The Worth Township Board of Trustees met Monday morning for a special meeting to implement several changes focused on bringing them into compliance with the state’s treasury. With the township flagged as a problem jurisdiction by the Michigan Department of Treasury following their most recent financial audit, Worth Township moved during a 10 a.m. meeting on Monday, February 16th to hire an accounting firm and implement a quarterly budget review.
Auditing firm Kings and Messing of Imlay City, which has been handling the township’s auditing services, was also hired Monday to help complete the township’s response to the state treasury’s demand for a remedial action plan to “correct the deficiencies in the bookkeeping practices of the Clerk and Treasurer.” They will be paid $275 per hour for their services.
The “significant deficiencies,” as identified by the auditors, 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. Though that would have presumably put the new deadline on Saturday, February 14, the board was informed Monday that the auditors felt comfortable that the township would have until the end of February to actually submit.
Accounting and CPA firm UHY has been tapped by the board to act as compliance officer, being tasked with overseeing bookkeeping practices to ensure timely filings and proper procedures are being followed. In terms of the quarterly budget review, the board approved the plan to hold a meeting at 10 a.m. on the first Thursday of the month following each quarter to review the budget. The first meeting under this plan is scheduled for April 2, 2026, with other meetings to follow on July 2 and October 1 of 2026.
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.
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.
