2836

LAWS OF MARYLAND

Ch. 982

PROMOTION OF THE PUBLIC HEALTH OR SOCIAL WELFARE, AND WHICH
RECEIVES FUNDS FROM THE STATE AS A GRANT OR UNDER CONTRACT
IN ORDER TO PERFORM THESE HEALTH OR SOCIAL WELFARE SERVICES.
AN ORGANIZATION SHALL BE INCLUDED WITHIN THE MEANING OF A
"HEALTH OR SOCIAL WELFARE ORGANIZATION" IF IT HAS TAX
EXEMPT STATUS UNDER SECTION 501(C) OF THE INTERNAL REVENUE
CODE OF 1954, AS AMENDED FROM TIME TO TIME, BUT FAILURE TO
MEET THIS STATUS DOES NOT EXCLUDE AN ORGANIZATION FROM THIS
DEFINITION IF IT IS NEVERTHELESS OPERATED FOR THE BENEFIT OF
THE PUBLIC HEALTH OR SOCIAL WELFARE.

(3) "UNIFORM ACCOUNTING STANDARDS" MEANS THOSE
ACCOUNTING STANDARDS AND PROCEDURES AS ESTABLISHED OR
ADOPTED BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC
ACCOUNTANTS FOR VOLUNTARY HEALTH AND WELFARE ORGANIZATIONS,

OR ANY CONSISTENTLY___APPLIED UNIFORM STANDARDS OF AN

EQUIVALENT NATURE WHICH CONFORM TO GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES AND ARE ACCEPTABLE TO THE LEGISLATIVE

(4) "RECORDS" MEANS THE GENERALLY ACCEPTED

JOURNALS, LEDGERS, AND REPORTS OF EXPENSES AND REVENUE,

BUDGETS, AND ALL OTHER FINANCIAL DOCUMENTATION WHICH MAY BE

REQUIRED OF THE PRIVATE HEALTH OR SOCIAL WELFARE

ORGANIZATIONS OR INDIVIDUALS AS A CONDITION OF RECEIVING
STATE FUNDS.

(B)    (1) ANY STATE AGENCY WHICH GRANTS FUNDS TO A
PRIVATE HEALTH OR SOCIAL WELFARE ORGANIZATION SHALL REQUIRE
THAT ORGANIZATION TO MAINTAIN FINANCIAL RECORDS ACCORDING TO
UNIFORM ACCOUNTING STANDARDS ESTABLISHED BY THE LEGISLATIVE

(2) THE CHIEF ACCOUNTANT OF EACH STATE AGENCY
(OR OF EACH DEPARTMENT IN WHICH THAT AGENCY IS LOCATED) MAY
UNDERTAKE AN EXAMINATION OF THE ACCOUNTS AND RECORDS OF ANY
HEALTH OR WELFARE ORGANIZATION RECEIVING GRANTS FROM THAT

AGENCY FOLLOWING A THIRTY DAY NOTICE PRIOR TO THE

EXAMINATION___DATE TO THE FUNDED ORGANIZATION OR INDIVIDUAL,

AND SHALL DENY GRANTS TO ANY ORGANIZATION WHICH FAILS TO
COMPLY WITH THESE UNIFORM ACCOUNTING STANDARDS.

(C)    (1) IF AN INDIVIDUAL OR PRIVATE HEALTH OR
SOCIAL WELFARE ORGANIZATION IS INCORPORATED UNDER THE LAWS
OF MARYLAND, ANY STATE AGENCY WHICH CONTRACTS WITH THAT
INDIVIDUAL OR ORGANIZATION TO PROVIDE VARIOUS HEALTH OR
SOCIAL WELFARE SERVICES SHALL REQUIRE THAT INDIVIDUAL OR
ORGANIZATION TO MAINTAIN FINANCIAL RECORDS ACCORDING TO
UNIFORM ACCOUNTING STANDARDS ESTABLISHED BY THE LEGISLATIVE

(2) AN INDIVIDUAL OR PRIVATE ORGANIZATION THAT
IS NOT INCORPORATED UNDER THE LAWS OF MARYLAND MAY BE
REQUIRED BY THE STATE AGENCY TO MAINTAIN FINANCIAL RECORDS
ACCORDING TO THESE UNIFORM ACCOUNTING STANDARDS WHEN THAT
AGENCY IS CONTRACTING WITH THAT INDIVIDUAL OR ORGANIZATION
FOR VARIOUS HEALTH OR SOCIAL WELFARE SERVICES.