(b) Taxable obligations as compared to tax-exempt obligations.
Section 28. Adm 35.07 (title) is amended to read:
Adm 35.07 (title) Accountability for project loan financial assistance.
Section 29. Adm 35.07 (1) (intro.), (1) (a) to (c), (2), and (3) are amended to read:
Adm 35.07 (1) (intro.) A financial assistance agreement shall require a municipality that receives recipient of a project loan shall financial assistance to do the following:
(1) (a) Maintain project accounts in accordance with the financial assistance agreement generally accepted government accounting principles., including accurate, complete and current records of project costs, sources and uses of project funds, documentation as to the eligibility of project costs, records of refunds, rebates and other credits relating to the project and all payments that constitute the dedicated source of revenue.
(b) Provide, if available, the most recent audited financial statements at the time of application upon request from the department and at least annually during the term of the financial assistance agreement while the recipient has an obligation outstanding.
(c) Take no action which would to reduce the amount available from adequacy of the dedicated source of revenue established for repayment of the project in accordance with ss. s. 281.58 (14) (b) 1. or 281.61 (8m) (a), Stats. (2) The department may require or perform financial audits prior to, during or at the end of the term of the project loan obligation.
(3) A municipality recipient that receives financial assistance for a project designated as federal equivalency by the department of natural resources provided in whole or in part from the federal capitalization grant described in the Federal Water Quality Act of 1987, 33 USC 1381 to 1387, shall comply with the Federal federal Single Audit Act, 31 USC 7501 to 7507, and OMB Office of Management and Budget Uniform Guidance. circular A 128. A municipality that receives financial assistance from other sources may, at its option, commission a single audit in accordance with the Federal Single Audit Act, OMB circular A 128 and the state's single audit guidelines. All reasonable, allocable costs of single audits are eligible costs to the extent provided in s. NR 162.05. Section 30. Adm 35.08 is repealed and recreated to read:
Adm 35.08 Financial assistance amendments. Neither the recipient nor the department may enter into an amendment to a financial assistance agreement, except in accordance with the terms of the financial assistance agreement. The recipient may not amend the obligation, except in accordance with the terms of the obligation.
Section 31. Adm 35.09 is amended to read:
Adm 35.09 Variances. The department may approve a variance from requirements of this chapter when the department determines that the variance is essential to provide financial assistance within the scope and intent of the program environmental improvement fund, or that the variance is in the best interest of the state. In approving a variance, the department may take into account such factors as good cause, circumstances beyond the control of the recipient or the department and financial hardship. A request by a municipality recipient for a variance shall include a description of the nature of the variance and the circumstances leading to the request.
Section 32. Effective Date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats.
