State Compenstation Fund Performance Audit 12 Month Followup

STATE OF ARIZONADEBRA K. DAVENPORT, CPA OFFICE OF THE WILLIAM THOMSON AUDITOR GENERAL DEPUTY AUDITOR GENERAL AUDITOR GENERAL April 20, 2010 The Honorable Judy Burges, Chair Joint Legislative Audit Committee The Honorable Thayer Verschoor, Vice Chair Dear Representative Burges and Senator Verschoor: Our Office has recently completed a 12-month followup of the State Compensation Fund regarding the implementation status of the 16 audit recommendations (including sub-parts of the recommendations) presented in the performance audit report released in April 2009 (State Compensation Fund No. 09-05). As the attached grid indicates:  12 have been implemented;  3 are in the process of being implemented; and  1 is not yet applicable. Our Office will conduct an 18-month followup with the State Compensation Fund on the status of those recommendations that have not yet been fully implemented. Sincerely, Melanie M. Chesney, Director Performance Audit Division MMC:sjs Attachment cc: Donald A. Smith, President and Chief Executive Officer State Compensation Fund Judith Patrick, Board Chair und th2910 NORTH 44 STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553-0333 • FAX (602) 553-0051 State Compensation Fund Auditor General Report No. 09-05 12-Month Follow-Up Report Recommendation Status/Additional Explanation Finding 1: Fund should continue and enhance efforts to improve its claims expense-to-premium ratio 1.1 The Fund should ...