Two Terre Haute City Councilmen have a conflict of interest under state law.

According to an audit published last week by the Indiana State Board of Accounts Councilmen John Mullican, D-6th, and George Azar, D-at large, were both informed by auditors that they must file written disclosure statements any time they sell goods or services to “the governmental entity” they serve. Mullican, who owns Goetz Printing and Copy Center in Terre Haute, and sold printing services to the city police and fire departments during 2011.

Azar’s Saratoga Restaurant catered a “workshop” for the Terre Haute Wastewater Utility the same year. Mullican’s sales to the city totaled a little over $3,000 while Azar’s catering bill for the workshop was almost $800.

Both councilmen, have said they didn’t know of the requirement.

Mullican said he has stopped doing business with the city in light of the audit.