SAIF Corporation Board of Directors Audit committee meeting minutes for April 1, 2009

Saif Corporation, Exec

Description

SAIF CORPORATION BOARD OF DIRECTORS AUDIT COMMITTEE Wednesday SAIF Corpration April 1,209 40High SeSE9:0a.m alem,Oregon After determining a quorum was present, the meeting was called to order at 9:00 a.m. Roll Call: John Endicott Catherine Travis SAIF Corporation Personnel Present: Brenda JP Rocklin, President and CEO Cathy Pollino, Chief Internal Auditor Casey Baumert, Corporate Internal Auditor Jerry Dykes, Chief Financial Officer Michelle Graham, Vice President of Claims Michael Hartman, Vice President of Underwriting Services Theresa McHugh, Vice President of Financial Services Mike Mueller, Senior Vice President of Claims and Legal Services Garry Robinson, Vice President of Information Services Colleen Sealock, Vice President of Operations and Human Resources Sara Bayes, Executive Assistant Approval of Audit Committee Minutes Motion Mr. Endicott, second Ms. Travis to approve the minutes of the December 10, 2008 meeting. The vote was unanimous, and the motion was carried. Accuracy of Claims Information Audit Cathy Pollino reported on an audit that followed up on the 2008 internal audit report, “Accuracy and Completeness of Key Claims Information.” The purpose of the follow-up audit was to determine whether the quality of information captured and reported about claims has improved. The follow-up audit found that the accuracy of the data reported to the National Council on Compensation Insurance ...

Informations

• Publié par: Veam
• Nombre de lectures: 154
• Langue: English

Extrait

SAIF Corporation | 400 High St | Salem, OR 97312 | P: 800.285.8525

SAIF CORPORATION

BOARD OF DIRECTORS AUDIT COMMITTEE

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After determining a quorum was present, the meeting was called to order at 9:00 a.m.

Roll Call:

John Endicott

Catherine Travis

SAIF Corporation Personnel Present:

Brenda JP Rocklin, President and CEO

Cathy Pollino, Chief Internal Auditor

Casey Baumert, Corporate Internal Auditor

Jerry Dykes, Chief Financial Officer

Michelle Graham, Vice President of Claims

Michael Hartman, Vice President of Underwriting Services

Theresa McHugh, Vice President of Financial Services

Mike Mueller, Senior Vice President of Claims and Legal Services

Garry Robinson, Vice President of Information Services

Colleen Sealock, Vice President of Operations and Human Resources

Sara Bayes, Executive Assistant

Approval of Audit Committee Minutes

Motion Mr. Endicott, second Ms. Travis to approve the minutes of the December 10,

2008 meeting.

The vote was unanimous, and the motion was carried.

Accuracy of Claims Information Audit

Cathy Pollino reported on an audit that followed up on the 2008 internal audit report,

“Accuracy and Completeness of Key Claims Information.” The purpose of the follow-up

audit was to determine whether the quality of information captured and reported about

claims has improved. The follow-up audit found that the accuracy of the data reported

to the National Council on Compensation Insurance has improved, but there are

opportunities to improve it further. The follow-up audit found that 17 percent of the

claims had incorrect body part, nature, or cause of injury, compared to the previous

audit results of 57 percent. There was also great improvement in the accuracy and

completeness of hire dates and times of injury.

Internal Audit recommended that Claims management work with Loss Control to better

define common injuries and communicate those definitions to Claims staff.

In addition,

Internal Audit recommended that Information Services make minor system changes to

help ensure accurate claims information capture and reporting.

Board Audit Committee

April 1, 2009

Page 2

SAIF Corporation | 400 High St | Salem, OR 97312 | P: 800.285.8525

Records Management Audit

Ms. Pollino reported that the purpose of the records management audit was to

determine whether processes were in place to manage policy, claim, personnel, legal,

and board files in accordance with established records retention schedules. SAIF

currently stores its records at SAIF facilities, the State Records Center, and at Iron

Mountain. Ms. Pollino reported that some records stored at Iron Mountain and at SAIF

need to be inventoried and better organized.

In addition, a long-term records storage

plan is needed for paper and electronic files.

Internal Audit recommended that SAIF’s Records Management Unit work with program

areas to review inventory lists, update box descriptions, and link records to SAIF’s

current retention schedule. Internal Audit also recommended that management

implement a long-term plan for the retention and destruction of paper files and

electronic records.

Audit Update Report

Audit work is in progress on the accuracy of the data warehouse, the claim bill payment

process, and agency commission calculations.

In addition, SAIF management has made

good progress implementing outstanding audit recommendations; all recommendations

either have been implemented or are in the process of being implemented.

Model Audit Rule Update

Ms. Pollino advised that the audit committee documentation of SAIF’s internal controls

and processes has been completed by Internal Audit and Deloitte and Touche. Several

areas have design deficiencies, and remediation plans are being developed.

A handout on the status of identified deficiencies was provided in the audit packet,

along with suggested recommendations.

Ms. Pollino advised that Deloitte and Touche had two suggestions for modifying entity

level controls regarding SAIF’s Audit Committee:



SAIF’s Audit Committee members should meet annually with the Chief Financial

Officer, the Chief Actuary, and the Financial Reporting manager, as well as

external auditors, without management present.



Although not required for Model Audit Rule compliance, SAIF should consider

adding a financial expert to the Audit Committee as a best business practice.

DCBS Financial Exam

Ms. McHugh reported that DCBS had one recommendation in its official report. They

concluded that the custody agreement between the Oregon State Treasurer and State

Street Bank should be changed to incorporate certain administrative requirements.

Recommendations have been forwarded to the State Treasurer.

Board Audit Committee

April 1, 2009

Page 3

SAIF Corporation | 400 High St | Salem, OR 97312 | P: 800.285.8525

External Audits

KPMG has completed the information systems portion of the audit; the financial portion

will begin in May.

Future Meetings

The next Audit Committee meeting will be June 10, 2009 in conjunction with the board

of directors meeting at SAIF’s Portland office.

Other Business

The Audit Committee members met with the Internal Audit staff and the Chief Financial

Officer without other SAIF management present.

There being no further business, the meeting adjourned at 9:56 a.m.

_________________________________________

Sara Bayes, Executive Assistant to the Board