West Virginia Code of State Rules › Agency 117 - Economic Development Authority › Title 117 - PROCEDURAL RULE ECONOMIC DEVELOPMENT AUTHORITY › Series 117-01 - General Administration Of The WV Capital Company Act: Establishment Of The Application Procedures To Implement The Act › Section 117-1-7 - Audits, Reports, Confidentiality, Examination, Failure to Comply, Penalties, Decertification

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1. Annual Audit and Report. -- For each
				Qualified Company, an audit of each of its capital bases designated as
				qualified shall be conducted annually by a certified public accountant,
				beginning at the end of the first fiscal year of the Company, and each year
				thereafter until the Qualified Company is decertified by the Authority. An
				audit of any of a Qualified Company's capital bases may be consolidated and
				submitted with audits of any other of its capital bases required under this
				Subsection, so long as information required under the Act and this Rule with
				respect to each capital base is separate and distinct. Provided that, in the
				case of the capital base of a designated Qualified Company or a separate
				capital base or increase to capital base designated as qualified, prior to the
				1991 amendments to the Act, audits with respect to the qualified capital bases
				need not be conducted after the expiration of a five year period beginning from
				the date of the last of the designations if the Qualified Company is not then
				actively investing but is instead merely maintaining existing investments
				pursuant to the requirements of the Act and this Rule. In those cases, in lieu
				of audits, the Qualified Company shall annually file internally prepared
				unaudited financial statements accompanied by an affidavit setting forth (1)
				the name of the Qualified Company; (2) the name and title of the affiant; (3)
				that the affidavit is submitted in connection with the internally prepared
				financial statements of the Qualified Company; (4) the time period covered by
				the financial statements; (5) that there have been no material or significant
				changes in the Qualified Company's Qualified Investments for the time period
				specified, or what, if any, changes have occurred; and (6) that the financial
				statements are true, complete and accurate.
7.2. General Requirements for Audits. -- The
				following requirements apply to Audits of the Qualified Company:
7.2.a. Independent CPA. -- The certified
				public accountant shall be independent of the Qualified Company being examined
				to ensure that the audit report will be impartial, in fact and in
				appearance.
7.2.b. Working Papers;
				Standards. -- In performing the audit, the accountant shall prepare working
				papers in accordance with the generally accepted accounting standards of field
				work. Working papers for an audit shall be retained by the accountant for a
				minimum of three (3) years from the date of the audit report, or longer if
				notified in writing by the Authority before the end of the three (3) year
				period. The Qualified Company shall make its audit working papers available
				upon written request of the Authority or the Director. The audit shall be
				conducted in accordance with generally accepted auditing and accounting
				principles and any other guidelines the Authority may prescribe.
7.2.c. Report Contents. -- The audit report
				shall address the methods of operation and conduct of the business of the
				Qualified Company and report on the Qualified Company's compliance with the
				requirements of the Act and this Rule and, in the case of SBICs, with the
				provisions of the Small Business Investment Act, 15 U.S.C. §§ 661 et
				seq., as amended, and the federal regulations promulgated under that Act. In
				particular the report shall address whether the company has made proper and
				timely investments. Any instances of noncompliance shall be specifically cited.
				If the accountant finds that the Company has been in compliance, the accountant
				shall make a positive statement to that effect.
7.2.d. Submission of Report. -- The Qualified
				Company shall submit three certified copies of the audit report no later than
				ninety (90) days from the end of each fiscal year, together with three copies
				of a descriptive narrative of the Qualified Company's activities, its methods
				of operation and the general conduct of the Company, and three copies of its
				financial statements.
7.2.e. Bound
				Report. -- Each copy of the audit report and narrative statement shall be bound
				in a durable cover. The name of the Qualified Company and the time period
				covered by the report shall be visibly printed on the front cover of the
				report.
7.2.f. Other Requirements.
				-- The Authority may dictate other audit requirements from time to
				time.