When game wardens from across North America were invited to a conference in St. Paul last year, the Minnesota Department of Natural Resources rolled out the welcome mat -- and pulled out the taxpayers' checkbook.

Far fewer people than expected came for the three days of training and entertainment. Fundraising from private donors also was disappointing. So the DNR's enforcement division pumped $196,000 in state money and an estimated $187,000 in staff salaries to make the annual conference a success, according to financial reports reviewed by the Star Tribune.

Some of the state's 204 conservation officers also solicited private donations for the conference -- a practice one DNR official says was improper -- and all were required to attend. Officers were paid, and those from outside the metro area stayed in downtown hotels at state expense.

Thanks partly to the state aid, organizers of the 26th annual North American Wildlife Enforcement Officers Association Convention earned a $76,600 profit, state records show. The state didn't share in the profits.

One DNR manager was so opposed to the state's involvement that he resigned the day before the conference. And since the Star Tribune began asking questions, state officials have said two investigations will be launched.

The DNR enforcement division also now finds itself strapped for cash because of tight state revenues, and is considering $160,000 in program and staff cuts.

Legislative Auditor James Nobles said today that the newspaper report raised credible allegations and that his office would investigate whether state funds were used appropriately and whether potential conflicts of interests existed in fundraising for the conference.

Nobles said his office will do a "preliminary assessment" to determine what information will be sought during the investigation. He said all of the auditor's powers, including questioning witnesses under oath, could be used during the investigation. He said he didn't know how long it would take.

DNR Commissioner Mark Holsten said last week that an internal auditor also will review conference spending and fundraising. He said that he supported Minnesota's hosting of the event, and that "on the surface" what was done seems legal. But he said agency officials have conflicting views on the legality of employees soliciting money on state time for such an event.

Rep. Rick Hansen, DFL-South St. Paul, who serves on legislative committees that oversee the DNR, said he was never told about the conference spending even though he attended meetings with agency officials about conservation officer training.

Minnesota in spotlight

The game warden conference is held in a different place every year and considered a plum for the resources agency in the host state or province.

Col. Mike Hamm, director of the DNR enforcement division, led the effort to bring the 2007 conference to Minnesota. His wife, Capt. Cathy Hamm, a supervisor in the DNR enforcement division, played a key role in organizing the event. In 2005, she and three other DNR officials spent $7,400 in state funds to travel to British Columbia to make Minnesota's successful bid to host the game warden group, state records show.

Capt. Hamm and other DNR employees spent a significant amount of work time planning the event, according to internal e-mails. But the division didn't track those hours, so it is not possible to tell how much employee time was involved.

Former DNR Commissioner Gene Merriam, who left office at the end of 2006, said he supported hosting the conference, but never authorized state funding for it. The money was authorized in 2007; the spending requests were signed by the deputy commissioner. Col. Hamm said he believed Merriam knew of plans to spend state money on the event. Hamm said no line-item for the event appeared in the DNR budget, though other DNR officials knew state money would be used.

"I don't think anybody knew the final dollars until they came out, so I fully understand the surprise at the end," said Col. Hamm.

Even so, he said, the conference "was a wise use of taxpayers' dollars," because Minnesota officers received better training than they get at annual sessions held at Camp Ripley.

The conference also offered fishing on Lake Mille Lacs, a boat cruise and a fish fry. Some events were on days before the official opening. About 200 officers' spouses, guests and family members came to the conference at the Crowne Plaza Hotel St. Paul-Riverfront.

The financial report prepared by Capt. Hamm and others last year said if Minnesota hadn't paid to send all its conservation officers, who made up nearly half of the conference delegates, "this conference would not have been successful." Under a profit-sharing formula that excluded the state, about a third of the profit went to the Minnesota Conservation Officers Association, the conference's local host, and the union representing most conservation officers. The rest went to the 8,000-member international game wardens group known as NAWEOA.

Six months after the conference, the DNR paid its final share of the meeting expenses -- $35,500 to the state conservation officers group. That payment was made after officials knew the group would profit from the event. Some of the group's profits will go to its charitable offshoot, the Minnesota Game Warden Foundation, said its head, retired conservation officer Brad Schultz.

Officials of those two organizations and the DNR said nobody discussed skipping that final DNR payment. Holsten, the DNR commissioner, said the state was obliged to write the check, which covered contracted training-related expenses. NAWEOA officials did not return calls for comment.

Tried to raise money

State money might not have been needed if conference organizers had been more successful raising private funds.

But getting donations was a challenge, and it didn't help that questions arose about whether fundraising by state employees during work hours was legal. One major effort was a solicitation letter, prepared on state computers and bearing the conservation officer logo, sent to nearly 600 companies and groups. "We received very few donations back," the financial report said.

Conservation officers also were enlisted to solicit donations, and given blank donation receipts in the name of the game warden foundation, but listing the DNR central region address. Col. Hamm said all of the fundraising was legal, citing a directive he issued in October 2006.

Another DNR official has pointed to a state law that bars state employees from using their position to benefit a group they are associated with. The conference donations and profits went to the conservation officer-related groups, including its union.

When the fundraising question arose, Jerry Hampel, assistant administrator in the DNR Office of Management and Budget, wrote an e-mail in January 2006 to an enforcement division manager. It said: "State time should not be used for fundraising. This is state policy and we must follow the rules. Mike (Hamm) is aware of the commissioner's position."

Hamm said Hampel is wrong, adding that he wouldn't risk his career if he thought on-the-job fundraising was unethical or illegal. Hampel said he stands by his position.

Another DNR official who had concerns is now-retired Capt. Perry Bollum, former head of the wetland enforcement program, who said he refused to do conference planning or fundraising because it took time away from protecting natural resources.

On the day before the conference, Bollum left the agency, taking early retirement after a 31-year career. He said he hadn't planned to retire at that time, but he wanted nothing to do with the conference.

He fears public disclosure will reflect badly on field officers. He said it shouldn't.

"This was not their idea; it was a management idea," Bollum said. "Unfortunately, these are the kinds of things that go on in DNR when managers put self-promotion and their egos and political gains ahead of sound ethical business decisions. ... The people of the state of Minnesota deserve better."