b) The external auditor shall:

1. 1) Receive copies of the grantee's application, a certified grant agreement and a copy of this Part;
2. 2) Verify the expenditure of funds as provided for in this Part and ensure that funds were expended for the uses that were listed in the grant agreement; and
3. 3) Provide an audit report to the Board including a description of the tests performed and the audit findings.

c) In the event that an audit or other evidence establishes that an overpayment was made in a grant to a grantee, a reimbursement to the Board shall be required. A reimbursement is required in the following situations:

1. 1) Grant funds were not expended within the grant period; or
2. 2) Grant funds were expended for purposes not authorized under the grant agreement.