# COMAR Title 13A — State Board of Education

## Subtitle 02 — Local School Administration

### Chapter 07 — Annual Audits of Financial Statements and Federal Awards

#### Regulation .07 Fraudulent Acts.

*COMAR 13A.02.07.07*

A. If the auditor becomes aware of any fraudulent acts, the auditor shall promptly notify the local superintendent of schools and prepare a separate written report.

B. The local superintendent of schools shall promptly notify the Department of the fraudulent acts and any actions taken or proposed.

C. Fraudulent acts include:

  (1) Fraudulent financial reporting;

  (2) Misappropriations of funds or other assets; and

  (3) Conflicts of interest.