paying the tax on the actual purchase
price by manipulating the value of the
trade-in car. The Commission required
an affidavit from the dealer stating that
the figure on the report represented the
actual sales price. The auditor recom-
mended that a certified copy of the bill
of sale be sent in by the dealers in order
to close any possible chance of dishonesty.
The Commission felt that this was not
necessary in order to enforce the law and
would be an added expense in paper
work. The dispute was brought before the
comptroller by both parties and a pro-
cedure was worked out.
Because of the press of business, the
auditor's office discourages cities and
counties from making reports for audits.
Most of these jurisdictions have indepen-
dent certified public accountants do the
audit, and reports are sent to the state
auditor who reviews them. Often he re-
quests more information and criticizes
the reports. The state auditor can initiate
audits in counties and towns. It was, at
one time, limited to towns of over 2,500
population, but this restriction was re-
cently lifted.
According to the chief deputy auditor,
the office is separate from the comp-
troller and is not really dependent upon
him. This independence is necessary since
the auditor examines the comptroller's
books. However, he felt that the comp-
troller's office is the logical office to en-
force the auditor's report.
The auditor does not examine the
books and accounts of the Maryland Port
Authority or of the Metropolitan Transit
Authority because these divisions cross
state and local jurisdictions. An inde-
pendent certified public accounting firm
does the auditing and sends reports to
the auditor and comptroller. The auditor
takes turns with representatives of Wash-
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ington and Virginia in auditing the
Washngiton Metropolitan Transit Au-
thority. He makes a joint audit with a
representative of Virginia of the Potomac
River Commission. The Flag Centennial
was jointly audited with Baltimore City.
The following sections from Article 19
of the annotated code of maryland
describe the office of the state auditor
and its duties:
"Section 29. in general.
(a) Appointment, oath, term and
salary; deputy and assistant auditors;
powers and duties generally; bonds. —
There shall be a State Auditor ap-
pointed by the Governor, who shall be
assigned to the division of financial
review and control, and shall take the
oath prescribed by the Constitution.
His term of office shall commence on
the first Monday of May next ensuing
his appointment, and continue for four
years, until his successor shall be ap-
pointed and shall have qualified. The
State Auditor shall receive such salary
as may be fixed in the budget.
The State Auditor shall appoint a
deputy and such assistant State au-
ditors as he may deem necessary in
accordance with the provisions of
Article 64A, who shall receive such
salaries as the State Auditor deems
necessary, subject to the provisions of
the budget. The State Auditor, the
deputy State auditor and the assistant
State auditors, under the supervision
and direction of the Comptroller, shall
have and exercise all the rights, powers,
duties, obligations and functions con-
ferred upon them by law. The State
Auditor, the deputy State auditor, and
each of the regular assistant State
auditors will, upon entering the duties
of their respective offices, be covered
by surety bonds in accordance with the
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