Board of Trustees Manual

Md. EDUCATION Code Ann. § 16-306

§ 16-306. Retirement contributions (a) Reimbursement to State for contributions made for employee salaries funded by source other than State or local aid. -- (1) Subject to paragraph (2) of this subsection, a public junior or community collegeshall reimburse the State annually for the employer contributions made by the State for an employee who:

(i) Is a member of the Teachers' Retirement System or the Teachers' Pension System under Division II of the State Personnel and Pensions Article; and (ii) Is receiving a salary funded by a source other than State or local aid.

(2) To the extent that an employee's salary is funded in part by sources other than Stateor local aid, the public junior or community college shall reimburse the State a pro rata share of the State's payment based on the percentage of the employee's salary funded bya source other than State or local aid. (b) Audit of payment records . -- (1) To ensure that the public junior or community college is properly reimbursing the State as provided under subsection (a) of this section, the Commission or, at the Commission's request, a public junior or community college may at any time examine the records of public junior or community colleges to determine whether the State'spayments for retirement contributions for employees of the public junior or community colleges are in accordance with the provisions of Division II of the State Personnel and Pensions Article. (2) An audit conducted under paragraph (1) of this subsection may be: (i) Included with an existing annual financial audit as a supplemental part and tested independently; (ii) Conducted in conjunction with a supplemental federally mandated single audit of federal financial assistance programs and tested independently; or (iii) Conducted as a separate independent audit. (c) Overpayment by State; proceedings. -- (1) (i) If an examination of the records of a public junior or community college shows that the State has paid more than is required under Division II of the State Personnel and Pensions Article, within 30 days after the date of the notice to the junior or community college of the State overpayment, the junior or community college may appeal the notice of State overpayment to the Secretary of Budget and Management who shall appoint a hearing examiner.

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