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<br />(c) The 1949 report of the Administratiun showed no expen- <br />cJiwfes. A recapitulation of the receipts and disbursements from the <br />begmning of the biennium (July I, 1949, to Oetobet 31, 1950) is <br />as follows: <br /> <br />Received from Colorado and Kansas ___.$3,333.33 <br />Expended ................................................ 1,947.06 <br /> <br />Balance on hand, OeIober 31, 19,0. ...$1,386.27 <br /> <br />(d) Article VII (5) of the By. Laws of the Administration, in <br />accordance with Article VIII E(3) of the Compact, provides: <br />"5. All receipts and disbursements of the Administra- <br />tion shall be audited yearly by a certified public account' <br />ant to be selected by the Administration, and the report of <br />audit shall be included in the annual report of the Admin- .. <br />istration." <br />Pursuant to this provision of the By-Laws, the receipts and <br />disbursements of the Administration have been audited for the <br />period commencing with the organization of the Administration on <br />July 22, 1949, to OCIobcr 31, 1950, the end of the report.year. The <br />report of such audit is hereto attached as Appendix A. <br /> <br />(e) The First National Bank of Lamar, Colorado, has been <br />designated by the Administration as the official depository of its <br />funds. Article VIII (2) of the By. Laws provides that disburse, <br />ments of Administration funds shall he made by check signed by <br />the Treasurer, and countersigned by the Chairman or Vice-Chair- <br />man of the Administration. In order to protect Administration <br />funds against loss, the Administration on October 20, 1950, adopted <br />a resolution, a copy of which is attached as Appendix B. <br /> <br />j <br /> <br />5, Rules and Regulations <br />In accordance with Article VIII B(l) of the Compact and Arti, <br />cle VI of the By-Laws of the Administration, Rules and Regulations <br />for the administration of the Arkansas River Compact were adoptecJ <br />by the Administrat10n on March 24-, 1950, published and became <br />effective on April 15, 1950. A copy of these Rules and Regula.tions <br />is attached hert.:to as Appendix C. <br /> <br />6, Cooperative Studies and Activities <br /> <br />(a) Article VIII G(l) of the Arkansas River Compaet re. <br />quires the Administration to cooperate with the Chief Official of <br />each of the States <if Colorado and Kansas charged with the admin. <br />istration of water rights and with the Federal agencies in a sys- <br />tematic determination and correlation of the facts as to the flow and <br />diversion of the water of the Arka.nsas Riva and as to the opera- <br />tion and siltation of John Martin Reservoir and other related struc' <br />tures; and Article VIII G (2) requests the Director of Ihe United <br /> <br />8 <br />