Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Internal Audit topic
No spam. Unsubscribe anytime.
Audit committee reports small procedural findings in district self-insurance review; no major corrective action recommended
Summary
District staff briefed the board on an independent audit of the Davis County School District self-insurance program; auditors recommended improved documentation and options for deeper claim-level review, but the audit committee recommended continuing existing processes and benchmarking rather than hiring a high-cost claim auditor.
Tim Leffel, business administrator for Davis County School District, updated the board on an independent audit of the district’s self-insurance program and the audit committee’s recommendations.
Leffel said the audit began in the summer and external auditor BDO experienced delays obtaining proprietary discount information from insurance carriers. The BDO engagement also experienced staff turnover, and Leffel presented the findings to the audit committee rather than BDO directly.
The audit’s primary recommendations fell into two categories: documentation and the depth of claim-level auditing. Leffel said the committee was asked to codify a benchmark—historically the district has targeted three months of claims in reserve—but the district currently holds “a little over 4 and a half months of claims in reserve.” The audit committee reported it was uncomfortable converting some procedures into strict policy language and instead preferred to retain current procedures and oversight by the committee.
On claim-level review, Leffel said the auditors suggested auditing individual claims to verify processing. Leffel said the district’s insurance consultant (GBS) and carriers (SelectHealth and Aetna) generally follow strong procedures; in-depth individual-claim audits are available but expensive and, according to the audit consultant, typically identify few material issues. The audit committee therefore recommended continued trend monitoring and targeted review of large claims rather than broad, costly audits of individual claims.
Leffel said the audit found only minor monetary errors, citing one overpayment of $8.11. The audit committee did not recommend immediate changes beyond improving documentation of existing benchmarks and continuing monthly oversight with the insurance consultant.
Board audit committee members present invited board members to submit topics they would like audited next and said the district will keep monitoring self-insurance trends. No formal board vote occurred at the workshop.
