Finding Text
Finding: 2024-001 Budget Amendments
Criteria: The Michigan Public Act 621 of 1978 requires governmental units to adopt budgets for all applicable governmental type funds before the beginning of the fiscal year and all budget amendments approved prior to the end of the respective fiscal year.
Condition: The Township adopted budget amendments for fiscal year 2024 after the year ended March 31, 2024.
Cause: Management did not have all budget amendments related to fiscal year 2024 approved until after March 31, 2024.
Effect: This situation results in noncompliance of the Michigan Public Act 621 of 1978.
Perspective: While we consider this finding to be an instance of noncompliance with State of Michigan budget requirements, we do not perceive it to negatively impact the audit opinions issued. This appears to be an isolated instance as it has not been reported in prior audits.
Recommendation: We recommend the Township approve all budget amendments for their governmental funds prior to the end of the fiscal year.
Response: The Township acknowledges the situation and will work to avoid any future issues by amending the budget before the end of each fiscal year.