The dwarf and his two guards listen to your stories, start looking over the scene, and talking to witnesses that begin making themselves known. A number of students from Morgrave University step foward and provide testimony that validates your story. The dwarf rifles through the satchel the dead man was grasping, and finds some ID papers in his shirt pocket. All of these things he takes as evidence. He then looks over Palols body, finding the ID papers in his pack.
The dwarf turns to Koren, Lin, and Grim, and says sympathetically, "I am truly sorry for the loss of your friend...and for my previous gruffness...it seems that the four of you were caught between doing the right thing, and trying to help this...Provost Bonal Geldem, and doing the safe thing: turning the other way, like so many in Sharn. Your heroism and bravery are commendable."
The dwarf leans foward, reaches into his pouch, and whispers, "I am not technically authorized to do this, and it is more of a gesture than any real help, but for your heroism, please accept this small reward. And if you ever need any help from the Menthis Plateau Watch, ask for me...Sgt. Dolom. Maybe I can do you a favor one day as a true reward."
Sgt. Dolom, trying to look as sneaky as possible, but failing miserably, hands 2 gold coins to each of you before leaning back and looking around to see if anyone say the transaction. No one seems to care or have noticed.
"As for...um...er...unpleasant details...what should we do with the body of your companion? We can transport it somewhere within the city if you wish...to a temple for last rights or, um, whatever his religon calls for."
He looks expectantly at you for an answer, obviously uncomfotable with this sort of thing: mostly because he seems to genuinely like the three of you and sympathise with your loss.