11-704. County sports authority fund

A. The authority treasurer shall maintain a county sports authority fund consisting of all monies received by the authority, including:

1. Payments received from leasing, subleasing or renting facilities.

2. Revenues received by the authority from admissions and concessions and other proceeds from events held at facilities leased by the authority.

3. Monies received from issuing and selling bonds under article 2 of this chapter.

4. Interest and other income received from investing monies in the fund.

5. Gifts, grants and donations received for that purpose from any private source.

B. Monies in the fund may be used only for the following purposes:

1. Ordinary and necessary administration and operation expenses of the authority, including:

(a) Reasonable salaries and employee related expenses of employees of the authority.

(b) Reasonable reimbursement of expenses of members of the board of directors.

2. Making all payments required under any lease or sublease of facilities by the authority.

3. Repaying and redeeming bonds issued by the authority, including interest and redemption charges.

4. Academic scholarships, established by the board of directors at the end of the fiscal year, to any college or university under the jurisdiction of the Arizona community college board or the Arizona board of regents. These scholarships shall be funded from unexpended and unencumbered monies remaining in the fund at the end of the fiscal year which are not otherwise required as reserves.

C. The treasurer of the authority may invest any unexpended monies in the fund as provided in title 35, chapter 2, including in the local government investment pool, if authorized by the state treasurer. Interest and other income from investments shall be credited to the fund. The treasurer of the authority shall invest the monies so as to mature at the times when the fund assets will be required for the purposes of this article. If the liquid assets in the fund become insufficient to meet the authority's obligations, the board of directors shall direct the treasurer of the authority to liquidate sufficient securities to meet all of the current obligations and immediately notify the board of supervisors, the attorney general and the auditor general of the insufficiency, and the attorney general and auditor general shall investigate and audit the circumstances surrounding the depletion of the fund and report their findings to the board of supervisors.

D. The board of directors shall cause an annual audit to be conducted of the fund by an independent certified public accountant within thirty days after the end of the fiscal year. The board shall immediately file a certified copy of the audit with the auditor general. The auditor general may make such further audits and examinations as he deems necessary, but if he takes no official action within thirty days after the audit is filed, the audit is deemed sufficient. The board of directors shall pay all fees and costs of the certified public accountant and auditor general under this subsection from the fund.