Md. Code, Local Government § 16–308

(a) Each county shall adopt uniform rules and regulations for the auditing

of the financial records of each special taxing district created by the county that:

(1) receives money collected by the county from a county property tax

imposed at the request of the special taxing district;

(2) has annual expenditures exceeding $250,000; and

(3) has money disbursed and expended independently of the county

government.

(b) At a minimum, the rules and regulations required under subsection (a)

of this section shall require the audit to:

(1) be conducted by:

(i) a certified public accountant:

1. acting in the capacity of an independent auditor or

an official auditor of the county; and

2. who is in compliance with the Maryland Public

Accountancy Act; or

(ii) an auditing committee approved by the official auditor of

the county;

(2) determine if tax funds have been received, deposited, and

disbursed in accordance with approved appropriations and State and local law;

(3) include the following financial statements:

(i) a balance sheet;

(ii) a statement of revenues;

(iii) a statement of expenditures and encumbrances; and

(iv) a statement of changes in fund balance; and

(4) be completed and filed with the appropriate county officials not

later than 90 days after the close of the fiscal year.

(c) For a special taxing district that is created by the county and has annual

expenditures of less than $250,000, the county shall require:

(1) an annual financial report; and

(2) an audit every 4 years unless the county determines, on a case–

by–case basis, that more frequent audits are required.

(d) If a special taxing district subject to subsection (a) or (c) of this section

does not file a financial report or audit report required by the county, the county may

withhold the distribution of taxes imposed on behalf of the special taxing district until

the report is received.

(e) (1) When a county files its audit report with the Legislative Auditor

as required by § 16–306 of this subtitle, the county also shall submit:

(i) a copy of each financial report and audit report received

from each special taxing district subject to subsection (a) or (c) of this section; and

(ii) a report on the results of the county’s review of each special

taxing district’s compliance with this section.

(2) The Legislative Auditor shall:

(i) review the financial reports, audit reports, and other

information received from each county; and

(ii) submit recommendations as appropriate based on the

results of the review.