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WES MOORE, Governor Ch. 365
Chapter 365
(Senate Bill 858)
AN ACT concerning
Department of Budget and Management – Audit and Finance Compliance Unit –
Establishment
FOR the purpose of establishing the Audit and Finance Compliance Unit in the Department
of Budget and Management; requiring the Governor to implement systems and
processes to monitor certain efforts; requiring the Unit to carry out certain
responsibilities and perform certain duties, including monitoring efforts of Executive
Branch agencies Departmental Units to correct certain audit findings and
implement certain corrective actions provide certain guidance, coordination, and
technical assistance; requiring the Unit to establish a certain specialized team to
provide certain direct assistance to certain agencies Executive Departmental Units
under certain circumstances; requiring the Unit to establish and maintain a
dashboard with certain information on its website submit a certain annual report by
a certain date each year; authorizing certain unredacted cybersecurity findings to be
viewed by certain individuals; and generally relating to the establishment of the
Audit and Finance Compliance Unit in the Department of Budget and Management.
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 3–101
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
BY adding to
Article – State Finance and Procurement
Section 3–401 through 3–407 to be under the new subtitle “Subtitle 4. Audit and
Finance Compliance Unit”
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, without amendments,
Article – State Government
Section 2–1224(h)(1)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – State Government
Section 2–1224(i)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
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Ch. 365 2026 LAWS OF MARYLAND
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – State Finance and Procurement
3–101.
(a) In this title the following words have the meanings indicated.
(b) “Department” means the Department of Budget and Management.
(c) “Secretary” means the Secretary of Budget and Management.
SUBTITLE 4. AUDIT AND FINANCE COMPLIANCE UNIT.
3–401.
(A) IN THIS SUBTITLE, THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(B) “AGENCY” MEANS AN ENTITY OF THE EXECUTIVE BRANCH OF STATE
GOVERNMENT.
(C) “UNIT” MEANS THE AUDIT AND FINANCE COMPLIANCE UNIT.
3–402.
THERE IS AN AUDIT AND FINANCE COMPLIANCE UNIT IN THE DEPARTMENT.
3–403.
(A) IN ACCORDANCE WITH § 2–1224(H)(1) OF THE STATE GOVERNMENT
ARTICLE, THE GOVERNOR SHALL IMPLEMENT SYSTEMS AND PROCESSES TO
MONITOR THE EFFORTS OF THE EXECUTIVE DEPARTMENTAL UNITS TO CORRECT
AUDIT FINDINGS REPORTED BY THE OFFICE OF LEGISLATIVE AUDITS.
(B) THE UNIT IS RESPONSIBLE FOR MONITORING THE EFFORTS OF
AGENCIES EXECUTIVE DEPARTMENTAL UNITS IN CORRECTING AUDIT FINDINGS
REPORTED BY THE OFFICE OF LEGISLATIVE AUDITS IN ACCORDANCE WITH TITLE
2, SUBTITLE 12, PART IV OF THE STATE GOVERNMENT ARTICLE.
3–404.
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WES MOORE, Governor Ch. 365
(A) IN CARRYING OUT ITS RESPONSIBILITIES, THE UNIT SHALL ASSIST
AGENCIES EXECUTIVE DEPARTMENTAL UNITS WITH THE RESOLUTION OF AUDIT
FINDINGS BY:
(1) PROVIDING OBJECTIVE ASSESSMENT OF CORRECTIVE ACTIONS;
AND
(2) MONITORING PROGRESS IN THE IMPLEMENTATION OF
CORRECTIVE ACTIONS.
(B) THE UNIT MAY IMPLEMENT PROACTIVE STEPS TO ADDRESS AND
PREVENT AUDIT FINDINGS THROUGH ADVICE AND SUPPORT PROVIDED TO
AGENCIES PROVIDE GUIDANCE, COORDINATION, AND TECHNICAL ASSISTANCE TO
EXECUTIVE DEPARTMENTAL UNITS TO STRENGTHEN EFFORTS TO ADDRESS AND
PREVENT AUDIT FINDINGS AND TO STRENGTHEN INTERNAL CONTROLS AND
COMPLIANCE PRACTICES.
3–405.
(A) THE UNIT SHALL PROVIDE DIRECT ASSISTANCE TO AGENCIES
EXECUTIVE DEPARTMENTAL UNITS WITH:
(1) FOUR OR MORE REPEAT AUDIT FINDINGS; OR
(2) AS REQUESTED BY THE JOINT AUDIT AND EVALUATION
COMMITTEE UNSATISFACTORY AUDITS.
(B) THE DIRECT ASSISTANCE PROVIDED UNDER SUBSECTION (A) OF THIS
SECTION SHALL INCLUDE:
(1) ADVICE AND SUPPORT TO DEVELOP CORRECTIVE ACTIONS AS
SOON AS PRACTICABLE, A REVIEW OF THE TIMELINE DEVELOPED BY THE
EXECUTIVE DEPARTMENTAL UNIT FOR THE IMPLEMENTATION OF CORRECTIVE
ACTIONS FOR EACH RECOMMENDATION TO ENSURE THAT THE TIMELINE HAS
ACHIEVABLE COMPLETION DATES;
(2) A REVIEW OF RESOLUTION ACTIONS ON EACH FINDING WITH A
FOCUS ON REPEAT AND SIGNIFICANT FINDINGS TO PROVIDE ADVICE AND SUPPORT
IN ASSISTING WITH THE DEVELOPMENT OF CORRECTIVE ACTIONS;
(3) PERFORMING SAMPLE TESTS OF IMPLEMENTED CORRECTIVE
ACTIONS, AS NEEDED; AND
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Ch. 365 2026 LAWS OF MARYLAND
(4) MONITORING PROGRESS IN OF THE IMPLEMENTATION OF
CORRECTION CORRECTIVE ACTIONS UNTIL THE LEGISLATIVE AUDITORS RETURN TO
BEGIN THE NEXT RELATED FISCAL COMPLIANCE AUDIT.
(C) (1) THE UNIT SHALL ESTABLISH A SPECIALIZED TEAM TO PROVIDE
THE DIRECT ASSISTANCE REQUIRED UNDER THIS SECTION.
(2) THE SPECIALIZED TEAM ESTABLISHED IN PARAGRAPH (1) OF
THIS SUBSECTION MAY INCLUDE CURRENT STATE EMPLOYEES, CURRENT
CONTRACTUAL EMPLOYEES, AND EXTERNAL CONTRACTORS.
3–406.
(A) THE UNIT SHALL MAINTAIN A DASHBOARD ON CURRENT AND REPEAT
AUDIT FINDINGS ON ITS WEBSITE.
(B) (1) THE DASHBOARD REQUIRED UNDER SUBSECTION (A) OF THIS
SECTION SHALL INCLUDE ALL AUDIT FINDINGS FOR AGENCIES UNDER
EXAMINATION EACH YEAR, ORGANIZED BY UNITS OF THE AGENCY.
(2) FOR EACH FINDING, THE DASHBOARD SHALL INCLUDE:
(A) ON OR BEFORE OCTOBER 1 EACH YEAR, THE UNIT SHALL SUBMIT AN
ANNUAL REPORT TO THE JOINT AUDIT AND EVALUATION COMMITTEE, IN
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON ALL AUDIT
FINDINGS FOR EXECUTIVE DEPARTMENTAL UNITS UNDER EXAMINATION.
(B) THE REPORT SHALL INCLUDE THE FOLLOWING INFORMATION FOR
EACH FINDING:
(I) (1) THE RECOMMENDATIONS OF THE OFFICE OF
LEGISLATIVE AUDITS;
(II) (2) THE NUMBER OF YEARS THAT A REPEAT FINDING
REMAINS UNRESOLVED;
(III) (3) THE PROJECTED COMPLETION DATE OF THE FOR
RESOLUTION OF A FINDING;
(IV) (4) INFORMATION ON UNRESOLVED FINDINGS,
INCLUDING THE REASON A FINDING IS UNRESOLVED; AND
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WES MOORE, Governor Ch. 365
(V) (5) A GRAPHIC REPRESENTATION OF THE PROGRESS OF
CORRECTIVE ACTIONS THAT INCLUDES WHETHER THE FINDING IS UNRESOLVED, IN
PROGRESS, OR RESOLVED THE PROGRESS OF CORRECTIVE ACTIONS THAT INCLUDES
WHETHER THE FINDING IS UNRESOLVED, IN PROGRESS, OR RESOLVED.
(C) THE DASHBOARD SHALL BE FULLY OPERATIONAL ON OR BEFORE
OCTOBER 1, 2027.
3–407.
THE SECRETARY MAY ADOPT REGULATIONS TO CARRY OUT THIS SUBTITLE.
Article – State Government
2–1224.
(h) (1) The Governor and the Chief Justice of the Supreme Court of Maryland
shall implement systems and processes to monitor the efforts of the Executive
Departmental Units and the Judiciary, respectively, to correct audit findings reported by
the Office of Legislative Audits.
(i) (1) A report auditing a unit of State or local government shall have any
cybersecurity findings redacted in a manner consistent with auditing best practices before
the report is made available to the public.
(2) AN UNREDACTED CYBERSECURITY FINDING IN A REPORT
AUDITING A UNIT OF STATE OR LOCAL GOVERNMENT MAY BE VIEWED BY:
(I) MEMBERS OF THE JOINT AUDIT AND EVALUATION
COMMITTEE;
(II) MEMBERS OF THE JOINT COMMITTEE ON CYBERSECURITY,
INFORMATION TECHNOLOGY, AND BIOTECHNOLOGY;
(III) THE CHAIR AND THE SUBCOMMITTEE CHAIRS OF THE
SENATE BUDGET AND TAXATION COMMITTEE;
(IV) THE CHAIR AND THE SUBCOMMITTEE CHAIRS OF THE
HOUSE APPROPRIATIONS COMMITTEE;
(V) THE GOVERNOR, THE GOVERNOR’S CHIEF OF STAFF, AND
THE GOVERNOR’S DEPUTY CHIEFS OF STAFF; AND
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Ch. 365 2026 LAWS OF MARYLAND
(VI) THE AUDIT AND FINANCE COMPLIANCE UNIT IN THE
DEPARTMENT OF BUDGET AND MANAGEMENT.
SECTION 2. AND BE IT FURTHER ENACTED, That, on or before October 1, 2026,
and October 1, 2027, the Audit and Finance Compliance Unit shall report to the Joint Audit
and Evaluation Committee, in accordance with § 2–1257 of the State Government Article,
on the status of the dashboard required under § 3–406 of the State Finance and
Procurement Article, as enacted by Section 1 of this Act.
SECTION 3. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 2026.
Approved by the Governor, May 12, 2026.
–6–Every fact on this page links to its source, starting with the official bill record.