Municipalities and Special Taxing Districts - Annual Audit Waiver - Threshold Increase

SB 593 increases the annual revenue threshold for small municipalities and special taxing districts to qualify for a reduced audit requirement from $250,000 to $700,000 in prior fiscal years. This means local governments with revenue under $700,000 can now receive approval to conduct financial audits only once every four years, instead of annually. The bill maintains existing requirements that audits must be performed by certified public accountants and comply with Maryland’s Public Accountancy Act. The Legislative Auditor retains authority to require more frequent audits if needed. This change directly affects smaller local governments with annual revenues below $700,000.