But it criticizes the city for its handling of a foundation that, for a short time, owned the buildings acquired with the grant.

That handling ran counter to open-government principles, the audit said.

“While the City may have complied with the letter of the law (GRAMA), it certainly did not comply with the spirit of the law - which includes providing citizens with answers to their questions about the use of their tax dollars,” the audit said.

The audit posted on the Utah Auditor's Web site says Ogden made a good-faith effort to turn the massive American Can complex into a high-tech center after it persuaded the Legislature to give it $900,000.

A high-tech campus with university and commercial researchers - a $25 million project Mayor Matthew Godfrey touted when he launched his campaign for a second term in office - never materialized.

One building in the complex was refurbished to house a charter high school - DaVinci Academy of Arts & Science - and this summer, American Can got its first commercial tenant, the sporting goods company Amer Sports.

The city plans to move its Business Information Center there once more buildings are remodeled.

But state Rep. Neil Hansen, D-Ogden, who requested the audit, argues the Legislature might not have given the grant if it knew a high-tech center would not be built.

And he's perturbed about two aspects he believes were ignored by auditors.

They did not probe a clause in the grant agreement that allowed the state to rescind the $900,000 grant if Ogden sold the buildings, which the city did almost immediately upon receiving the money, Hansen said.

And, the audit did not adequately address the fact that nearly $1 million in state money has now ended up in the Ogden City Foundation, which the audit concluded is a public entity because of its connections to City Hall.

“It's been shuffled into a foundation, but that's still taxpayer money, and that money needs to be accounted for,” said Hansen, who ran unsuccessfully in the Ogden mayoral primary last week.

Hansen and Ogden property owner Dorothy Littrell both asked for the audit after city administrators refused them access to a list of board members, articles of incorporation and financial statements for the foundation.

The audit also labeled the city's handling of the foundation as “severe” and “significant” deficiencies in its financial reporting.

The foundation should have been included in the city's financial statements, the audit said.

In a letter responding to a draft of the audit, Godfrey told State Auditor Auston Johnson that the foundation has filed amended articles of incorporation and bylaws that now match its purpose and operations.

The changes, the mayor said, make it clear the foundation should not be part of the city's financial statements.

Littrell called the audit “a waste of time.”

“They didn't sort out everything that needs to be sorted out."

kmoulton@sltrib.com