PARRIS N. GLENDENING, Governor                             S.B. 361

(2)     (i) At least once every [2] 3 years, the Office of Legislative Audits
shall CONDUCT A FISCAL/COMPLIANCE audit OF each unit of the State government
EXCEPT FOR UNITS IN THE LEGISLATIVE BRANCH

(II)     IN DETERMINING THE AUDIT SCHEDULE FOR A UNIT, THE
OFFICE OF LEGISLATIVE AUDITS SHALL TAKE INTO CONSIDERATION:

1.       THE MATERIALITY AND RISK OF THE UNIT'S FISCAL
ACTIVITIES WITH RESPECT TO THE STATE'S FISCAL ACTIVITIES;

2.       THE COMPLEXITY OF THE UNIT'S FISCAL STRUCTURE;
AND

3.       THE NATURE AND EXTENT OF AUDIT FINDINGS IN THE
UNIT'S PRIOR AUDIT REPORTS.

(III)   EACH AGENCY OR PROGRAM MAY BE AUDITED SEPARATELY
OR AS PART OF A LARGER ORGANIZATIONAL UNIT OF STATE GOVERNMENT.

[(ii)] (IV) 1. The Office of Legislative Audits has the authority to
conduct a separate investigation of an act or allegation of fraud, waste, or abuse in the
obligation, expenditure, receipt, or use of State funds.

2. The Legislative Auditor shall determine whether an
investigation shall be conducted in conjunction with an audit undertaken in accordance
with [ subparagraph (i) of] this paragraph or [as a separate review] SEPARATELY.

(3)     If, on request of the Comptroller, the Joint Budget and Audit
Committee so directs, the Office of Legislative Audits shall audit OR REVIEW a claim
that has been presented to the Comptroller for payment of an expenditure or
disbursement and that is alleged to have been made by or for an officer or unit of the
State government.

(4)     The Office of Legislative Audits shall CONDUCT AN AUDIT OR REVIEW
TO determine the accuracy of information about or procedures of a unit of the State
government, as directed by the Joint Budget and Audit Committee OR THE DIRECTOR.

(b)     If the General Assembly, by resolution, or the Joint Budget and Audit
Committee so directs, the Office of Legislative Audits shall CONDUCT AN audit OR
REVIEW OF a corporation or association to which the General Assembly has
appropriated money OR WHICH HAS RECEIVED FUNDS FROM AN APPROPRIATION
from the State treasury.

(c)     The Office of Legislative Audits may audit any county officer or unit that
collects State taxes.

(D) (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

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