The Ypsilanti Courier
A Heritage Newspaper
Weekly Publication
Clerk given more power over accounting
Clerk says township is wasting money
By Dave Wak, Special Writer
PUBLISHED: March 22, 2007
After much debate, the Augusta Township Board of Trustees last week voted 4-3 to retain its contract with accounting firm Plante & Moran for the annual audit.
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Township Clerk Kathy Giszczak, in addition to Trustees Bill Tobler and Joanne Kidder, voted against the measure.
The measure eventually will allow many of the bookkeeping duties to be handed over to Giszczak, who will have training with Plante & Moran accountants during the transition.
Giszczak wanted the transition to take place sooner. She insisted the township could save the $50,000 officials approve for the accounting firm if it would let her office take over most of the bookkeeping duties and use them for auditing and occasional advising only.
Giszczak said that most of the work could easily be done in-house with a small staff of three to four people.
She also requested from the board that they approve $3,000 for collaboration with Plante & Moran officials and to have access to past bookkeeping records.
"We do not need extra people working on this, we can do it ourselves," she said.
Giszczak brought up the issue because she said the township was spending too much money for Plante & Moran's services, which currently run about $50,000 annually.
The funds, she said, could be used better elsewhere such as for road or drainage projects.
Giszczak also researched state law, and discovered she and the treasurer have the sole right to oversee the township's books.
However, Evelyn David from the Michigan Township's Association said while it is true the clerk has the right to oversee books under state law, the board also has the right to hire accounting help if they choose.
Augusta officials have run into accounting troubles before as the board originally hired Plante & Moran in the fall 2003 and relieved bookkeeper Kathy McDonald because they were not getting monthly reports.
The township also was audited by the state, in the 1990s, because the books were not being done correctly.
Township Treasurer Bill Babut supported the idea of having Giszczak take over the books. He said it would be best if Plante & Moran were on board to oversee the accounting records and help with the transition in case Giszczak was not yet ready to take on the job herself.
"I think the more we can do on our own the less we have to spend," he said.
Township Supervisor Kathy Jackson said the $50,000 Giszczak they would save was not accurate. She said that figure would more likely be around $25,000 to $30,000.
Jackson and Babut said that while Plante & Moran's annual bill was $50,000, it might cost the township around $20,000 for the firm to train her and staff, depending on how cooperative Giszczak is with Plante & Moran.
"The charge (for training Giszczak) is based on how easy she is to work with," Jackson said.
Trustee Bill Tobler voted against renewing Plante & Moran's contract because he said its language gave too much power to the firm for overseeing the audit.
He wanted it reworded to give the clerk and treasurer more weight. Jackson and Babut said he was misinterpreting the words of the contract and that it actually gave the township a lot of control.
Several residents spoke in support and opposition to Giszczak taking over the books.
Former clerk Iva Jo Bielec said the board shouldn't let Giszczak take over but "should stick with professionals who know what they're doing."
Resident Mike Thorton disagreed and said, "The clerk is qualified, and should definitely be doing the books."
Township Trustee Lynda Dew voted for the measure because she said Giszczak was sometimes reluctant to share information with other board members and might limit their access to the accounting records.
Dew also said while Giszczak had 20 years accounting experience, she had only two years of dealing with municipal accounting, which Babut had said can get complicated and might be slightly beyond Giszczak's abilities.
Giszczak countered saying that the townships accounting records were not overly complicated, and added that she could probably take over the book keeping with little or no training from Plante & Moran.
The board will retain Plante & Moran for the annual audit, which is due on Sept. 30 and will cost the township around $8,000 to $10,000.
They also will help train Giszczak and her staff and will charge the township around $80 to $185 an hour.
Dave Wak is an Ypsilanti resident and freelance writer for The Courier. He can be reached at dwak4@hotmail.com.
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