An Austin woman who was charged with embezzling funds while working as the clerk-treasurer for the city of Mapleview has entered into a plea agreement for lesser charges in Mower County court.

Dawn Marie Mueller, 47, pleaded guilty to neglect of duty by a town/city treasurer. Seven other charges, including felony embezzlement and theft, were dismissed. The neglect of duty charge is one of two charges that was added during Friday’s hearing.

Mueller — who is married to Lt. John Mueller of the Austin Police Department — was accused of embezzling funds after an audit was completed by the Office of the State Auditor (OSA) on the city of Mapleview. The audit revealed a number of holes in the city’s finances between 2000 and 2008, including bank overdrafts totaling $6,186 and missing funds that were supposed to be transferred from the city to fire relief assistance. The audit also uncovered private use of funds between 2001 and 2008.

In a taped July 6, 2010, interview with investigators, Mueller said she had used city funds for personal purchases, but that others, including a former city council member and a clerk-treasurer, had made similar purchases.

Mueller also said she issued a payroll check two days in a row — on July 1 and July 2, 2007 — one valued at $525 and the other at $507. Both checks were cashed. According to the complaint, Mueller could not explain why. A similar incident occurred again on June 1 and June 5, 2008, with checks valued at $421 and $295.

According to the complaint, the OSA found zero fund transfers made from the city to the fire relief assistance from 2005-07.

When asked about the transfer of funds from the city to fire relief assistance, Mueller said the Minnesota Department of Revenue would deposit funds in the city checking account. According to the complaint, the account was short $26,801.

According to court documents, Mueller might get one year probation rather than jail time; however, she will not be sentenced until July 8. She may have to pay as much as $10,069 in restitution to the city of Mapleview.