Washington State Auditor’s Office  
Accountability Audit Report  
Washington Counties Risk Pool  
Thurston County  
Report Date  
March 14, 2008  
Report No. 74795  
Issue Date  
June 9, 2008  
Washington State Auditor  
Brian Sonntag  
June 9, 2008  
Board of Directors  
Washington Counties Risk Pool  
Tumwater, Washington  
Report on Accountability  
Please find attached our report on the Washington Counties Risk Pool’s accountability and compliance  
with state laws and regulations and its own policies and procedures.  
In addition to this work, we also audit the Risk Pool’s financial statements. The results of that audit will be  
included in a separately issued audit report.  
Sincerely,  
BRIAN SONNTAG, CGFM  
STATE AUDITOR  
Insurance Building, P.O. Box 40021 y Olympia, Washington 98504-0021 y (360) 902-0370 y TDD Relay (800) 833-6388  
FAX (360) 753-0646 y http://www.sao.wa.gov  
Table of Contents  
Washington Counties Risk Pool  
Thurston County  
March 14, 2008  
Audit Summary.............................................................................................................................................. 1  
Description of the Risk Pool.......................................................................................................................... 2  
Audit Areas Examined................................................................................................................................... 4  
Audit Summary  
Washington Counties Risk Pool  
Thurston County  
March 14, 2008  
ABOUT THE AUDIT  
This report contains the results of our independent accountability audit of the Washington  
Counties Risk Pool.  
We performed audit procedures to determine whether the Risk Pool complied with state laws and  
regulations and its own policies and procedures. We also examined Risk Pool management’s  
accountability for public resources. Our work focused on specific areas that have potential for  
abuse and misuse of public resources.  
Areas examined during the audit were selected using financial transactions from October 1, 2006,  
through September 30, 2007.  
RESULTS  
The Risk Pool complied with state laws and regulations and its own policies and procedures in  
the areas we examined. Internal controls were adequate to safeguard public assets.  
RELATED REPORTS  
Our opinion on the Risk Pool’s financial statements is provided in a separate report, which  
includes the Risk Pool’s financial statements.  
CLOSING REMARKS  
We thank Risk Pool officials and personnel for their assistance and cooperation during the audit.  
Washington State Auditor’s Office  
1
Description of the Risk Pool  
Washington Counties Risk Pool  
Thurston County  
March 14, 2008  
ABOUT THE RISK POOL  
The Washington Counties Risk Pool provides comprehensive, economical insurance coverage  
and risk management assistance to 28 member counties. The Risk Pool is governed by a Board  
of Directors representing member counties. An appointed Executive Director administers day-to-  
day operations and reports to an 11-member Executive Committee and the Board. The Risk Pool  
operates on a $1.4 million annual budget and has nine employees.  
AUDIT HISTORY  
We audit the Risk Pool annually. Management has been responsive to prior audit  
recommendations. Because of its assertive style of problem solving, the Risk Pool has received  
no findings since its inception in 1988.  
ELECTED OFFICIALS  
These officials served during the audit period:  
Executive Committee:  
President  
Steve Clem  
Secretary/Treasurer  
Keith Goehner  
Toni Gilbert  
Mark Abernathy  
Neva Corkrum  
Rose Elway  
Leon Long  
Diane Oberquell  
Jay Winter  
Randy Watts  
Mike Shelton (through August 2007)  
APPOINTED OFFICIALS  
Executive Director  
Vyrle Hill  
Accounting/Auditing Officer  
Sue Colbo  
Washington State Auditor’s Office  
2
ADDRESS  
Risk Pool  
Suite 106  
2558 R.W. Johnson Road S.W.  
Tumwater, WA 98512  
(360) 292-4500  
www.wacounties.org/wcrp/  
Washington State Auditor’s Office  
3
Audit Areas Examined  
Washington Counties Risk Pool  
Thurston County  
March 14, 2008  
In keeping with general auditing practices, we do not examine every portion of the Washington Counties  
Risk Pool's financial activities during each audit. The areas examined were those representing the  
highest risk of noncompliance, misappropriation or misuse. Other areas are audited on a rotating basis  
over the course of several years. The following areas of the Risk Pool were examined during this audit  
period:  
ACCOUNTABILITY  
We evaluated the Risk Pool’s accountability in the following areas:  
•
•
•
Solvency  
Checking account  
General disbursements  
•
•
•
Accounts payable  
Changes in insurance program  
Open Public Meetings Act  
FINANCIAL AREAS  
Our opinion on the Risk Pool’s financial statements is provided in a separate report. That report  
includes the Risk Pool’s financial statements and other required financial information. We  
examined the financial activity and balances of the Risk Pool including:  
•
•
•
•
•
Cash and investments  
Revenues  
Expenditures/expenses  
Financial condition  
Cash flows  
•
•
Overall presentation of the financial  
statements, notes and management’s  
discussion and analysis  
Financial statement preparation  
Washington State Auditor’s Office  
4
ABOUT THE STATE AUDITOR'S OFFICE  
The State Auditor's Office is established in the state's Constitution and is part of the executive  
branch of state government. The State Auditor is elected by the citizens of Washington and serves  
four-year terms.  
Our mission is to work in cooperation with our audit clients and citizens as an advocate for  
government accountability. As an elected agency, the State Auditor's Office has the independence  
necessary to objectively perform audits and investigations. Our audits are designed to comply with  
professional standards as well as to satisfy the requirements of federal, state, and local laws.  
The State Auditor's Office has 300 employees who are located around the state to deliver our  
services effectively and efficiently. Approximately 65 percent of our staff are certified public  
accountants or hold other certifications and advanced degrees.  
Our regular audits look at financial information and compliance with state, federal and local laws on  
the part of all local governments, including schools, and all state agencies, including institutions of  
higher education. We also perform fraud and whistleblower investigations. In addition, we have the  
authority to conduct performance audits of state agencies and local governments.  
The results of our audits are widely distributed through a variety of reports, which are available on  
our Web site. We continue to refine our reporting efforts to ensure the results of our audits are  
useful and understandable.  
We take our role as partners in accountability seriously. We provide training and technical  
assistance to governments and have an extensive program to coordinate audit efficiency and to  
ensure high-quality audits.  
State Auditor  
Chief of Staff  
Brian Sonntag, CGFM  
Ted Rutt  
Chief Policy Advisor  
Jerry Pugnetti  
Doug Cochran  
Chuck Pfeil, CPA  
Linda Long, CPA, CGFM  
Jim Brittain, CPA  
Jan Jutte  
Mike Murphy  
Mindy Chambers  
Mary Leider  
Director of Administration  
Director of State and Local Audits  
Director of Performance Audit  
Director of Special Investigations  
Director for Legal Affairs  
Local Government Liaison  
Communications Director  
Public Records Officer  
Main number  
Toll-free hotline for government efficiency  
(360) 902-0370  
(866) 902-3900  
Web Site  
www.sao.wa.gov  
(SAO FACTS.DOC - Rev. 05/08)