Ch. 47                                     2004 LAWS OF MARYLAND

Article - Education

18-1916.

(a)     (1) The Legislative Auditor shall audit the Trust as provided under Title
2, Subtitle 12 of the State Government Article.

(2)     The Board shall cause an audit of the Trust to be made by an outside
independent auditor annually.

(3)     The Board shall pay for the audit required under paragraph (2) of
this subsection.

(b)     (1) Within [90] 120 days after the close of each fiscal year, the Board
shall submit to the Governor and, subject to § 2-1246 of the State Government
Article, to the General Assembly a report including:

(i) The audit of the outside independent auditor;

(ii) A financial accounting of the Trust, including:

1.       The annual review of the comprehensive investment plan
which shall include:

A.      The status of the investment program, including
investment income matched to projected enrollment costs under the existing prepaid
contracts;

B.      The assets held in each class of investment, the amount of
funds held in any cash pool, the amount of funds held in fixed assets investments, and
the amount of funds held in equity investments;

C.      The percentage and dollar value of assets placed with
outside managers;

D.      The income produced by each class of investment; and

E.      The income produced by each investment manager; and

2.       A detailed account of the operating and administrative
budget for the Trust, which shall include a complete list of revenue sources and
expenditures detailing the line item expenditures for:

A.      Salaries, wages, and fringe benefits;

B.      Technical and special fees;

C.      Communication;

D.      Travel;

E.      Contractual services;

F.       Supplies and materials;

G.      Equipment;

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