By David Fleet
Editor
Atlas Twp. — On Monday night at the board of trustees meeting, Wesley Messing, a CPA, principal and audit partner for King & King, presented the annual financial statements and auditor’s report for the township’s fiscal year ending March 31, 2022.
According to the audit, for the fiscal year 2021-22 the general fund balance for the township was about $2.4 million.
“For a township this size it’s a very healthy fund balance,” said Messing. “So financially, the township is in a very strong position. Our audit went very well.”
The township’s governmental activities net position increased by $825, 410 for the fiscal year. This compares to a net increase of $435,027 in the 2020-21 audited year. The hike was due to an increase in revenues for State Shared Revenues and decreases in expenses in most programs, mainly public safety and roads. According to the audit, 92 percent of the township’s revenues is from property taxes and state shared revenues.
The township added to the general fund about $390,000, said Messing.
“That’s a pretty good year for the township,” he said. “Not far off where we were a year ago. Overall the general fund looks pretty good for the township, I don’t have any concerns at this time.”
The Michigan Townships Association and the State of Michigan both would say a healthy fund balance is defined as 25 percent of your current year revenue, according to King & King.
The fund balance represents the surplus that the township may have. It is the excess of the township assets above its liabilities (what the district owns minus what it owes). While cash is an asset, it’s only one of many of an institution’s assets. Others include: accounts receivable, prepaid expenses, supplies, equipment and buildings.
The increase in general fund balance comes after the first decrease since 2017. Over that time the fund balance had grown from $1,164,467 in 2016 to about $2,380,587 in 2022 .
The police fund operating expenses have increased from just under $550,000 in 2014 to about $1,030,007 in 2022. The fire protection fund is $902,283.