Current through Register Vol. XLI, No. 50, December 13, 2024
Section 117-3-9 - Audits and Reports9.1. Reporting. -- Each Fund Manager shall, at least quarterly, submit to the applicable Governing Entity, the Authority and to each investor reports which set forth the following: 9.1.a. With regard to each West Virginia Business invested in during that quarter, the name and address of the business, a description of the activities of the business and a description of the investment made in the business and the terms of the investment;9.1.b. The percentage of the Fund or Fund Share which has been invested to date;9.1.c. The status and performance of each outstanding investment;9.1.d. The effect investments by the Fund have had on the ability of West Virginia Businesses invested in to increase or retain employment of domiciled West Virginians; and9.1.e. Any other information requested by the applicable Governing Entity or the Authority.9.2. Affidavit from Businesses Invested In. -- Prior to closing of a Fund's investment in a West Virginia Business, the Fund Manager shall secure from each West Virginia Business invested in affidavits prepared by an authorized officer, partner, limited liability company member or manager, or trustee of the West Virginia Business invested in which demonstrate: 9.2.a. That the business invested in is a West Virginia Business as defined in Subsection 2.25 of this Rule;9.2.b. That the investment does not violate the investment restrictions set forth in Subsection 7.4 of this Rule; and9.2.c. The effect the investment by the Fund is expected to have on the ability of the business invested in to increase or retain employment of domiciled West Virginians.9.2.d. The affidavits shall be delivered by the Fund Managers to the applicable Governing Entity and the Authority no later than fifteen (15) days prior to closing.9.3. Annual Audit and Report. -- For each Fund or Fund Share, an audit shall be conducted annually by a certified public accountant, beginning at the end of the first State fiscal year in which the Fund or Fund Share was created and each year thereafter until the Fund or Fund Share is liquidated by the applicable Governing Entity. The cost of the audit shall be paid by the Fund or Fund Share.9.4. General Requirements for Audits. -- The following requirements apply to audits of a Fund or Fund Share: 9.4.a. Independent CPA. -- The certified public accountant shall be independent of the Fund or Fund Share being examined to ensure that the audit report is impartial, in fact and in appearance.9.4.b. Working Papers; Standards. -- In performing the audit, the accountant shall prepare working papers in accordance with the generally accepted accounting and auditing standards of field work. The accountant shall retain working papers for an audit 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 audit working papers shall be made 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 standards, and any other guidelines the Authority may prescribe.9.4.c. Report Contents. -- The audit report shall address the methods of operation and conduct of the business of the Fund or Fund Share and report on the Fund Manager's compliance with the requirements of the Act and this Rule. In particular the report shall address whether the Fund Manager has made proper and timely investments. Any instances of noncompliance shall be specifically cited. If the accountant finds that the Fund Manager has been in compliance, the accountant shall make a positive statement to that effect.9.4.d. Submission of Report. -- The Fund Manager shall submit to the applicable Governing Entity and the Authority three certified copies of the audit report no later than ninety (90) days from the end of each State fiscal year, together with three copies of a descriptive narrative of the Fund Manager's activities, its methods of operation of the Fund or Fund Share and three copies of the Fund or Fund Share's financial statements.9.4.e. Other Requirements. -- The Governing Entity or the Authority may dictate other audit requirements from time to time.