1. (a) Each city or county shall submit to the corporation, at a time determined by the corporation, a performance and evaluation report concerning the use of grant funds made available under this act, together with an assessment by the city or county of the relationship of such use to the housing development activities identified in the city's or county's statement under subsection (b) of K.S.A. 2016 Supp. 12-5253, and amendments thereto. The city's or county's report shall indicate an evaluation of the housing development activities, the nature of and reasons for any changes in such activities and an evaluation of the use of the grant funds for such activities. The corporation shall, at least on an annual basis, make such reviews and audits as may be necessary or appropriate to determine:

   1. (1) Whether the city or county has carried out its housing development activities in a timely manner;
   2. (2) whether the city or county has carried out those activities and its certifications in accordance with the requirements of this act and all federal, state and local laws; and
   3. (3) whether the city or county has a continuing capacity to carry out those activities in a timely manner.
2. (b) Insofar as they relate to grant funds provided under this act, the financial transactions of cities or counties may be audited under such rules and regulations as may be adopted by the corporation. The corporation shall report the final results of any audits conducted pursuant to this section to the state legislature, the governor and the secretary of revenue during the legislative session immediately following the audit.

L. 2008, ch. 92, § 5; Apr. 24.