WILLIAM DONALD SCHAEFER, Governor                         S.B. 893

(b)     Any money of the Service, in its discretion and unless otherwise provided in
any agreement or covenant between the Service and the holders of any of its obligations
limiting or restricting classes of investments, may be invested in:

(1)     Bonds or other obligations of, or guaranteed as to principal and interest
by, the United States or the State or its political subdivisions or units; or

(2)     Any other obligation or security in which the State Treasurer may invest
under § 6-222 of the State Finance and Procurement Article.

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

(d)     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 Service. The audit shall be made by
independent certified public accountants, selected by the Service and licensed to practice
in the State. The accountants may not have a personal interest either directly or indirectly
in the fiscal affairs of the Service. They 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 point out any irregularities
found to exist. The accountants shall report the results of their examination, including
their unqualified opinion on the presentation of the financial position of the various funds
and the results of the Service's financial operations. If they are unable to express an
unqualified opinion they shall state and explain in detail the reasons for their
qualifications, disclaimer, or opinion including recommendations necessary to make
possible future unqualified opinions.

(e)     The books, records, and accounts of the Service are subject to audit by the
STATE, INCLUDING THE State LEGISLATIVE AUDITOR.

(f)      Any officer or employee who refuses to give the required assistance and
information to the accountants selected by the Service or by the State, or who refuses to
submit to them for examination the books, documents, records, files, accounts, papers,
things, or property required for the audit, in the discretion of the Service, may be
required to forfeit his office or employment.

(g)     Any moneys received by the Service from State agencies for goods or services
provided by the Service in accordance with agreements with those agencies shall be
deposited and credited to the funds created under this subtitle.

(H) WITHIN THE FIRST 90 DAYS OF EACH FISCAL YEAR, THE SERVICE SHALL
MAKE A REPORT TO THE GOVERNOR AND, SUBJECT TO § 2-1312 OF THE STATE
GOVERNMENT ARTICLE, TO THE GENERAL ASSEMBLY OF ITS ACTIVITIES FOR THE
PRECEDING FISCAL YEAR. EACH SUCH REPORT SHALL SET FORTH THE COMPLETE
OPERATING AND FINANCIAL STATEMENT COVERING THE SERVICE'S ACTIVITIES
DURING SUCH YEAR AND THE SALARIES FOR EACH POSITION OF THE SERVICE.

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