2001-7 2000 Census and PA 2 Audits

March 29, 2001

To: Michigan Township Association 512 Westshire Drive Lansing, Michigan 48917-9757

         Michigan Municipal League
         1675 Green Road
         P.O. Box 1487
         Ann Arbor, Michigan 48106

From: Richard L. Baldermann, CPA, CGFM Administrator Local Audit and Finance Division

RE: Effective date of required annual audit for local government units with 4000 population or more Inhabitants

Section 5 of PA 2 of 1968, as amended, (MCL 141.425) requires a local unit having a population of 4,000 or more to obtain an annual audit of its financial records, accounts, and procedures.

Local government units that have an increase in population to 4,000 or more, as reported by the 2000 official census, are required to file annual audits for the fiscal years ending after January 1, 2002.

To illustrate, a local unit that has increased population, as reported by the 2000 official census, to 4,000 or more and filed an audit report for fiscal years ending during 2000 or 2001 must file an annual audit report for fiscal year ended 2002 and thereafter.

Units with population that decreased to a amount of less than 4,000 as reported in the 2000 official census, who filed an audit report for the fiscal year ended during the year of 2001 must file an audit report for the fiscal year ended 2003.

Please call (517) 373-3227 or write our office if you have any questions or if we can be of any assistance.

Michigan Department of Treasury
Local Audit and Finance Division
P.O. Box 30728
Lansing, Michigan 48909-8228