A. Money appropriated to the director for flood control projects shall be disbursed to public agencies upon order of the director after application by such agencies showing the necessity, purpose and use to be made of such monies.

B. The director shall disburse monies appropriated for flood control projects or special appropriations for flood control if the director determines that either:

1. All local monies necessary for the project are available.

2. A public agency has made necessary advances or incurred obligations for the purpose of expediting projects for which such monies are required and giving such other information as the director may require.

C. The director may require interim reports for flood control projects and flood control funded by special appropriations detailing expenditures of disbursed sums and containing such additional information as required by the director.

D. The director may refuse to make any disbursement of any of the monies available if the provisions of this chapter are violated.