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June 28, 2005

Public backs probe

By
Record-Eagle staff writer

Michelle McHale-Adams
Record-Eagle/Lara Neel
Michelle McHale-Adams, a forensic accountant with Plante & Moran, speaks during East Bay Township's meeting.
      TRAVERSE CITY - East Bay Township Supervisor Glen Lile "stuck his neck out" by authorizing a secret investigation by forensic auditors to ferret out discrepancies in the township's books.
      More than a hundred residents responded to Lile's actions with several rounds of applause at a special meeting Monday night.
      "I stuck my neck out, and I admit I was a little worried the board might not back me if they didn't find anything," Lile said.
      The board voted unanimously to ratify Lile's actions, except for township clerk Janice Gee. Arrested and charged with seven counts of felony embezzlement last week, Gee did not attend the meeting.
      She allegedly embezzled about $19,356 from the township between January 2003 and last December.
      Auditors from Plante & Moran approached Lile in March when they couldn't get the books to balance at the start of their audit. They recommended a forensic audit and hiring of a neutral attorney.
      Lile retained attorney Chuck Judson who then retained Plante & Moran for the parallel forensic audit that resulted in Gee's arrest.
      The cost of the forensic audit was about $6,000.
      Lile was advised not to inform other board members because it might compromise the review, Judson said.
      The board also agreed to conduct a complete financial review that will track payroll back to at least 2002, trace voided checks, review property tax collections, and sample and review other receipts and disbursements.
      Forensic auditor Michelle McHale-Adams said she already has a team assembled that can complete most of the analysis by the end of the week.
      The estimated cost of $20,000 initially brought gasps from the audience, followed by growing chants of "Do it! do it!"
      "I want to see every department budget investigated. I don't care what the cost is," said township resident Charles Brill. "I just feel it has to be done."
      McHale-Adams also recommended the township board remove Gee's name from all of their bank accounts and discontinue use of township credit cards.
     
See Related Stories:
      East Bay Township clerk charged with embezzlement felonies - June 23, 2005
      Township officials pushed for audit leading to Gee's arrest - June 23, 2005

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