Section 53.03 - Audits and Financial Reports(1)(a) Each state authority shall establish an audit committee that shall meet independently of management at least once per calendar year, retain an independent auditor and hear the results of the annual audit. A state authority may rely upon an audit required by any general or special law in meeting the requirements of 801 CMR 53.03(1)(a).(b) In addition, each state authority that receives total appropriations from the commonwealth equal to or in excess of $500,000 in any fiscal year shall, on an annual basis, conduct an audit of those funds to confirm that those funds were expended according to their intended purpose. Each such audit shall be conducted by an independent auditor and shall be filed with the state Auditor for examination, review and comment.(2) Each state authority shall prepare an annual financial report which shall disclose operating revenues and expenses, including the salaries and other compensation of its executive director, officers, board members and senior management, and other highly compensated employees.(3) Audits and financial reports shall be based on generally accepted accounting principles or generally accepted government auditing standards and shall be public records.(4) The first audits and financial reports required by 801 CMR 53.03 shall be for fiscal year 2012.