(b) 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) An expense itemization for each grant award.

2. (2) 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.
3. (3) The reports shall be filed annually on or before February 1.
4. (4) Failure by a board to file the required reports shall provide grounds for the division to withhold disbursement of grant funds for subsequent grant rounds.

(c) Submittal required.

1. (1) Regional solid waste management boards must submit an annual expense itemization for each grant, including:

   1. (A) Date of purchase;
   2. (B) Item purchased;
   3. (C) Purchase price; and
   4. (D) 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:

(i) Serial numbers;

1. (ii) Vehicle identification numbers or other identifiers; and

   1. (iii) Physical location of the equipment.

2. (3) Funds for the next grant round will not be disbursed until these requirements for the previous round, and the requirements in this part, are complete.

   1. (d) Right of entry and access.

3. (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.

4. (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; and
   2. (B) Produce these items upon request for on-site inspection by the division.

(e) 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) Modifications that alter the grant category or materially change the project must be publicly noticed under the provisions of this part.

(f) 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 § 61-511(a).
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) calendar days shall be returned to the division for allocation in the next grant round.

(h) Audit requirements.

1. (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 each expenditure.
      2. (ii) Such audits also shall identify project costs 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.
2. (2) Each audit report and accompanying comments and recommendations shall be reviewed by the appropriate regional solid waste management board.

3. (3)

   1. (A) Copies of each regional solid waste management district’s annual audit report shall be filed with the division and Arkansas Legislative Audit.
   2. (B) Copies shall also be available for public inspection with the books and records of the regional solid waste management district.
4. (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 and shall become part of the audit report.
5. (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 and shall become part of the audit report.
6. (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.