After a recent audit triggered an internal investigation in Worth Township, the township is facing further scrutiny and potential consequences from the state.
As a result of the township’s audit for the fiscal year that ended June 30, 2025, the state of Michigan’s Department of Treasury has flagged Worth Township as a problem jurisdiction due to several deficiencies.
“Significant deficiencies,” identified by auditors Kings and Messing included bank statements not being timely reconciled for the general ledger and the township’s property tax account; some officials receiving compensation in excess to what was agreed upon in the year’s salary resolution; and payroll tax withholdings not being paid in a timely manner, thus causing the township to be assessed penalties and interest for late payments.
In addition to that, the state noted that expenditures exceeded the budget’s amount, and there was non-compliance with guidance issued by the Community Engagement and Finance Division of the Department of Treasury. The state identified these issues as “either violations of state statute or are deficiencies of the local unit that may impede the local unit’s ability to comply with state statute.”
The state’s treasury department originally requested a corrective action plan within 30 days via a letter to the township board on December 30, 2025. However, after not receiving the requested corrective plan, the treasury department issued a second notice to the township on Saturday, January 30, with a two week deadline to submit.
Potentially serious consequences the township faces for failing to comply in submitting and/or implementing the plan include denial of subsequent year qualified status under Public Act 34 of 2001, the Revised Municipal Finance Act, thus possibly preventing the township the ability to borrow money, and being subject to an audit and/or review performed by Department of Treasury auditors at the expense of the township.
Though the township board, via Trustee Steven Kovac, says they are working diligently to take all necessary steps, Kovac also noted that the plan has been delayed by recent internal investigation. Though the investigation is currently incomplete, Kovac says the township is anticipating their attorney’s report soon; but until then, they are forced to wait.
A recommended action plan related to the audit will be presented at the township’s regular board meeting, scheduled for Wednesday, February 18, at 6:30 p.m.
Read the letters from the state below:
First request letter– December 30, 2025:
Second Request Letter– January 30, 2026:
