WILLIAM DONALD SCHAEFER, Governor                     Ch. 10

SECTION 16. AND BE IT FURTHER ENACTED, That the Department
of Budget and Fiscal Planning shall provide a semi-annual report
on indirect costs to the Joint Budget and Audit Committee. The
report should assess available information on the timeliness,
completeness and deposit history of indirect cost recoveries by
State agencies.

SECTION 17. AND BE IT FURTHER ENACTED, That a budget
amendment to appropriate an amount of federal funds in excess of
any federal fund appropriation in this bill may not be approved
by the Governor until the amendment has been reviewed by the
Joint Budget and Audit Committee. The committee shall have 45
days to review and consider the proposed budget amendment and may
submit recommendations to the Governor.

SECTION 18. AND BE IT FURTHER ENACTED, That whenever the
Joint Budget and Audit Committee through its review and
evaluation process of audit reports issued by the Legislative
Auditor, and after consultation with the Legislative Auditor
determines, based upon exceptions contained in the audit reports,
that a particular agency (to include department, administration,
division, bureau, board, or commission) does not adequately
account for its fiscal affairs and/or does not adequately comply
with State laws, rules and regulations regarding the agency's
fiscal and accounting record and procedures and/or fiscal and
administrative activities, that committee may recommend to the
Governor that the Comptroller withhold up to 25 percent of the
salary of the head of the agency, and/or the salary of the
Secretary of the Department wherein the agency is budgeted. The
amount to be withheld, the duration of such withholding, and the
date of release of amount withheld shall be recommended by the
committee after consultation with the Legislative Auditor
including any recommendations that the Legislative Auditor deems
appropriate. The Governor shall advise the committee as to the
decision regarding the committee's recommendations. If the
Governor directs that the salary of the head of an agency and/or
the salary of the Secretary of the Department wherein the agency
is budgeted withheld, the Governor may recommend to the committee
the date on which the salary shall be restored to the full amount
as provided in the budget and the amount to be withheld to be
paid. The committee shall consider the recommendation of the
Governor and advise the Governor as to its decision whether or
not to allow the salary to be restored to the full amount as
provided in the budget and the amount withheld to be paid.

SECTION 19. AND BE IT FURTHER ENACTED, That it is the
intent of the General Assembly that any unspent portion of funds
appropriated for the purpose of funding the object classification
.06 Fuel and Utilities within the public institutions of higher

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