A past subscriber was a Certified Public accountant who was previously employed by the State of Michigan Department of Treasury.
In prior Audits the Village has been advised in the strongest possible terms to maintain a separation of duties and financial access.
The Clerk keeps the books and accounts. The Treasurer receives, accounts for and disperses approved funds. Each maintains separate spreadsheets which should match independently. See Page 18 of the attached Michigan Municipal League Handbook for Village Officials
All bank accounts must be reconciled to the local unit accounting records monthly. The Clerk’s records must agree with or reconcile to the Treasurer’s and the bank’s records. A reconciliation sheet should be prepared in duplicate for each month with one copy for the Clerk and one copy for the Treasurer. Canceled checks are to be filed with the bank statement to which they apply.
In addition – we note in the June meeting an authorization for Trustee Schroeder to be a signatory on checks? This is not permitted under both the Uniform Accounting Procedures and the General Law Village Act :
● Dual signatures are required for all checking accounts (except the separate tax collection checking account). The dual signatures MUST be the clerk (or deputy clerk) and the treasurer (or deputy treasurer).
Current FY To Date spreadsheets should have been presented for both the Budget meeting and to approve amendments at all Council meetings.
The financial advisor compares the two reports as being the difference in knowing only what is in a current checking account without taking into account a) how long those funds must cover expenses (in a unit of government this is from one tax receipt year to the next) and b) how much is actually ‘unencumbered’ i.e how much has been committed as a future debit.
In response to a request for a current financial report the following was received.