The State Board shall have access to all district records for the purpose of verifying compliance with the provisions of this subchapter and other state requirements. The State Board may withhold funds under this subchapter from districts found to be in violation of this subchapter or other state requirements and may require districts to reimburse the State Board for expenditures claimed and reimbursed that are found to be in violation of this subchapter or other state requirements. Any district which has not met the filing requirements of §525.7 of this title, will not receive reimbursements under this subchapter until such reports are received in the State Office in Temple.