Md. Code, Local Government § 16–306

(a) The county, municipality, or special taxing district shall report the

results of the audit required under § 16–305 of this subtitle to the Legislative Auditor:

(1) on the form and in the manner that the Legislative Auditor

requires; and

(2) 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.

(b) An audit report filed by a county, municipality, or special taxing district

with the Legislative Auditor shall include financial statements of the county,

municipality, or special taxing district that are:

(1) prepared in accordance with generally accepted accounting

principles; and

(2) audited in accordance with generally accepted auditing

standards.

(c) An audit report filed with the Legislative Auditor is a public record.

(d) Except as provided in subsection (e) of this section, if a county,

municipality, or special taxing district does not comply with subsection (a) or (b) of

this section, the Comptroller, on notice from the Executive Director of the

Department of Legislative Services, may order the discontinuance of all money,

grants, or State aid that the county, municipality, or special taxing district is entitled

to receive under State law that are distributed by the Comptroller, the clerks of the

court, or any other unit of State government.

(e) (1) 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.

(2) (i) A discontinuance of funds under paragraph (1) of this

subsection shall remain in effect for a county, municipality, or special taxing district

until the county, municipality, or special taxing district submits the audit report

required under this section.

(ii) 1. Subject to subsubparagraph 2 of this subparagraph,

the Executive Director of the Department of Legislative Services shall notify the

Comptroller and the Comptroller shall order the reinstatement of the funds

discontinued under paragraph (1) of this subsection promptly after the county,

municipality, or special taxing district submits the audit report required under this

section.

2. A. If a reinstatement of funds is ordered under

subsubparagraph 1 of this subparagraph, only the discontinued funds for the current

fiscal year shall be released.

B. If a county, municipality, or special taxing district

failed to submit the audit report required under this section in the same fiscal year

in which it was due, the discontinued funds for that fiscal year shall revert to the

General Fund of the State for discontinued disparity grants and to the Transportation

Trust Fund for discontinued highway user revenues.