Cliff Buchan
News Editor

A state audit in Chisago County will result in no criminal findings against Commissioner Bob Gustafson but stipulates the county board needs to have agreements in place when it spends money for recreation purposes. A commissioner must also file an affidavit stating he or she has an interest in the countyís contract even if some people know of the involvement, the audit said.

The opinion was delivered by State Auditor Patricia Anderson during a special meeting at the county government center in Center City. The comments on Gustafson are a small part of the state auditorís annual review of the Chisago County financial statements for 2004.

The Gustafson matter stems to allegations made by county resident Tony Peterfeso who alleged improper payments were made by the county to Gustafson through Chisago County Recreation. The commissioner runs baseball and softball leagues in the county under the Chisago County Recreation name.

ìI want to stress there is no evidence anyone stole money or equipment,î Anderson said. Along with no basis for a criminal finding, Anderson said is no recommendation to make any repayment to the county.

Earlier, a review by the Washington County Attorneyís office found no criminal wrong doing in the matter.

At issue was $4000 payments made to Chisago County Recreation in 2002, 2003 and 2004. The auditor said the $4000 was to be used for Gustafsonís leagues and additional $4000 amounts were included in the parks departmentís 2003 and 2004 budgets.

Anderson said the 2002 funding was okayed by the county board via a resolution for recreation supplies and equipment. In 2003 and 2004, Gustafson ordered equipment needed for his leagues and the equipment was paid for by the county out of the park department budgeted funds. The transactions were approved by the county board.

Approval confusion

The approval process of funds for Gustafson was not as clear in the mind of at least one county commissioner. Ben Montzka, who represents the Wyoming and Stacy area, said he was pleased no criminal intent was found but believes state law was violated.

Montzka, in an interview late Monday, said he does not believe a majority of the county board in 2003 and 2004 knew how the funds were to be used or they would not have granted approval. Montzka said, the county board on Dec. 1, 2004 voted 3-2 to approve a resolution stating the allocation of funds to support Gustafson were not authorized.

ìI donít know how else the board could be clear,î Montzka of the resolution. ìThere is no proof the board knew.î

Montzka said he was surprised that not all county officials were contacted as the audit was prepared. In dealing with a $40 million annual budget, Montzka said it is vital for commissioners to know who the ìinterested partiesî are, but it is difficult for commissioners to know specifics when so many vendors are involved.

That question was touched on Monday during the Anderson report. Carla Heyl, deputy state auditor, said the county board ultimately approved all the bills for park supplies. She said it is up to each county commissioner to determine how detailed they are in looking at county bills.

Next steps

Anderson told county officials Monday the Gustafson matter for now is closed, but that the state will continue to check on future Chisago County audits to make sure compliance is in place.

Additional charges made by Peterfeso will be considered for later reviews, the auditors said.

Anderson said her office concluded the Gustafson situation ìevolved informallyî as a way to offer programs in the county and the county is no longer providing equipment for Gustafsonís league. No funding was provided this year and none is in the 2006 budget, Anderson said.

Anderson said state officials would have to make sure ìsimple proceduralî requirements are met.

ìMaybe the commissioner made money off this deal, maybe he broke even, maybe he even ended up giving more time to the county,î Anderson wrote. ìWe would know the numbers if the affidavit was filed.î

She said the state believes the arrangements can continue as long as contracts are in place and Gustafson files the proper affidavit. ìIn fact, it is possible the taxpayers are saving money through this arrangement.î

A summary of the full audit provided Monday points to the specific problem with Gustafsonís past actions:

ìMinnesota Stat. 382.18 provides that no county official shall be directly or indirectly interested in any contract to which the county is a party or in the purchase of any property. Under Minn. Stat. 471.87-.89, a county may contract with an interested commissioner if competitive bids are not required and the county and the commissioner follow prescribed procedures.

ìBecause the commissioner (Gustafson) had an interest in the county purchases and the appropriate procedures were not followed, the purchases were in violation of Minnesota law.î

Top of Page

Forest Lake Times
P.O. Box 218
880 SW 15 St.
Forest Lake, MN 55025
651-464-4601
Fax 651-464-4605