                                 CODE OF VIRGINIA

STATE AGENCIES, COURTS, AND LOCAL CONSTITUTIONAL OFFICERS TO REPORT CERTAIN
FRAUDULENT TRANSACTIONS; PENALTY (§ 30-138)

A. Upon the discovery of circumstances suggesting a reasonable possibility that
a fraudulent transaction has occurred involving funds or property under the
control of any state department, court, officer, board, commission, institution
or other agency of the Commonwealth, including local constitutional officers and
appointed officials exercising the powers of elected constitutional officers, as
to which one or more officers or employees of state or local government may be
party thereto, the state agency head, court clerk or local official in charge of
such entity shall promptly report such information to the Auditor of Public
Accounts (Auditor), the State Inspector General, and the Superintendent of State
Police (Superintendent).

B. The Auditor, the State Inspector General, or the Superintendent shall review
the information reported pursuant to subsection A and individually determine the
most appropriate method to investigate the information. In the event that the
Auditor, the State Inspector General, or the Superintendent determines to
conduct an investigation, he shall notify the others of the commencement of the
investigation as soon as practicable, unless the information involves the
Auditor, the State Inspector General, or the Superintendent.

C. No state department, court, officer, board, commission, institution or other
agency of the Commonwealth, including local constitutional officers and
appointed officials exercising the powers of elected constitutional officers,
shall employ or contract with any person, firm, corporation, or other legal
entity to conduct an investigation or audit of information reported pursuant to
subsection A without obtaining the prior written approval from the Auditor and
the Superintendent. Pending acknowledgement of the report and receipt of the
written approval from the Auditor and the Superintendent, the state department,
court, officer, board, commission, institution, or other agency of the
Commonwealth, including local constitutional officers and appointed officials
exercising the powers of elected constitutional officers, may use their
employees to audit the circumstances reported in subsection A to prevent the
loss of assets.

D. All state departments, courts, officers, boards, commissions, institutions or
other agencies of the Commonwealth, including local constitutional officers and
appointed officials exercising the powers of elected constitutional officers and
their employees, shall cooperate to the fullest extent in any investigation or
audit which may occur at the direction of the Auditor or the Superintendent or
both as a result of information reported pursuant to subsection A.

E. The willful failure to make the report as required by this section shall
constitute a Class 3 misdemeanor.

F. Nothing herein shall affect the requirements of &#xA7; 52-8.2.

HISTORY: 1984, c. 421, § 2.1-155.3; 1997, c. 825; 2001, c. 844; 2011, cc. 798,
871.