WYOMING

Cheyenne city Treasurer Frederika Barela resigned Monday at the request of Mayor Leo Pando, following the third year of unsatisfactory audits, according to the mayor's office.

At a reading of the preliminary audit report with the City Council, Barela admitted knowing about unreconciled bank statements of up to $600,000, according to published reports. Pando said Barela had not sent him reports about the bank statements for several months.

The city's independent auditor said it was considering giving the city a qualified report, meaning statements in the city's books may not be an accurate picture of its financial status.

Accounting director Barb Dorr will become the interim city treasurer.

The resignation comes after a report by the U.S. Department of Housing and Urban Development that said the city provided inadequate oversight of its Housing and Community Development Office. As a result, the city may have to repay $100,000 for problems cited in the report.

The City Council is considering having an internal auditor oversee its 63 departments and divisions, in an effort to make the city more efficient. The position may be part-time or contracted out.