12-10-21 (Special)

The Davison Township Board of Trustees held a special meeting on December 10, 2021, primarily to review the results of the 2021 Financial Audit Report presented by representatives from Plante Moran. The auditors, Pam Hill and Chris Gilbert, reported an unmodified opinion, signifying that the township's financial statements can be relied upon as presented. The presentation covered various aspects of the township's finances, including revenue, expenditures, water and sewer operations, and pension/OPEB liabilities.

Beyond the audit results, the board discussed the resolution of a specific internal control matter and the township's long-term financial outlook. Supervisor Jim Slezak highlighted the township's readiness for large-scale infrastructure projects, specifically citing approximately $8 million in potential projects related to broadband and water/sewer services that could be supported by ARPA funds. The meeting also touched upon upcoming communications regarding MERS pension contributions.

• Audit Results: Plante Moran provided an unmodified opinion on the 2021 audit.
• Water and Sewer: The township's water and sewer services are currently generating enough revenue to cover operating expenses.
• Financial Health: The general fund balance has increased, and the township maintains a solid financial foundation.
• Internal Controls: A previously identified internal control matter was successfully resolved; the Supervisor noted this was a first-time occurrence in five years.
• Future Infrastructure: The township has identified approximately $8 million in necessary projects for future businesses, focusing on broadband and water/sewer infrastructure.

• Jim Slezak, Supervisor
• Patrick Miller, Clerk
• Matt Karr, Trustee
• Lori Tallman, Trustee
• Tim Green, Treasurer (Absent)
• David Lattie, Attorney (Absent)
• Pam Hill, Plante Moran
• Chris Gilbert, Plante Moran

• Agenda Adoption: MOTION BY KARR, SECOND BY TALLMAN to adopt the December 10, 2021 agenda as presented. Motion carried unanimously.
• Financial Audit Presentation: Review of the 2021 Financial Audit Report, including revenue, expenditures, and liability notes.
• Adjournment: MOTION BY KARR, SECOND BY TALLMAN TO ADJOURN AT 11:30 A.M. Motion carried unanimously.

• Meeting Date: December 10, 2021.
• Audit Delivery Target: The auditors expressed a goal to deliver the next audit by November, provided no issues arise.
• MERS Update: Expected in mid-December or January.

• Audit Purpose: To present the annual findings of the 2021 financial audit and ensure transparency regarding the township's fiscal position.
• Internal Control Resolution: To inform the board that a specific clerical error/process issue had been addressed and corrected.
• Long-term Planning: To discuss the strategic use of ARPA funds and manage upcoming pension-related payroll impacts.

• Infrastructure Projects: Approximately $8 million in projected costs for future business-related projects (broadband and water/sewer).
• ARPA Funds: Discussion regarding the use of ARPA funds for projects that do not require repayment.

• Pension Management: Monitor MERS updates in mid-December/January to ensure employee pension deductions are managed appropriately.
• Long-term Planning: Utilize the five-year forecast and long-term needs assessment as recommended in the audit letter.