(1) For purposes of this section: “Nonprofit organization” means an organization exempt from taxation under § 26 U.S.C. 501(c)(3); and
(2) “State financial assistance” means all state funds given, granted, or disbursed to a nonprofit organization pursuant to appropriation laws to provide services for the citizens of this state or for capital projects.
(3) Any nonprofit organization receiving state financial assistance shall be subject to audit of its receipt and expenditure of state financial assistance by Arkansas Legislative Audit.
(4) An audit shall be conducted by Arkansas Legislative Audit only after approval by the Legislative Joint Auditing Committee.