Some former Dawson City officials have responded by letter to Community Services Minister Glenn Hart's invitation to comment on a high-profile forensic audit performed on the town's troubled finances.

Ex-mayor Glen Everitt's lawyers, however, had little to say in the face of a continuing RCMP investigation into how some of the town's finances have been handled.

Following the release of the Doddington Report audit and financial review on March 31, Hart invited the individuals mentioned in the report who believed they were personally affected by its findings to submit principled responses to the government.

They were tabled in the legislature Thursday afternoon.

The $460,000-forensic report, completed by B.C.-based auditor Ian Doddington, suggests three former municipal officials owe the town more than $200,000.

Everitt owes the city $107,608, former treasurer Dale Courtice owes $33,521 and former town manager Scott Coulson owes $60,543, the report concluded.

The owed money is related to expenses not properly justified or charged to the town without proper approval, as well as money used for personal expenses, the report said.

Everitt received money that should not have been paid out to him, including $11,000 in vacation pay, the auditor found.

Coulson's expenses include invalid claims in vacation pay, car allowance and per diems, the audit said.

Courtice owes for a payment to a resident health facility, personal airfare to Victoria and vacation pay that should not have been received, the report argued.

Everitt, who appears to owe the town the most money, had his lawyers respond to it by simply stating:

'It is our understanding that the Royal Canadian Mounted Police are currently investigating the issues raised in the report; and, pending the outcome, Mr. Everitt respectfully declines the minister's invitation to provide a principled response.''

Coulson's lawyers also responded in a letter. They stated the City of Dawson has refused to pay for legal expenses which have arisen because of his work with the town and, as such, he is 'unable to provide a thorough and complete response to the Doddington Report.'

Coulson's response goes on to criticize the method in which information was collected, saying, 'You have asked him to provide a response to the Doddington Report without providing him with full disclosure of documentation, transcripts and the opportunity to cross-examine.'

The letter adds: 'It should be noted that many hundreds of thousands of dollars have been spent on the Doddington Report without our client ever having been interviewed and given an opportunity to deal with any issues or concerns prior to the Doddington group reaching their conclusions.'

The Doddington Report does acknowledge the three ex-officials were not spoken to and admits they may be able to explain what happened.

However, in a supplementary report issued Tuesday, in response to the officials' letters, Doddington indicates 'that our investigation was a forensic audit and financial review and not an inquiry where witnesses would be examined and cross-examined under oath.'

(Everitt has stated he had several appointments scheduled with the auditors during their research on Dawson's finances, but that the auditors cancelled them all.)

Coulson's lawyers say in the letter that he has 'at all times repaid the City of Dawson for any personal expenses.'

They go on to add that should there be additional expenses which have not been brought to his attention, if he is provided with the specifics, they will also be repaid.

Former treasurer Courtice provides the most critical response to the report and writes on his own behalf.

His letter states: 'Generally I find the report's allegations of wrong doing on my part to be misleading and, in some cases, false.'

Courtice goes on to defend himself on several issues in question.

He contends he co-operated fully with the investigation until July 2004, when he was 'immediately and wrongfully dismissed.'

He adds if there were problems with journal entries or accounting functions while he held the position of treasurer, no criticism nor fault was ever brought to his attention.

Courtice also takes issue with the report's suggestion that he 'disguised' the cost of transactions, such as Coulson's relative's airfare. His letter indicates he recorded the purpose of the expenses as they were told to him.

Courtice adds he had been led to believe any money he received in relation to the residential health facility expenses, acting pay or vacation pay had been approved and fully authorized.

'During my employment with Dawson City, I discharged my duties to the best of my ability, faithfully, honestly and without wrong doing,' he states.

'At no time, did any one indicate to me that I was not doing so. I received no criticism from any mayor, any chief administrative officer, any employee, any auditor or anyone else with respect as to how I was discharging my responsibilities.'

Doddington's supplementary report refutes Courtice's arguments, and in essence suggests he should have known better.

The supplementary report indicates that as an officer of a municipality, Courtice should have likely known the nature of the approval of some of the money he received was unusual. It says the money should have likely been approved by way of a minute or resolution in council.

The report also says the Management Employment Bylaw shouldn't have permitted leave with pay under Courtice's circumstances.

Doddington accepts Courtice may have been led to believe the extra pay was intended for that period, but maintains that according to the bylaw, it still shouldn't have happened.

Past auditors for Dawson City, BDO Dunwoody, also responded to the forensic report by stating that 'It is important to consider that a forensic audit is a significantly more extensive undertaking than a municipal audit.'

However, Doddington indicates a response of 'if we had been paid more, we could have reported more' is invalid.

The supplementary report says an auditor is bound by the Municipal Act regardless of the size of the community or the fee the auditor is paid.

BDO Dunwoody's letter goes on to say they feel they did bring concerns to the City of Dawson.

Doddington agrees some problem areas were brought to the attention of the town. However, it adds there were major omissions, including loans and other inappropriate payments, 'window dressing' of balances due, and the withdrawal of funds from bank accounts without proper approval.

The supplementary report says the auditors failed 'to disclose that there were serious irregularities in the manipulation of the outstanding balance.

'Taken together, these deficiencies and breaches of Finance policy showed a fundamental and unacceptable lack of effective control over the approval of invoices and payments in a public body and, in the circumstances, warranted proactive special efforts to ensure that this was brought to the attention of Council and the Inspector,' the report adds.

The territorial government fired Everitt and Dawson's council in April 2004 following growing concerns about the town's financial troubles. It was burdened by a debt of $4.3 million.

Ray Hayes, the government-appointed trustee, has been running the town's affairs since. Hart has indicated a new mayor and council will be elected later this year.