§ 21. Single audit program. 1. Municipalities and public authorities
that are required in any fiscal year to have a federal single audit
performed under paragraph (a) of part 200.501 of title 2 of the code of
federal regulations as amended from time to time, and that expend in
excess of the dollar amount provided in 2 CFR 200.501(a) as amended from
time to time in any fiscal year from funds provided through state
transportation programs, projects, grants, contracts or agreements
administered by the department, shall prepare a "schedule of state
transportation assistance expended" and cause such schedule to be
audited by an independent certified public accountant for each period
corresponding to the federal single audit. The audit shall conform with
government auditing standards and shall include a professional audit
opinion on:

(a) the "schedule of state transportation assistance expended";

(b) compliance with applicable state laws, rules, regulations and
contract provisions in the administration of state transportation funded
programs, projects, contracts and grants administered by the department;
and

(c) the adequacy of internal controls in administering such funds in
conformance with state laws, rules, regulations and contract provisions.

2. For the purposes of this section, the term "fiscal year" shall mean
the regular annual accounting period of the municipality or public
authority; and the term "government auditing standards" shall mean those
standards prescribed by the comptroller general of the United States.

3. The commissioner shall promulgate rules and regulations for the
implementation of this section. Such rules and regulations shall
include, but shall not be limited to, audit compliance requirements for
specified programs administered by the department, audit report
submission requirements, the acceptance criteria for audit reports, and
any information needed by the commissioner to complete the reports
required by subdivision six of this section. Audit reports under this
section shall be due for each fiscal year beginning after December
thirty-first, two thousand.

4. Additional expenses incurred by a municipality or public authority
in connection with audits performed under this section may be chargeable
as an indirect cost to the state program, project, grant, contract or
agreement where otherwise allowable and to the extent funds are provided
for such purposes.

5. The commissioner, insofar as the commissioner deems practicable,
shall not impose any additional audit requirements in the department's
administration of state transportation programs, projects, grants,
contracts and agreements upon municipalities and public authorities
which provide both the federal single audit and the state audit in
accordance with subdivision one of this section. This section shall not
supersede the authority of the state comptroller to conduct audits.

6. The commissioner shall annually report to the governor, the
temporary president of the senate and the speaker of the assembly on the
benefits and costs of the implementation of this section by the
thirty-first of October, beginning in the year two thousand nineteen.