The Institutional Assistance Grant Fund shall be maintained in a separate account and shall not be commingled with other funds of the eligible institution. The moneys in the fund may be used only for, or in connection with, expenses incurred by the eligible institution for educational cost. Each institution shall cause an audit of such separate account to be made annually, which audit shall indicate the manner in which the moneys in the assistance grant fund have been expended. A copy of the audit shall be forwarded to the agency.