1.  At least as often as once a year after the approval of the plans, the board of directors shall make a report to the State Engineer of the progress of the work of the district and whether or not the plan formulated under the provisions of this chapter is being successfully carried out, and whether or not in the opinion of the board the funds available will complete the proposed works.

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2.  Upon receipt of the report by the State Engineer, the State Engineer shall make such suggestions and recommendations to the board of directors as may be necessary to conserve the best interests of the district.