Ch. 635

1997 LAWS OF MARYLAND

(4) [for a unit of State government,] an evaluation of compliance with
applicable laws and regulations relating to the acquisition of" goods and services from
State Use Industries.

(B)     (1) PERFORMANCE AUDITS SHALL BE CONDUCTED WHEN AUTHORIZED
BY THE LEGISLATIVE AUDITOR, WHEN DIRECTED BY THE JOINT AUDIT COMMITTEE
OR THE EXECUTIVE DIRECTOR, OR WHEN OTHERWISE REQUIRED BY LAW.

[(b)](2) [An] A PERFORMANCE audit [of] CONDUCTED BY the Office of
Legislative Audits may include:

[(1)](I) a review of the efficiency, EFFECTIVENESS, and economy with
which resources are used; and

[(2)] (II) a review to determine whether desired program results are
achieved [effectively].

(C)     THE PURPOSE OF FINANCIAL STATEMENT AUDITS CONDUCTED BY THE
OFFICE OF LEGISLATIVE AUDITS SHALL BE TO EXPRESS AN OPINION REGARDING
THE FAIRNESS OF THE PRESENTATION OF A UNIT'S FINANCIAL STATEMENTS.

(D)    THE AUDITS REFERRED TO IN SUBSECTIONS (A), (B), AND (C) OF THIS
SECTION SHALL BE CONDUCTED IN ACCORDANCE WITH GENERALLY ACCEPTED
GOVERNMENT AUDITING STANDARDS.

(E)     A REVIEW MAY BE CONDUCTED BY THE OFFICE OF LEGISLATIVE AUDITS
WHEN THE OBJECTIVES OF THE WORK TO BE PERFORMED CAN BE SATISFACTORILY
FULFILLED WITHOUT CONDUCTING AN AUDIT AS PRESCRIBED IN SUBSECTION (A),
(B), OR (C) OF THIS SECTION.

[(c)](F) (1) [The] UPON APPROVAL OF THE JOINT AUDIT COMMITTEE,
THE Office of Legislative Audits [may] SHALL develop AND USE A RATING SYSTEM
FOR DETERMINING an overall evaluation of a unit's financial transactions and. records,
AND INTERNAL CONTROLS and compliance with applicable laws and [orders]
REGULATIONS as a means of comparing the various units of State government.

(2) [The] WHEN AN evaluation IS ISSUED, IT SHALL BE PROVIDED TO
THE UNIT AND shall be available to the Joint [Budget and] Audit Committee and the
Budget Committees of the Maryland General Assembly.

[ 2-1217.] 2-1222. Place of audits.

(A)    An audit [of] OR REVIEW CONDUCTED BY the Office of Legislative Audits
shall GENERALLY be made at the offices of the State unit, county officer or unit,
corporation, or association that is subject to audit OR REVIEW.

(B)     (1) IF CONSIDERED APPROPRIATE AND AFTER CONSULTATION WITH
THE STATE UNIT BEING AUDITED OR REVIEWED, THE LEGISLATIVE AUDITOR MAY
AUTHORIZE ALL OR A PORTION OF AN AUDIT OR REVIEW TO BE CONDUCTED AT
THE OFFICES OF THE OFFICE OF LEGISLATIVE AUDITS.

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