MI HB4044

Local units with populations under 4,000 must obtain financial audits at least biennially (every two years).

Local units with populations of 4,000 or more must obtain annual financial audits, subject to the exception in subsection (3).

Local authorities with annual budgets under $50,000 may obtain audits biennially instead of annually, provided no material deviations or fiscal irregularities are found.

If any biennial audit discloses material deviations from accounting standards, regulatory violations, or fiscal misconduct, the Department of Treasury may require an audit to be conducted in the following year.