August 21, 1995

TO:    County Board of Commissioners, County Administrators, Controllers, Managers, County Road
          Commissioners, County Clerks and County Treasurers

FROM:    Richard L. Baldermann
               Administrator
               Local Audit and Finance Division

SUBJECT:    Optional Fiscal Years for Counties

Public Act 347 of 1994, MCL 45.201, authorizes the county board of commissioners to adopt an optional fiscal year beginning October 1 and ending the succeeding September 30.

Please refer to Letter Number 14-95 dated June 9, 1995 for further information on accounting and financial reporting for the county when the county board of commissioners changers the fiscal year for the county (all funds and agencies).

Section 1(3) of the Act authorizes the county road commissioners to adopt an optional fiscal year beginning October and ending the succeeding September 30 in counties which have a December 31 year end. If the county has a September 30 year end, the county road commission shall have the same fiscal year end.

Section 3 of the Act defines "county" as a county or a county agency in that county, other than the county road commission. If, in a county with a December 31 year end, a county agency other than the county road commission wants to adopt the optional fiscal year, the proposal must be taken to the county board commissioners. The county board of commissioners may authorize by motion or resolution the optional fiscal year ending September 30 for that county agency. Please send our office a certified copy of the motion or resolution when the optional fiscal year is adopted.