The board of trustees shall:
A. be the governing authority of the district;
B. comply with the provisions of law for local governments pertaining to the preparation and approval of budgets by the local government division of the department of finance and administration;
C. comply with the provisions of law pertaining to the audit of local governments by the state auditor; and
D. adopt rules and regulations for the operation of the district and comply with the provisions of the State Rules Act [Chapter 14, Article 4 NMSA 1978].