Washington State Auditor’s Office  
Accountability Audit Report  
Washington Counties Risk Pool  
Thurston County  
Report Date  
February 18, 2010  
Report No. 1003227  
Issue Date  
March 29, 2010  
Washington State Auditor  
Brian Sonntag  
March 29, 2010  
Board of Directors  
Washington Counties Risk Pool  
Tumwater, Washington  
Report on Accountability  
We appreciate the opportunity to work in cooperation with your Pool to promote accountability,  
integrity and openness in government. The State Auditor’s Office takes seriously our role to  
advocate for government accountability and transparency and to promote positive change.  
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. Thank you for  
working with us to ensure the efficient and effective use of public resources.  
Sincerely,  
BRIAN SONNTAG, CGFM  
STATE AUDITOR  
Insurance Building, P.O. Box 40021 ï‚Ÿ Olympia, Washington 98504-0021 ï‚Ÿ (360) 902-0370 ï‚Ÿ TDD Relay (800) 833-6388  
FAX (360) 753-0646 ï‚Ÿ http://www.sao.wa.gov  
Table of Contents  
Washington Counties Risk Pool  
Thurston County  
February 18, 2010  
Audit Summary .......................................................................................................................... 1  
Related Reports......................................................................................................................... 2  
Description of the Pool............................................................................................................... 3  
Audit Summary  
Washington Counties Risk Pool  
Thurston County  
February 18, 2010  
ABOUT THE AUDIT  
This report contains the results of our independent accountability audit of the  
Washington Counties Risk Pool for the period from October 1, 2008, through  
September 30, 2009.  
We evaluated internal controls and performed audit procedures on the activities of the  
Pool. We also determined whether the Pool complied with state laws and regulations  
and its own policies and procedures.  
In keeping with general auditing practices, we do not examine every transaction, activity  
or area.  
Instead, the areas examined were those representing the highest risk of  
noncompliance, misappropriation or misuse. The following areas were examined during  
this audit period:  
Open Public Meetings Act  
Payroll  
Assessment revenue  
Solvency  
Disbursements  
Premium expense  
Premium receivable  
Claims administration  
RESULTS  
In the areas we examined, the Pool’s internal controls were adequate to safeguard  
public assets. The Pool also complied with state laws and regulations and its own  
policies and procedures in the areas we examined.  
Washington State Auditor’s Office  
1
Related Reports  
Washington Counties Risk Pool  
Thurston County  
February 18, 2010  
FINANCIAL  
Our opinion on the Pool’s financial statements is provided in a separate report, which  
includes the Pool’s financial statements.  
OTHER REPORTS  
During the current audit period, the State Auditor’s Office issued a report in July 2009  
regarding misappropriation of public funds at the Pool. That report is available on our  
Web site, www.sao.wa.gov.  
Washington State Auditor’s Office  
2
Description of the Pool  
Washington Counties Risk Pool  
Thurston County  
February 18, 2010  
ABOUT THE POOL  
The Washington Counties Risk Pool was established to provide its member counties  
with joint programs and services including self insurance, purchasing of insurance and  
contracting for or hiring of personnel to provide administrative services, claims handling  
and risk management.  
The Pool is governed by a Board of Directors consisting of one representative  
designated by each member county. Its day-to-day operations are administered by the  
Board-appointed Executive Director who reports to an 11-member Executive Committee  
and the Board. The Pool operates on an annual operating budget of approximately  
$1.78 million and has nine employees.  
OFFICERS/EXECUTIVE COMMITTEE  
These officials served during the audit period:  
Executive Committee:  
President  
Secretary-Treasurer  
Mark Abernathy, Kitsap County  
Jay Winter, Walla Walla County  
Keith Goehner, Chelan County  
Steven Clem, Douglas County  
Neva Corkrum, Franklin County  
(through December 31, 2008)  
Rose Elway, Grays Harbor County  
F. Lee Grose, Lewis County  
Andrew Lampe, Okanogan County  
(from March 27, 2009)  
Marilyn Butler, Skamania County  
Steve Bartel, Spokane County  
Tammy Devlin, Thurston County  
Randall Watts, Whatcom County  
APPOINTED OFFICIALS  
Executive Director  
Vyrle Hill  
Auditing and Accounting Officer  
Sue Colbo  
Washington State Auditor’s Office  
3
POOL CONTACT INFORMATION  
Address:  
Washington Counties Risk Pool  
2558 R.W. Johnson Road S.W., Suite 106  
Tumwater, WA 98512-6103  
Phone:  
(360) 292-4500  
www.wcrp.info  
Web site:  
AUDIT HISTORY  
We audit the Pool on an annual basis. The Pool has not received a finding since its  
inception in 1988.  
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 employees are located around the state to deliver our services effectively  
and efficiently.  
Our 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. In addition, we conduct performance audits of state agencies and local  
governments and fraud, whistleblower and citizen hotline investigations.  
The results of our work are widely distributed through a variety of reports, which are available on  
our Web site and through our free, electronic subscription service. 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 quality assurance program.  
State Auditor  
Chief of Staff  
Brian Sonntag, CGFM  
Ted Rutt  
Deputy Chief of Staff  
Chief Policy Advisor  
Director of Audit  
Director of Special Investigations  
Director for Legal Affairs  
Director of Quality Assurance  
Local Government Liaison  
Communications Director  
Public Records Officer  
Main number  
Doug Cochran  
Jerry Pugnetti  
Chuck Pfeil, CPA  
Jim Brittain, CPA  
Jan Jutte, CPA, CGFM  
Ivan Dansereau  
Mike Murphy  
Mindy Chambers  
Mary Leider  
(360) 902-0370  
(866) 902-3900  
Toll-free Citizen Hotline  
Web Site  
www.sao.wa.gov  
Subscription Service  
https://www.sao.wa.gov/EN/News/Subscriptions/  
(SAO FACTS.DOC - Rev. 06/09)