The long-awaited audit into Dawson City's finances paints a picture of misuse of money by the former mayor, treasurer and city manager.

The $460,000 report, written by B.C.-based auditor Ian Doddington, states that three former Dawson City employees owe the town a combined total of more than $200,000 for various charges and cheques.

Doddington argues some of the expenses are not properly justified, did not have proper approval, or were for personal use.

The three staffers who are hit in this report are former town manager Scott Coulson, former mayor Glen Everitt and former treasurer Dale Courtice.

The report refers to the trio only by their titles mayor for Everitt, treasurer for Courtice and CAO2 for Coulson. His official title is Chief Administrative Officer (CAO) and he was the second one to hold that job between 1997 and 2004, the period the auditor reviewed.

' Management by bad example' may best describe the recent administration of Dawson. At a minimum, the mayor's conduct and, to a certain extent, that of the CAO2 (Coulson) and the treasurer was irresponsible,' Doddington wrote about Everitt, Coulson and Courtice.

According to the report, Everitt is the biggest debtor of the trio, owing $107,608.69 to the town.

Doddington reports that the town's books show that Everitt owed the community $49,452.82.

Everitt has spoken about these debts in the past and said that some were for trips that were supposed to be paid for by other organizations. He said he was having a hard time getting the reimbursements for these trips.

However, beyond the $49,000, Doddington argued that Everitt owes the town another $58,155.07 for payments which the auditor argued should not have been paid out to him.

The auditor argues that the mayor was given more than $11,000 in vacation pay that he should not have received.

As well, it argues he received $3,960.80 that he should not have been granted.

It is also listed that Everitt received $12,500 in a retroactive salary increase which the auditor called invalid.

Doddington wrote it is possible the ex-mayor may have overlooked providing the supporting documents for some of these expenses and if he does so, the total of what he owes the community will be reduced.

The auditor also talks about Everitt's travel and the fact nothing seemed to be done about it by the council.

'It is unclear to us why council at times tacitly supported the mayor's extensive and often unauthorized travel and absence from the municipality. The records of council frequently disclose no purpose or objectives for the travel, leaving council with no basis to be satisfied that the travel and absence from the municipality was required in the best interest of Dawson,' the report states.

'Citizens expressed concern about travel, credit cards and many other aspects of financial responsibility or irresponsibility at city hall. Unhappily, it appears that council had an area of willful blindness' when it came to matters, such as the conduct of the mayor, particularly concerning his use of Dawson's funds and his travel and credit card expenses.'

The report states that Coulson owes the town $60,542.97.

Some of the charges, according to Doddington, include $17,296.80 in RRSP overpayments. There's $7,465.54 for travel allowance which the auditor indicate was an overpayment.

The auditor states that the town manager was given a $7,693.13-vacation payment, along with a car allowance of $4,800. Doddington ruled both of these payments invalid.

He also writes that Coulson claimed more than $8,200 in per diem over a three-year span that he had no authority to claim.

'On two occasions, in early 2003, CAO2 charged to the Dawson credit card, airfare for travel by two of his relatives,' Doddington wrote about Coulson.

'One of the transactions was done, in part, by using a Dawson credit balance with the airline. The treasurer disguised' the cost of these transactions in the accounting records by recording one transaction as water sewer training expense' and the other transaction was charged to recreation centre'.'

As for the treasurer, Courtice, Doddington states he owes the community $33,520.77.

The extra money to Courtice includes $8,741.67 for payment to a residential health facility, $359.52 for an air ticket to Victoria; $11,096.13 in overpayment for acting pay and $13,323.45 for vacation pay he should not have received.

'In February 2003, the treasurer travelled to Victoria. $359.52 of the air ticket cost was charged to accounts receivable bill AYC (Association of Yukon Communities)'. This appears to have been a personal trip since the treasurer noted that his hotel bill for the same trip was personal'.

'The charge stayed in accounts receivable for a year until the amount was written off to travel benefit expense,'' Doddington wrote about one of the charges.

As for the residential health treatment payment of $8,741.67, the auditor writes that Coulson authorized the town's payment and charged it to staff wages and benefits'.

'The treasurer received full salary for the period although payments from short term disability insurance were received by Dawson. The expenditures were not in compliance with the (management employment bylaw) which authorizes an unpaid leave of absence in circumstances such as this.

'While on unpaid leave because of a disability, the employee would have been entitled to receive payments under the short term disability coverage.'

Doddington, in his report, talked about the various expense claims he deemed improper.

'In some claims, it is apparent that the breach was intimated or specifically authorized by the mayor. We noted some examples where it appears that the travel expense claim form for other councillors and/or city managers was actually prepared by the mayor,' he wrote.

However, it appears that while Doddington goes after these three for inappropriate expenses, he does not talk to them for explanation.

Everitt has told the Star that he never met with the auditor even though they had meetings scheduled on more than one occasion. Everitt said any time he went to meet with Doddington, the encounter would be cancelled.

Doddington also admits in his report that the officials in question may be able to explain what happened.

'The CAO2 and treasurer may be able to provide Dawson with valid and appropriate documentation, other than what we have considered, which would give a different understanding of these and similar transactions.'

The territorial government fired Everitt and his council in April 2004 and appointed a trustee to run Dawson's affairs.