992                                              LAWS OF MARYLAND                                     Ch. 11

In subsection (b)(1)(ii) of this section, the clause
"if the money is not appropriated to a unit" is added
to clarify the instances in which the agreement is
made with the Comptroller.

In subsection (b)(2)(ii) of this section, the former
word "annually" is deleted, since a social
organization submits a report only when the
organization receives State aid, which may not be
"annually". Similarly, in subsections (c) and (d) of
this section, the word "report" is substituted for the
former terms "annual account" and "annual report".

In subsection (c)(2)(ii) of this section, the word
"verified" is substituted for the former phrase "sworn
to", for clarity.

In subsection (e) of this section, reference to an
audit of "financial records" is substituted for the
former reference to an audit of "financial affairs",
since "affairs" cannot be audited.

As to the use of the word "unit", see the General
Revisor's Note to this article.

7-403. ACCOUNTING STANDARDS FOR HEALTH AND SOCIAL WELFARE
ORGANIZATIONS.

(A) DEFINITIONS.

(1)  IN THIS SECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(2)  "FINANCIAL RECORDS" MEANS THE GENERALLY ACCEPTED
BUDGETS, JOURNALS, LEDGERS, REPORTS OF EXPENSES AND REVENUE, OR
OTHER FORMS OF FINANCIAL DOCUMENTATION THAT MAY BE REQUIRED AS A
CONDITION FOR RECEIVING STATE FUNDS.

(3)  "HEALTH OR SOCIAL WELFARE ORGANIZATION" MEANS AN
ORGANIZATION THAT IS OPERATED FOR THE PROMOTION OF THE PUBLIC
HEALTH OR SOCIAL WELFARE, WHETHER OR NOT THE ORGANIZATION IS TAX
EXEMPT UNDER § 501(C) OF THE INTERNAL REVENUE CODE OF 1954.

(4)  "UNIFORM ACCOUNTING STANDARDS" MEANS:

(I)  ACCOUNTING STANDARDS AND PROCEDURES THAT
THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS HAS
ADOPTED FOR VOLUNTARY HEALTH OR SOCIAL WELFARE ORGANIZATIONS; OR

(II)  UNIFORM STANDARDS OF AN EQUIVALENT NATURE
THAT:

1. ARE APPLIED CONSISTENTLY; AND