By: Nick Powers | C&G Newspapers | Published September 25, 2024
CLINTON TOWNSHIP — Though an audit of Clinton Township’s finances came back with no irregularities, it didn’t stop the discussion about where the township’s money goes.
Plante Moran came to break down the results of the 2024 audit at the Board of Trustees meeting on Sept. 9. The firm looks at the township’s financial statements and compliance with federally funded grant programs. Ali Hijazi, a partner at Plante Moran, said the township’s audit was “clean.” This means the township complied with federal program requirements, accounting requirements and grant money administration requirements for the audit.
“That’s what you want to see as the outcome of your audit,” Hijazi said.
Plante Moran Assurance Manager Veronica Tuazon went over key points in the firm’s presentation. Many of the changes to the township’s general fund from 2023 to 2024 have to do with American Rescue Plan Act funds, which are federal funds for COVID-19 relief. This led to a decrease in the general fund from $36,739,000 to $25,310,000. General fund expenditures from 2023 to 2024 jumped due to an increase in transfers because of the accumulated ARPA funds being moved into a capital projects fund.
The general fund balance is expected to be steady in future years. Clinton Township Treasurer Paul Gieleghem said in the past there would be significant fluctuations.
Finance Director Mary Hein said there were meetings to remove discretionary items and remove positions that had been left vacant and didn’t need to be filled. Fees were raised for the township’s senior center, parks and recreation and building department. Grant funding also increased.
Trustee Julie Matuzak asked if an audit would turn up any malfeasance. She cited the Detroit Riverfront Conservancy, which had clean audits, but reportedly had missing funds over multiple decades. She stressed that this was a general question and wasn’t directed at anyone.
“We’ve just seen the Detroit Riverfront Conservancy missing $40 million over 10 years with clean audit reports every year,” Matuzak said. “Can you please explain to me how this happens and how we’re not in this situation?”
“An audit is not designed to detect fraud,” Hijazi said. “Part of what we’re required to do is look at internal controls. If we identify an opportunity for fraud to potentially occur, we would be required to report that as what we called a control deficiency.”
Hijazi said none of these were found during the township’s audit.
Township Attorney Jack Dolan explained that when the audit is done it can be difficult to get a clear view of a township’s finances. He said that it’s important when looking at the audit to look at the unassigned fund balance versus the. available fund balance.
“You’re seeing us, so to speak, right after we got paid,” Dolan said.
He said this money has to stretch through the rest of the fiscal year. The collection period for the township begins on Dec. 1 and lasts through the end of February.
Resident Paul Schorsch spoke during public comment and voiced his concern about how much residents were taxed and not seeing a benefit. For Schorsch, this means not seeing a section of Moravian Drive being fixed by his home.
“I feel like I’m sticking up for the citizens here, they’re getting taxed to death,” Schorsch said.
Following Schorsch’s comment, Cannon urged residents to look to see where their money is going. He explained that the township has public services others don’t.
“There’s only so much we can do,” Cannon said. “We try to spread it out and do the best we can for the whole of the community.”
Gieleghem put together a breakdown of where residents’ tax dollars go. The document can be found here: www.clintontownship.com/DocumentCenter/View/
2937/Whats-in-a-Tax-Dollar-PDF.
“The people have voted to pay for these services,” Clinton Township Clerk Kim Meltzer added.
Treasurer’s report
Later, Gieleghem gave a quarterly treasurer’s report. He said he expected the interest revenue for the general fund to be higher for 2025 than what is projected in the audit.
He said the report was routine and laid out what his office attempts to do when investing township funds.
“Over the past seven and a half years as treasurer, we’ve been a department that’s very aggressive with our investments but, at the same time, maintaining safety and liquidity for the township,” Gieleghem said.
He laid out three goals his department sets: to not lose principal, to make sure money is there when the township needs it, and to make sure the township gains as much as possible on investment from revenue.
“I think we’ve met and exceeded that standard in most cases,” he said.
Trustee Dan Kress brought the conversation back to taxation.
“People are looking, they need property tax relief,” Kress said. “Is there any path to freeze property taxes where they’re at and reduce our investments?”
Gieleghem explained he invests the money while it’s being held by the township, knowing that its bills will come due. He said the money is utilized to meet obligations.
“If we don’t invest these dollars, we’re basically giving up the ability to meet the needs of our residents,” Gieleghem said. “It’s appropriate to do so. It’s not a profit-making enterprise. It’s a delivery of service.”
Kress pushed the issue, asking if a freeze was possible. Property tax revenue, as projected in the audit, is set to rise from $2.876 million to $3.025 million from 2024 to 2025.
Gieleghem said the township is constrained by the state of Michigan when it comes to property taxes. This tax is derived from millage rates and taxable value of the property. Taxable value isn’t able to be altered by the township, but millage rates are different.
“We have control over those millage rates,” he said. “When our community grows, we roll the rate back.”
Kress asked if there’s a “rainy day” fund. Gieleghem responded that there is and that it’s in the audit report under general fund balance.
“And that is within an appropriate range,” Gieleghem said.
The board voted unanimously to receive and file both reports. Trustees Tammy Patton and Mike Keys were absent from the meeting.