News Photo by Kayla Wikaryasz On Thursday, the District Health Department No. 4 sign is seen inside the Alpena office entryway.

ALPENA — Health department money challenges are a result of state money clawbacks and “gross negligence,” “gross misjudgment,” or “unknown motivation,” according to Denise Bryan, District Health Department No. 4 (DHD4), administrative health officer.

At the June DHD4 meeting on Tuesday, Bryan disclosed to the health board that the department cannot recoup $700,000 due to a combination of state clawbacks and budget errors.

Bryan said it is unlikely there was any criminal misconduct regarding their current financial challenges.

“The probability is low that there was misconduct,” Bryan said, adding that it will not be ruled out until audit findings are revealed.

“I am devastated to learn that the 2024 FY budget had significant errors and significant takebacks,” Bryan told The News. “The department is equally devastated.”

Bryan updated The News on Thursday, saying multiple audits are happening at the health department from a third party and the health department is working with state partners to remedy the situation.

“It is our highest priority to work with (state) partners to have continuous improvement,” Bryan said.

In line with her statements at the Tuesday meeting, Bryan told The News that the leadership team is digging into their financial records to reach a solution to their current situation. On Tuesday, Bryan discussed the current audit with the board and said that it will likely be completed by June 30.

Regarding misconduct, board members mirrored Bryan’s sentiment that the “probability is low.”

Lloyd Peltier, health board chair, told The News on Wednesday that there is no current police investigation happening in regards to money challenges the health department is facing. Peltier noted that the audit has taken longer than the board expected, taking six to eight months thus far.

Peltier explained that DHD4 initiated the audit to satisfy state requirements, and is not rushing judgment on how the department got into its financial predicament.

“You need to base everything on fact,” Pelitier said.

The disclosure of missing funds comes shortly after two layoffs that occurred at DHD4. Bryan confirmed on Tuesday that the emergency preparedness supervisor and human resources director at DHD4 had been let go from their positions due to the money concerns linked to state clawbacks.

Peltier told The News prior to the June 17 meeting that financial challenges that the health department is dealing with are compounded with the recent resignation of their previous finance director.

A new finance director was recently hired.

Kayla Wikaryasz can be reached at 989-358-5688 or kwikaryasz@TheAlpenaNews.com.