11-704

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.