§ 1870. Audits.

(a) A participating county shall perform a financial audit of its project within ninety (90) days following construction completion. The audit shall be performed under the direction of a Certified Public Accountant or a county auditor that is organizationally independent from the county's project financial management functions. In addition, the Board and Authority reserve the right to audit the accounting records of the project at any time. The Board and Authority may disallow claims for the proceeds of lease-revenue bonds and/or applicable matching credit for all or part of the cost of an item determined to be ineligible and/or not in compliance with the terms and conditions of the bond agreement.

(b) Any improper expenditure of the proceeds of lease-revenue bonds disclosed in such audits will be recovered by the state through withholding future payments and/or repayment by the participating county, at the discretion of the Authority.

HISTORY

1. New section filed 2-2-2009 as an emergency; operative 2-2-2009 (Register 2009, No. 6). A Certificate of Compliance must be transmitted to OAL by 7-13-2009 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 2-2-2009 order transmitted to OAL 7-8-2009 and filed 8-18-2009 (Register 2009, No. 34).

Note

Note: Authority cited: Section 6030, Penal Code; and Section 1975, Welfare and Institution s Code. Reference: Section 1975, Welfare and Institutions Code.