Gary municipal officials are admitting that just over $8.1 million in city funds from an account specifically intended to cover expenses for emergency medical services were actually spent on other things.

City officials have been reviewing since spring the city’s 224 Fund — intended for the Gary Fire Department’s use in maintaining ambulances and paramedics — when it was discovered the actual amount of money that officials thought was in the fund did not match up with bank records.

When the discrepancy was discovered, city officials admitted there was at least a $4.5 million shortfall. But in an analysis prepared by the Merrillville-based Whittaker and Associates accounting firm and made public Monday, officials said the total is $8,160,403.37.

The shortfall is due to transfers made from the 224 Fund to other accounts within the city budget between Jan. 1, 2015, and March 31 of this year.

Mayor Karen Freeman-Wilson has said that all of the fund transfers were to cover legitimate city government expenses. But under state law, the Common Council should have been informed of each transfer prior to it being made — with the council then having the option to approve or reject the transfers as it saw fit.

Officials with the Indiana State Board of Accounts have been informed of the situation and have hinted they may do their own investigation of the issue. Freeman-Wilson said a copy of the Whittaker and Associates report has been sent to state officials in Indianapolis.

State Board of Accounts officials would not say Monday what their intentions are with regard to the issue.

Copies of the Whittaker report are available to the public on the city’s website.

The report recommends the opening of a separate bank account to handle deposits and withdrawals and also recommends providing Freeman-Wilson, Common Council President Ronald Brewer and fire Chief Paul Bradley monthly reports concerning the 224 Fund’s financial activity.

The report also calls for a reconciliation of the account and its funds to ensure this problem does not recur.

City officials admitted early that many of the transfers of EMS funds to other parts of the city budget were made by Deputy Controller Michelle Roby, who was dismissed from her job on May 29.

Also, former city Controller Celita Green, who retired from the full-time payroll in February, lost a $17,000 consulting contract she was to have received that would have kept her services available to the municipal government.

Freeman-Wilson said city officials already are taking steps toward a reconciliation and said the Common Council will be reviewing the report in coming weeks. But she said the city’s financial struggles create situations where funds have to be juggled around the budget’s various accounts. “While the need to use restricted funds underscores the financial challenges facing the city of Gary, there is no legitimate reason to circumvent a clear process for seeking and receiving council approval,” the mayor said.