Section 426. Maintenance of records

In connection with each contract, the
  commissioner and the municipality shall keep  adequate  records  of  the
  amount of the payment by the state, the amount of federal assistance, if
  any,  received  by  the  municipality for the project, and of all moneys
  expended by the municipality for such project.  Such  records  shall  be
  kept   by   the   commissioner   and   shall  establish  the  basis  for
  recalculations of the state payment as required herein. The commissioner
  shall have authority to carry out, or to cause to be carried out, audits
  of  such  contracts  and  records  pursuant  to  rules  and  regulations
  promulgated by the commissioner.