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Sheet1 Page 1 SELF-INSURANCE AUDIT BACKGROUND: The City Claims Office is comprised of eleven employees and is under the Department of Administration. It is responsible for processing all claim payments and receipts for Worker's Compensation, bodily injury and property damage. In fiscal year 19XX, approximately $_____ and $_____ was paid for general liability and worker's compensation claims respectively. the accrued liability for claims filed but not settled at fiscal year end was $_____ million. SCOPE: The scope of the audit will be for transactions that occurred last fiscal year. This audit only tests the documentation and accuracy of claims paid. We will not attempt ot measure the efficiency of the program. There is a separate audit on the Worker's Compensation program and a study conducted by the Internal Audit Department that recommends basic changes in the program. PLANNING: 1. Prepare an entrance letter and forward it to the Claims Manager and the Director of Administration. 2. Prepare a planning program and budget for the preliminary work and obtain the approval of your audit team leader. 3. Review past internal audit reports and external auditor's comments. 4. Review budget documents for the Claims Office and their Service Level Summary for the current fiscal year. 5. Schedule an entrance conference with the Claims Manager in order to discuss the upcoming audit. 6. Hold the entrance conference and obtain the name of the division contact person. Also, secure a place from which to conduct the field work. 7. Conduct the preliminary survey of the Claims Office by gathering information through interviewing division personnel. 8.
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