08/03/2012
Several concerned Ada residents emailed, called and/or stopped by the office today, regarding an email sent by Ms. Jennifer Bouman. I apologize to those of you who were upset that your personal email addresses were used in this manner and I regret and am saddened about the overall negative tone of this campaign. Ada residents deserve better. And I feel compelled to set the record straight regarding this issue.
Ada Township has never "failed" an audit report.
In the email from Ms. Bouman, I believe that it is implied that the Township Supervisor has responsibility for reconciling of bank accounts. Even to the extent that the Clerk and Treasurer report to the Township Supervisor, each of our elected Administrative Officials are independent from each other, but we work as a team in performance of our duties and responsibilities.
The Township Clerk and Township Treasurer have the responsibility for bank reconciliation and balancing the Township accounts.
Essentially, financial reporting in today's world and government accounting is very complex and needs highly skilled and therefore expensive professionals looking over it. Townships including Ada Township are required by statute to have an independent auditor to perform an Annual Audit.
In the 2011 letter to the Township Board that accompanied the audit report, the auditor, as required by auditor standards, noted a material weakness in internal control, but more importantly stated:
"...The Township has relied upon our firm as auditor to identify and develop material adjustments necessary to convert the Township's financial statements into full accrual financial statements... This service is allowable under current auditing standards and ethical guidelines and may be the most effective method of preparation of the Township's financial statement...
The Township has determined that the additional benefits of implementing...{its own internal full financial reporting system}...would not outweigh the costs incurred to do so."
A copy of the 2011 Township financial report can be found on the Township website at www.adatownshipmi.com for your review.
Respectfully,
George Haga
Supervisor, Ada Township
