A Performance Audit of the Utah Telecommunication Open ...

Table of ContentsDigest .................................................................................................................................. iChapter I Introduction ................................................................................................... - 1 -UTOPIA Is a City-Owned Telecommunications Network .......................................... - 1 -Audit Scope and Objectives ........................................................................................ - 3 -Chapter II UTOPIA Faces a Challenging Financial Situation ......................................... - 5 -UTOPIA’s Ambitious Goals Have Not Been Met ....................................................... - 5 -UTOPIA’s Bond Proceeds Were Not Put to Productive Use .................................... - 13 -UTOPIA Used Bond Proceeds to Cover Operating Costs and Debt Service ............. - 19 -Chapter III UTOPIA’s Financial Woes Attributed To Many Different Causes .............. - 23 -Poor Planning, Mismanagement, and Unreliable Partners Led to UTOPIA’s PoorPerformance ............................................................................................................. - 23 -A Lack of Sufficient Subscribers Also Contributes to UTOPIA’s Condition .............. - 32 -Chapter IV Improved Accountability Will Increase Likelihood of Success .................... - 39 -UTOPIA Has a New Development Plan Aimed at Avoiding Past Mistakes .............. - 40 -UTOPIA Can Improve Accountability through Better Management Controls .......... - 42 -UTOPIA Can Strengthen Its Financial Controls ....................................................... - 47 -UTOPIA’s Board of Directors Can Provide More Effective Oversight ...................... - 51 -Recommendations .................................................................................................... - 56 -Appendices ................................................................................................................... - 57 -Appendix A .............................................................................................................. - 59 -Appendix B ............................................................................................................... - 65 -Agency Response ......................................................................................................... - 73 -