"We have two ways of auditing them already," said Commissioner Bruce Clegg, "so we think [an annual audit] is way redundant."
By far, the biggest contributor of the "mitigation fees" covered under the 2006 ordinance is EnergySolutions, which operates a mile-square hazardous and radioactive waste landfill about 80 miles from Salt Lake City.
Under a contract written nearly two decades ago, the company is obligated to give the county up to 5 percent of its annual revenue from the site.
Most years mitigation fees equal one-quarter to one-half of the county's annual budget. In 2006, it was $5 million. An independent audit showed the company overpaid by $13, said Clegg.
"We don't have any reason to suspect anything," he said. "And, if we do, we can run an audit or have an independent auditor do one."
Clegg said County Attorney Doug Hogan will present information about the audit repeal at today's commission meeting.
His mother is Joyce Hogan, a lobbyist for EnergySolutions in Tooele County.
Some, like former County Commissioner Matt Lawrence, oppose the idea. He calls the need for annual audits a "no-brainer."
"As a business, you account for all your money," he said. "Why would government be any different?"
The county has taken in about $40 million from EnergySolutions since the 2003 audit, he said. And there are no CPAs or other audit professionals on staff prepared do such complicated reviews, he added.
In 2003, County Auditor Michael Jensen got heat when he said there were no county records of the audits. He said he kept none because he wanted to protect the privacy of the company, which was called Envirocare of Utah at that time.
Meanwhile, in Barnwell County, S. C., revenues from a similar disposal site - operated since 2006 by EnergySolutions - are scrutinized each year by the state public service commission. Each year, the first $2 million in profits go to the county; the company can keep no more than 29 percent profits; and finances are detailed publicly: www.energy.sc.gov/publications/FY07 Distribution of Revenues.pdf.
Utah State Auditor AustonJohnson said public policy standards do not require such audits. Whether or not to have them is up to the commission. But he added that it is appropriate to have controls in place to monitor such funds.
fahys@sltrib.com
Meeting today
The Tooele County Commission meets today at 3 p.m. in Room 310 of the county courthouse building, 47 S. Main St., Tooele. Discussion of repealing the annual audit of mitigation fees is listed as the 13th item on the agenda.
