The annual audit of Independence Township has raised questions about the township’s internal control structure and Trustee Dave Wagner is looking for answers.
At the heart of the issue is a lack of bank reconciliations and quarterly adjustments throughout the past year. The lack of timely procedures created more work from auditor Plante & Moran PLLC and could cost the township as much as $32,000.
‘For approximately one year there are no journal entries made,? Wagner said. ‘I can’t imagine this not being done. Plante & Moran had to put extra people over and above the normal audit and that is going to cost the township.?
Plante & Moran audit partner Joe Hefferman said while some other communities have this problem, it is new to Independence Township.
‘This is a definite slip from the previous years,? Hefferman said. ‘How serious it is is hard to tell. I really think they ought to be doing it (the updates). I talked with the finance director and am optimistic they will follow our advice in the next year.?
Hefferman gave the township their report at a special meeting July 8. They identified the township as having a reportable condition which is ‘significant deficiencies in the design or operation of the internal control structure that have come to our attention and, in our judgement, could adversely affect the township’s ability to record, process, summarize and report financial statement.?
Wagner, who is running for supervisor against incumbent Dale Stuart, blames Stuart for a lack of leadership.
‘The supervisor is in charge of the budget. The bank accounts are not getting reconciled, there are no journal entries and he has no idea what is going on. If we don’t get this fixed it could make the $32,000 look small,? Wagner said. ‘That is what ticks me off about him. He has no leadership skills and no teamwork skills. He does not keep on top of anything. It is pathetic.?
Stuart agreed the records necessary for the audit were not done in a timely manner. However, he disagrees with the contention he should have caught the error at the outset.
‘It is the responsibility of the finance director Sue Hendricks and she is the best we have had. She is smart and competent but she let some things slip,? Stuart said. ‘It happened and the only thing you can do is take steps to make sure it won’t happen again. The finance director reports to the clerk and the clerk is responsible.?
Stuart said the mistake will cost the township, which is unfortunate, but will not have a long term effect.
Wagner also accused the supervisor of waiting to schedule the annual Plante & Moran presentation to the regular board meeting to Aug. 4, one day after the primary election.
‘Everything is ready to be presented. Everything is finished. This should go before the board at the July 20 meeting. It is obviously politically motivated. The taxpayers have the right to know what is happening with their money,? Wagner said. ‘I don’t want to be another Flint. Don’t get me wrong, we are not anywhere near that yet but my point is accounting practices can get you in a lot of trouble.?
Stuart denies the his decision was politically motivated.
‘It will be on the agenda the first week of August. There is no rush to make the presentation. This issue should not be mixed with politics,? Stuart said.
The Clarkston News contacted Hendricks who declined to comment on the situation.