SECTION 293.70. Audit of Payments to Developer

(a) Prior to the payment of funds to a developer from bond proceeds, bond anticipation note proceeds, funds to be derived from future bond proceeds, or maintenance tax revenue the governing board of directors of the district shall engage an auditor to perform certain agreed upon procedures applicable to all items and amounts for which a reimbursement request has been received. The auditor must be a certified public accountant or public accountant holding a permit from the Texas State Board of Public Accountancy.

(b) As a minimum, the following procedures shall be included to the extent applicable.

(1) All documentation supporting items, amounts, and proof of payment for which reimbursement is requested shall be reviewed.

(2) Interoffice memoranda, orders, and rules of the commission relative to the reimbursement request shall be reviewed.

(3) The calculations of interest on amounts reimbursable are to be tested and determined to be in accordance with interoffice memorandums, orders, and rules of the commission.

(4) All items and amounts shall be disclosed to and discussed with the district's attorney, engineer, financial advisor, and bookkeeper.

(5) A determination shall be made that the items and amounts to be reimbursed are appropriate and in accordance with commitments or policies of the district and interoffice memorandums, orders and rules of the commission as a result of the procedures followed and subject to such limitations as may apply.

(c) Upon completion, the auditor shall prepare a reimbursement report to the district. Such report shall include sufficient details and disclosures to serve the needs of the district and the commission. Within 10 days after approval by the governing board of the district, a copy of this report shall be submitted to the executive director. The contents of the report shall include the following:

(1) auditor's report;

(2) schedules of amounts reimbursable to each developer; and

(3) comparison of amounts included in the interoffice memoranda with amounts reimbursable and anticipated amounts, if any, to be expended in the future.

Source Note: The provisions of this §293.70 adopted to be effective September 5, 1986, 11 TexReg 3745; amended to be effective June 30, 1993, 18 TexReg 3758; amended to be effective October 22, 1996, 21 TexReg 9905; amended to be effective June 5, 1998, 23 TexReg 5715.