MERRILLVILLE, Ind. (AP) — The state is asking a municipal bookkeeper to repay nearly $300,000 that auditors say disappeared from town coffers during her tenure.

The Indiana State Board of Accounts investigated receipts and deposit records from the clerk-treasurer's office between Jan. 1, 2000, and July 17, 2007. The board is seeking $296,780 from Rosemary Barath, who started work as town bookkeeper in 1978.

"She was highly regarded by her peers, by department heads, by town council members, even by state board auditors," said Lake County Treasurer John Petalas, who served over Barath as clerk-treasurer for 14 years. "She was everybody's grandmother."

Barath, 66, was placed on unpaid leave in July but has not been charged with a crime. The audit has been given to State Attorney General Steve Carter and Lake County Prosecutor Bernard Carter for possible legal actions and criminal charges, spokeswomen at both offices said.

Barath declined to comment to the Post-Tribune of Merrillville and The Times of Munster. The Associated Press tried to call Barath for comment, but a phone number listed under her name rang unanswered Wednesday.

The Board of Accounts found about $66,000 missing from the sale or auction of town equipment and about $230,000 missing from receipts not deposited. The state board did not review years prior to 2000 because of the statute of limitations.

Clerk Treasurer Rose Ann Antich-Carr said an employee in the office noticed discrepancies with carbon copies of receipts, which could have led to the investigation.

The final report from the Board of Accounts said many of the bookkeeper's responsibilities, such as depositing funds, were not done in a timely manner.

Antich-Carr said no other town officials were involved.

"The results of the report focuses on a single town employee who is currently on unpaid leave," Antich-Carr said.

The Town Council plans to make a decision on how to recover the funds and on possible legal action.

"We have to take whatever avenue we have to get our money back," said councilman Ron Widing.