An audit of Eagle Mountain for fiscal year 2005-06 found that personal items were being purchased on city credit cards, using the city tax identification number.

The letter from the auditors, Gilbert & Stewart, reported that credit card charges and cellular phone charges were not being reviewed and that personal items were being purchased with the city sales tax exempt number.

According to the audit, personal items were purchased using the city cards three times during that fiscal year.

"The audit is a good check and balance. It helps us tighten up our systems," said Mayor Don D. Richardson.

The accountants stated in the letter, "We recommend that the city revisit the adopted policies and procedures for purchases and reimbursements and provide training and oversight to ensure that the policies are understood and observed."

In response to the audit, City Administrator John Hendrickson sent out a memo to all city department heads on March 19, restating the city's no tolerance policy for purchasing personal items with a city credit card.

That memo stated that there were "some limited personal purchases" since FY 2006 and states that it is against city policy and state code to purchase personal items on a city credit card, even if the city is reimbursed.

According to the memo, employees should "be advised that the city does not condone and prohibits the personal use of city purchasing cards. Employees who use city cards for personal use will be subject to discipline up to and including dismissal."

The policies and procedures were further reviewed with the staff in a monthly employee meeting held on March 29.

Speaking about the violations of the city's policies and financial procedures, Hendrickson said, "I want these things to go away on my watch. My goal is take care of it, so that these things don't come back. Where I find them, I am going to weed them out."

Gordon Burt, city treasurer, said that his department has already started collecting information for this year's audit and that some of the issues that arose in the 2005-06 audit had to do with staff changes and shortages.

"We are going to take these issues to heart. I am hoping next year the audit will say glowing things about our accounting department," Hendrickson said.

This story appeared in The Daily Herald on page D3.