Section 849-J. Payment procedures; audits

1.  Upon  approval  of  an
  application, the chief administrator, within  available  appropriations,
  may  authorize  disbursement  of  funds  in  any amount up to the amount
  sought by the application. Such disbursement may be by  advance  payment
  to  the applicant (or joint applicants, as appropriate) before it incurs
  the cost for which its application sought funding, by  reimbursement  to
  the applicant after it incurs and pays such costs in the first instance,
  or by some combination thereof, as the chief administrator determines is
  appropriate under the circumstances.
    2. The state comptroller, the chief administrator and their authorized
  representatives  shall  have the power to inspect, examine and audit the
  fiscal  affairs  of  the  applicant  (or  applicants)  to  an   approved
  application  granted pursuant to this article to the extent necessary to
  determine whether funding received under the program has  been  used  in
  accordance  with  the purpose or purposes for which it was sought in the
  application, and whether there has been compliance with  all  rules  and
  regulations governing the program and the provisions of this article.