PUBLIC LAW 104-127 —APR. 4, 1996 110 STAT. 1039 other income of the board. Any funds borrowed by the board shall be expended only for startup costs and capital outlays. (5) LIMITATION ON SPENDING.—For fiscal years beginning 3 or more years after the date of the establishment of a board, the board may not expend for administration (except for reimbursements to the Secretary required under paragraph (2)(B)), maintenance, and functioning of the board in a fiscal year an amount that exceeds 15 percent of the assessment and other income received by the board for the fiscal year. (f) CONTRACTS AND AGREEMENTS.— (1) IN GENERAL.— Each order shall provide that, with the approval of the Secretary, the board established under the order may— (A) enter into contracts and agreements to carry out generic promotion, research, and information activities relating to the agricultural commodity covered by the order, including contracts and agreements with producer associations or other entities as considered appropriate by the Secretary; and (B) pay the cost of approved generic promotion, research, and information activities using assessments collected under section 517, earnings obtained from assessments, and other income of the board. (2) REQUIREMENTS.— Each contract or agreement shall provide that any person who enters into the contract or agreement with the board shall— (A) develop and submit to the board a proposed activity together with a budget that specifies the cost to be incurred to carry out the activity; (B) keep accurate records of all of its transactions Records. relating to the contract or agreement; (C) account for funds received and expended in connection with the contract or agreement; (D) make periodic reports to the board of activities conducted under the contract or agreement; and (E) make such other reports as the board or the Secretary considers relevant. (g) RECORDS OF BOARD. — (1) IN GENERAL.— Each order shall require the board established under the order— (A) to maintain such records as the Secretary may require and to make the records available to the Secretary for inspection and audit; (B) to collect and submit to the Secretary, at any time the Secretary may specify, any information the Secretary may request; and (C) to account for the receipt and disbursement of all funds in the possession, or under the control, of the board. (2) AUDITS. —Each order shall require the board established under the order to have— (A) its records audited by an independent auditor at the end of each fiscal year; and (B) a report of the audit submitted directly to the Reports. Secretary. (h) PERIODIC EVALUATION.—In accordance with section 501(c), each order shall require the board established under the order
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