The failure of a county road commission, city, or village to apply money returned pursuant to this act, to the purposes prescribed in this act, shall result in the forfeiture by the county road commission, city, or village of funds to which it may have been entitled under this act for a period of 1 year from and after the failure to apply the money for the purposes prescribed, and funds forfeited shall then be apportioned and distributed among the other county road commissions and cities and villages in the same manner and proportion as provided in section 10 for the distribution of the Michigan transportation fund.