Washington State Auditor’s Office  
Accountability Audit Report  
Washington Counties Risk Pool  
Thurston County  
Report Date  
June 16, 2009  
Report No. 1001790  
Issue Date  
July 20, 2009  
Washington State Auditor  
Brian Sonntag  
July 20, 2009  
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 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  
June 16, 2009  
Audit Summary.............................................................................................................................................. 1  
Description of the Risk Pool.......................................................................................................................... 2  
Audit Areas Examined................................................................................................................................... 4  
Audit Summary  
Washington Counties Risk Pool  
Thurston County  
June 16, 2009  
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, 2007,  
through September 30, 2008.  
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.  
However, on July 30, 2008, the Risk Pool notified our Office in accordance with state law  
(RCW 43.09.185) that there was a possible misappropriation of a piece of real property by a  
former employee dating back to 2003. We reviewed the status of this case and issued our results  
in a separate report.  
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  
June 16, 2009  
ABOUT THE RISK 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  
Risk 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 Risk  
Pool operates on an annual operating budget of approximately $1.7 million and has nine  
employees.  
AUDIT HISTORY  
We audit the Risk Pool on an annual basis. The Risk Pool has not received a finding since its  
inception in 1988.  
OFFICERS/EXECUTIVE COMMITTEE  
These officials served during the audit period:  
Executive Committee:  
President  
Secretary-Treasurer  
Keith Goehner, Chelan County  
Mark Abernathy, Kitsap County  
Toni Gilbert, Clallam County  
Steven Clem, Douglas County  
Neva Corkrum, Franklin County  
Rose Elway, Grays Harbor County  
Marilyn Butler, Skamania County  
Leon Long (through November 26, 2007),  
Spokane County  
Steve Bartel (through March 28, 2008),Spokane  
County  
Diane Oberquell, Thurston County  
Jay Winter, Walla Walla County  
Randall Watts, Whatcom County  
APPOINTED OFFICIALS  
Executive Director  
Vyrle Hill  
Accounting/Auditing Officer  
Sue Colbo  
Washington State Auditor’s Office  
2
ADDRESS  
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  
June 16, 2009  
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:  
Open Public Meetings Act  
Payroll expenditures  
Solvency  
Insurance, bonding and risk management  
General disbursements  
Safeguarding of public resources  
Conflict of interest  
Revenue  
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  
Revenue  
Expenditures/expenses  
Financial condition  
Long-term debt  
Overall presentation of the financial  
statements  
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 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)