Section 21. Single audit program

1. Municipalities and public authorities
  that expend in excess of one hundred thousand dollars in any fiscal year
  from  funds  provided  through  state transportation programs, projects,
  grants, contracts or agreements administered by the department, and that
  are required to have a federal single audit performed under the  federal
  Single Audit Act of 1984, as amended, 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
  fifteenth of October, beginning in the year two thousand two.
    * NB Repealed December 31, 2010