S.B. 731: COMMITTEE SUMMARY                             BIENNIAL AUDITS FOR LOCAL GOV’TS

Senate Bill 731

Sponsor: Senator Philip E. Hoffman Committee: Local, Urban and State Affairs

Date Completed: 11-27-95

SUMMARY OF SENATE BILL 731 as introduced 10-25-95:

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 obtain an audit biennially. Local governments with populations less than 1 million must obtain annual an 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 2,000 and 3,999. There are approximately 429 local units within this population range. This bill would save $858,000 biennially for the local units involved.

This bill would have not a State fiscal impact.

Fiscal Analyst: R. Ross

S9596\S731SA

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.

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