SALT LAKE CITY — After its longtime director Ken Bullock resigned earlier this year, the day a state audit reported questionable spending practices, the Utah League of Cities and Towns has named a new director.
The league's board of directors announced this week that it selected Cameron Diehl, the league's director of governmental relationships and staff attorney, out of a nationwide pool of 146 candidates.
"Diehl emerged as the clear choice with his sound professional judgment and unmatched knowledge of the complex issues affecting Utah's communities," said Steve Hiatt, Utah League of Cities and Towns president and Kaysville mayor.
Diehl said he is "honored and humbled by the opportunity" to work with local municipalities to "prepare for the future and preserve Utah's quality of life."
Beginning Oct. 16, Diehl will succeed the league's interim executive director, Roger Tew, who was appointed following State Auditor John Dougall's audit into the league.
The audit reported Bullock improperly charged about $57,000 to the taxpayer-funded group's credit card for personal purposes — including to watch his son play basketball for Stanford University — and racked up about $130,000 in questionable charges due to lack of receipts.
The day that audit was published, Bullock resigned. Prior to the audit, he'd repaid most of the funds back, but still owed about $11,000 likely due to inaccurate record keeping, auditors said.
Friday, the league's legal counsel, David Church, said Bullock's outstanding dues had been paid.
Because auditors said Bullock's use of the league's credit card essentially resulted in loans to himself rather than embezzlement, they did not recommend a criminal investigation.
Auditors did, however, recommend a criminal investigation for Bullock's employee, former chief financial officer Michelle Reilly, who the audit says embezzled the league's funds by charging more than $26,000 in personal expenses to the group's credit card, as well as more than $57,000 in "questionable" purchases due to lack of receipts. Reilly resigned last August.
Auditors also recommended recovery of about $26,000 from Reilly, but Hiatt said those funds have not yet been repaid. Reilly did not respond to requests for comment on Friday.
Hiatt said the league sent a letter to the Salt Lake County District Attorney's Office to inform it of the auditor's call for a criminal investigation, but he hasn't heard whether that investigation has taken place.
Chief Deputy District Attorney Blake Nakamura said Friday said his office did receive that letter and there was "some inquiry," but he didn't have information about the status of the investigation.
"We haven't pursued anything at this point, but I can't say that it's all entirely wrapped up," he said.
After the release of the first audit, Dougall's office continued their investigations into a mysterious trust fund they discovered when reviewing the league — a trust separate from the league's finances called the Utah Municipal Cooperative II, which league board members had no knowledge of.
Months later, auditors concluded that the trust, which was managed by Bullock and Reilly along with several other trustees, contained public money and should have been terminated years ago, in 2012.
The trust, which contained about $1.3 million when it was created in 1993 for the purpose of benefiting the Utah League of Cities and Towns, has since dissolved.
Auditors, however, concluded the trust had not been used inappropriately, even though it hadn't dissolved on time and its finances were not reported regularly to the league's board.
When the trust was dissolved, the league received $320,000 — the trust's remaining balance with the exception of $75,000 to handle closure expenses, taxes and attorney fees that accumulated while Bullock and Reilly disputed matters with the state auditor.
Hiatt and Diehl said they're both optimistic that the turmoil over the last several months will be left in the past as the league starts a new chapter with new leadership.
"It's been a long, challenging year, but I'm pleased to know that we have now gotten to a point where these issues are behind the league," Hiatt said. "We have a new executive director who understands the needs of local governments and its citizens, and I feel that we have emerged a better organization."
Diehl credited the league's board for already enacting new policies and procedures to ensure better accountability to taxpayers and board members.
"I applaud the board of directors, interim director and league staff for taking the initiative to address concerns that arose in the past," Diehl said. "We are excited about a bright future ahead."
The annual salary budgeted for the executive director's position is $150,000, Hiatt said.
Diehl's contract is still under review, Hiatt said, but it's expected to be ratified next week.