Maryland Code § SF-7-402

Section SF-7-402
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(a) (1) In this section the following words have the meanings indicated.
(2) "Social organization" means an association or corporation that is
operated for a charitable, cultural, educational, historical, humane, industrial,
medical, or military purpose.
(3) "State aid" means a contribution, grant, or subsidy of money from
the State Treasury.
(b) (1) Each social organization that, by statute, is to receive State aid
shall make an agreement:

(i) with the unit of the State government to which the money
for the State aid has been appropriated; or
(ii) if the money is not appropriated to a unit, with the
Comptroller.
(2) An agreement under this subsection shall:
(i) define the purposes and terms of the State aid; and
(ii) require the social organization to submit to the unit or
Comptroller a report on expenditure of the State aid.
(c) (1) Unless the agreement sets another date for submission of the
report, a social organization shall submit the report on or before September 1 after
the close of the fiscal year in which the social organization received the State aid.
(2) The report shall:
(i) contain an itemized statement that fully and accurately
accounts for how the State aid was spent; and
(ii) be verified:
1. by an officer of the social organization; or
2. for a military organization, by the commanding
officer.
(d) After a unit or the Comptroller receives a report under this section, the
unit or Comptroller:
(1) shall determine whether the social organization has spent and
accounted for the State aid in accordance with the agreement; and
(2) if the unit or Comptroller finds inconsistencies between the
agreement and the expenditures or operations of the social organization, shall give
the Department of Budget and Management and, subject to § 2-1257 of the State
Government Article, the Department of Legislative Services notice of the
inconsistencies.
(e) To ensure compliance with this section, the unit or the Comptroller may
audit the financial records of a social organization.

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