(1) Each service provider certified by the Commission on Public Advocacy shall be eligible to receive funds from the Legal Aid and Services Fund to provide free civil legal services to eligible low-income persons in the service area for which it is certified. The funds granted to each service provider from the Legal Aid and Services Fund shall be determined by the commission. Grants shall be awarded to legal service providers that provide direct legal representation of eligible low-income persons.

(2) Each service provider is authorized to use funds received from the Legal Aid and Services Fund to provide legal services in civil matters to any eligible low-income person.

(3) A service provider which has received funds from the Legal Aid and Services Fund shall be audited annually. For any service provider receiving funds pursuant to subsection (1) of this section, such audit shall include confirmation of the direct legal representation described in subsection (1) of this section, as shown through an entry of appearance as attorney in a court action, an execution of a retainer agreement, or any similar confirmation of actual legal representation.