UTICA, N.Y. (WKTV) - The former executive director of the Neighborhood Center has officially resigned.

According to the Center's Board of Directors President Frank Donato, former executive director Virginia Barney has resigned her position effective December 31.

Frank Tocco, director of operations, and Sandra Soroka, director of services, have been co-managing the agency for the past several months during Barney's absence, the agency said in a released statement.

"Soroka will serve as interim executive director until a formal search to fill the position has concluded and a new director is named," the statement said.

The Center claims that Barney was placed on paid administrative leave in August pending the results of a state investigation into the agency's record keeping practices related to Medicaid reimbursement.

Speaking with a representative of the Neighborhood Center, NEWSChannel 2 asked what sparked the investigation; if they believed Barry was involved in any wrongdoings in the record keeping; and what the result of the investigation is.

The Neighborhood Center representative said they were not allowed to comment and referred us to its Board President, Frank Donato, who was not available Tuesday evening for comment.

Board President Donato said that the agency found itself in "a difficult situation because of the conflict between its desire to openly communicate about the incident and constraints associated with internal and state agency investigations."

"In fairness to the individual involved, and from a legal standpoint, we simply had to refrain from commenting to allow due process to occur and also to protect the confidentiality of the employer-employee relationship," Donato stated. "We are, however, very pleased about the effectiveness of the internal policies and procedures that were followed. Our staff took responsibility by bringing a concern to our attention, and the Board took immediate action by reporting the situation to the state."

Donato said that they believe The Neighborhood Center has in the past, always followed a police of openness in its operations.

"This was one isolated event that took place in what has been a long and distinguished history of exemplary service to the community," Donato said.

Since the investigation began in August, The Neighborhood Center has remained fully operational, conducting business under Soroka's direction.

"We are communicating normally with our funding and program partners and continue to enjoy trusting and productive working relationships with each of them," said Soroka. "The confidence they have shown in our integrity and in our ability to provide quality services and programs has been most gratifying ans is very much appreciated."