By making application to the Arkansas Natural Resources Commission, the applicant will be deemed to consent and agree to the following:

1. (1) Facility inspection. From time of application throughout construction and at all times while any assistance from the commission to the applicant is outstanding, the commission shall have the right to inspect any and all of the projects and all incidental works, areas, facilities, and premises otherwise pertaining thereto;

2. (2) Record inspection. From time of application throughout construction and at all times while any assistance from the commission to the applicant is outstanding, the commission shall at all reasonable times have the right to inspect, review, or copy all contracts, documents, records, or other information related to the application, the project or projects, and the operation of the applicant's system, including financial records possessed by the applicant or its:

   1. (A) Contractors;
   2. (B) Agents;
   3. (C) Employees; or
   4. (D) Representatives;

3. (3) Audits. From time of application throughout construction and at all times while any assistance from the commission to the applicant is outstanding, the applicant shall, unless otherwise agreed to by the Director of the Arkansas Natural Resources Commission, provide the following:

   1. (A) Construction audit. Upon completion of the project, the applicant shall provide an audit by an independent certified public accountant of the expenditure of construction funds, including the financial assistance provided by the commission; and

   2. (B) Annual audit. The applicant shall furnish to the commission annually, within one hundred twenty (120) days after close of applicant's fiscal year, audited financial statements prepared by an independent certified public accountant, accompanied by such accountant's report thereon, reflecting:

      1. (i) The financial condition of applicant at the end of such fiscal year;
      2. (ii) The results of operations and changes in fund balances with respect to applicant;
      3. (iii) Applicant’s compliance with the terms and conditions of financial assistance documents and this part; and
      4. (iv) Other management or financial criteria established by the director; and

4. (4)

   1. (A) In addition, all federal and state reviews and/or audits of project funds must be forwarded to the commission as long as the applicant has an outstanding loan.
   2. (B) Applicants receiving grants from the commission must submit an annual audit if requested by the director.