Utah State Auditor, John Dougall, will investigate allegations into three things:
1. The city’s utility and enterprise fund transfers and corresponding rates
2. The city’s entertainment and travel expenses
3. The alleged $7 million in sewer bonds that is missing
Read more about the state's response here.
Sam Allen, an Eagle Mountain resident, said he is excited the state plans to look further into his report. Allen compiled a report on the city’s finances and submitted it to the state.
“Accounting scandals usually aren’t sexy, but this thing has legs,” Allen said.
One of the main concerns in Allen’s report was the transfer of funds from the city’s Utility fund to the General fund. According to the state, they will examine whether Eagle Mountain City did conduct their transfers within the legal framework.
Eagle Mountain City Administrator Ifo Pili said the city has nothing to hide.
“We look forward to the state auditor coming through and doing whatever investigation they need to so we could put this to rest and move forward,” Pili said.
The state auditor has placed the investigation on their list of special projects, but could not say when they will start looking into each allegation.
There were also questions surrounding Eagle Mountain City’s offshore account in the Cayman Islands.
The Office of the State Treasurer said the use of offshore investment sweeps is common and legal under the Money Management Act. They also said such accounts have been in use by corporate and public treasurers in the state for many, many years. Read the report here.