Audit shows State Police conducted ‘insufficient’ reviews of handgun license applications and registrations

A new state audit shows the Department of State Police conducted an “insufficient” number of reviews on firearm license and registration applications over a four-year period.

According to a document released Monday from the Maryland Department of Legislative Services’ Office of Legislative Audits, there were 600 instances of discrepancies of data entered within the police agency’s system during that time.

Col. Roland L. Butler Jr., the superintendent of the Maryland State Police, wrote in a letter with responses to the audit that those discrepancies represent a 0.16% error rate and meet “the data entry industry standard error rate of 1%.”

But the audit also noted that assessments called “quality control reviews” weren’t conducted in a timely manner.

For example, the department, which is referred to as “DSP” in the audit, has a policy that requires applications for a handgun qualification license and firearm registration reviews to be performed by the agency monthly. A test of those reviews by the audits office for 10 licenses disclosed seven of those reviews were conducted between 63 to 227 days after processing, well beyond the preferred timeline.

The audit notes the department conducted reviews of 3.1% of firearm registration applications, but its policy requires 10%.

The department later modified its policy and reduced the required number of reviews for license applications from 10% to 1%, “which in our opinion is not sufficient,” according to the audit. The Department of State Police blamed a staff shortfall for cutting the number of reviews.

The audit covers the period May 21, 2018, to May 31, 2022, and assesses an agency that includes the Maryland State Police, the Office of the State Fire Marshal, and the state Fire Prevention Commission.

During that timeframe, the department approved 372,300 firearms applications.

“In addition, audits DSP performed on registered firearm dealers were not properly documented to allow for supervisory review or follow up,” wrote Legislative Auditor Gregory A. Hook. “Furthermore, DSP had not established adequate controls over its cash collections and related accounts receivables.”

As of June 30, 2022, the department had 2,250 full-time positions filled and 347 vacant.

When it came to cash receipts from gun registration fees, the audit notes the department didn’t have a documented, independent verification process that all collections were subsequently deposited.

According to the audit, four employees could process adjustments to the receivable records without independent approval, including one employee who had access to related collections.

The audit recommends that all collections be recorded immediately upon receipt and that the department conduct an independent verification of those receipts deposited. The agency should also make sure adjustments to accounts receivable are subject to independent review and approval and that accounts receivable and cash receipts functions “are property segregated.”

In his response, Butler, who was confirmed by the Senate last year as superintendent of the Maryland State Police, wrote that the department’s finance division started to conduct those financial processes and procedures in January 2023.

“The Department will continue to work with the OLA (Office of Legislative Audits) in all matters of mutual concern,” Butler wrote.

A few responses

Defending the decrease in handgun license review applications, the department’s response states the change resulted from “significant increases” of gun purchases beginning in the second quarter of 2020 with no increases in permanent supervisory personnel.

In May 2023, the department amended the review request to include a random 10% of the applications for each employee who processed those applications in the previous month for review.

The department agreed with the findings that it must complete reviews of selected handgun licensing and firearm registration applications timely “in accordance with its written policies.”

According to a department response, it uses a web-based system called a licensing portal that programmatically forwards to agency officials the required number of firearm applications for review. However, it has a used a two-step process to review applications: the first step is investigated and then approved by a single employee, and in the second step, applications are reviewed by at least two employees.

The department has “identified” four firearms registration supervisors and has developed a plan to eliminate the second step by the end of the 2024 calendar year.

However, the agency’s response doesn’t state what specifically those four supervisors would do.

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