(1) When the state auditor is required by law or the state constitution to audit or cause to be audited a state department, institution, or agency or other governmental or organizational entity for self-supporting or nonappropriated activities, including but not limited to enterprises as defined in section 20 (2)(d) of article X of the state constitution, associated students' accounts, auxiliary enterprise funds, nonprofit corporations, trust funds, contracts with the federal government, federal grants-in-aid, or federal assistance programs, moneys from the state general fund shall not be used to pay for the cost of the audit, and the state auditor shall be reimbursed for the audit services by the entity for which the audit is in whole or in part performed.

(2) The reimbursement amount from such entity shall be a pro rata share of the total state auditor's cost, based upon a time-spent factor, if the total audit of the entity includes the audit of state-appropriated funds. If state-appropriated funds are not involved in such audits, the reimbursement shall be not less than the average hourly cost of the operations of the state auditor's office nor more than the average rate attainable from certified public accounting firms performing similar services for this state. Reimbursement charges may be negotiated with the state auditor's office within the above limitations.

(3) The state auditor shall disclose the amount of fully reimbursed audit services in the annual financial statements of the legislative department.