diff --git a/io/module_write_netcdf.F90 b/io/module_write_netcdf.F90
index 1fce3d8b9..1fc3744a2 100644
--- a/io/module_write_netcdf.F90
+++ b/io/module_write_netcdf.F90
@@ -60,8 +60,6 @@ subroutine write_netcdf(fieldbundle, wrtfb, filename, mpi_comm, mype, im, jm, rc
     real(8) :: varr8val
     character(len=ESMF_MAXSTR) :: varcval
 
-    character(128) :: time_units
-
     integer :: ncerr
     integer :: ncid
     integer :: oldMode
diff --git a/module_fcst_grid_comp.F90 b/module_fcst_grid_comp.F90
index 6ff1f39c7..2d767ca01 100644
--- a/module_fcst_grid_comp.F90
+++ b/module_fcst_grid_comp.F90
@@ -103,7 +103,7 @@ module module_fcst_grid_comp
 
 !----- coupled model data -----
 
-  integer :: date_init(6)
+  integer :: date_init(6), date_init2(6)
   integer :: numLevels     = 0
   integer :: numSoilLayers = 0
   integer :: numTracers    = 0
@@ -210,6 +210,8 @@ subroutine fcst_initialize(fcst_comp, importState, exportState, clock, rc)
     integer               :: globalTileLayout(2)
     integer               :: nestRootPet, peListSize(1)
     integer, allocatable  :: petMap(:)
+    real(8) rinc(5)
+    integer idat(8),jdat(8)
 !
 !----------------------------------------------------------------------- 
 !*********************************************************************** 
@@ -536,20 +538,36 @@ subroutine fcst_initialize(fcst_comp, importState, exportState, clock, rc)
                                name="time", value=real(0,ESMF_KIND_R8), rc=rc)
         if (ESMF_LogFoundError(rcToCheck=rc, msg=ESMF_LOGERR_PASSTHRU, line=__LINE__, file=__FILE__)) return
 
-        write(dateSY,'(I4.4)')date_init(1)
-        write(dateSM,'(I2.2)')date_init(2)
-        write(dateSD,'(I2.2)')date_init(3)
-        write(dateSH,'(I2.2)')date_init(4)
-        write(dateSN,'(I2.2)')date_init(5)
-        write(dateSS,'(I2.2)')date_init(6)
+! update date_init with iau_offset
+        date_init2 = date_init
+        if (atm_int_state%Atm%iau_offset > 0) then
+! date_init: year,month,day,hour,minute,second
+! idat: year,month,day,time zone,hour,minute,second,millsecond
+           idat = 0
+           idat(1:3) = date_init2(1:3)
+           idat(5:7) = date_init2(4:6)
+! rinc: days,hours,minutes,seconds,milliseconds
+           rinc = 0; rinc(2) = iau_offset
+           call w3movdat(rinc,idat,jdat)
+! update date_init using iau_offset
+           date_init2(1:3)=jdat(1:3)
+           date_init2(4:6)=jdat(5:7)
+        endif
+
+! time:units attribute uses date_init modified by iau_offset
+        write(dateSY,'(I4.4)')date_init2(1)
+        write(dateSM,'(I2.2)')date_init2(2)
+        write(dateSD,'(I2.2)')date_init2(3)
+        write(dateSH,'(I2.2)')date_init2(4)
+        write(dateSN,'(I2.2)')date_init2(5)
+        write(dateSS,'(I2.2)')date_init2(6)
 
         dateS="hours since "//dateSY//'-'//dateSM//'-'//dateSD//' '//dateSH//':'//    &
             dateSN//":"//dateSS
-        if (mype == 0) write(0,*)'dateS=',trim(dateS),'date_init=',date_init
+        if (mype == 0) write(0,*)'dateS=',trim(dateS),'date_init=',date_init2
 
         call ESMF_AttributeSet(exportState, convention="NetCDF", purpose="FV3", &
                                name="time:units", value=trim(dateS), rc=rc)
-!                              name="time:units", value="hours since 2016-10-03 00:00:00", rc=rc)
         if (ESMF_LogFoundError(rcToCheck=rc, msg=ESMF_LOGERR_PASSTHRU, line=__LINE__, file=__FILE__)) return
 
         call ESMF_AttributeSet(exportState, convention="NetCDF", purpose="FV3", &