Each recipient shall:

1. (a) Use the accounting, audit, and fiscal procedures required by 40 CFR 35.3550(i) for the project;
2. (b) Place all funds received from the DWSRF in a project account for the sole purpose of planning, designing, and constructing or implementing the project as approved by the department;
3. (c) Use all funds received from the DWSRF for the sole purpose of planning, designing, and constructing or implementing the project as approved by the department;

4. (d) Provide an audit prepared by a certified public accountant or licensed public accountant to the department:

   1. (1) Annually, if the recipient expends more than the threshold set under the federal Single Audit Act in OMB Circular A-133 or successor document; or
   2. (2) In response to a department request for an audit based on a reasonable suspicion of fraud or misuse of SRF funds;
5. (e) Maintain insurance coverage on the project in an amount adequate to protect the state’s investment, as determined based on the nature of the project and the amount of funding provided from the DWSRF in consultation with the department;
6. (f) Comply with any special conditions specified by the department’s environmental determination until all financial obligations to the state have been discharged; and
7. (g) Continually abide by the terms of the financial assistance agreement, the department’s rules, and relevant state and federal statutes for operation and maintenance of the facility.

Source. (See Revision Note #1 and Revision Note #2 at chapter heading for Env-Dw 1100) #13160, eff 1-20-21