17 AAC 55.070. Inspection, audit, and maintenance

(a) If the department transfers control of a public works project to a municipality by an agreement executed under 17 AAC 55.020, the department will evaluate the project upon completion, to determine the project's compliance with that agreement. As part of this evaluation, the department will, in its discretion, require the municipality to furnish it with "as-built" drawings, a statement by the responsible local official certifying that the project was constructed according to these drawings, and a certified expenditure report. If the evaluation discloses non-compliance with the agreement, the municipality, as directed by the department, shall make, at its own expense, any changes necessary to bring the project into compliance.

(b) The department will, in its discretion, perform an audit of a project transferred to local control at any time during the life of the project, or within three years after the project's acceptance by the department. The audit will be preceded by written notice to the municipality. If the audit or review of the certified expenditure report turns up discrepancies or unauthorized activity or expenditures, the municipality shall reimburse amounts attributable to the unauthorized activity or expenditures.

(c) The department will, in its discretion, require the municipality to provide for an independent third-party audit of the project, and provide the audit report to the state. The cost of any third-party audit required by the department is a valid charge against the project. If the audit report discloses discrepancies or unauthorized activity or expenditures, the municipality shall reimburse the state for the amounts attributable to the unauthorized activity or expenditures.

(d) Maintenance and operation of a completed public works project constructed by the municipality under an agreement will be determined on a case-by-case basis, and the agreement will specify which party is to be responsible for its maintenance and operation.

History: Eff. 3/20/86, Register 97

Authority: AS 35.15.080

AS 35.15.090

AS 35.15.110

AS 44.42.030

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