(a)      (1)      The State Department shall be the central coordinating and directing agency of all social service and public assistance activities in this State, including the Family Investment Program, public assistance to adults, child welfare services, food stamps, and any other social service and public assistance activities financed in whole or in part by the State Department. For the purposes of these powers, child welfare services being provided to persons under the age of 18 may continue after their eighteenth birthday but not beyond their twenty-first birthday.

            (2)      All of the activities of the local departments in the counties and in Baltimore City, which the State Department finances, in whole or in part, shall be subject to the supervision, direction and control of the State Department.

            (3)      (i)      At least once every 2 years, the State Department shall conduct or contract for a financial and compliance audit of each local department of social services and shall prepare a written report of the audit findings.

                  (ii)      The audit shall comply with the auditing standards issued by the Institute of Internal Auditors.

                  (iii)      The written report of audit findings shall be distributed, as appropriate, to:

                        1.      The local board or commission of social services in each county and Baltimore City;

                        2.      The county executive;

                        3.      The county commissioners and county councils;

                        4.      The Mayor of Baltimore City; and

                        5.      The City Council of Baltimore City.

      (b)      The State Department may develop and implement an automated statewide system and related administrative procedures to achieve effectively and efficiently the purposes of this title. In the implementation of the system, the State Department may assume functions that this article otherwise assigns to local units only to the extent necessary for efficient implementation of the system. Such changes in assignments and performance of functions will be effected by executive order, promulgated by the Governor in accordance with Title 3, Subtitle 4 of the State Government Article.

      (c)      The State Social Services Administration shall exercise supervision, as hereinafter set forth, over all public and private institutions having the care, custody or control of dependent, abandoned or neglected children, except those institutions under the authority of the Department of Juvenile Services and those agencies, persons, or institutions designated by the Department of Juvenile Services as provided for in § 2-114 of Article 83C.

      (d)      To enable the State Department to discharge properly the duties imposed upon it, the State Department may of its own motion, or by the direction of the Governor shall, cause charges to be formulated against any corporation, association, institution or agency engaged in charitable or social services or welfare activities, except State-aided hospitals, receiving financial assistance from the State or with which the State has contracts, and cause a copy of such charges to be served on such corporation, association, institution or agency. The State Department shall have power to issue summonses for witnesses and documents, which summonses shall be duly served, as are other similar writs, by any sheriff to whom the same shall be directed, and to administer oaths, and take testimony which it shall cause to be transcribed and included in its report. The Governor, with the approval of the Board of Public Works, is hereby authorized and empowered to withhold, in whole or in part, further payments to any such institution or agency out of current or future appropriations, upon recommendation of the State Department if in its judgment the facts warrant, and by budget amendment to transfer any part of such appropriation so withdrawn to any other institution or agency of a like nature, upon recommendation of the State Department.

      (e)      The State Department shall have further power to visit any State-aided institution, organization, or agency engaged in social service or welfare activities, and thoroughly to inspect the management, buildings and equipment thereof; but such visits and inspections shall be made at reasonably convenient hours and with reasonable regard to the established discipline, regulations and customs of the said institution, organization or agency.

      (f)      The State Department may designate existing agencies or organizations within the State as its agents as may in its discretion be desirable or necessary for the purpose of this article.

      (g)      Prior to the convening of each regular session of the General Assembly, the State Department shall furnish to the Governor a report of its activities.