MARVIN MANDEL, Governor

2775

to Article 15A - Budget and Fiscal Planning, of the
Annotated Code of Maryland (1968 Replacement Volume and
1974 Supplement) to read as follows:

Article 15A — Budget and Fiscal Planning
28.

(A) THE SECRETARY OF ANY DEPARTMENT OF STATE
GOVERNMENT, OR HEAD OF ANY UNASSIGNED AGENCY, WHICH
CONTRACTS WITH A PRIVATE VENDOR FOR THE PURCHASE OF CARE
OF ANY KIND FOR CHILDREN, JUVENILES, OR ADULTS IN
NONGOVERNMENTAL FACILITIES, SHALL PROVIDE FOR [[AN AUDIT
TO BE MADE AS PROVIDED IN THIS SECTION OF THE MONEYS PAID
FOR THE PURCHASE OF CARE.]] A PERIODIC EXAMINATION OF THE
ACCOUNTS OF THE VENDOR PROVIDING PURCHASE OF CARE
SERVICES TO DETERMINE IF THE COSTS INCURRED FOR WHICH
REIMBURSEMENT WAS RECEIVED WERE IN ACCORDANCE WITH
ALLOWABLE COST GUIDELINES OF THE DEPARTMENT OR AGENCY. IF
IT IS DETERMINED THAT THE AMOUNT OF REIMBURSEMENT THAT
WAS RECEIVED DURING THE PERIOD EXCEEDED TOTAL ALLOWABLE
COSTS, [[THERE WILL BE A SETTLEMENT OF]] THE DEPARTMENT
SHALL COLLECT THE AMOUNT OWED TO THE DEPARTMENT OR
AGENCY. HOWEVER. LESS THAN THE AMOUNT DUE MAY BE
COLLECTED IF COLLECTION OF THE FULL AMOUNT WOULD
SERIOUSLY IMPAIR THE FINANCIAL CONDITION OF THE VENDOR,
AND A WRITTEN STATEMENT CONTAINING THE BASIS FOR THE
FINDING IS FILED BY THE DEPARTMENT. IF IT IS DETERMINED
THAT ALLOWABLE COSTS EXCEEDED THE AMOUNT OR
REIMBURSEMENT, AND WERE LESS THAN THE MAXIMUM RATE OF
PAYMENT AS PROVIDED IN THE BUDGET. THERE WILL BE A
SETTLEMENT OF THE AMOUNT OWED TO THE VENDOR.

(B) THE COST OF MAKING THE REVIEW OF VENDOR
ACCOUNTS BY THIS SECTION SHALL BE AN EXPENSE OF THE
DEPARTMENT OR AGENCY AND SHALL BE PROVIDED IN THE ANNUAL
STATE BUDGET.

(C) IF THE REVIEW OF VENDOR ACCOUNTS IS TO BE
PERFORMED BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS,
SELECTION OF THE AUDITORS SHALL BE MADE BY THE
SECRETARY[[, OR AGENCY HEAD, WITH THE APPROVAL OF THE
LEGISLATIVE AUDITOR]] OR AGENCY HEAD. THE PROCEDURE FOR
SELECTION OF THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT
SHALL BE REVIEWED BY THE LEGISLATIVE AUDITOR.

(D) THE REVIEW OF VENDOR ACCOUNTS SHALL BE
PERFORMED AT THE INTERVALS AND IN THE MANNER APPROVED AND
DETERMINED BY THE IT LEGISLATIVE AUDITOR]] SECRETARY OR
AGENCY HEAD AFTER CONSULTATION WITH THE LEGISLATIVE
AUDITOR.

(E) COPIES OF EACH AUDIT REPORT SHALL BE PROVIDED
BY THE SECRETARY OR AGENCY HEAD TO THE SECRETARY OF THE
DEPARTMENT OF BUDGET AND FISCAL PLANNING AND TO THE