A Terlton city clerk has found herself accused of embezzlement after an audit of the city’s finances were ordered by Pawnee County District Attorney Rex Duncan back in April. Rhonda Walker (42), who has served as town clerk and treasurer since 2009 was arrested on ***** by the Pawnee County Sheriff’s Office after that audit reflected that the numbers did not add up. Brenda Holt, CPA and Audit Manager of the Special Investigative Unit for State’s Auditor and Inspector’s Unit, along with Leslie Runion, auditor, conducted the audit and discovered misappropriations of city funds in the amount of $77,506.40. Their audit used bank statements, financial reports, deposit sources and the city’s board meeting, dating back to January of 2009, according to a probable cause affidavit filed December 18 of this past year. Those records indicate that there were 411 disbursements over that period of time and of those, 240 were made payable to “CASH” and endorsed by Walker. In addition, two checks were also endorsed by Chandler Kaufmann who is identified as Walker’s son. There is also one check only endorsed by Kaufmann, the affidavit reads. A trace of revenue sources of franchise checks and tax warrants to deposit revealed that the amount of $109.91to the Alcohol Beverage Tax was issued to the town on September 3, 2010 and cleared the bank on the tenth was not deposited in the town’s accounts. The overall audit found that the town reports prepared and presented to the city council were bogus, according to the affidavit.