The following conditions apply to the use of the funds:

(1) Project contract. For every funded project, a contract must be executed by the director and by the funding recipient's authorized representative.

(2) Matching contribution. Should a matching contribution be required, recipients of boating safety funds shall meet this requirement through program expenditures, in-kind services, and/or volunteer contributions to the program.

(3) Accountability. Recipients of boating safety funds shall maintain accurate accounting records on the expenditure of funds including any matching contribution if such matching contribution is required, provide the director with these records consistent with the agreement or upon request, and permit a state parks representative to audit the use of the funds in accordance with generally accepted audit practices and standards.

(4) State parks reserves the right to terminate its participation in any program for failure of the funding recipient to perform according to the requirements of the agreement.

(5) Reporting requirements. The funding recipient shall submit reports required by state parks as provided in the project contract.