LYNN – Mayor Judith Flanagan Kennedy has launched a probe into city Parking Department towing records, claiming city financial oversight rules have not been followed and leveling criticism at Parking Director Louis J. Fenton.Fenton has been placed on paid administrative leave, according to an Aug. 24 letter addressed to the Lynn resident by Kennedy, while an auditing firm pores through the department paperwork.The letter states that “turnovers” – a reconciliation process for accounting for cash and checks paid to the city – has not occurred, in some instances, in the Parking Department since 2012.City policy requires turnovers be made daily and never less frequently than weekly.Kennedy ordered Fenton in her letter to “refrain from any dealings” with the Parking Department, adding: “Your actions appear to be in direct contravention of longstanding City of Lynn policies and do not comport with sound financial practice,” the letter states.Kennedy?s letter highlights two concerns focusing on the Parking Department and Fenton, who has been director since 1991. According to the letter, lack of timely reconciliation means the Lynn Towing Association may owe the city “…in excess of $100,000 for snow and police tows dating back to 2012.”The letter also states that $12,000 in cash was found in a Parking Department safe with records dating back to 2012.City Solicitor Michael Barry said it will take auditor Melanson, Heath & Company, P.C. 45 or more days to match the money with any available records and take a detailed look at parking receipts and accounting procedures.?This cries out for a third party with no interest to have a look at this,” Barry said.Fenton on Wednesday said he was unaware of the letter and the change in his leave status from the extended medical leave he has been on since May 15 while he recovers from knee surgery. He did acknowledge that settlement discussions between the Lynn Towing Association and his office are “not done as often as they should be.”Settlements, said Fenton, are intended to reconcile money owed to the city for tows done by the association?s four member companies and money owed to the association for city tows.?They?re not timely – it?s been that way forever, but there is no collusion, fraud or anything inappropriate,” Fenton said.Kennedy wrote the letter after Acting Parking Director Robert Stilian undertook efforts to reconcile department records and questioned why the $12,000 was in a department safe. City officials examined the safe?s contents and city records last Friday.?I asked questions but I don?t think I can say much,” Stilian said on Wednesday.Towing Association member Edward Fleming said the Association has not received paperwork from the city recently requesting reconciliation of money owed to the city from the Association.He said parking officials and association members sit down three or four times a year to figure out how much money the Association owed the city and money owed to association companies for city-ordered tows.?It?s not like nothing has been done since 2012,” Fleming said.Association members are Fleming?s, JME, G and J and Bill Woods.Kennedy in her letter warns Fenton she will “reserve the right” to initiate his removal as director, but Barry said “everything is on hold” until the audit is completed.?We just want to get to the bottom of this,” he said.