Virginia Law

A. Each pool shall file annually with the commission and with the members of the pool within six months after the end of the pool's fiscal year, audited financial reports for the most recently completed fiscal year certified by an independent certified public accountant. The financial report shall be considered filed on the date the report was sent by mail as shown by the postmark. If the pool fails to file such audited financial reports, the commission may perform the audit and the pool shall reimburse the commission for such cost.

1. The audited financial report shall contain a report in detail of the pool's assets, outstanding liabilities, including the amount of claims paid to date and current reserves for losses, revenues and disbursements during the year, the investments of the pool's assets and all other information which the commission may deem necessary to secure a full and accurate knowledge of the financial affairs and condition of the pool. The working papers of the certified public accountant and other records pertaining to the preparation of the audited financial reports may be reviewed by the commission.

2. The audited financial report shall be signed on behalf of the pool by two duly authorized officers or a duly authorized officer and the administrator.

3. The commission shall also devise a uniform accounting system to be used by the pool.

4. In addition to the annual audited financial report, the commission may require any pool to file additional financial information, including interim financial reports and additional reports, exhibits or statements considered necessary to secure complete information concerning the condition, solvency, experience, transactions or affairs of the pool. The commission shall establish reasonable deadlines for filing these additional reports, exhibits or statements and may require verification as the commission shall designate.

B. The pool must retain and have available for examination by the commission:

1. All executed copies of the application of each political subdivision for membership in the pool; and

2. A certified copy of each political subdivision's resolution authorizing membership in the pool.

C. Any person who knowingly or willfully makes or files any false or fraudulent statement, report or other instrument shall be charged with a Class 5 felony. If convicted, such person shall be guilty of a Class 5 felony.

D. The commission may examine the affairs, transactions, accounts, records, and assets of the pool as often as it deems necessary. The manner and frequency in which the examination of financial condition shall be conducted and the release of any reports of financial condition shall be as provided in Article 4 (§ 38.2-1317 et seq.) of Chapter 13 of Title 38.2 of the Code of Virginia.