Bill > SB962

This bill modifies Maryland's local government audit requirements by exempting municipalities with annual revenues below $100,000 from mandatory annual financial audits. Currently, municipalities with annual revenues less than $250,000 can have audits conducted once every four years, but this bill introduces a complete exemption for those with revenues under $100,000. However, the bill clarifies that even exempt municipalities must still file financial reports with the Department of Legislative Services. If those financial reports reveal any financial or accounting irregularities, the Joint Audit and Evaluation Committee (JAEC) can request or require the municipality to conduct a review or audit of its financial records. The audit, when required, must be performed by a certified public accountant who is an independent or official auditor and complies with Maryland's Public Accountancy Act. The changes will take effect on July 1, 2025, providing smaller municipalities with reduced financial and administrative burdens while maintaining oversight mechanisms to ensure fiscal transparency and accountability.

Budget and Finance, Transportation and Infrastructure

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0962?ys=2025RS