Effective date: 8/10/1998
(1) Beginning with the fiscal year in which the loan agreement is executed and continuing for each year thereafter until the loan is retired, the loan recipient shall submit annual audit reports to the Department. Audits shall address the loan recipient’s financial condition; accounts of water and sewer systems or other sources generating the pledged revenues; loan disbursements received, if any; project expenditures, if any; and compliance with loan agreement covenants. The loan recipient shall cause its auditor to notify the Department immediately if anything comes to the auditor’s attention during the annual examination of the loan recipient’s records that would constitute a default under the loan agreement. Reports shall be submitted within one (1) year after the end of each audited fiscal year.
(2) Beginning with the fiscal year in which the grant agreement is executed and continuing for each year thereafter the final grant disbursement is received, the grant recipient shall submit annual audit reports to the Department. Audits shall address the grant recipient’s financial condition; accounts of the water system; grant disbursements received, if any; project expenditures, if any; and compliance with grant agreement covenants. Reports shall be submitted within one (1) year after the end of each audited fiscal year.
(3) Within 12 months after the effective date of a financial assistance agreement amendment establishing final project costs, the project sponsor shall submit to the Department a separate audit report for the project revenues, including receipt of disbursements under all financial assistance agreements with governmental entities, and expenditures. The audit report also shall address compliance with financial assistance agreement covenants under this rule chapter. The audit findings shall set aside or question any costs for which a financial assistance agreement disbursement under this rule chapter was made and is unallowable. A final determination of the allowability of such costs shall be made by the Department.
(4) The Department may conduct an audit at any time within three (3) years after the effective date of the financial assistance agreement amendment establishing final project costs. Situations that could result in necessitate such an audit include financial assistance agreement covenant compliance problems; record keeping deficiencies; and unusual, questioned, or apparently irregular costs. The Department of Environmental Protection, Bureau of Water Facilities Funding and the Inspector General jointly shall be responsible for determining whether an audit is to be performed.
(a) The Department shall mail a notice that an audit will be performed to the project sponsor no later than 30 days prior to the audit.
(b) The Department, the State of Florida, or their authorized representatives shall have access to records for audit purposes. The project sponsor shall similarly require its contractors and lower tier subcontractors to maintain and allow access to such records for audit purposes.
(c) The Department shall prepare a written report on its audit and shall provide a copy of the report to the project sponsor. The project sponsor shall respond, in writing, to the findings and recommendations within 30 days after receipt of a written request from the Department.
Specific Authority 403.8532 FS. Implements Florida Statutes § 403.8532. History-New 4-7-98, Amended 8-10-98.