Errors and Omissions 2

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
Bank Reconciliation
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 :
DISBURSEMENTS
● 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.

2 thoughts on “Errors and Omissions 2

  1. Identify, by name, and job position the individual had with The State. Identify what actual harm was incurred by the Village of Bear Lake.

    1. The gentleman is now deceased but he was employed most of his working career as a Tax Examiner for the State of Michigan Treasury Department until his retirement in 1981. His family are multi generational residents of Bear Lake.
      The actual harm is documented here.https://bearlakemichigan.files.wordpress.com/2016/09/tl41r01.pdf

      Compliance with state and federal finance law is a prerequisite for a clean audit which is mandated for receipt of state and federal funds.

      A review of the Village’s financial status can be seen here:
      http://www.michigan.gov/treasury/0,4679,7-121-1751_51556_80603-423696–,00.html

      and here: https://www.accessmygov.com/MunicipalDashboard/FinancialData?uid=2090

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s