30-138 - State agencies, courts, and local constitutional officers to report certain fraudulent transactions; penalty.
§ 30-138. State agencies, courts, and local constitutional officers to reportcertain fraudulent transactions; penalty.
A. Upon the discovery of circumstances suggesting a reasonable possibilitythat a fraudulent transaction has occurred involving funds or property underthe control of any state department, court, officer, board, commission,institution or other agency of the Commonwealth, including localconstitutional officers and appointed officials exercising the powers ofelected constitutional officers, as to which one or more officers oremployees of state or local government may be party thereto, the state agencyhead, court clerk or local official in charge of such entity shall promptlyreport such information to the Auditor of Public Accounts ("Auditor") andthe Superintendent of State Police ("Superintendent").
B. The Auditor or the Superintendent shall review the information reportedpursuant to subsection A and individually determine the most appropriatemethod to investigate the information. In the event that the Auditor or theSuperintendent determines to conduct an investigation, he shall notify theother of the commencement of the investigation as soon as practicable, unlessthe information involves the Auditor or the Superintendent.
C. No state department, court, officer, board, commission, institution orother agency of the Commonwealth, including local constitutional officers andappointed officials exercising the powers of elected constitutional officers,shall employ or contract with any person, firm, corporation, or other legalentity to conduct an investigation or audit of information reported pursuantto subsection A without obtaining the prior written approval from the Auditorand the Superintendent. Pending acknowledgement of the report and receipt ofthe written approval from the Auditor and the Superintendent, the statedepartment, court, officer, board, commission, institution, or other agencyof the Commonwealth, including local constitutional officers and appointedofficials exercising the powers of elected constitutional officers, may usetheir employees to audit the circumstances reported in subsection A toprevent the loss of assets.
D. All state departments, courts, officers, boards, commissions, institutionsor other agencies of the Commonwealth, including local constitutionalofficers and appointed officials exercising the powers of electedconstitutional officers and their employees, shall cooperate to the fullestextent in any investigation or audit which may occur at the direction of theAuditor or the Superintendent or both as a result of information reportedpursuant to subsection A.
E. The willful failure to make the report as required by this section shallconstitute a Class 3 misdemeanor.
F. Nothing herein shall affect the requirements of § 52-8.2.
(1984, c. 421, § 2.1-155.3; 1997, c. 825; 2001, c. 844.)