Guam § 85109 - Fiscal Authority Accounting, Expenditures.

§ 85109. Fiscal Authority Accounting, Expenditures.

(a) There is established a fund to be known as the AGuam Memorial

Health Plan Fund,@ which shall be maintained separate and apart from other

funds of the Government and independent records and accounts shall be

maintained in connection therewith. Every quarter, the financial statement

of the Fund shall be transmitted to the Speaker of the Guam Legislature.

COL 041309

(b) All money received by the Corporation, from whatever source

derived, shall be deposited in the Guam Memorial Health Plan Fund in a

financial institution licensed to do business on Guam, insured by Federal

Depositors Insurance Corporation or Federal Savings and Loans Insurance

Corporation.

(c) All expenditures from this Fund shall be restricted to expenditures

directly related to the operation of the Corporation.

(d) Administrative expenses of the Corporation shall not exceed 13.5

per cent (13.5%) of the total gross premiums for each year. Administrative

expenses shall include all expenses other than provider costs.

(e) The Board shall adopt and maintain a uniform system of

accounting. Every year the Board shall obtain a certified audit of the

accounts. The audit shall be submitted to the Governor and the Legislature.

If the Territorial Auditor or the Federal Comptroller performs a thorough

audit of the Corporation for the same period, the Board need not obtain a

certified audit.

(f) A revolving account shall be established with a portion of the Fund

and it shall be known as the ACatastrophic Contingencies Account.@ At no

time shall the money in the account exceed One Million Five Hundred

Thousand Dollars ($1,500,000). Expenditures from the account shall be

used only to provide authorized subscriber benefits whose cost has not

otherwise been provided for and the account shall not in any way be used

for the administration of the plan.