5260

VETOES

FOR the purpose of providing that the Legislative Auditor
shall conduct audits of State Use Industries; providing
for annual or biennial audits of a fiscal and
compliance nature and for the advising of certain State
Use Industries officials under certain conditions of
the frequency of the audits; requiring State Use
Industries to bear the cost of the fiscal portion of
post audit examinations; and generally relating to the
audit of State Use Industries.

BY repealing and reenacting, with amendments,

Article 27 - Crimes and Punishments

Section 681-I

Annotated Code of Maryland

(1976 Replacement Volume and 1981 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:

Article 27 - Crimes and Punishments

681-I.

(A) (1) The Division shall formulate a system of
records and accounting which at all times shall indicate the
source, nature, and extent of its purchase and the source,
nature, and extent of its sales.

(2)  The Division shall maintain accounting
records and prepare financial statements in accordance with
generally accepted accounting principles for enterprise fund
type activities.

(3)  Such financial statements shall be prepared
by the administration and be available for audit purposes no
later than 60 days after the end of each fiscal year.

(B)  (1) THE LEGISLATIVE AUDITOR SHALL CONDUCT AUDITS
OF STATE USE INDUSTRIES.

(2)  AT HIS DISCRETION, THE LEGISLATIVE AUDITOR
MAY CONDUCT AN ANNUAL AUDIT OF A FISCAL AND COMPLIANCE
NATURE OF THE ACCOUNTS AND TRANSACTIONS OF THE STATE USE
INDUSTRIES IN PLACE OF CONDUCTING THESE AUDITS ON A BIENNIAL
BASIS. OFFICIALS OF THE STATE USE INDUSTRIES SHALL BE
ADVISED WHETHER ANNUAL OR BIENNIAL AUDITS WILL BE CONDUCTED.

(3)  THE COST OF THE FISCAL PORTION OF THE POST
AUDIT EXAMINATIONS SHALL BE BORNE BY THE STATE USE
INDUSTRIES.