Hide and Go Seek....

[John Doe Jr]

"Arcadia officials searching for missing financial information"

Posted by Colin Merry on January 26th, 2018

The Arcadia Township Board mulls over what actions to take in order to find financial information they claim is being withheld from them by the township treasurer so township finances can be compliant with state regulations. (Colin Merry/Pioneer News Network)

Township accounts not in compliance with state regulations

ARCADIA TWP — Arcadia Township officials are mulling over their options for getting township finances in order after hearing a preliminary report on a forensic audit.

The report was presented to township officials by Karl Haiser, a certified public accountant, during a packed special meeting of the township board held Friday afternoon.

Missing from meeting was the township treasurer, Debbra Eckhout, who was appointed to the position in 2015, and ran unopposed in 2016.

According to Haiser, the audit was requested by the township in October, due to “red flags” appearing in the township’s annual 2017 audit done in September. Haiser and other township officials say the “red flags” include a number of missing financial records, receipts and other financial items. Unable to reconcile accounts, the township’s finances are out of compliance with state regulations for townships.

Karl Haiser, a certified public accountant, on Friday told Arcadia Township officials in a preliminary report that a number of township accounts cannot be reconciled due to missing financial information. (Colin Merry/Pioneer News Network)

Officials say, for whatever reason, Eckhout has simply not provided the information, even when requested. Without the proper documentation, township clerk Patti Wilson said she cannot do her duties as the “accountant” for the township, and cannot close out the township’s finances for the fiscal year.

The preliminary report brought forward by Haiser lists several financial events that were reported to law enforcement officials over the past few years, and documents several township accounts that cannot be reconciled due to lack of records, including the township’s marina fund. It also states records were not in keeping with regulations requiring the records to be kept using certain software.

Haiser’s conclusion is that the accounts must be reconciled as quickly as possible, and the treasurer needs to comply with all state and township regulations.

Haiser said the full report will be finished and available at the next meeting of the township board, which will be at 7 p.m. on Feb. 8 in the Arcadia Township Hall.

Wilson said the township isn’t in control, or even aware, of all the bank accounts in the township’s name, and that she is having a hard time finding information on accounts because banks were unwilling to work with anybody but the treasurer.

“There isn’t enough information to bring the general ledger up to date, even with the help of an accountant,” Wilson said. “We don’t have access to all bank records. We don’t have access to all accounts.”

The township attorney, Craig Rolfe, said the situation is illegal and dangerous, and that the township must get its financial house in order, one way or another, and that the clerk must be able to do her job.

“This is a serious problem when the treasurer hasn’t been forthcoming to the clerk or the board,” Rolfe said. “It is not tolerable for the board to not know what funds are in what accounts, or if those funds are even there.”

The attorney also brought up some concerns about the treasurer having township residents mail property tax payments to her personal residence. However, he said it was up in the air whether or not it is illegal.

Regardless of the legality, Haiser said it is a high asset risk.

While there was no discussion of why the treasurer and the board seemed to be at odds, the board did discuss options, which included possible criminal or civil investigations. However, Rolfe warned against legal actions at this time, stating it could take time to see results and possibly cost the taxpayers of the township.

Haiser suggested he could come up with a plan to go through certain channels and find enough of the missing financial information to reconcile township accounts and be in compliant with state regulations.

“We don’t want to get into the court system, ” Wilson said. “If Karl (Haiser) has a way to get the information and access to accounts, I’d be open to it.”

The board decided to wait on taking any action until the official forensic audit is completed. They also advised Haiser to come up with a plan to find the missing information so that accounts could be reconciled.

Township supervisor Janis McCraner said it is vital the township find the missing information and reconcile the books, not just to be compliant with state regulations, but also so the township could begin to budget for the next fiscal year.

“We want to clear up these internal issues,” said McCraner. “In the next meeting, we have to look at what internal controls we can put in place as a municipality. We have to be able to work together to deal with the bank accounts, tax rolls and other financial items, but we’re not getting the proper information. There is an urgency, because we’re out of compliance with the general ledger.”

Township officials also said these issues have already cost taxpayers, with the forensic audit costing around $19,500 alone.

http://news.pioneergroup.com/manisteenews/2018/01/26/arcadia-offici...

[AQUAMAN]

Hmmm, strange for a little berg like Arcadia to have this problem. I remember, sometime in the last 10 years, where a town in Florida had the same problem. Too many citizens were making their property tax payments into the name of the Treasurer, instead of name of the city or town treasurer. That error allows that actual named person to cash the check, instead of the city getting the payment. By not revealing the account info. that individual can temporarily hide their embezzling. Sure enough, the lady was embezzling, and was caught, and fired and prosecuted in the end. Hope that's not the case here, but, it sure appears like it right now. Safeguards need to be placed on such accounts by city officials in advance, so an accountant and city attorney/mgr. can also access the account information, but not necessarily withdraw from those accounts. Surprised this isn't the case right here. Good thread John Doe Jr..

[XLFD]

Arcadia Township, birthplace of Harriet Quimby, renown female aviation pioneer, is having some problems with accounting irregularities and poor bookkeeping practices.  The officials of this township serving less than 1/12 of the residents Ludington serves detect this and proceed with forensic audits and calls for action.  

In Ludington, the city attorneys admittedly overcharge the people for three years, funnel money from the city in order for the city manager to covertly and illegally finance a water rate consultant, the police run a Shop with a Cop program that leaves nearly $1500 unaccounted for, officials routinely charge expensive luncheons and dinners to the taxpayer, and no official bats an eye.  With the possible exception of Treasurer Eckhout, I'd take Arcadia's officials over our own. 

[XLFD]

It was with Mark Beauchamp's company, Utility Financial Services, which was talked about here.   UFS has been utilized by many other local municipalities and villages as consultants, these public bodies pay for their pricy services by having their council vote on it.  Ours didn't, instead it was a highly unethical bypass of money that went from our coffers to the city attorney as payment for legal services who then paid the city's UFS bill.

[John Doe Jr]

That's why Red Solo Cups are so important. Ohh, the cost of hiding your face just went up.

[Willy]

Love that part of Michigan. She's probably been hitting the Casino to often and thought the public's money could help finance her habit.