9/2/2026 - Leelanau Township Board | Special Meeting Packet

Summary

The meeting focused on the financial audit report for Leelanau Township for the fiscal year ended March 31, 2026, highlighting essential decisions regarding budget management, procurement policies, and recommendations for improving internal controls.

Public comments

No public comments were noted during the meeting.

Affordable housing initiatives

There were no discussions regarding affordable housing initiatives.

Parks and recreation matters

No topics on parks and recreation matters were addressed during the meeting.

Infrastructure projects

The audit identified various concerns regarding infrastructure financial procedures, including: - Police contract payment: There were instances where the Township failed to pay for police contracted services for two quarters. The recommendation is to develop internal processes to ensure timely payments. - Bank reconciliations were not being completed timely. The audit suggested that bank reconciliations should be completed within two weeks of the month's end. - Concerns about the spread of insurance expenses between the General and Fire Fund were raised. It was recommended that this be addressed going forward.

Other Business

The meeting included discussions about the overarching need for improved procurement processes. A detailed purchasing policy was presented, emphasizing fair purchasing practices, and specifying thresholds for when different procurement methods would be required based on expenditure amounts.

Financial Summary

The audit report detailed significant financial aspects: - The Township's total net position increased by $386,417 to $8,824,385 as of March 31, 2026. - The government funds reported combined fund balances of $5,183,778, with $1,268,612 as unassigned fund balance. - Several budgetary violations were noted, particularly in the General Fund, Police Fund, and Library Fund, where expenditures exceeded appropriations.

Action Items

1. The Board is to ensure that audit recommendations regarding the police contract payments and timely bank reconciliations are implemented promptly. 2. A review process for the Township’s procurement policy is to be established, ensuring all purchases comply with the newly discussed thresholds and approval processes. 3. Management was advised to closely monitor their budgets and seek amendments when necessary, based on previous budgetary violations. 4. Follow-up with related parties regarding the Cemetery Perpetual Care Fund to define future uses and ensure compliance with prior agreements.