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4, FOR IMMEDIATE RELEASE MEDIA CONTACT: Michelle Wolfe City Administrator P: (651) 634-5127 michelle.wolfe ii ci.arden-hills.mn.us Official Media Statement ARDEN HILLS-December 9,2005-On Monday, June 27, the City of Arden Hills staff became aware of some irregularities involving City finances. The irregularities appeared to involve a City employee. Immediate actions were undertaken to investigate the irregularities and substantiate the facts. These steps included contacting the Ramsey County Sheriff's Department, City Auditor, and City Attorney. On Wednesday, June 29,the City staff met with a Ramsey County Deputy Sheriff to report information uncovered to date and to initiate a complaint. A criminal investigation began at that time. The City of Arden Hills was in possession of enough information to determine that fraud was committed against the City. As a result, the City Administrator recommended to the City Council at a Special Meeting on August 19'h that the employment of Sandra Berres, Finance and Human Resources Assistant, be terminated on the basis of dishonesty in the performance of duties. Upon approval of the recommendation by the City Council, the termination was effective immediately. The City contracted with their auditing firm to conduct an internal review process dating back to November 2000. The process resulted in the discovery of altered checks totaling approximately $225,000. All records relating to the internal review process were provided to the Investigation Unit of the Ramsey County Sheriff's Department. The Department then continued the criminal investigation,resulting in a report being filed with the Ramsey County Attorney. The City Council and staff are profoundly disappointed in the actions taken by this employee and greatly dismayed by the resulting impacts on the City organization. A great deal of faith is placed in our employees. We believe we conducted a process to determine the extent of the situation and are actively putting procedures in place to prevent such acts in the future. The City of Arden Hills is committed to providing a strong community that values our fiscal soundness and our tradition as a desirable city in which to live, work and play. Our employees continue to carry out their duties with dedication and diligence. The City takes this matter very seriously and is fully cooperating with all investigative agencies in an effort to resolve this matter as quickly and as effectively as possible. '�