Verification and Notice. The Commission may verify the information submitted pursuant to Regulation .04 of this chapter as to eligible credit hours of enrollment by examining the registration or other data on which these submissions are based. If the figure resulting from the verification in §A(1) of this regulation differs from the figure submitted, the Commission shall certify to the State Comptroller an award amount based upon the corrected figure. Representatives of the institutions shall be given notice of the correction and an opportunity to discuss the basis for the correction with the Commission before the revision of the award. Applications for Aid. Applications for aid shall be completed and filed not later than September 15 of the fiscal year for which aid is sought. Applications shall consist of a preexpenditure affidavit and a statement-of-intended-use report. The Commission shall distribute copies of all forms constituting an application to all known eligible institutions by June 30 of each year. Preexpenditure Affidavit. The preexpenditure affidavit shall be in a form as prescribed by the Commission. The chief executive officer of the institution shall execute the preexpenditure affidavit. The chief executive officer shall certify under oath or affirmation that funds received from the State may not be used for sectarian purposes, and that the institution has adopted and shall maintain and follow the accounting procedures described in §G of this regulation until all State funds applied for have been expended and accounted for to the Commission. Statement-of-Intended-Use Report. The statement-of-intended-use report shall: Be in a form required by the Commission; Be executed by the chief executive officer or the chief financial officer of the institution; and Describe and itemize in sufficient detail the purposes for which State funds will be expended during the fiscal year for which the application is filed. If an institution later decides to use the funds for other purposes, the institution shall give the Commission prior written notice specifying the new purposes. Certification and Payment of Awards. Following the receipt of timely and complete applications, and based upon its determination under Regulation .04 of this chapter, the Commission shall certify proposed awards to the State Comptroller not later than October 30. The State Comptroller's office shall make the awards by check to the institutions in two equal payments. The Commission shall forward promptly its certification of awards and request for the first payments to the Comptroller following formal approval by the Commission of awards. The Commission shall make the certification and request for the second payment not later than March 30. The Commission may not pay an award to an eligible institution if the Commission has determined that the institution has failed to submit an adequate utilization-of-funds report in compliance with these regulations for any prior fiscal year. Accounting Procedures. Eligible institutions shall follow the accounting procedures set forth in §G(2) of this regulation in connection with their receipt, expenditure, and accounting of State funds pursuant to these regulations. Procedures. An institution shall prepare its annual financial statements according to generally accepted accounting principles for auditing and reporting on financial statements of nonprofit institutions of higher education, including colleges, universities, and community or junior colleges. The budget for each institution receiving State funds shall identify the specific areas of activity for which the institution will expend grant funds. State funds, when received by an institution, shall be placed in a special revenue account. Each budgeted segment reflected in the accounts of an institution shall have an expense account number for recording the expenditure of State funds. Each institution shall retain sufficient documentation of the State funds expended to permit verification by the Commission that no funds were spent for sectarian purposes for a period of 1 year following submission of a utilization-of-funds report in accordance with §I of this regulation. If the Commission determines that a verification or audit of an institution is necessary or appropriate in connection with the institution's expenditure of State funds, the institution shall: Cooperate fully with the persons designated by the Commission; and Supply all information reasonably necessary to facilitate the fastest possible completion of the verification or audit. End of Fiscal Year Reports. By the end of each fiscal year, the Commission shall send a utilization-of-funds report and a post-expenditure affidavit to all eligible institutions receiving funds for that year. An institution receiving funds shall complete and file the utilization-of-funds report and post-expenditure affidavit before the Commission may act upon any application for aid from that institution for a subsequent fiscal year. Utilization-of-Funds Report. The utilization-of-funds report and the post-expenditure affidavit shall be in the form prescribed by the Commission. The chief executive officer or chief financial officer of the institution shall certify the utilization-of-funds report. The institution shall describe and itemize in the utilization-of-funds report the purposes for which State funds have been expended during the fiscal year in sufficient detail to Post-Expenditure Affidavit. The chief executive officer of an institution shall: Execute the post-expenditure affidavit under oath or affirmation; and Certify that none of the monies covered in the utilization-of-funds report have been used for sectarian purposes. Whenever an institution reports that it has expended any State funds for capital construction or permanent improvements, it shall report periodically, on forms and at intervals specified by the Commission, on the use being made of the building or facility in question and certify under oath or affirmation, given by its chief executive officer, that the building or facility is not being used for religious instruction or worship for any religious activity or sectarian purpose. Unexpended Funds. An institution shall fully expend and report upon any funds that it did not expend by the end of the fiscal year in which the funds were paid, in the next fiscal year. In addition to the requirements of §L(1) of this regulation, the institution shall submit a new statement-of-intended-use report and a new preexpenditure affidavit by October 31. Verification of Expenditures. The Commission may verify or have audited an institution's expenditure of State funds, with respect to any report required by these regulations, to determine whether funds awarded to the institution have been expended as authorized by these regulations. Before conducting a verification or audit requiring a physical examination of an institution's books or records, the Commission shall make reasonable efforts to satisfy its concern on the basis of data submitted by the institution. A verification or audit shall be conducted with the greatest possible speed and the least possible disruption of an institution's activities.