{"data":{"id":"us-md/md.-code-local-government-16-305","jurisdiction":"us-md","citation":"Md. Code, Local Government § 16–305","heading":"","body":"(a) Except as provided in subsection (b) of this section, each county,\nmunicipality, and special taxing district created by the State shall have its financial\nrecords audited at least once each fiscal year by the persons and for the purposes\nspecified in this section and §§ 16–307 and 16–308 of this subtitle.\n(b) (1) Unless the Legislative Auditor determines, on a case–by–case\nbasis, that more frequent audits are required, the Legislative Auditor may authorize\na municipality or a special taxing district created by the State with annual revenues\nof less than $250,000 in the prior 4 fiscal years to have an audit conducted once every\n4 years.\n(2) Notwithstanding paragraph (1) of this subsection and except as\nprovided in subsection (e) of this section, a municipality is exempt from the audit\nrequirements of subsection (a) of this section for any fiscal year in which the\nmunicipal annual revenues are less than $100,000.\n(c) (1) The audit required under subsection (a) of this section shall be\nconducted by a certified public accountant:\n(i) acting in the capacity of an independent auditor or an\nofficial auditor of a county or municipality; and\n(ii) who is in compliance with the Maryland Public\nAccountancy Act.\n(2) An official auditor must be approved by the Legislative Auditor to\nconduct the audit.\n(3) In conducting the audit, the auditor shall examine the methods,\naccuracy, and legality of the financial records of the county, municipality, or special\ntaxing district.\n(d) (1) On the initiative of the Legislative Auditor, the Legislative\nAuditor may review or audit the financial records of any county, municipality, or\nspecial taxing district created by the State.\n(2) A county, municipality, or special taxing district created by the\nState may request the Legislative Auditor to audit its financial records.\n(e) (1) An audit exemption for a municipality under subsection (b)(2) of\nthis section does not affect the requirement of that municipality to file with the\nDepartment of Legislative Services a financial report in accordance with § 16–304 of\nthis subtitle.\n(2) If the financial report submitted in accordance with § 16–304 of\nthis subtitle by a municipality that has an audit exemption under subsection (b)(2) of\nthis section indicates a financial or accounting irregularity or concern, the Joint Audit\nand Evaluation Committee may request or require the municipality to conduct a\nreview or audit of its financial records consistent with the requirements of subsection\n(c) of this section.","path":["Article - Local Government"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=glg\u0026section=16-305","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:59:58Z","sha256":"3ea1f4a0f0b0713c444521587fe810e83a8aa9154383ab10efbb8e2dce1a5fe7","source_id":"us-md","stale":false,"prev":"us-md/md.-code-local-government-16-304","next":"us-md/md.-code-local-government-16-306"},"notice":"GroundRules: Original legal text. Not legal advice."}