STANTON — The Montcalm County Board of Commissioners heard a sobering audit report today and unanimously voted to approve the report.
Bill Tucker from Abraham & Gaffney gave the report based on county financial statements from September 2015. He pointed out several weaknesses and failures in the county’s current financial statements, as well as those from years past.
Montcalm County is currently facing an estimated $1.5 million budget deficit. Tucker told the board they must file a deficit elimination plan with the state of Michigan explaining how county officials plan to rectify the current deficit.
On July 12, the Michigan Department of Treasury sent Montcalm County a note of intent to withhold state payments and warning the county must submit a deficit elimination plan within 30 days of the letter. If the plan is not filed within 30 days, the state may withhold 25 percent of the county’s state incentive payments or payments issued under the Revenue Sharing Act of 1971.
Once withheld, payments will not be released when a plan has been filed, but when a plan has been evaluated and certified by the Department of Treasury.