LINCOLN- On Tuesday, Nebraska State Auditor MikeFoley released a letter that his office had sent to officials representing the Village of Carroll, outlining how Clerk-Treasurer Jamie Muhs allegedly manipulated the town's accounting system for personal benefit. According to Foley, the matter has been turned over to the Wayne County Attorney's Office, the Nebraska Attorney General's Office, and the State Patrol.

As Carroll's clerk and treasurer for a decade, Muhs, who resigned last May, had complete oversight of the village's financial and utility billing process. That, according to the auditor, included the power to issue payments for village expenses and to claim credits on utility customer accounts for payments received.

According to the auditor's probe, which reviewed three years of records, the village's potential losses in that timeframe totaled roughly $40,000. Alleged in the audit report was that Muhs had fixed the village's books to show that she had paid $2,668 of her own utility bills. The auditor also took "strong exception" to the clerk's ability to secure 32 separate reimbursement payments for office supplies that totaled $8,957, as no documentation exists to show that she had purchased these.

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