Auditors Plante & Moran, PLLC gave Independence Township a positive opinion after reviewing the township’s financial records.
According to Plante & Moran’s financial report, Independence Township saw a revenue increase of $1.5 million in 2004 due mainly to an increased property tax base. However, the township did experience a decrease in state shared revenues of approximately $200,000. State shared revenues account for almost 40 percent of general revenues.
In addition, township expenditures increased by around $1.4 million, or 9 percent. The increase was mainly due to wage increases and growth in demand for township services.
In Plante & Moran’s opinion, the township was cautioned to continue ‘very conservative budgeting for revenues,? considering the consistent decrease in state shared revenues.
While the township did receive a good bill of fiscal health, Plante & Moran looked for ways to improve the township’s accounting management. The following recommendations were made:
? Review all outstanding checks, especially those still dating in the 90s. Cancel when appropriate so the balance can be returned to the township’s cash balance.
? Minor differences continue to show between the bank reconciliations and the general ledger. Make sure to investigate these differences each month and record any adjustments immediately.
? Review and update capital outlay accounts quarterly.
? Make sure expenses are recorded when services are received, not by the invoice date. For example, services received before Dec. 31 should be recorded as such, not by the January invoice.
? Adopt a formal policy on the use of township credit cards.
The township’s financial report, which includes supplemental information and discusses all township accounts, is available for public inspection at the township offices.