6. See the excerpt below from the City of Dixon financial statements. Do you believe that management had any responsibility in detecting the fraud? Why or why not? CITY OF DIXON Notes to Financial Statements April 30, 2012 NOTE 20 - MANAGEMENT EVALUATION OF SUBSEQUENT EVENTS Management has evaluated events subsequent to the year ended April 30, 2012 and up to the date of the financial statements. Three events have occurred which require disclosure in these financial statements The City has contracted to purchase a fire truck in the amount of $819,032. Of this amount, $400,000 will be funded by grant proceeds. The remaining amount is being financed through a loan with First Bankers The City expects to collect substantial funds through the sale of the former City Comptroller's personal assets that were purchased with funds that were misappropriated from the City. As of the date of this report, only one amount is probable and estimable and therefore included within the City's basic financial statements. Approximately $9,500,000 will be received from assets that have already been sold. Additional funds should be received above and beyond this figure before the matter is ultimately settled. The former City Engineer also admitted to using $13,521 in City funds for personal expenses. Although he repaid $4,800 prior to vacating his position, the balance remained unpaid up until the date of his resignation Upon his resignation, no repaid the $8,631 balance along with 5% interest to the City 1