1. (1) Each calendar year, an audit of the activities of the Nucleus Fund shall be conducted by:

   1. (a) the state auditor; or
   2. (b) the state auditor's designee.
2. (2) A designee described in Subsection (1)(b) may not have a business, contractual, or other connection to the institute or the Nucleus Fund.

3. (3) The annual audit shall:

   1. (a) include a valuation of the assets owned by the Nucleus Fund as of the end of the reporting year, using market-standard techniques for assets typically held by early stage private investment and venture capital funds;
   2. (b) include an opinion regarding the accuracy of the information provided in the annual report described in Section 53H-16-406; and

   3. (c) on or before September 1, be delivered to:

      1. (i) the institute; and
      2. (ii) the state treasurer.
4. (4) The institute shall pay the costs associated with the annual audit.

Amended by Chapter 138, 2026 General Session