Title 16. In General — Subtitle 3. Uniform System of Financial Reporting

the income tax;

the tax on racing;

the recordation tax;

the admissions and amusement tax; and

the license tax.

Except as provided in paragraph (2) of this subsection, on or before October 31 after the close of its fiscal year, each county, municipality, and special taxing district shall file with the Department of Legislative Services a financial report for that fiscal year.

prepared on the form established by the Department of Legislative Services; and

verified by the chief executive officer of the county, municipality, or special taxing district.

the income tax;

the tax on racing;

the recordation tax;

the admissions and amusement tax; and

the license tax.

Unless the Legislative Auditor determines, on a case–by–case basis, that more frequent audits are required, the Legislative Auditor may authorize a municipality or a special taxing district created by the State with annual revenues of less than $250,000 in the prior 4 fiscal years to have an audit conducted once every 4 years.

Notwithstanding paragraph (1) of this subsection and except as provided in subsection (e) of this section, a municipality is exempt from the audit requirements of subsection (a) of this section for any fiscal year in which the municipal annual revenues are less than $100,000.

The audit required under subsection (a) of this section shall be conducted by a certified public accountant:

An official auditor must be approved by the Legislative Auditor to conduct the audit.

In conducting the audit, the auditor shall examine the methods, accuracy, and legality of the financial records of the county, municipality, or special taxing district.

On the initiative of the Legislative Auditor, the Legislative Auditor may review or audit the financial records of any county, municipality, or special taxing district created by the State.

A county, municipality, or special taxing district created by the State may request the Legislative Auditor to audit its financial records.

An audit exemption for a municipality under subsection (b)(2) of this section does not affect the requirement of that municipality to file with the Department of Legislative Services a financial report in accordance with § 16–304 of this subtitle.

If the financial report submitted in accordance with § 16–304 of this subtitle by a municipality that has an audit exemption under subsection (b)(2) of this section indicates a financial or accounting irregularity or concern, the Joint Audit and Evaluation Committee may request or require the municipality to conduct a review or audit of its financial records consistent with the requirements of subsection (c) of this section.

on the form and in the manner that the Legislative Auditor requires; and

on or before the date the financial report of the county, municipality, or special taxing district must be filed under § 16–304(a) of this subtitle.

prepared in accordance with generally accepted accounting principles; and

audited in accordance with generally accepted auditing standards.

Subject to paragraph (2) of this subsection, if a county, municipality, or special taxing district does not comply with subsection (a) or (b) of this section within 2 calendar years after the deadline described in subsection (a)(2) of this section, the Executive Director of the Department of Legislative Services shall notify the Comptroller and the Comptroller shall order the discontinuance of 20% of all State aid for the current fiscal year for highway user revenues and disparity grants that the county, municipality, or special taxing district is otherwise entitled to receive under State law that is distributed by the Comptroller, the clerks of the court, or any other unit of State government.

Each year the Legislative Auditor shall:

The report may include recommendations that the Legislative Auditor considers advisable relating to:

In conducting the review required under subsection (a) of this section, the Legislative Auditor may review the work papers and other documentation of the auditor who filed the audit report.

The Legislative Auditor may refer audit reports, work papers, or other documentation reviewed by the Legislative Auditor to the State Board of Public Accountancy for action required by the Maryland Public Accountancy Act.

receives money collected by the county from a county property tax imposed at the request of the special taxing district;

has annual expenditures exceeding $250,000; and

has money disbursed and expended independently of the county government.

be conducted by:

determine if tax funds have been received, deposited, and disbursed in accordance with approved appropriations and State and local law;

include the following financial statements:

be completed and filed with the appropriate county officials not later than 90 days after the close of the fiscal year.

an annual financial report; and

an audit every 4 years unless the county determines, on a case–by–case basis, that more frequent audits are required.

When a county files its audit report with the Legislative Auditor as required by § 16–306 of this subtitle, the county also shall submit:

The Legislative Auditor shall:

As soon as practical after completing an audit, the Legislative Auditor shall certify the total costs of the audit to the appropriate official of the county, municipality, or special taxing district.

On receipt of the certification of costs, the official of the county, municipality, or special taxing district shall pay the Comptroller.