Ch. 148                                    2004 LAWS OF MARYLAND

(3)     THE EMPLOYEES OF THE OFFICE OF LEGISLATIVE AUDITS SHALL
HAVE ACCESS TO AND MAY INSPECT THE RECORDS, INCLUDING THOSE THAT ARE
CONFIDENTIAL BY LAW, OF ANY LOCAL SCHOOL SYSTEM TO PERFORM THE AUDITS
AUTHORIZED UNDER THIS SECTION OR PURSUANT TO A REQUEST FOR
INFORMATION AS PROVIDED IN § 5-114(E)(4) OF THE EDUCATION ARTICLE.

(4)      THE OFFICE OF LEGISLATIVE AUDITS SHALL PROVIDE INFORMATION
REGARDING THE AUDIT PROCESS TO THE LOCAL SCHOOL SYSTEM BEFORE THE
AUDIT IS CONDUCTED.

(5) IN ADDITION TO THE REQUIREMENTS OF § 2-1224 OF THIS SUBTITLE,
EACH AUDIT SHALL BE DISTRIBUTED TO THE HOUSE WAYS AND MEANS COMMITTEE
AND THE JOINT COMMITTEE ON THE MANAGEMENT OF PUBLIC FUNDS.

SECTION 2. AND BE IT FURTHER ENACTED, That the Office of Legislative
Audits shall conduct a centralized audit of the master plans to determine overall
compliance with § 5-401 of the Education Article, and the results shall be submitted
to the Joint Audit Committee. The Office of Legislative Audits shall conduct the
centralized audit by December 1, 2004.

SECTION 3. AND BE IT FURTHER ENACTED, That the first group of audits
required under § 2-1220(f)(1) of the State Government Article shall include audits of
any local school system with a negative fund balance in the general fund of 1% or
more of general fund revenue in either of the prior 2 fiscal years. Thereafter, the Office
of Legislative Audits shall give priority in the order of audits to local school systems
that have failed to comply with any of the provisions of this Act.

SECTION 4. AND BE IT FURTHER ENACTED, That, notwithstanding §
5-114(e) of the Education Article, the Baltimore City Board of School Commissioners
shall eliminate the general fund deficit as reported in the annual audit required by §
5-109 of the Education Article by no later than the fiscal year ending June 30. 2006.

SECTION 5. AND BE IT FURTHER ENACTED, That 45 days prior to the
initiation of the first financial management practices audit required by this Act, the
Office of Legislative Audits shall submit the scope, measurements, and process the
Office plans to use in conducting the required audits to the Joint Audit Committee for
approval.

SECTION 2. 4. 6. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 2004.

Approved April 27, 2004.

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