1. (1) All funds received from the board shall be placed in a segregated account. The board may require financial audits of the recipients of payments under s. 70.395 (2) (d) through (g), Stats. The financial audit may be conducted as part of a municipality’s annual audit, if one is conducted. The costs of the audits shall be paid by the board from the appropriation under s. 20.566 (7) (g), Stats. The audits shall consist of 3 parts:

   1. (a) An examination of the municipality’s financial statements to assess the fairness with which they were reported;
   2. (b) An evaluation of the expenditures to ensure that the grant funds were used for mining impact activities and complied with the grant contract and state laws and rules; and
   3. (c) A review of the municipality’s internal accounting system to determine whether the grant was carefully managed, and where needed, provide suggestions to improve in-house procedures.

2. (2) The board shall attempt to insure that all grant recipients are audited periodically. In determining whether a grant recipient is to be audited in a particular year, the board shall give priority to:

   1. (a) Grant recipients whose expenditure reports indicate that a financial accounting, compliance, or management problem exists.
   2. (b) Grant recipients who have received grants of $25,000 or more for a given project or for a given year.
   3. (c) Any other circumstances which might indicate that an audit would be in the public interest.

History

History: Cr. Register, November, 1982, No. 323, eff. 12-1-82; r. and recr. Register, February, 1986, No. 362, eff. 3-1-86; r. (3), Register,, September, 1986, No. 369, eff. 10-1-86; correction in (1) (intro.)made under s. 13.93 (2m) (b) 7., Stats., Register September 2006 No. 609.