BIENNIAL AUDITS FOR LOCAL GOV’TS                                       S.B. 731: FLOOR ANALYSIS

Senate Bill 731 (as reported without amendment) Sponsor: Senator Philip E. Hoffman

Committee: Local, Urban and State Affairs

CONTENT

The bill would amend the Uniform Budgeting and Accounting Act to require local governments with populations less than 4,000 to obtain an audit of their financial records, accounts, and procedures at least every two years.

Currently, only local governments with populations less than 2,000 are required to obtain an audit biennially. Local governments with populations less than 1 million must obtain an annual audit of their financial records, accounts, and procedures.

MCL 141.425                                                                                     Legislative Analyst: L. Arasim

FISCAL IMPACT

The bill would, for every other year, eliminate the cost of an audit for local units with populations between 3,000 and 4,000. This bill would save an estimated $430,000 biennially for the local units involved.

This bill would have no State fiscal impact.

Date Completed: 11-16-95                                                                          Fiscal Analyst: R. Ross

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.