Bill > SB593

This bill increases the annual revenue threshold for municipalities and special taxing districts from $250,000 to $700,000, above which the Legislative Auditor must conduct annual financial audits. Currently, for entities with annual revenues below this threshold, the Legislative Auditor may authorize less frequent audits (once every 4 years) unless more frequent audits are deemed necessary. The bill maintains existing requirements that these audits must be conducted by a certified public accountant who is either an independent auditor or an official auditor of a county or municipality, and who complies with the Maryland Public Accountancy Act. The auditor must examine the methods, accuracy, and legality of the financial records. The Legislative Auditor retains the ability to review or audit financial records on their own initiative or at the request of the municipality or special taxing district. The changes will take effect on July 1, 2025, potentially reducing the administrative and financial burden of annual audits for smaller municipalities and special taxing districts with lower annual revenues.

Budget and Finance

Management of Public Funds

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0593?ys=2025RS