{"data":{"id":"us-md/md.-code-local-government-16-306","jurisdiction":"us-md","citation":"Md. Code, Local Government § 16–306","heading":"","body":"(a) The county, municipality, or special taxing district shall report the\nresults of the audit required under § 16–305 of this subtitle to the Legislative Auditor:\n(1) on the form and in the manner that the Legislative Auditor\nrequires; and\n(2) on or before the date the financial report of the county,\nmunicipality, or special taxing district must be filed under § 16–304(a) of this subtitle.\n(b) An audit report filed by a county, municipality, or special taxing district\nwith the Legislative Auditor shall include financial statements of the county,\nmunicipality, or special taxing district that are:\n(1) prepared in accordance with generally accepted accounting\nprinciples; and\n(2) audited in accordance with generally accepted auditing\nstandards.\n(c) An audit report filed with the Legislative Auditor is a public record.\n(d) Except as provided in subsection (e) of this section, if a county,\nmunicipality, or special taxing district does not comply with subsection (a) or (b) of\nthis section, the Comptroller, on notice from the Executive Director of the\nDepartment of Legislative Services, may order the discontinuance of all money,\ngrants, or State aid that the county, municipality, or special taxing district is entitled\nto receive under State law that are distributed by the Comptroller, the clerks of the\ncourt, or any other unit of State government.\n(e) (1) Subject to paragraph (2) of this subsection, if a county,\nmunicipality, or special taxing district does not comply with subsection (a) or (b) of\nthis section within 2 calendar years after the deadline described in subsection (a)(2)\nof this section, the Executive Director of the Department of Legislative Services shall\nnotify the Comptroller and the Comptroller shall order the discontinuance of 20% of\nall State aid for the current fiscal year for highway user revenues and disparity\ngrants that the county, municipality, or special taxing district is otherwise entitled\nto receive under State law that is distributed by the Comptroller, the clerks of the\ncourt, or any other unit of State government.\n(2) (i) A discontinuance of funds under paragraph (1) of this\nsubsection shall remain in effect for a county, municipality, or special taxing district\nuntil the county, municipality, or special taxing district submits the audit report\nrequired under this section.\n(ii) 1. Subject to subsubparagraph 2 of this subparagraph,\nthe Executive Director of the Department of Legislative Services shall notify the\nComptroller and the Comptroller shall order the reinstatement of the funds\ndiscontinued under paragraph (1) of this subsection promptly after the county,\nmunicipality, or special taxing district submits the audit report required under this\nsection.\n2. A. If a reinstatement of funds is ordered under\nsubsubparagraph 1 of this subparagraph, only the discontinued funds for the current\nfiscal year shall be released.\nB. If a county, municipality, or special taxing district\nfailed to submit the audit report required under this section in the same fiscal year\nin which it was due, the discontinued funds for that fiscal year shall revert to the\nGeneral Fund of the State for discontinued disparity grants and to the Transportation\nTrust Fund for discontinued highway user revenues.","path":["Article - Local Government"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=glg\u0026section=16-306","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:59:58Z","sha256":"8b206f67f81fd2daa90febc478f3d7b4c184606a50b9ca7c3f2babceed9f69c9","source_id":"us-md","stale":false,"prev":"us-md/md.-code-local-government-16-305","next":"us-md/md.-code-local-government-16-307"},"notice":"GroundRules: Original legal text. Not legal advice."}