Minnesota Office of the Legislative Auditor
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Report Summary
Minnesota Racing Commission

Financial Audit

For the Period July 1, 1991, through June 30, 1995

 

Public Release Date: August 23, 1996 No. 96-32

Background Information

The primary responsibilities of the Minnesota Racing Commission (commission) are to regulate horse racing by enforcing laws and rules, collecting and distributing all taxes imposed upon revenues collected by licensed racetracks, supervising the conduct of pari-mutuel wagering, conducting investigations and inquiries, and issuing licenses. The commission is comprised of nine members appointed by the Governor for six year terms. The Senate confirms the appointments. The Governor also appoints an executive director to serve as the chief administrative officer. Richard Krueger has served in this position since 1989.

Audit Scope and Objectives

Our audit scope included a review of pari-mutuel taxes, unredeemed tickets, license fees, and reimbursement revenues. We also reviewed payroll, professional/technical services, and administrative expenditures. In addition, we examined the financial activities of the Breeders' Fund. Our audit period was July 1, 1991, through June 30, 1995. As part of our audit, we considered management controls relevant to the commission's financial operations and determined compliance with significant laws and regulations.

Conclusions

We concluded that the commission collected the appropriate amount of pari-mutuel taxes, unredeemed tickets, license fees, and reimbursement revenues as set in statute. The commission adequately safeguarded and properly recorded the fees in the statewide accounting system.

The commission also processed payroll, professional/technical services, and administrative expenditures in accordance with applicable laws and regulations. These expenditures were made for a proper purpose and accurately recorded in the statewide accounting system. We found, however, that the commission reimbursed some commission members for ineligible expenses.

The commission appropriately administered the Breeders' Fund in accordance with applicable laws and regulations. Fund revenues and expenditures were adequately controlled and properly accounted for.

 

Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155