Nonstate funds received by the Corporation shall be accounted for and reported as receipts and disbursements separate and distinct from State funds.
There is a Maryland Legal Services Corporation Fund.
The Administrative Office of the Courts shall administer the Fund.
The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
The Fund consists of:
money deposited to the Fund from the surcharge assessed in civil cases under §§ 7–202 and 7–301 of the Courts Article;
money distributed to the Fund under § 17–317 of the Commercial Law Article;
interest on attorney trust accounts paid to the Fund under § 10–303 of the Business Occupations and Professions Article; and
investment earnings of the Fund.
The Corporation shall use the Fund to provide funding for civil legal services to indigents under this title.
The Treasurer shall:
invest and reinvest the Fund in the same manner as other State funds; and
credit any investment earnings to the Fund and may not charge interest against the Fund if the average daily net cash balance for the month is less than zero.
Expenditures from the Fund shall be made in accordance with an appropriation requested by the Judicial Branch of the State government under § 7–108 of the State Finance and Procurement Article and approved by the General Assembly in the State budget or by the budget amendment procedure under § 7–208.1 of the State Finance and Procurement Article.
The Corporation shall accept and use any money or property received by gift, devise, bequest, or otherwise to further the purposes of this title.
The Corporation may not issue stock or declare or pay dividends.
This subsection does not apply to reasonable compensation paid for services rendered to or for the Corporation.
Net earnings of the Corporation may not inure to the benefit of any individual.
An individual may not share in the distribution of corporate assets on dissolution of the Corporation.
On the liquidation, dissolution, or winding up of the Corporation, after payment of the obligations and liabilities of the Corporation, all of the assets of the Corporation shall be transferred to one or more corporations or associations that:
have a character or purpose similar to the Corporation’s;
are selected by the Board; and
qualify under § 501(c)(3) of the Internal Revenue Code.
The accounts of the Corporation shall be audited annually.
The audits shall be conducted in accordance with generally accepted auditing standards by an independent certified public accountant.
An audit under this section shall be conducted where the accounts of the Corporation are normally kept.
If owned or in use by the Corporation and necessary to facilitate the audit, the Corporation shall make available to the auditor all:
books;
accounts;
financial records;
reports;
files; and
other papers or property.
Full facilities for verifying transactions with the balances and securities held by depositories, fiscal agents, and custodians shall be available to the auditors.
The report of the annual audit shall:
be submitted to the Governor, the Department of Budget and Management and, subject to § 2-1257 of the State Government Article, the General Assembly; and
be available for public inspection during business hours at the principal office of the Corporation.
The audit authorized by this section is in addition to the annual audit required by § 11-407 of this subtitle.
For any fiscal year during which State funds are available to finance any portion of the operations of the Corporation, the Legislative Auditor may audit the financial transactions of the Corporation.
An audit under this section shall be conducted where the accounts of the Corporation are normally kept.
If owned or in use by the Corporation and necessary to facilitate the audit, the Corporation shall make available to the Legislative Auditor all:
books;
accounts;
financial records;
reports;
files; and
other papers or property.
Full facilities for verifying transactions with the balances and securities held by depositories, fiscal agents, and custodians shall be available to the Legislative Auditor.
Unless the Legislative Auditor requires a longer period of retention, the items listed in paragraph (2) of this subsection shall remain in the possession and custody of the Corporation for 4 years.
The legislative audit shall be submitted to the General Assembly and the Governor, with any recommendations the Legislative Auditor considers advisable.