Article - State Government
(a) (1) In
this subsection, “unit” includes each State department,
agency, unit, and program, including each clerk of court and each
register of wills.
(2) (i) The
Office of Legislative Audits shall conduct a fiscal/compliance audit
of each unit of the State government, except for units in the Legislative
(ii) The audit
of each unit shall be conducted at an interval ranging from 3 to 4
years unless the Legislative Auditor determines, on a case–by–case
basis, that more frequent audits are required.
(iii) In determining
the audit interval for a unit, the Office of Legislative Audits shall
take into consideration:
1. the materiality
and risk of the unit’s fiscal activities with respect to the
State’s fiscal activities;
2. the complexity
of the unit’s fiscal structure; and
3. the nature and
extent of audit findings in the unit’s prior audit reports.
(iv) Each agency
or program may be audited separately or as part of a larger organizational
unit of State government.
audits or financial statement audits shall be conducted when authorized
by the Legislative Auditor, when directed by the Joint Audit Committee
or the Executive Director, or when otherwise required by law.
(4) (i) In
addition to the audits required under paragraph (2) of this subsection,
the Office of Legislative Audits may conduct a review when the objectives
of the work to be performed can be satisfactorily fulfilled without
conducting an audit as prescribed in § 2–1221 of this subtitle.
(ii) 1. The
Office of Legislative Audits has the authority to conduct a separate
investigation of an act or allegation of fraud, waste, or abuse in
the obligation, expenditure, receipt, or use of State resources.
2. The Legislative
Auditor shall determine whether an investigation shall be conducted
in conjunction with an audit undertaken in accordance with this subsection
(5) If, on request
of the Comptroller, the Joint Audit Committee so directs, the Office
of Legislative Audits shall audit or review a claim that has been
presented to the Comptroller for payment of an expenditure or disbursement
and that is alleged to have been made by or for an officer or unit
of the State government.
(6) The Office
of Legislative Audits shall conduct an audit or review to determine
the accuracy of information about or procedures of a unit of the State
government, as directed by the Joint Audit Committee or the Executive
(b) If the General
Assembly, by resolution, or the Joint Audit Committee so directs,
the Office of Legislative Audits shall conduct an audit or review
of a corporation or association to which the General Assembly has
appropriated money or that has received funds from an appropriation
from the State Treasury.
(c) The Office
of Legislative Audits may audit any county officer or unit that collects
(d) (1) The
Office of Legislative Audits shall review any audit report prepared
under the authority of:
16–305 through 16–308 of the Local Government Article,
with respect to a county, municipal corporation, or taxing district;
(ii) § 16–315
of the Education Article, with respect to a community college.
(2) The results
of any review made by the Office of Legislative Audits under paragraph
(1) of this subsection shall be reported as provided in § 2–1224
of this subtitle.
(e) (1) Except
as provided in paragraph (4) of this subsection, at least once every
6 years, the Office of Legislative Audits shall conduct an audit of
each local school system to evaluate the effectiveness and efficiency
of the financial management practices of the local school system.
(2) The audits
may be performed concurrently or separately.
(3) The Office
of Legislative Audits shall provide information regarding the audit
process to the local school system before the audit is conducted.
(4) (i) Subject
to the limitation under subparagraph (ii) of this paragraph, beginning
in fiscal year 2017, a local school system shall be exempt from the
audit requirement under paragraph (1) of this subsection if the county
governing body, the county board of education, and the county delegation
to the Maryland General Assembly consisting of the county senators
and delegates each submits a letter to the Joint Audit Committee requesting
an exemption on or before November 1 of fiscal year 2017, or on or
before November 1 of the last year of a 6–year audit cycle under
paragraph (1) of this subsection, as determined by the Office of Legislative
(ii) A local school
system may not be exempt for two consecutive 6–year audit cycles.
paragraph (4) of this subsection, the Joint Audit Committee may direct
the Office of Legislative Audits to conduct an audit of a local school
system at any time.
(f) (1) At
least once every 4 years, the Office of Legislative Audits shall conduct
a performance audit of the Board of Liquor License Commissioners for
Baltimore City to evaluate the effectiveness and efficiency of the
management practices of the Board and of the economy with which the
Board uses resources.
(2) The performance
audit shall focus on operations relating to liquor inspections, licensing,
disciplinary procedures, and management oversight.