No money shall be disbursed or expended from the fund unless:

(1) The disbursement is pursuant to an appropriation by the Legislature;

(2) The provisions of section 81-1636 have been complied with in regard to the project for which funds are being disbursed; and

(3) The use for which funds are being disbursed meets any applicable federal law, regulation, or court order and has been approved by any and all state and federal authorities as may be required to meet the applicable court order and any applicable federal law or regulations.