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She is so widely known that the association announced her arrest on its website and promised those inquiring more information when it was available. "People are shocked," Campbell said of the reaction from the industry. Dixon placed Crundwell on administrative leave without pay and named a new interim comptroller. Trying to explain how that much money could disappear unnoticed, Mayor James Burke said Dixon has struggled financially with big infrastructure expenditures, reduced revenues and cash flow problems made worse because the state is far behind on income tax disbursements. That provided plausible reasons to think the extra hole in the budget was related to those financial problems, he said. How Crundwell could sustain such an extravagant lifestyle on an $80,000 salary was mostly attributed to her success in the horse industry, Burke said. "She definitely was a trusted employee, although I've had some suspicion for quite a while just because of her lifestyle she lived," Burke said in an interview. "But there wasn't anything that was brought to my attention or that I could see that would give cause to think that there was something going on." He said the city has appointed an independent panel that includes a certified public accountant, a banker and an attorney to recommend internal financial controls. Marianne Shank, director of the Illinois Government Finance Officers Association, said more training is needed for officials in setting up such controls, including requiring dual signatures in issuing checks, monthly cash flow reports to document budget shortfalls and comprehensive annual financial reports. "The concern I hear most often is that there are not enough staff to have checks and balances," she said. Auditors also talk of the need to divide up financial duties among different staff members, each one acting as a potential check on the other, said Steve Carter, city manager for Champaign, Ill. "It's a good lesson for all cities that these things happen and can be very dramatic if you're not careful and really stress the importance of having those checks and balances in place," he said.
[Associated
Press;
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