minnesotans for Responsible Recreation, the group that called for the current State Audit investigation and the Office of the Legislative Auditor report, says "review of 10 years of Voyageur Trail Society documents quickly reveal that Rep. Dave Dill and Voyageur Trail Society are one and the same. Hardly the arms length recommended by today’s report"

State Auditor Anderson also said today that a "pattern of lax oversight" and "generally sloppy record keeping" is a serious problem when the "state’s assets are involved". Minneostans for Responsible Recreation’s Brown noted that the audit report found that insufficient record keeping made it impossible to connect revenue sources with expenditures. Brown expressed continued concern that Rep. Dill’s family receives $440 per month in health insurance paid for by Voyageur Trail Society. "Not only are the people of Minnesota unable to determine if Rep. Dill’s health insurance is being paid with public trail funds but his personal financial gain resulting from his local government sponsorship of the funds, continues to appear to be a gross conflict of interest.

"In conclusion," Brown says "that unethical practices in the use of public motorized trail funds are legal should focus our attention on what is really broken – laws and DNR rules that allow public funds to be misused without oversight. Today’s state audit report only reinforces the need for the DNR to implement recommendations from the 2003 legislative audit meant to protect our state’s precious financial and natural resources. Brown says "In light of today’s state audit report it is very disappointing that the DNR has not even begun to implement the recommendations made in the January, 2003 Office of the Legislative Auditor report."