FOR IMMEDIATE RELEASE
City of Palatka Provides Clarification on Returned Checks and Confirms Corrective Measures Implemented
Palatka, FL – January 15, 2026 — The City of Palatka acknowledges the recent concerns raised regarding ten city-issued checks that were returned in late December 2025 and wanted to provide additional clarification and transparency regarding the matter.
First and foremost, the City extends its sincere apologies to the affected vendors and individuals. We recognize the inconvenience this situation caused and regret any hardship or frustration it created. The City takes full responsibility and understands the importance of maintaining trust with our partners, residents, and the public.
The returned checks were not due to insufficient funds. They resulted from an administrative issue with the City’s Positive Pay system, a fraud-prevention tool implemented on November 3, 2025. Positive Pay requires staff approval of check details by a daily bank deadline for payments to be released. On December 24, 2025, City offices were closed for the holiday, but the bank remained open. Because finance staff were not available to review and approve the Positive Pay exceptions by the bank’s 3:00 p.m. deadline, the system automatically returned the checks.
At the City Commission meeting on January 8, 2025, it was initially reported that seven checks were returned. Following a thorough review, it was confirmed that a total of ten checks were affected. All impacted payees were promptly contacted, each check was reissued, and written communication was provided explaining the situation and an offer to pay any bank charges which may have been incurred.
The Finance Director has taken full responsibility for the oversight and implemented additional safeguards to prevent this from happening again. These measures include obtaining the bank’s holiday schedule in advance, establishing calendar reminders, and ensuring Positive Pay reviews are conducted daily, whether City offices are open or closed.
City Manager Marcia Carty and City leadership have reinforced expectations for internal controls and communication to ensure all financial processes are completed without interruption, including during holiday periods.
The City of Palatka remains committed to accountability, transparency, and continuous improvement. We appreciate the patience and understanding of those affected and remain dedicated to upholding the highest standards of fiscal responsibility and public service.
For additional information, please contact the Office of the Public Information Officer.