ROBERT L. EHRLICH, JR., Governor                             Ch. 148

Article - State Government

2-1219.

(C) WITH THE APPROVAL OF THE EXECUTIVE DIRECTOR, THE LEGISLATIVE
AUDITOR SHALL APPOINT PROFESSIONAL STAFF TO CONDUCT AUDITS OF LOCAL
SCHOOL SYSTEMS IN ACCORDANCE WITH § 2-1220(F) OF THIS SUBTITLE.

2-1220.

(e) (1) The Office of Legislative Audits shall review any audit report
prepared under the authority of:

(i) Article 19, § 40 of the Code, with respect to a county, municipal
corporation, or taxing district; OR

(ii) § 16-315 of the Education Article, with respect to a community
college[;

(iii) § 5-109 of the Education Article, with respect to a board of
education; or

(iv) § 23-405 of the Education Article with respect to a library
board].

(2) The results of any review made by the Office of Legislative Audits
under paragraph (1) of this subsection shall be reported as provided in § 2-1224 of this
subtitle.

(F) (1) AT LEAST ONCE EVERY 3 YEARS BETWEEN JULY 1, 2004 AND JUNE 30,
2010, THE OFFICE OF LEGISLATIVE AUDITS SHALL CONDUCT A AUDITS AN AUDIT OF
EACH LOCAL SCHOOL SYSTEM TO EVALUATE THE EFFECTIVENESS AND EFFICIENCY
OF THE FINANCIAL MANAGEMENT AND FINANCIAL PRACTICES AUDIT OF EACH THE
LOCAL SCHOOL SYSTEM TO REVIEW THE USE OF FUNDING PROVIDED IN
ACCORDANCE WITH §§ 5-202 AND 5-205 THROUGH 5-210 OF THE EDUCATION ARTICLE.

(2) THE AUDIT SHALL INCLUDE A REVIEW OF:

(I) THE ADEQUACY OF THE LOCAL SCHOOL SYSTEM'S MASTER
PLAN AND WHETHER THE MASTER PLAN CONTAINS SUFFICIENT DETAIL TO ALLOW A
DETERMINATION THAT THE ADDITIONAL EDUCATION AID HAS BEEN USED BY THE
LOCAL SCHOOL SYSTEM:

1. IN A MANNER CONSISTENT WITH THE MASTER PLAN; AND

2. FOR PURPOSES THAT WILL ACHIEVE IDENTIFIABLE AND
MEASURABLE GOALS IN THE MASTER PLAN; AND

(II) THE USE OF THE ADDITIONAL STATE AID PROVIDED FOR
EDUCATION AND THE EXTENT TO WHICH THE FUNDS HAVE BEEN USED TO PROVIDE
IMPROVEMENT IN THE DIRECT EDUCATIONAL SERVICES AND PROGRAMS FOR
STUDENTS IN THE LOCAL SCHOOL SYSTEM.

(2) THE AUDITS MAY BE PERFORMED CONCURRENTLY OR SEPARATELY.

- 639 -