Office of the Legislative Auditor State of Minnesota
Special Review
State Agency Barter Arrangements

JANUARY 15, 2002 02-03

Financial Audit Division
The Office of the Legislative Auditor (OLA) is a professional, nonpartisan office in the legislative branch of Minnesota State government. Its principal responsibility is to audit and evaluate the agencies and programs of state government (the State Auditor audits local governments). OLA's Financial Audit Division annually audits the state's financial statements and, on a rotating schedule, audits agencies in the executive and judicial branches of state government, three metropolitan agencies, and several "semi-state" organizations. The division also investigates allegations that state resources have been used inappropriately. The division has a staff of approximately fifty auditors, most of whom are CPAs. The division conducts audits in accordance with standards established by the American Institute of Certified Public Accountants and the Comptroller General of the United States.

Consistent with OLA's mission, the Financial Audit Division works to:
· Promote Accountability, · Strengthen Legislative Oversight, and
· Support Good Financial Management.
Through its Program Evaluation Division, OLA conducts several evaluations each year and one best practices review.

OLA is under the direction of the Legislative Auditor, who is appointed for a six-year term by the Legislative Audit Commission (LAC). The LAC is a bipartisan commission of Representatives and Senators. It annually selects topics for the Program Evaluation Division, but is generally not involved in scheduling financial audits.

All findings, conclusions, and recommendations in reports issued by the Office of the Legislative Auditor are solely the responsibility of the office and may not reflect the views of the LAC, its individual members, or other members of the Minnesota Legislature.

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If you have comments about our work, or you want to suggest an audit, investigation, evaluation, or best practices review, please contact us at 651-296-4708 or by e-mail at auditor@ state. mn. us

OFFICE OF THE LEGISLATIVE AUDITOR State of Minnesota ° James Nobles, Legislative Auditor January 10, 2002
Senator Ann H. Rest, Chair Legislative Audit Commission
Members of the Legislative Audit Commission
The Honorable Jesse Ventura, Governor

We have completed a special review of bartering arrangements entered into by state agencies. The objective of the review was to provide a report on the type and value of each agency's bartering agreements as required by Laws of Minnesota (2001), First Special Session, Chapter 10, Section 38, Subd. 1.

Providing an accounting of bartering arrangements was challenging, because these transactions are not recorded on the state's accounting system or otherwise inventoried in any systematic manner. We hope this report provides relevant information for decision-makers on the magnitude of this type of activity.

This report is intended for the information of the Legislature and the Governor. This restriction is not intended to limit the distribution of this report, which was released as a public document on January 15, 2002.

/s/ James R. Nobles /s/ Claudia J. Gudvangen
James R. Nobles Claudia J. Gudvangen, CPA Legislative Auditor Deputy Legislative Auditor

Room 140, 658 Cedar Street, St. Paul, Minnesota 55155-1603 ° Tel: 651/ 296-4708 ° Fax: 651/ 296-4712 E-mail: auditor@ state. mn. us ° TDD Relay: 651/ 297-5353 ° Website: www. auditor. leg. state. mn. us

Special Review: State Agency Barter Arrangements Table of Contents Page Background 1
Methodology 1
Conclusions 2
Bartering Arrangements:
Department of Administration 3
Department of Agriculture 3
Board of Social Work 4
Campaign Finance & Public Disclosure Board 4
Center for Arts Education 4
Department of Children, Families & Learning 4
Department of Corrections 4
Department of Employee Relations 6
Department of Human Services 6
Iron Range Resources and Rehabilitation Board 7
Department of Military Affairs 8
Minnesota State Lottery 8
Minnesota State Colleges and Universities 11
Minnesota Zoological Gardens 17
Department of Natural Resources 17
Ombudsman for Crime Victims 19
Pollution Control Agency 20
Sentencing Guidelines Commission 20
Department of Transportation 20
Veterans Home Board 21
Appendix I. Entities With No Reported Bartering Arrangements 23

The following members of the Office of the Legislative Auditor prepared this report:
Claudia Gudvangen, CPA Deputy Legislative Auditor Patrick Phillips, CPA Senior Auditor

Ching-Huei Chen Auditor

Background
State agencies generally buy goods and services with money. However, some agencies obtain goods and services through barter arrangements. Because there is no monetary exchange, the transactions are not recorded in the state's accounting records and there has been limited information available about the type and magnitude of these activities.

Laws of Minnesota (2001), First Special Session, Chapter 10, Section 38, Subd. 1, directed the Office of the Legislative Auditor to report on the use of barter arrangements by state agencies.
Specifically, the law provided:
By January 15, 2002, the legislative auditor shall report to the legislature and governor on agency use of barter agreements in furtherance of an agency's mission. The report shall list the type and approximate value of each agency's agreement or agreements.

Subdivision 2 of Chapter 10, Section 38, restricts state agencies from entering into bartering agreements valued at more than $100,000 with non-governmental entities after July 1, 2002, unless specifically authorized by law. The Minnesota State Lottery is exempted from this restriction.

Methodology
We asked state agencies to complete a survey form describing their involvement in bartering activities and estimating the value of the arrangements. We focused on fiscal years 2000, 2001, and the first two months of fiscal year 2002. We told the agencies to use a broad definition of "barter," specifying that it should include any trade of goods and/ or services for goods and/ or services, without an exchange of money. We also asked the agencies whether they had a written agreement with the other party to the arrangement. We received responses from all of the executive branch agencies, or components of agencies, that we surveyed. The following table provides information on bartering arrangements reported for 20 state agencies. Appendix I identifies the 69 state agencies with no reported bartering activities.
We note the following regarding the information provided in the table:
Because barter arrangements are not recorded or reported in any systematic manner, our accounting is based on self-reporting by the state agencies. Also, because there is not a standard well-understood definition of barter, it is probable that there are inconsistencies in the reported data. Some agencies may have reported certain arrangements that other agencies would not consider to be barter. We reviewed the information reported for reasonableness and, in some cases, discussed a barter arrangement with agency staff. However, we did not otherwise attempt to independently ensure the completeness of the reported information.

Some agencies reported fairly detailed information on individual barter arrangements, while other agencies provided a more general description of the types of arrangements they were party to. The fact that the table may show numerous entries for one agency and more limited information for another agency does not necessarily represent the magnitude of bartering engaged in by the agencies. Some agencies were able to provide an estimate of the value of the goods or services obtained or provided through barter arrangements. However, other agencies said the value of the arrangements was unknown.

Conclusions
It was not our objective in this review to reach a conclusion on the propriety of individual barter arrangements or on the use of barter generally. However, in some cases, the reported information does raise questions that we will pursue in subsequent audits of these entities. For example, as a general rule, we believe that if a state agency engages in bartering activities, it should have a written agreement with the other party so that all expectations regarding the arrangement, and the responsibilities of the various parties, are clear. Similarly, we think agencies should have records or an inventory of the various bartering arrangements.

Special Review:

State Agency Barter Agreements

Department of Administration

The department’s arrangements consisted primarily of sharing resources in exchange for fiber optic/network capacity and maintenance of property. In addition, the department initiated contracts, primarily land use agreements, for other state agencies. The department prepared contracts for the Department of Corrections (for facilities in Lino Lakes, Rush City, Shakopee, and St. Cloud) and the Department of Human Services (for the Regional Treatment Centers in Anoka and Fergus Falls). The department also prepared contracts for the Iron Range Resources & Rehabilitation Board, the Department of Transportation, and the Veterans Homes Board. The agreements negotiated by the department for these other agencies are listed under the agencies receiving the goods or services.

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

01

Central MN Distance Learning Network

Use of network video equipment

$37,000/yr

Fiber optic capacity

$37,000/yr

Yes

00

Central MN Distance Learning Network

Network management services

$15,000/yr

Surplus network capacity

$15,000/yr

Yes

00-01

UCN Connecting MN Project

206 miles of freeway right-of-way

Unknown

175 miles fiber optic use with 96 strands, 31 miles, 2-10 conduits

Unknown

Yes

01-02

Catholic Charities

Use of 500 square feet of land

Unknown

Control of differing elevations at common property line and maintenance of property

Unknown

Yes

00-03

US West Communications

Non-exclusive use of 239 square feet of space for remote switch module

Unknown

Provision of and maintenance of equipment to meet communication needs

Unknown

Yes

Department of Agriculture

The department’s arrangements consisted primarily of sharing staff and equipment for cooperative work projects and training.

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

U. S Food and Drug Administration

Space, supervision, and equipment usage

$51,686

1.5 full time equivalent staff performing lab work

$150,000

Yes

02

U.S. Department of Agriculture

Work/inspection of slaughter or meat processing plants under federal jurisdiction

$35,000

Work/inspection of slaughter or meat processing plants under state jurisdiction

$35,000

Yes-pending

00-02

Pollution Control Agency

Dairy inspectors assist dairy farmers to comply with MPCA’s feedlot rules

$6,000

Training to MDA dairy inspectors on feedlot issues

$22,500

Yes

00-02

University of Minnesota

Non-paid student internship

Unknown

Assistance in grants project

$5,000

No

Board of Social Work

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00

Board of Dentistry

Technical assistance by system administrator

$6,607

Use of database server

$6,607

Yes

Campaign Finance & Public Disclosure Board

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Legislative Auditor

N/A

Internet and e-mail access through OLA

$432/yr

No

Center for Arts Education

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00

City of Golden Valley

Old football field

Unknown

Conversion to soccer field

Unknown

Yes

 

Department of Children, Families & Learning

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Department of Natural Resources

Support services

Unknown

Aquatic education specialist providing educational programming for youth

Unknown

Yes

Department of Corrections

The commissioner of Corrections is authorized by statute to permit social service, educational or rehabilitation agencies to utilize facilities, staff, and other resources of the correctional facilities. The commissioner is also empowered to lease buildings for business or commercial enterprises deemed to be consistent with the proper training and rehabilitation of inmates. Arrangements that have written agreements were negotiated through the Department of Administration.

Lino Lakes Correctional Facility

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

01-05

MN High Technology Foundation

Use of 8,400 square feet of space

Unknown

Vocational training for inmates

Unknown

Yes

02-05

Stillwater Systems, Inc

Use of 2,800 square feet of space

Unknown

Vocational training for inmates

Unknown

Yes

Rush City Correctional Facility

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

2 Farmers

Use of 84.5 acres of land

$2,100

Weed control and maintenance

$2,100

Yes

Shakopee Correctional Facility

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

01-02

University of Minnesota

Use of 1,100 square feet of land

Unknown

Gardens and services for community

Unknown

Yes

St. Cloud Correctional Facility

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-05

Joint Powers Board

Use of 2 residences for juvenile detention

Unknown

Services for community

Unknown

Yes

00-05

City of St. Cloud

Use of 60 acres of land

Unknown

Nordic trail for the public

Unknown

Yes

Stillwater Correctional Facility

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00

Washington County

Land to dump snow

Unknown

Parking lot sweeping equipment

Unknown

No

Department of Employee Relations

The department reported arrangements that involved sharing space and services with other state agencies.

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

01-02

Department of Finance

Classroom for training

Unknown

Office space

Unknown

No

01-02

Minnesota Planning

Library materials for other agency use

Unknown

Library space and services

$22,000

No

Department of Human Services

The department’s bartering arrangements primarily involve use of land at various facilities. Arrangements with written agreements were negotiated through the Department of Administration.

Anoka Metro Regional Treatment Center

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Anoka Hennepin Technical College

Storage of lawn mower and lawn equipment

$200

Use of mower and equipment

$150

No

00-02

Dept. of Transportation

Lawn mowing

$75

Road maintenance

$100

No

00-02

City of Anoka

Use of 7 acres of land

Unknown

Community recreational program and maintenance of property

$190

Yes

01-03

Charlie Peterson Community Gardens

Use of 615,000 square feet of land

Unknown

Community garden and maintenance of property

Unknown

Yes

02-06

City of Anoka

Use of 290,000 square feet of land

Unknown

Playground for the public and maintenance of property

Unknown

Yes

00-04

Brainerd Lakes BMX Association

Use of 122,500 square feet of land

Unknown

Recreational facility for youth and maintenance of property

Unknown

Yes

Fergus Falls Regional Treatment Center

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-03

City of Fergus Falls

Use of building and land for solid waste incinerator plant

Unknown

Minimization of landfill use and the ability to utilize steam generated

Unknown

Yes

00-02

Minnesota Public Radio

Antenna site

Unknown

Communication to the public

Unknown

Yes

St. Peter Regional Treatment Center

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Department of Transportation

Plowing, weed whip guardrails, building usage, and staffing

Unknown

Salt and sand, road sweeping, repair, materials, and equipment

Unknown

No

Extended Treatment Options

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Red Cross

Storage space for teaching materials

$1,890 max

Training pamphlets, videos, and CPR classes

$600 -$3,000

No

Iron Range Resources and Rehabilitation Board

This arrangement was negotiated through the Department of Administration.

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-04

Friends of the IRIC, Inc.

1,025 square feet of space

Unknown

Memorial exhibit to the late Governor Rudy Perpich at Ironworld

Unknown

Yes

Department of Military Affairs

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-01

City of Minneapolis

Use of 12 classrooms

$1,080

Access to meetings for National Guard

Unknown

No

00-01

Minneapolis ISD

Use of drill floor space

$300

Snow removal

$500

No

00-01

Patrick Henry School

Use of drill floor space

$300

Recruiting display space

$300

Yes

00-01

City of Minneapolis

Use of drill floor space

$300

Parking lot striping

$800

No

00-01

City of Thief River Falls

Use of drill floor space

$250

Forklift/bucket truck use

$250

No

00-01

City of Hastings

Use of drill floor space

$180

Parking lot sweeping and sanding

$250

No

Minnesota State Lottery

The use of barter is a significant aspect of the overall marketing strategy at the Minnesota State Lottery. The arrangements involve numerous television and radio stations, as well as lottery retailers and other for-profit entities. The values reported are the approximate retail value of the goods provided and received and do not include any value attributable to increased lottery sales or goodwill.

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00

Lottery retailers statewide

Lottery merchandise

$425,000

Merchandise, promotional media, and signage

$600,000

No

01

Lottery retailers statewide

Lottery merchandise

$386,000

Merchandise, promotional media, and signage

$523,000

No

01-02

Hubbard Broadcasting

Powerball – The Game Show

Unknown

23 minutes air time Saturday

$90,000/yr

Yes

01-02

KBJR-TV Duluth

Powerball – The Game Show

Unknown

23 minutes air time Saturday

$31,000/yr

Yes

01-02

KTTC-TV Rochester

Powerball – The Game Show

Unknown

23 minutes air time Saturday

$31,000/yr

Yes

00-02

Approximately 68 cable television networks

Environmental Journal Show

Unknown

30 minutes of air time, approximately 183 times per year on cable access

$1.4-$1.9 million/yr

Yes

00-02

Approximately 56 radio stations

Environmental Journal Show

Unknown

2 minutes of air time at least once a week on each station

$200,000/yr

Yes

00-02

Approximately 70 radio stations

Players Spotlight Radio Show

Unknown

2 minutes of air time approximately once a day on each station

$511,000/yr

Yes

00

Rainbow Foods (Whirlwind Promotion)

Lottery tickets, merchandise, and special point of sale signage

$115,000

Merchandise, promotional media, and signage

$441,000

No

00

Cub Foods (Ribfest)

Lottery tickets and merchandise

$59,000

Promotional media and merchandise

$9,000

No

01

Cub Foods (Spamtastic Promotion)

Lottery tickets, merchandise, and sports events tickets

$59,000

Promotional media and merchandise

$6,000

No

00

Cub Foods (Women’s Expo)

Lottery merchandise

$22,000

Booth space

$1,000

No

 

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

01

Women’s Expo

Lottery tickets and merchandise

$22,000

Booth space, promotional media, and signage

$1,000

No

02

Kraus (Clerk Incentive)

Lottery tickets and merchandise

$6,000

Merchandise

$5,500

No

00

Tom Thumb (Crossword Sales Incentive)

Lottery tickets and merchandise

$4,000

Merchandise

$10,000

No

01

Oasis Market

Lottery tickets and sports events tickets

$3,700

Merchandise

$2,000

No

00

Little Stores (Gopher 5 Promo)

Lottery tickets

$500

Merchandise, promotional media, and signage

$2,000

No

01

Little Stores (Rolldown Incentive)

Lottery tickets

$2,700

Merchandise, promotional media, and signage

$4,000

No

02

Little Stores (Bayfront Blues)

Lottery tickets, merchandise, and special point of sale signage

$2,200

Promotional media and merchandise

$2,500

No

02

Little Stores (Good Neighbor Promo)

Lottery tickets

$2,000

Promotional media and merchandise

$15,000

No

00

Cenaiko Sports Trade Show

Lottery tickets, merchandise, and special point of sale signage

$14,150

Promotional media and booth space

$31,000

No

01

Super America (Cabin Fever Days Promo)

Lottery tickets and merchandise

$2,400

Promotional media and merchandise

$700

No

01

Econo Foods (Be a Wealthy Wabbit Promo)

Lottery tickets and merchandise

$1,500

Promotional media and merchandise

$4,600

No

00

Pioneer Press (State Fair)

Lottery tickets

$5,000

Promotional media and signage

$56,000

No

01

Star Tribune (.com promo)

Lottery tickets

$1,500

Promotional media

$1,400

No

02

Star Tribune (Gopher the Buck Auto Promo)

Lottery tickets

$12,000

Promotional media

$172,000

No

00

Little Falls Arts and Craft Fair

Lottery merchandise

$11,100

Promotional media and booth space

$400

No

01

Little Falls Arts and Craft Fair

Lottery merchandise

$7,400

Promotional media and merchandise

$400

No

02

Little Falls Arts and Craft Fair

Lottery merchandise

$7,300

Promotional media and booth space

$400

No

02

Country Music WE Fest

Lottery tickets and merchandise

$7,000

Merchandise

$53,000

No

00

Richmond River Days

Lottery tickets and merchandise

$5,000

Promotional media and booth space

$1,500

No

01

Richmond River Days

Lottery tickets and merchandise

$4,800

Booth space, promotional media, and signage

$1,500

No

02

Richmond River Days

Lottery tickets and merchandise

$6,700

Merchandise, promotional media, and signage

$2,000

No

02

Waseca County Fair

Lottery tickets

$800

Merchandise, promotional media, and signage

$5,000

No

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00

Marshall Ford (Auto Armory Sale)

Lottery tickets and merchandise

$3,000

Promotional media and merchandise

$21,000

No

00

Kato

Lottery tickets and sports events tickets

$3,000

Promotional media

$4,000

No

02

Kato

Lottery tickets and merchandise

$1,600

Promotional media

$6,500

No

02

Kato (Trucker Appreciation Days)

Lottery tickets

$100

Promotional media

$500

No

01

KFAN (Bobblehead sponsor)

Lottery merchandise

$20,000

Promotional media

$225,000

Yes

01

KTTC-TV (Wheel Deal)

Lottery tickets and merchandise

$12,000

Promotional media

$42,000

No

01

KTTC-TV (Powerball)

Lottery tickets and merchandise

$1,200

Promotional media and merchandise

$14,000

No

02

KTTC-TV (Wheel Deal)

Lottery tickets and merchandise

$10,000

Promotional media

$42,000

No

02

KTTC-TV (Drawing Station Promo)

Lottery tickets and tickets to sporting events

$800

Promotional media

$5,000

No

02

KXLP/KYSM

Lottery tickets and merchandise

$5,800

Promotional media

$15,000

No

02

KSTP-TV (Saints Promo)

Lottery tickets

$3,200

Promotional media and merchandise

$72,000

No

00

KYMN (Let’s Light Up Northfield)

Lottery tickets

$2,500

Promotional media

$4,000

No

01

KYMN (Let’s Light Up Northfield)

Lottery tickets and merchandise

$2,800

Promotional media

$4,000

No

00

KTOE

Lottery tickets

$2,400

Promotional media, and merchandise

$12,000

No

02

KTOE

Lottery tickets

$2,400

Merchandise, promotional media, and signage

$15,000

No

02

KXLP

Lottery tickets

$2,400

Promotional media

$56,000

No

01

KEYC-TV

Lottery tickets

$500

Promotional signage

$100

No

01

KDJS Radio

Lottery tickets

$2,000

Merchandise, promotional media, and signage

$32,000

No

02

KDJS Radio

Lottery tickets

$2,000

Promotional media

$13,000

No

00

KBJR (Millennium Promo)

Lottery tickets

$2,000

Merchandise, promotional media, and signage

$11,000

No

00

KLGR (Home Show)

Lottery tickets

$600

Promotional media and signage

$5,000

No

01

KLGR (Home Show)

Lottery tickets

$600

Promotional media and signage

$4,700

No

00

KMHL (Millennium Promo)

Lottery tickets

$2,000

Promotional media and signage

$4,000

No

02

KROC (Sandy Point Car Classic)

Lottery tickets

$1,600

Promotional media and merchandise

$10,000

No

00

KRUE/KOWO (Waseca County Fair)

Lottery tickets

$1,000

Merchandise, promotional media, and signage

$8,000

No

01

KRUE/KOWO (Waseca County Fair)

Lottery tickets

$1,000

Merchandise, promotional media, and signage

$5,600

No

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00

KARP

Lottery tickets

$1,000

Promotional media

$5,000

No

01

KWWK (Powerball Game Call-in)

Lottery tickets

$200

Promotional media

$1,000

No

01

KWNG (2nd Annual Summer Fun Giveaway)

Lottery tickets

$1,500

Promotional media

$18,000

No

02

KWNG (3rd Annual Summer Fun Giveaway)

Lottery tickets

$1,500

Promotional media and merchandise

$18,000

No

01

MSC (U of M sponsor)

Lottery tickets and merchandise

$350

Promotional media and merchandise

$1,300

No

01

MSC (Bobblehead sponsor)

Lottery merchandise

$3,200

Promotional media

$125,000

Yes

01

WJJY (4th of July Parade)

Lottery tickets

$1,000

Promotional media

$6,000

No

02

WJJY (4th of July Parade)

Lottery tickets

$1,000

Promotional media

$6,000

No

00

RK Radio Network

Lottery tickets

$650

Promotional media

$6,500

No

01

Rochester Radio Group

Lottery tickets

$200

Promotional media and merchandise

$1,300

No

Minnesota State Colleges and Universities (MnSCU)

The MnSCU institutions enter into various arrangements for goods and services, primarily relating to the use of space on the campuses. Two state universities also have arrangements with for-profit entities for goods or services in support of athletic programs. In addition to the arrangements shown, institutions said they had agreements with both profit and non-profit organizations to provide academic learning to students in exchange for work provided by the students.

Anoka Hennepin Technical College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

02

Mate Precision Tooling

Training

$5,000

In kind and resource support

$5,000

No

Dakota Technical College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

01

City of Eagan

2 police cars

$7,400

Future training

$7,400

Yes

Hibbing Community College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

High School

Use of football field

$6,000

Maintenance (mowing, repair, striping, seeding) of football field

$6,000

Yes

Inver Hills Community College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00

Dakota County

Landscaping/technical assistance for Inver Glen Library

$25,460

Orientation parking overflow

$433/yr

Yes

00-02

Dakota County

Snow removal, sanding of parking lot, mowing, landscaping

$11,870/yr

Signage

$25,000

Yes

Itasca Community College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Kootasca Inc./Kids Inc.

Space, including the utilities and cleaning

$17,000

Childcare services for students

$20,000

Yes

02

Blandin Paper Co

Priority training for Blandin Paper Co.

$10,000

Space downtown, including utilities

$20,000

Yes

Metro State University

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

St. Paul Police

Parking for patrol cars

Unknown

Increased Police Department visibility for security

Unknown

No

 

Minneapolis Community and Technical College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

St. Mary’s Basilica

Ramp parking on Sundays

$15,000

Basilica allows Martin Luther King celebration

$15,000

No

00-02

Children’s Dental Services

3,000 square feet of space for clinic

$31,500

Dental oversight/management to dental students

$31,500

Yes

Minnesota State University, Mankato

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Department of Transportation

Free use of large tree spade

Unknown

Salt/sand for streets at no charge

Unknown

No

00-02

South Central Technical College

Off-site storage of computer backup tapes for SCTC

Unknown

Off-site storage of computer backup tapes for MSU,M

Unknown

No

00-02

Numerous car dealerships

A small number of free tickets to athletic events

Unknown

Free use of vehicles for athletic coaches to use during season and for recruiting

Unknown

No

Minnesota State College-Southeast Technical

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

State Workforce Center

Office Space

$350,000

Remodeled space and co-location of a collaborative partner

$350,000

Yes

00-02

Nonprofit

Space and facility rent and reduction costs for day care providers

$5,000

Vouchers and services to students at reduced costs

$7,500

Yes

North Hennepin Community College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-01

Chamber of Commerce

As available classroom seats for continuing education and contract training

Unknown

Advertising in Chamber of Commerce publications

N/A

No

01-02

Concordia College

Space for class

Minimal

Promotion of NHCC Business ASAP Program

minimal

No

Northwest Technical College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

School Districts

Room usage at college

$2,000

Room usage at school districts

$2,000

No

Rainy River Community College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

School Districts

Use of theater, softball field, gym

$6,000

Use of weight room, football stadium

$6,000

Yes

00-02

Holiday Inn

Folding chairs, podium

$3,000

Free use of banquet facilities

$3,000

No

Riverland Community College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

School districts

Space for television station

$25,000

Technical consultant

$25,000

Yes

00-02

City of Austin

Baseball field land

Unknown

Building and maintenance of fields

$180,000

Yes

Rochester Community and Technical College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Civic League Day Nursery

Buildings and equipment for day care center

$50,000/yr

Convenient, low cost day care services for students/staff

$20,000/yr

Yes

00-02

City of Rochester

Use of parking lots, sports fields

$10,000-$20,000/yr

Maintain land/sports fields

$10,000-$20,000/yr

Yes

00-02

School District #535

Use of college bleachers at high school for football and soccer games

$2,000-$3,000/yr

RCTC football team uses high school field for home games

$2,000-$3,000/yr

No

00-02

School District #535

Facilities for training sessions

$100/yr

Employees attend sessions free

$100/yr

No

00-02

Department of Transportation

Use of facilities for meetings/training sessions

$100/yr

Sand for roads and parking lots in winter

$100/yr

No

00-02

U.S. Postal Service

Facilities for training session

$100/yr

RCTC employees allowed to attend session for free

$100/yr

No

South Central Technical College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

City of North Mankato

Use of softball fields

$3,500

City maintains fields, including fertilizing, mowing, and refuse removal

$3,500

No

Southwest State University

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Southwest Area Multi-County Multi-Type Library

450 square feet of office space

$4,500

Individual to work at reference desk, 5 hours per week during fall and spring semesters

$4,500

Yes

St. Cloud State University

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Hotels, auto dealers, restaurants

Athletic tickets, hospitality, parking passes

$18,000

Cars, hotel rooms, meals, equipment for recruiting and fundraising

$54,700

No

00-02

Dept. of Transportation

Training

$15,000

Help upkeep of roads, vehicles

$15,000

Yes

00-02

School district #742

Facility use

$5,000

Use district #742 athletic/recreation facilities

$5,000

No

00-02

City of St. Cloud

Facility use

$5,000

Parking space

$5,000

Yes

00-02

St. Cloud Area Economic Development Part.

Supplies and printing of newsletter 3/year

$3,454

Membership dues credit

$3,454

No

00-02

St. Cloud Catholic Diocese

Use of SCSU challenge course

$2,500

7 acres of land for challenge course

$2,500

Yes

00-02

United Way

Supplies and printing of newsletter 3/year

$600

Labor reimbursement

$840

No

00-02

WebCT

WebCT campus partner

Nominal

WebCT campus edition

$4,200

Yes

00-02

Microsoft Exchange

Higher education partner

Nominal

Microsoft Exchange client access license

$45,000

Yes

00-02

Schmitt Music

Facility use, piano sale, and advertising

Unknown

Use of pianos and purchase discounts

$70,000

Yes

St. Cloud Technical College

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

St Cloud State University

Room use

$4,500

Shared equipment purchasing between institutions

$37,000

No

00-02

University of Minnesota

Classroom use

$3,600

Local instructors attend classes

Unknown

Yes

00-02

Central Lakes College

Classroom use

$960

None

Unknown

Yes

00-02

MN Water Operators/MN Rural Water Associations

Room use

$960

Free registration for college instructors and students

$7,800

No

00-02

ARC St. Cloud

Room use

$640

Advertising

$750

Yes

00-02

ICAR

Welding lab use

$640

Free classes for college instructors

$800

No

00-02

Northstar Paint

Room use

$640

Paint, tools, equipment, and miscellaneous new products

$4,115

Yes

00-02

Penn State University

Room use

$480

Free registration for college instructors

$1,100

Yes

00-02

Providers Choice

Room use

$360

Advertising

$750

Yes

00-02

Minnesota Technology, Inc.

Room use

$160

Advertising

$500

Yes

00

Census 2000

Room use

$120

Public relations

Unknown

Yes

00-02

Boy Scouts

Room use

$80

Public relations

Unknown

Yes

00-02

Reach Up/Head Start

Room use

$60

Contract for other rentals

Unknown

No

00-02

Ron's Cabinet

Room use

$60

Public relations on future job skills grant

Unknown

Yes

00-02

MN Society for Professional Surveyors

Room use

$360

Training for college instructors

Unknown

No

Minnesota Zoological Gardens

The Minnesota Zoo offered admission tickets in exchange for radio advertisements to 50 radio stations throughout Minnesota, and to additional stations located in Iowa, North Dakota, South Dakota, and Wisconsin. The Zoo also had an arrangement with Northwest Airlines for airline travel.

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

01

Radio stations

Admission tickets

$73,000

Radio commercials

$73,000

Yes

00-01

Northwest Airlines

Northwest Airlines acknowledged as sponsor of the bird show

$25,000

Credit in airfare for staff and board members

$25,000

Yes

00-02

Northwest Airlines

Northwest Airlines acknowledged as sponsor of An Evening in the Tropics

$20,000

4 round-trip tickets to Indonesia

$20,000

Yes

Department of Natural Resources

The department entered into a variety of barter arrangements through its various divisions. These included numerous cooperative-farming agreements with individuals or family farm corporations and other cooperative agreements with state organizations and local units of government.

Wildlife

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Individuals or family farm corporations

Cooperative farming, including hay, pasture, salvage crops, etc.

$155,072 (partial)

Mowing, weed control, and miscellaneous services

$99,532 (partial)

141 of 152

Parks

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Individuals

Cooperative farming, including hay, share of seed, etc.

$23,040

Mowing, weed control, misc. services, etc.

$47,650

8 of 11

Waters

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

01

Board of Soil and Water

Meeting facilities and related services

$5,000

Communications consultant

$5,000

No

 

Minerals

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Dept. of Transportation

Equipment operator for gravel samples

$2,000

Drill rig with auger and 50 ft. attachment

$5,000

Yes

 

Trails and Waterways

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Governmental and private organizations

Use of equipment, operator and materials for accesses, fishing piers, and trails

Unknown

Maintenance by public or private organization

Unknown

Yes

 

Forestry

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Dept. of Transportation

16 DNR radio tower sites

$24,000/yr

20 MnDOT radio tower sites

$30,000/yr

Yes

00-02

U. S. Forest Service and counties

State forest roads used for forest management, including logging traffic

Unknown

U. S. Forest Service and county roads used by DNR for forest management

Unknown

Yes

00-02

Individuals

DNR land for crop production at reduced cost

$3,200

Partial corn crop left on land for wildlife food

$3,200

Yes

00-02

Counties or townships (5-10)

Road grading service

$1,000-$5,000

Road grading service on state forest roads

$1,000-$5,000

No

Fisheries

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

02

State of Michigan

None to date; fish exchange expected in future

N/A

3,000,000 fertilized Chinook salmon eggs

$45,000

No

00-02

U. S. Fish and Wildlife Service

437,000 eyed lake trout eggs and walleye fry

$15,940

120,000 stockable lake trout for Minnesota waters of Lake Superior

$90,000

No

00

Minnesota Muskie Farm

Muskie fingerlings and yearlings

$5,250

Tiger Muskie fingerlings and yearlings

$5,250

No

00-02

Leech Lake/White Earth Indian Reservations

Walleye eggs

$315,000 (3 years)

In-kind services for rearing and stocking of walleye fry and fingerlings

$375,000 (3 years)

Yes

00-02

University of Minnesota and Children, Families and Learning

Aquatic education specialists to provide educational help and programs to youth

$96,000

Office space, clerical support, and supplies

$96,000

Yes

00-02

Hennepin Parks

Intern to provide programs at parks

$3,700

Office space and supplies, use of park van, and workers’ compensation

$3,500

Yes

00-02

Local government or local fishing/conservation groups

Purchase and installation of lake aeration systems (6/year)

$21,500 per unit

Operation and maintenance of the aeration system

$2,500/yr

Yes

Enforcement

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

State agencies

Instructors and training

Unknown

Tuition waivers

$9,000-$12,000

No

Ombudsman for Crime Victims

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

01

For profit

Present an hour of training

$100

Reduced conference registration fee

$160

No

Pollution Control Agency

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-01

Department of Natural Resources

PCA’s Mini-boom fish shocking boat

$8,000

DNR’s Mini-boom fish shocking boat

$8,000

No

00-01

Dakota County

Master Entity System data for 200 sites

$105

County data (including GIS) on sites down to parcel level

$105

No

Sentencing Guidelines Commission

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Department of Corrections

Information on projected bed counts

$5,000

Administrative Services

$5,000

No

Department of Transportation

The Department of Transportation engages in various bartering arrangements, primarily with cities and counties. These arrangements typically involve an exchange of services including use of equipment or storage of equipment and materials. However, the department does not maintain an inventory or other records of these arrangements. The department could not estimate the number or value of barter arrangements throughout the state. The first arrangement identified below was negotiated by the Department of Administration.

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-04

Cellular Mobile Systems of St. Cloud

Antenna site

Unknown

Use of tower for equipment placement

Unknown

Yes

00-02

University of Minnesota

Use of portable weigh scale site for research on pavement sensors

$300,000

Construction of a 1-story building and electrical, water, sewer, and high-speed communication lines

$300,000

Yes

02

County

Allow county to build a truck station on MnDOT property at MN/Road site

$20,000/yr

Maintenance services including snowplowing, sanding, mowing, and minor pavement maintenance at site

$20,000/yr

Yes (pend-ing)

00-02

Cities and counties

Various services such as equipment storage, salt storage, and equipment use

Unknown

Various services such as sand/salt delivery, street sweeping, snowplowing

Unknown

No

Veterans Home Board

The first arrangement was negotiated by the Department of Administration.

FY

Arrangement with

Goods/Services Provided

Value

Goods/Services Received

Value

Written

00-02

Lametti and Sons, Inc.

Access to bluff to facilitate agreement with U.S. Army Corp of Engineers

Unknown

Construction of a new road and sidewalk on Minneapolis Veterans Home’s campus

Unknown

Yes

00-02

Department of Veterans Administration Medical Center

Space for clinical services

$24,000

Nurse practitioner, clinical access, and educational services

$24,000

Yes

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