A. The board of directors shall establish a bond proceeds fund in connection with each series of bonds issued by the district. After deducting the necessary costs and expenses of issuing and selling the bonds, the treasurer or fiscal agent shall promptly deposit the proceeds from selling and delivering the bonds in the bond proceeds fund established with respect to those bonds. The treasurer or fiscal agent shall separately maintain the fund from all other funds, except that the treasurer or fiscal agent shall first apply those amounts of the bond proceeds stated in the resolution issuing the bonds to all reserve and sinking funds created in the bond resolution. The district may spend monies in the bond proceeds fund for any purpose not inconsistent with the resolutions authorizing the bonds. Monies deposited into the fund shall be segregated into accounts and subaccounts as the board of directors may determine appropriate.

B. The board of directors may order the investment of monies in the bond proceeds fund in obligations issued or guaranteed by the United States or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities and any investments which are authorized for use to secure public deposits or state, county or municipal bonds issued in this state on which the interest payments have not been deferred. The investment order shall state the approximate time when the proceeds from the sale of the bonds shall be used for the purposes directed in the bond resolution, and the treasurer or fiscal agent shall invest the proceeds from the sale of the bonds in a way as to mature at or as near as possible to the specified date.

C. The district shall use the monies or securities in the bond proceeds fund solely for the purposes stated in the bond resolution, except that if the revenues pledged to secure the bonds become insufficient to pay the annual principal and interest on the bonds, the district shall order the liquidation of the securities remaining in the fund and order the treasurer or fiscal agent to apply all such monies in the fund as may be necessary to make current all payments then due on the bonds.

D. The board of directors shall cause an audit to be made of the bond proceeds fund with respect to each series of bonds issued by the district, including all accounts and subaccounts in the fund. The audit shall be conducted by a certified public accountant within ninety days after the close of the fiscal year. The district shall immediately file a certified copy of the audit with the auditor general. The auditor general may make further audits and examinations as he deems necessary and take appropriate action relating to the audit or examination pursuant to Title 41, Chapter 7, Article 10.1. If the auditor general takes no official action within thirty days after the audit is filed, the audit is deemed sufficient. The district shall pay any fees and costs of the certified public accountant and auditor general under this section from the bond proceeds fund.