C.R.S. § 24-46-407: Annual report - audit.

(1) (a) Within ninety days of the end of the first full state fiscal year after the commission approves a transit investment project and on the same date each year thereafter, the financing entity shall prepare and submit to the commission an annual report detailing:

(I) The total amount of state sales tax increment revenue that the financing entity has received over the past year;

(II) How the financing entity has spent the state sales tax increment revenue that it has received;

(III) Projected state sales tax increment revenue for the remainder of the period for which the financing entity may receive state sales tax increment revenue; and

(IV) A summary of the status of construction of the eligible improvements related to the transit investment project.

(b) In addition to the information described in subsection (1)(a) of this section, a financing entity submitting a report pursuant to this subsection (1) shall also include in that report whether the financial entity is using any state sales tax increment revenue for purposes other than for eligible costs and any other financial information that is reasonably required by the commission.

(c) If any information provided in the annual report described in subsection (1)(a) of this section will be a trade secret, proprietary, or otherwise entitled to protection pursuant to part 2 of article 72 of this title 24, that information is so designated by the financing entity and kept confidential by the state.

(d) The governing body of the financing entity shall attest to the accuracy of the information provided in the annual report described in subsection (1)(a) of this section.

(2) (a) In connection with the annual report required pursuant to subsection (1) of this section, a financing entity shall submit an independent audit of its financial status that is prepared by a certified public accountant attesting to the accuracy of the annual report.

(b) If the audit prepared pursuant to subsection (2)(a) of this section finds that a financing entity has used state sales tax increment revenue for unauthorized purposes, the financing entity is liable for the repayment to the general fund of the state sales tax increment revenue that was intended for the transit investment project. The financing entity may make the repayment:

(I) From the financing entity's funds derived from sources other than state sales tax increment revenue;

(II) By offsetting against future state sales tax increment revenue that the department would otherwise disburse to the financing entity; or

(III) From other funds that are legally available to the financing entity for such purpose.

(3) If a financing entity is a county revitalization authority, a metropolitan district, an authority formed by intergovernmental agreement among two or more metropolitan districts, a regional transportation authority, or an urban renewal authority, it may comply with this section by submitting to the commission a copy of the report that the county revitalization authority, metropolitan district, authority formed by intergovernmental agreement among two or more metropolitan districts, regional transportation authority, or urban renewal authority is otherwise required to submit to a local government pursuant to law. The financing entity shall deliver a copy of the report that the county revitalization authority, metropolitan district, authority formed by intergovernmental agreement among two or more metropolitan districts, regional transportation authority, or urban renewal authority is otherwise required to submit to a local government pursuant to law at the same time as an annual report or audit otherwise required by law.

(4) The office of economic development and the department shall prepare a report for the office of economic development to submit no later than November 1 of the applicable fiscal year to the finance committees of the house of representatives and senate; the business and economic development committee of the house of representatives; and the business, labor, and technology committee of the senate; or any successor committees. The report shall include information on all state sales tax increment revenue collected for transit investment during the prior state fiscal year and information from the reports required pursuant to subsection (5) of this section.

(5) (a) Each year, no later than September 1, the department shall report to the commission the aggregate amount of state sales tax increment revenue allocated to financing entities for approved transit investment projects.

(b) Every two years, no later than November 1, the office of economic development and the department shall report to the commission detailed information on each transit investment project approved to receive state sales tax increment revenue, including:

(I) The amount of state sales tax increment revenue allocated for the project;

(II) The boundaries of the approved transit investment area and narrative for the transit investment project;

(III) The proposed term of financing and the new net revenue that is approved for the transit investment project;

(IV) The actual state sales tax increment revenue collected within the transit investment area compared to the projected revenues contained in the approved application that proposed the transit investment area; and

(V) An assessment of the overall effectiveness of the transit investment project in achieving increased transit ridership.