While the range of services provided by most accounting firms has expanded significantly, audits continue to be the dominant aspect of our practice. In the course of carrying out your audit, we will generate quality information to help you in the process of your ongoing business decisions. This insight will help lead to greater operating efficiencies and will facilitate clear, concise, and understandable financial reporting, which is respected by your community.
We offer the following services to insurance pools:
- GASB Statements No. 10 and No. 30 - Required Supplementary Information
- Annual Report of Financial Transactions
- Governing Board presentations
- Organizational structure analysis
- Fraud investigation
- Budget analysis
- Bylaw and Joint Powers Agreement revisions
- Member equity calculations
- Dividend and assessment policies
- Specialized compliance reviews
- Temporary controllership
- Cash management and forecasting
- Compiled financial statements
- Lease/purchase calculations
- Accounting policies and procedures
- Year-end closing assistance
- Accounting services
- Procedure manuals for business operations
- Internal control design and assessment
- Investment policies
- Assistance in recruiting and hiring business office staff
- Cost benefit analysis
- Self-insurance program analysis
- Loss control and risk management
- Preparation for accreditation
- Customized seminars
Our staff is knowledgeable about insurance pool accounting and auditing. This helps them to better understand the individual issues that may be faced on your engagement.
Specific Audit Approach
We will design our audit to achieve an appropriate balance of coverage and efficiency by using a risk-based approach. This approach principally concerns your internal and management control systems. We rely on our evaluation of the internal controls and understanding your entity to determine the type of work to be performed in each area.
An audit, however, should not just be checking if the numbers agree to some back-up documentation. We bring greater experience into the process to broaden the support of your business and operations.
We understand how insurance programs work:
- Funding and rate setting
- Dividends and assessments
- Criteria for establishing liabilities
- Risk financing
- Deductibles, primary layer and excess layer insurance
- Issues that concern members
We understand where the risk resides for insurance groups
Typically the largest expense is for claim payments. We take a balanced reconciliation approach to ensure that claims paid, reserved, claims liabilities, excess claims receivables, deductible recoveries and claims expense on the financial statements are all properly reconciled. This proven approach means a better audit for you.
We review for you:
- Assumptions in your actuary report
- Program design
- How you compare to others in the industry
- Your loss reconciliations and loss triangles and how they agree to the actuary report and financial statements.
Typical findings using this approach:
- Balancing of claim payments
- Deductibles or recoveries that have not been allocated to your accounts
- Excess reinsurance recoveries that have not been recorded or collected
Demonstrating Value
Since we have extensive experience with insurance pools and risk financing issues we are able to assist you with:
- Funding issues
- Experience and rating issues
- Exposure and retention issues
- Long-term planning issues
- Evaluating actuarial projections
- Pool accounting
- Other risk financing issues
For more information, see our Insurance Pool Brochure below.
