An audit has discovered two problems associated with the Maryland Division of Racing's compliance and internal controls.

According to the state audit released Tuesday, the Maryland Department of Labor, Licensing and Regulations' racing unit did not ensure that some funds from the state's racetracks, including wagering taxes, were received within the legal time frame during fiscal years 2010 and 2011.

The audit also found that the racing division miscalculated a refund due racetracks for excess lab fees for drug testing of horses collected in 2010. As a result, the state overpaid $20,000, according to the audit.

In response, DLLR Secretary Alexander Sanchez said the division would "monitor the timely submission" of funds and also would seek a legislative remedy that would extend the period in which the wagering taxes must be paid from seven to 10 days.

Sanchez said the division corrected the refund miscalculation and recovered the overpayment. He said the division would "ensure that future calculations will be properly calculated."

Hanah.cho@baltsun.com

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