As it comes to CHS facing a state audit, it may just be a bean counter thing where they compare receipts to cash etc.
What should really happen is a non-objective consultant familiar with steam preservation railroading come at the behest of the state and audit the whole shootin' match. That is where they can report exactly what is going on as long as certain people cooperate and are honest.
The operation I oversee has accounting audits once per year, and to be honest, as long as you have a back up for the money spent, its just a rubber stamp. I personally just went through having an outside consultant follow me around for 30 days asking how this gets done and why I do things a certain way. It was annoying to say the least, but I must be doing somethings right cause I still have the job.