<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".07" citation="COMAR 13A.02.07.07" title_num="13A" subtitle_num="02" chapter_num="07" heading="Fraudulent Acts.">
  <paragraph num="A.">
    <text>If the auditor becomes aware of any fraudulent acts, the auditor shall promptly notify the local superintendent of schools and prepare a separate written report.</text>
  </paragraph>
  <paragraph num="B.">
    <text>The local superintendent of schools shall promptly notify the Department of the fraudulent acts and any actions taken or proposed.</text>
  </paragraph>
  <paragraph num="C.">
    <text>Fraudulent acts include:</text>
    <paragraph num="(1)">
      <text>Fraudulent financial reporting;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Misappropriations of funds or other assets; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Conflicts of interest.</text>
    </paragraph>
  </paragraph>
</regulation>