Audit Reveals 55-Year Overlook in DNR's Land Inventory Reporting

The Department of Natural Resources excels at choosing lands for acquisition, yet the procedure is overly lengthy. Moreover, the agency hasn’t produced the statutorily mandated report on the inventory of DNR-managed land after 55 years, as noted by the Office of the Legislative Auditor.

The agency’s inability to disclose its property assets publicly, which was mandated by legislation enacted in the 1970s, drew the most scrutiny from legislators on Friday during the presentation of an assessment detailing how effectively the organization adheres to protocols for acquiring land and fulfilling reporting obligations.

In the biennial inventory process, the DNR is required to provide an update on extra lands they intend to obtain. Out of Minnesota’s total 51 million acres, the state owns 11%, with the DNR overseeing all except for 1% of this owned territory.

We acknowledge the failure," Assistant Commissioner Bob Meier told members of the Legislative Audit Commission. "I'm sorry that we have not attempted this previously.

Meier stated that the DNR is seeking for the Legislature to revoke the statute mandating a biannual inventory of state properties since this data can be accessed through other public formats.

His expression of regret did not go over well with multiple legislators. Meier, who has been an executive at DNR for a long time, mentioned that he was unaware of this requirement's existence.

"It's astounding that year after year after year, the DNR fails to fulfill its obligations," stated Representative Duane Quam, a Republican.

Quam expressed disappointment and felt it was misleading when the DNR suggested repealing the biennial reporting requirement due to the administrative effort involved. However, Quam also pointed out that the agency informed legislators the data "is readily available; you just have to look."

"I'm agitated," he stated during the hearing.

Republican Senator Mark Koran stated that both citizens and legislators require the historical data provided by conducting a land survey every two years. Additionally, he voiced dissatisfaction with the Department of Natural Resources for not fulfilling their obligation to inform the Legislature about the land deals executed during fiscal years 2023 and 2024.

The audit also highlighted an extra delay and noted that the DNR's land acquisition report for Fiscal 2022 failed to list every purchase and sale transaction.

Senator Steve Drazkowski, a member of the Republican party, advised Meier that the Department of Natural Resources (DNR) should address its overdue annual reporting obligations without delay. Should the DNR wish to eliminate the long-standing land inventory mandate, Drazkowski proposed that they introduce "a fresh legislative suggestion" rather than seeking an outright repeal, he stated.

The auditors gathered insights from multiple parties involved in DNR land acquisitions, such as employees, regarding how well these transactions were managed. When asked whether the DNR effectively chooses which lands to obtain, 63% of landowners concurred or strongly concurred with this statement. Similar responses were provided by partner entities, like nonprofit groups assisting in certain transfers. Additionally, 80% of DNR personnel affirmed that they believe the organization excels at picking suitable properties for acquisition.

However, when stakeholders were asked about their views on the timeframe for executing land agreements, most respondents indicated that they disagreed or strongly disagreed with the notion that the DNR’s procedure for obtaining land reaches completion within an acceptable period.

The review team examined 234 transactions carried out between 2020 and 2024. The median duration of acquisitions was 638 days, which equates to approximately 21 months.

The report cited an anonymous DNR employee who stated that excessively rigorous verification procedures "lead to delays that are nearly laughable."

The assessment highlighted that the DNR is collaborating with its partner organizations and the Lessard-Sams Outdoor Heritage Council to expedite their efforts. This 'ongoing enhancement' initiative began in 2023.

A persistent problem with DNR land acquisitions has been objections from various counties regarding additional purchases by the agency. According to auditors who polled these counties, 43% of those surveyed felt that the quantity of land the DNR aims to obtain within their jurisdiction is excessive. In contrast, 55% believed the proposed amount was appropriate, while only 3% thought it wasn’t enough.

The assessment team was led by Deputy Legislative Auditor Jodi Munson Rodriguez.

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