(a) Definitions. In this section, the following words have the meanings indicated. "Qualifying non-profit organization" means an organization exempt from taxation pursuant to § 501 of the Internal Revenue Code that receives County funds totaling more than $100,000 in any fiscal year or is entitled to receive a share of County revenues totaling more than $100,000 in any fiscal year. "Qualifying non-profit organization" does not mean any agency, office, board, or commission established by County law or an organization that receives County funds or revenues by virtue of a County procurement.
(b) Required submissions. No later than sixty days after the beginning of the County's fiscal year during which the organization is to receive County funds or a share of County revenue, a qualifying non-profit organization shall provide to the Controller under oath or affirmation by a person authorized to do so by the board of directors of the qualifying non-profit organization:
(1) a list of officers, directors, trustees, key employees, and the five highest compensated employees of the organization, as defined for purposes of the Internal Revenue Service Form 990, during the organization's most recent tax year, together with the amount of compensation reported on Form W-2, Box 5 or Form 1099-MISC, Box 7, filed with the Internal Revenue Service for the calendar year ending with or within the organization's tax year by the organization and any related organization, as defined for purposes of the Internal Revenue Service Form 990;
(2) a copy of any contract of employment or agreement for the performance of services in exchange for compensation for any person listed in subsection (b)(1);
(3) a copy of any contract of employment or agreement for the performance of services in exchange for compensation in effect during the fiscal year with any person or entity who is regulated as a lobbyist under the General Provisions Article, § 5-702(a), (1), (2), (3), or (4), of the State Code, or § 7-7-102 of this Code;
(4) a copy of any resolution of the board of directors approving the contracts or agreements referred to in subsections (b)(2) and (b)(3);
(5) a copy of any written policies and procedures in effect during the fiscal year, for disclosure of conflicts of interest, as defined for purposes of compliance with the Internal Revenue Code, that identify the classes of individuals within the organization covered by the policy, facilitate disclosure of information that may help identify conflicts of interest, and specify procedures to be followed in managing conflicts of interest;
(6) a copy of any written policies and procedures in effect during the fiscal year for monitoring proposed or ongoing transactions for conflicts of interest, as defined for purposes of compliance with the Internal Revenue Code, and dealing with potential or actual conflicts, whether discovered before or after the transaction has occurred, and addressing financial or business transactions between the organization's officers and directors and the organization; and
(7) a copy of a written policy providing for disclosure protection for employees of the organization consistent with § 6-2-107 of this Code.
(c) Annual audit. Each qualifying non-profit organization shall prepare financial statements for each fiscal year, which shall be prepared in accordance with generally accepted accounting principles, and shall have the annual financial statements audited by an independent certified public accountant. Within 180 days of the end of the organization's fiscal year, the organization shall provide copies of the audit to the Controller and the County Auditor, as well as copies of any management letter and any independent auditor's report on internal control over financial reporting and compliance issued by the independent auditor.
(d) Alternative compliance. A qualifying non-profit organization may otherwise comply with the requirements of subsections (b) and (c) by executing a grant funding agreement with the County containing such provisions as the County Attorney, the Controller, and the Director of the Finance Department of the City of Annapolis shall require to ensure transparency and accountability in the expenditure of those funds or revenues.
(e) Remedy for non-compliance. The Controller may withhold any amounts otherwise due to the qualifying non-profit organization until the information required by subsections (b) or (c) has been received.
(f) Information to Auditor and City Finance Director. The Controller shall provide a copy of the information submitted pursuant to subsections (b), (c), and (d) to the County Auditor and the Director of the Finance Department of the City of Annapolis.
(g) Site visits and review of records. Upon reasonable notice and at reasonable times, the Controller, the County Auditor, and the Director of the Finance Department of the City of Annapolis, together or separately, may conduct periodic site visits at the business office of a qualifying non-profit organization and such visits may include inspection and review of records related to services and financial records.
(h) Organizations receiving $100,000 or less. An organization exempt from taxation pursuant to Section 501 of the Internal Revenue Code that receives County funds totaling $100,000 or less in any fiscal year or is entitled to receive a share of County revenues totaling less than $100,000 in any fiscal year shall execute a funding agreement with the County containing such provisions as the County Attorney, the Controller, and the Director of the Finance Department of the City of Annapolis shall require to ensure transparency and accountability in the expenditure of those funds or revenues. The funding agreement shall also contain a provision requiring disclosure protection for employees of the organization consistent with § 6-2-107 of this Code.
(i) Regulations. The Controller may promulgate such regulations as may be necessary to implement this section.
(Bill No. 63-09; Bill No. 96-13)