Purpose of Expenditure. State funds and local matching funds may only be expended if the activity to be funded is: The responsibility of the local health officer, the Secretary, or the Secretary of the Environment, as established by the general public laws of Maryland; Delegated to the local health officer by the Secretary or the Secretary of the Environment; and With respect to §A(1) and (2) of this regulation, not budgeted for separately in the State budget. Procurement. If authorized by the principal executive or legislative authority of the subdivision's government in accordance with local ordinance, a local health department may use either the State procurement system or the procurement system of the subdivision in which the local health department is located. In the absence of such authorization, a local health department shall use the State procurement system in accordance with State Finance and Procurement Article, Annotated Code of Maryland, and COMAR Title 21. Expense Accounts. Amounts spent to reimburse personnel for travel expenses in accordance with COMAR 23.02.01 are eligible for State matching funds. Employee Fringe Benefits. The employer's payments for Social Security, retirement systems, health insurance, and unemployment insurance are eligible for State matching funds. Revenues. Amounts collected in accordance with COMAR 10.02.01 as the result of services rendered as part of local health services shall be treated as a reduction of expenditures for the corresponding project. Amounts collected by subdivisions shall be reported monthly to the Department. Interest. A subdivision shall: Deposit the collections and funds allocated to support local health services in a federally insured interest-bearing account when these funds are not required to meet current local health services expenses; and Treat interest income from the local health service revenues which generated the interest as a reduction of expenditures for the local health service which generated the interest. Prohibited Expenditures. State matching funds may not be used to support the following categories of expenditures: Hospitalization of clients; Equipment and appliances for individuals; Salary supplements; Utilities; Janitorial expenses; Landscaping; or Other items the Secretary may specify. State matching funds may not participate in the capital costs of or improvements to the physical facilities in which local health department operations are conducted. This regulation applies regardless of the manner in which this cost is defrayed including but not limited to rental, lease, and direct payment of contract for construction or installation. State matching funds may not be used to defray the cost of debt service if the construction or improvement is financed by the creation of a long-term debt. Insurance, Repair, and Maintenance of Physical Assets. The cost of insuring, repairing, or maintaining physical assets, the provision of which under this chapter is the responsibility of the subdivision, is not eligible for State matching funds. Reimbursement for Injuries. Amounts paid as compensation for injury incurred in the line of duty, and injury other than as a result of malpractice occurring on the premises of a facility of a local health department, as well as the cost of insuring for this liability, are eligible for State matching funds. Audits. All Department records of disbursements relating to local health department activities are available for audit by representatives of the county, if they so elect, as provided in Regulation .05D(3) and E of this chapter. All records of disbursements and revenues of the counties relating to local health department activities shall be available for audit by representatives of the Department for at least 5 years following the close of each fiscal year or until audited by the State, whichever comes first.