MARVIN MANDEL, Governor                        429

national bank OR SAVINGS AND LOAN ASSOCIATIONS may be
designated as a depositary to receive any securities acquired or owned
by the Authority. The restriction with respect to paid-in capital may
be waived for any such bank OR SAVINGS AND LOAN ASSOCIA-
TIONS which agrees to pledge securities of the State of Maryland or
of the United States to protect the funds and securities of the Au-
thority in such amounts and pursuant to such arrangements as may
be acceptable to the Authority.

(b) Investment of funds. Any monies of the Authority may, in
its discretion and subject to UNLESS OTHERWISE PROVIDED
IN any agreement or covenant between the Authority and the holders
of any of its obligations limiting or restricting classes of investments,
be invested in bonds or other obligations of, or guaranteed as to
principal and interest by, the United States or the State of Mary-
land or the political subdivisions or agencies thereof.

43. 42. Financial accounts and duties.

(a)    Accounting and controls; fiscal year. The Authority shall
make provision for a system of financial accounting and controls,
audits and reports. All accounting systems and records, auditing
procedures and standards, and financial reporting shall conform to
generally accepted principals of governmental accounting. The
Authority shall adopt a fiscal year which shall be July 1 to June 30,
and designate the necessary funds for complete accountability and
specify the basis of accounting for each such fund.

(b)    Independent audit. As soon as practical after the closing of
the fiscal year, an audit shall be made of the financial books, records
and accounts of the Authority. The audit shall be made by independ-
ent certified public accountants licensed to practice in this State as
auditors selected by the Authority. Such auditors shall have no
personal interest directly or indirectly in the fiscal affairs of the
Authority and shall be experienced and qualified in the accounting
and auditing of public bodies. The report of audit shall be prepared
in accordance with generally accepted auditing principles and shall
point out any irregularities found to exist and report the results of
their examination, including their unqualified opinion on the presen-
tation of the financial position of the various funds and the results
of the Authority's financial operations. If such auditors are unable
to express an unqualified opinion they shall so state and shall further
detail reasons for their qualifications or disclaimer of opinion includ-
ing recommendations necessary to make possible future unqualified
opinions.

(c)    Audit by governments. The books, records and accounts
of the Authority shall be subject to audit by the State of Maryland.

(d)    Cooperation. Any Director, officer or employee who shall
refuse to give all required assistance and information to the account-
ants selected by the Authority or by the State, or who shall refuse
to submit to them for examination such books, documents, records,
files, accounts, papers, things or property as may be required for
such audit shall, in the discretion of the Authority, forfeit his
office or employment.

(e)    Distribution of audit. The report of audit shall be filed
with the Authority and copies shall be distributed to each Director,