(d) Reporting.

1. (1) Until all grant funds have been expended on a project, regional solid waste management boards shall provide the Division of Environmental Quality with an annual report summarizing:

   1. (A) Progress in the project; and
   2. (B)

(i) An expense itemization for each grant award.

1. (ii) An expense itemization is a listing of expenditures that includes:

(b) (b) Item purchased;

1. (c) (c) Purchase price; and

   1. (d) (d) Name of vendor.

2. (2)

   1. (A) When equipment is purchased, regional solid waste management boards shall submit copies of invoices, purchase orders, checks, or other supporting documents to the division with progress reports.

   2. (B) These documents should include:

      1. (i) Serial numbers;
      2. (ii) Vehicle identification numbers or other identifiers; and
      3. (iii) Physical location of the equipment.

3. (3) For a period of five (5) years after a grant recipient’s receipt of grant funds, regional solid waste management boards shall provide the division with an annual report summarizing:

   1. (A) Tonnage of materials collected by the grant recipient; and
   2. (B) Revenues produced by the sale of materials collected.
4. (4) The reports shall be filed annually on or before September 1.

(e) Right of entry and access.

1. (1) Division personnel shall have the:

   1. (A) Right of entry during normal business hours, unless otherwise deemed necessary by the division, to the premises of a grant-funded facility; and
   2. (B) Right of access to all records pertaining to a grant-funded project or activity.

2. (2) Regional solid waste management boards shall:

   1. (A) Maintain copies of invoices, purchase orders, checks, or other supporting documents for grant expenditures at the regional solid waste management district office; and
   2. (B) Produce these items upon request for on-site inspection by the division.

(f) Modifications.

1. (1) After the division has approved a grant, modifications may be made to the grant project if the grantee submits adequate documentation of the proposed changes and receives written approval by the regional solid waste management board and the division.

2. (2)

   1. (A) Modifications that alter the grant category or materially change the project must be publicly noticed in a newspaper of general circulation in the area affected describing the requested change and soliciting written comments from the public.
   2. (B) The comment period shall last for thirty (30) calendar days after the date of publication and may be concurrent with a change order submission to the division.
   3. (C) Proof of publication of the notice and copies of comments submitted shall be forwarded to the division.
3. (3) Change orders cannot be approved until these items are received by the division.

(g) Notice of irregularities.

1. (1) It shall be the responsibility of the regional solid waste management boards to immediately notify the division in the event that the grantee has not met conditions of the division-approved grant application.

2. (2)

   1. (A) A grant may be terminated by the regional solid waste management board or the division if either the regional solid waste management board or the division determines that the grantee is unable or unwilling to complete or meet the conditions of the grant as set forth in the grant application.
   2. (B) If a grant is terminated, grant funds shall be reimbursed in accordance with 8 CAR § 61-408(c).
3. (3) Funds returned may be used to fund the next prioritized project with written approval from the division.
4. (4) Funds not reallocated within one hundred twenty (120) days shall be returned to the division for allocation in the next recycling fund distribution.

(h) Forms. The division shall provide forms to be used by the regional solid waste management districts in the reporting process.

1. (i) Audit requirements.

2. (1)

   1. (A) Each regional solid waste management board shall procure an annual financial audit.
   2. (B) Such audits shall be conducted following each regional solid waste management district’s fiscal year end.

   3. (C)

      1. (i) Such audits shall, at the minimum, define recycling grant funds and other grant funds distributed by the division separate from other regional solid waste management district revenues, delineating interest and/or other receipts received as a result of the funds, and documenting their expenditure.
      2. (ii) Such audits shall also identify project or contractual costs separate from administrative costs.
   4. (D) Such audits shall be conducted by a certified public accountant in good standing with the Arkansas State Board of Public Accountancy and in accordance with the Governmental Auditing and Reporting Standards issued by the Comptroller General of the United States.
3. (2) Each audit report and accompanying comments and recommendations shall be reviewed by the appropriate regional solid waste management board.

4. (3) Copies of each regional solid waste management district’s annual audit report shall be:

   1. (A) Filed with the division and Arkansas Legislative Audit; and
   2. (B) Available for public inspection with the books and records of the regional solid waste management district.
5. (4) An audit report containing a qualified opinion or adverse opinion shall require written explanation and supporting documentation from the regional solid waste management board or the regional solid waste management board’s chair or designee and shall become part of the audit report.
6. (5) An audit report with an unqualified opinion, but containing control deficiencies, significant deficiencies, or material weaknesses shall require written explanation and supporting documentation from the regional solid waste management board or the regional solid waste management board’s chair or designee and shall become part of the audit report.
7. (6) Failure to provide the division and Arkansas Legislative Audit with a full and complete annual audit report within nine (9) months of the regional solid waste management district’s fiscal year ending date shall be cause to suspend or terminate any and all revenue from funding programs that are administered by the division unless otherwise authorized by the Director of the Division of Environmental Quality.