The Office of the Utah State Auditor released an audit summary Thursday of its limited review of Vineyard City and its redevelopment agency, finding the city was not transparent in the use of public funds and that the RDA operated without Tax Entity Committee involvement.

The auditor’s office said the city omitted transaction reports that involved “substantial” payments from its RDA to developers in its submissions to the state’s finance website.

“This could raise public suspicions that those payments were intentionally hidden,” the auditor’s office said.

The report also stated that the last time Vineyard’s RDA’s budget was approved by the Taxing Entity Committee was in 2010 and that the TEC had not convened to review or approve the RDA’s action since.

“Failure to ensure all taxing entities actively participate creates public concerns about the legality of Vineyard Redevelopment Agency actions,” the report stated.

Moreover, the auditor’s office said Vineyard did not fully disclose information related to property tax abatements in its annual financial statement, and observed that a current policy ordinance adopted by the Vineyard City Council to allow expenditures of up to $125,000 without council approval was “very high” and “inadvisable” for the city, albeit not in violation with state purchasing code.

“Our independent review underscores the critical importance of transparency in government,” said State Auditor Tina Cannon in a statement. “Vineyard City and its Redevelopment Agency have a responsibility to openly and accurately report how public funds are used. Reporting to Transparent Utah is not optional–it is a key component of building public trust and ensuring accountability. Through meaningful oversight, the Office of the State Auditor helps safeguard taxpayer dollars and ensure compliance with both legal requirements and governmental accounting standards.”

Vineyard responded to the report in a statement sent to the Daily Herald on Thursday and claimed the auditor’s office never found “evidence of misuse or mismanagement of public funds.” The city also said the findings instead highlighted “technical compliance items and transparency opportunities, many of which Vineyard had already implemented prior to the conclusion of the review.”

“We are pleased that the State Auditor’s review found no evidence of misuse or mismanagement of public funds,” Mayor Julie Fullmer added in the statement. “We agree with the helpful Auditor’s recommendations, have already implemented them, and view them as a valuable opportunity to further strengthen our systems of transparency and public engagement.”

The state auditor made the following recommendation to Vineyard in its report:

• “Vineyard City adopt a formal policy requiring that financial information submitted to the Transparent Utah website be replaced or updated when additional transactions are recorded after the original file submission.”
• “Vineyard RDA convene a Taxing Entity Committee (TEC) meeting at least annually to align with the intent of TEC Resolution 2009-01 and promote greater transparency and communication with all participating taxing entities.”
• “Vineyard City begin including tax abatement disclosures in its financial statements as required by Governmental Accounting Standards Board guidance, as it does not currently include them.”
• “Vineyard City should review its current purchasing policy. The current $125,000 threshold for Council involvement is very high and inadvisable for an entity of its size.”
• “Vineyard City and the RDA Board should consult legal counsel to assess the financial and operational implications of the upcoming dissolution of the Alpine School District and evaluate the potential impact of this change, consider disclosing any material effects in the financial statements, and develop a plan to inform the public regarding the role and actions of the RDA during this change.”

Governed by the City Council, Vineyard’s RDA was created to fund projects to improve the Geneva Steel Mill site.