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 CH. 85 GUAM MEMORIAL HEALTH PLAN

(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.