The City of Demorest fired its bookkeeper on Wednesday less than 24 hours after launching an internal probe into more than $275,000 in missing city funds.
Altea Muller of the Duluth-based accounting firm, Muller & Partners, CPA, was terminated effective immediately. Demorest Mayor, Rick Austin, issued a press release saying, “The termination is immediate and is based upon the learning that the accounting/bookkeeping services provided to the City of Demorest did not meet accepted standards and delayed the City’s discovery of fraud.”
A 13-month long investigation into Demorest’s 2012 finances uncovered $222,000 missing. A more recent audit conducted by the Clarkesville-based accounting firm of Duncan & Kitchens uncovered an additional $53,661.21 missing in 2013.
Demorest City Spokesman, Sammy Smith, says Muller was a contract worker and had worked at Demorest City Hall for the last four or five years. Now Habersham reached out to Muller at her Duluth office for comment but was unable to reach her.
The Demorest Mayor and Council unanimously passed a resolution Tuesday night to launch an internal investigation into the missing money. The vote followed a two hour long closed door meeting between the Mayor and Council and representatives from various agencies including the Mountain Judicial Circuit District Attorney’s office and GBI. Chief Assistant District Attorney, Eddie Staples, accountants Joe Kitchens and Joey Duncan, Demorest City Attorney, Joseph Homans and Demorest Police Chief, Greg Ellingson, were among those in attendance.
The resolution passed by Council Tuesday states that, “…the City of Demorest has concluded that the loss of city money in the years 2012 and 2013 is not due to computer or human error…” It goes on to state that “…the City of Demorest has evidence that fraudulent activity by one or more persons is the only explanation of the missing city money.” The resolution invokes section 2.16 of the city charter entitled “Inquiries and Investigations.” Demorest will conduct an internal investigation subject to the city charter and, if needed, engage law enforcement agencies in its investigation.
The call for an internal investigation comes on the heels of a forensic audit and GBI investigation. The forensic audit, conducted by the Atlanta-based accounting firm, Frazier & Deeter CPAs and Advisors, revealed $222,000 missing in 2012 but offered no explanation as to where the money went.
Austin refused to release details about the internal investigation Tuesday but did say, “We will not stop until we find those who are responsible for the taking of the city’s money.”
