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Posted on: November 9, 2018

Statement Regarding Potential Misappropriation of City Funds

Last week, while performing work on the City of DeKalb’s 2019 budget, a senior-level City employee discovered a financial irregularity involving potentially misappropriated funds in last year’s budget.

As a result of this discovery, which involved the possible misdirection of $250,000 from one fund to another in order to plug a deficit, the City has taken the following steps:

• It has launched an internal investigation to determine the facts related to this matter.

• It has conducted a review and confirmed that there are no other funds that are outside of the City's normal reporting and audit procedures which could be subject to use of this nature.

• Last Monday, the City placed Interim City Manager, Molly Talkington, on paid administrative leave pending the outcome of these investigations. The City has not concluded whether there was or was not any misconduct but took this measure in an abundance of caution. In the absence of Ms. Talkington, Interim Assistant City Manager, Raymond Munch, will fulfill the duties of City Manager in an acting capacity, pursuant to City Code, until such time that formal action is taken by the City Council.

If the City’s internal investigation reveals that the misappropriation of funds was in violation of our policies and standards, the City will move to hold all responsible parties strictly accountable.

It is important to point out to taxpayers that at this stage, this alleged wrongdoing has not resulted in any missing funds. Every dollar involved in this possible misappropriation of funds has been accounted for; all money was spent for official City business; and funds will be made whole in the coming days.

As stewards for DeKalb’s overall financial health, it is our expectation that those entrusted to oversee the use of taxpayer dollars – especially those in leadership positions – do so

responsibly, ethically and in strict adherence to established procedures and the law. When that does not occur, it is our obligation to ensure that responsible parties are held accountable.

Due to the sensitive nature of the City’s internal investigation, the City is not able at this time to provide further detail. Going forward, however, it is the City’s commitment to its residents to manage this situation forthrightly, transparently and in a timely manner.

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