Except as provided in paragraph (2) of this subsection, the attorney to, or an attorney designated by, the local governing authority in each county or an attorney employed by the State shall institute and defend each civil action in which the local department is a party. In Cecil County, the local department may secure the services of attorneys to represent it in all legal matters affecting the local department. Actions in which the local department is a party shall be instituted in the name of the local department. The court may award attorney’s fees to an attorney representing a local department in an action to recover: from the estate of a recipient of any type of public assistance, the amount paid to the recipient during the recipient’s lifetime; or from a recipient of any type of public assistance, the amount paid to the recipient before the recipient receives any property or income in excess of the amount stated in the recipient’s application for assistance and in excess of the recipient’s need. The amount of fees awarded by the court shall be deducted from the gross amount of the recovery in the action. The net amount of the recovery shall be turned over to the local department to be divided among the State, the county, and the federal government in proportion to the amount paid by each. Except as otherwise provided, an attorney who provides any other legal services on behalf of a local department shall be paid the fees the Department sets. Attorney’s fees under this subsection shall be paid out of regular administrative funds.

The Office of the Inspector General in the Department shall conduct or contract for a financial and compliance audit of each local department at an interval of 4 years unless the Office of the Inspector General determines, on a case–by–case basis, that an audit occur at an interval of 3 years. In determining the audit interval for a local department, the Office of the Inspector General shall take into consideration: the materiality and risk profile of the local department’s programs and fiscal activities; the nature and extent of prior audit findings of the local department; and any other factor related to risk. The audit shall comply with the auditing standards issued by the Institute of Internal Auditors. A written report of the audit findings shall be prepared and distributed to: the local board; and the local governing authority.