Town Council President, Brian Lucas announced the resignation of Clerk Treasurer Tim Osha Friday morning.
In August, Town Council members asked the Indiana State Board of Accounts to audit the city's book keeping.
The audit showed money coming out of the wrong accounts, with all signs pointing to Osha.
"Accounts would come up with money in them that should have already been written out," said Lucas. "Come to find out the money had been deposited and it wasn't taken out of the correct account."
Lucas says the alleged transactions were made on the town's credit card.
Indiana State Police then launched an investigation and served a search warrant at Osha's house. The search resulted in the confiscation of items that Osha allegedly bought using city money.
Lucas calls the situation disappointing, but he says he's focused on moving forward.
"When you work with someone for that long it can't help but affect you," said Lucas. "But we still have to be true to the job we're given and that's to protect the interests of the town's people."
Indiana State Police have wrapped up their investigation. The Warrick Co. Prosecutor's Office is now reviewing the case.
Officials have not revealed how much money was allegedly stolen, but say it's less than $30,000