| (a) Executive Director. The executive director will
negotiate the terms of agreements deemed necessary to comply with
any requirements of preliminary approval, to protect the public's
safety, and to prudently provide for the protection of public funds
while furthering the purposes of this subchapter. These agreements
shall include, but not be limited to, terms provided for in this section,
as applicable to a particular project. The department shall provide
in an agreement such assurances as are reasonably and customarily
required by the requestor that are necessary for the purpose of obtaining
financial assistance for, developing, or operating a particular project,
provided that such assurances are, in the department's reasonable
judgment, consistent with the provisions of the agreement.
(b) Performance of work.
(1) The requestor shall comply with applicable state
and federal law, and with all terms and conditions of any agreements.
If approval or concurrence of the Federal Highway Administration,
the Federal Transit Administration, or any other federal agency is
required, the department may require that the requestor seek approval
or concurrence through the department. Upon request and, to the extent
applicable and permitted by federal law, after reasonable advance
notice and opportunity to cure from the department, the requestor
shall reimburse the department for any federal funds that are applied
by the requestor to pay costs not incurred in conformity with applicable
state and federal law.
(2) The requestor shall maintain its books and records
in accordance with generally accepted accounting principles in the
United States, as promulgated by the Governmental Accounting Standards
Board, the Financial Accounting Standards Board, or pursuant to applicable
federal or state laws or regulations, and with all other applicable
federal and state requirements, subject to any exceptions required
by existing bond indentures of the requestor that are applicable to
the project, and any exceptions the requestor has historically implemented
that have been acceptable to the public debt markets.
(3) The requestor shall, at the requestor's cost, have
a full audit performed annually of its books and records by an independent
certified public accountant selected by the requestor and reasonably
acceptable to the department. The audit must be conducted in accordance
with generally accepted auditing standards promulgated by the Financial
Accounting Standards Board, the Governmental Accounting Standards
Board, or the standards of the Office of Management and Budget Circular
A-133, Audits of States, Local Governments and Non-profit Organizations,
as applicable, and with all other applicable federal and state requirements.
The requestor shall cause the auditor to provide a full copy of the
audit report and any other management letters or auditor's comments
directly to the department within a reasonable period of time after
they have been provided to the governing body of the requestor.
(4) The requestor shall retain all work papers and
reports for a minimum of four years from the date of the audit report,
unless the department notifies the requestor in writing to extend
the retention period. If requested by the department, audit work papers
shall be made available to the department, within 30 days of request,
at any time during the retention period.
(5) The requestor shall retain all original project
files, records, accounts, and supporting documents until project completion
or until all financial assistance under this subchapter has been repaid,
if applicable, or for the period of time required by applicable federal
and state law, if longer, unless relieved of this requirement by the
department in writing.
(6) Prior to the department assuming jurisdiction of
the project, if applicable, the requestor shall ensure that the project,
including all its components and appurtenances, is in a condition
that complies with §27.57 of this subchapter. All design data,
surveys, construction plans, right of way maps, utility permits, and
agreements with other entities relating to the project shall be transferred
to the department once the department assumes jurisdiction of the
project. This paragraph applies to projects that will become a part
of the state highway system.
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