(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 § 2-1246 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.