An investigation after receiving a complaint of a misappropriation of funds in the Town of Federalsburg has revealed that Town funds were used to purchase personal items and that various financial errors were made that cost the Town to spend money unnecessarily. In a posting to the Town of Federalsburg’s Facebook page, the Town also learned that some personnel policies were not followed and that inappropriate discussions were taking place in the workplace. The Mayor and Council say that the Town has been reimbursed for the personal and inappropriate purchases and the Town Manager is working to rectify and improve personnel and financial management. The Town is also in the process of issuing an RFP for qualified firms to complete a forensic audit of the Town’s finances.
Additional information from the Town of Federalsburg:
While we feel it is important that our citizens are aware of the issues the Town faces, we have decided to not release the specific complaints received at this time to avoid the risk of liability for releasing confidential personnel information.
The Mayor and Council have a financial fiduciary responsibility to maintain adequate oversight of Town funds and are considering additional measures to implement to assist and improve the Town’s financial stability, including reviewing disbursements on a monthly basis, and developing and adopting necessary standard operating procedures. The Town is also in the process of issuing an RFP for qualified firms to complete a forensic audit of the Town’s financials.
Most importantly, we are committed to improving the Town of Federalsburg through citizen engagement, efficient service, efficient budgeting and spending, prioritization, and ensuring accountability. We look forward to improving the Town together.
Mayor and Council of Federalsburg
