DETROIT -

Metro Detroit's Highland Park and Royal Oak Township are the next municipalities to have their finances go under the state's microscope.

The Michigan Department of Treasury is set to begin a preliminary review of both Highland Park and Royal Oak Township's finances. It's the first step on the road to the appointment of a financial review team and ultimately a state-appointed emergency manager.

The Treasury notified both municipalities of the impending preliminary reviews on Wednesday and listed the following conditions as reasons for the reviews:

Highland Park

• The city has failed to timely deposit minimum pension payments
• The city has violated requirements of the uniform budgeting and accounting act
• The city is in breach of its obligations under an approved deficit elimination plan; and
• The city has ended a fiscal year in a deficit condition.

Royal Oak Township

• The township has failed to timely deposit minimum pension payments
• The township has violated requirements of the uniform budgeting and accounting act
• The township has violated requirements of the revised municipal finance act
• The local government is in breach of its obligations under an approved deficit elimination plan; and
• The township has failed to timely file annual financial reports (audits).