RATES - SELF-INSURANCE RATES BACKGROUND: The city is...

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Sheet1 Page 1 SELF-INSURANCE RATES BACKGROUND: The city is self-insured for general liability, property damage, unemployment compensation, and workers compensation. Premiums are estimated and the departments charged according to claims experience rates. Until last year the premium was based on a department's payroll costs. This caused departments to be charged inequitably for insurance coverage. Total premiums paid into the self-insurance fund are approximately $5 million annually. SCOPE: The audit period will cover last fiscal year for rate calculations and the last day of the field work for the evaluation of internal control. Workers compensation premiums will be excluded from this review because they are covered in a separate audit. PLANNING: 1. Prepare and send an entrance letter to the Director of Administration and the city's Risk Manager. 2. Prepare a planning program with a time budget to cover the preliminary survey work. 3. Discuss the scope and direction of the audit with your team leader and the Audit Manager. 4. Schedule and hold an entrance conference with the Director of Administration and the Risk Manager in order to discuss the upcoming audit. Obtain the name of the department contact person and secure a place from which to conduct the field work portion of the audit. 5.
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This note was uploaded on 05/16/2011 for the course AUDIT 201 taught by Professor Unknown during the Spring '11 term at Symbiosis International University.

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RATES - SELF-INSURANCE RATES BACKGROUND: The city is...

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