Report 2017-103 Recommendation 7 Responses

Report 2017-103: Workers' Compensation Insurance: The State Needs to Strengthen Its Efforts to Reduce Fraud (Release Date: December 2017)

Recommendation #7 To: Insurance, Department of

To better enable the Fraud Commission to determine an appropriate amount for the total annual fraud assessment, CDI should, within 60 days and periodically thereafter, meet with the Fraud Commission and agree upon specific information to include in the Fraud Division's report to the Fraud Commission. Additional information could, for example, include a comparison of proposed, projected, and actual expenditures by category for a specific fiscal year, calculated using a consistent methodology.

60-Day Agency Response

On January 10, 2018, representatives of the Fraud Division met with the Fraud Assessment Commission (FAC) to discuss the Fraud Division Report with the FAC. The discussion centered on whether additional information should be added to the Fraud Division Report to better enable the FAC to determine an appropriate amount for the total annual fraud assessment. The members of the FAC were each provided with a copy of the latest annual Fraud Division Report (previously provided to CSA), and the Fraud Division asked the FAC to review the report and determine whether the Fraud Division should add new information or expand on the details to make the report more useful. The Deputy Commissioner of the Fraud Division informed the FAC that staff continues to be available anytime to discuss any issues pertaining to improving the quality and utility of the report.

The FAC members agreed to reexamine the report and provide their additional conclusions at the next scheduled meeting on June 20, 2018. None of the FAC members felt it was necessary to convene a meeting prior to this date. Additionally, on an annual basis, the Fraud Division will ask the FAC to decide if there is any additional information they would like included in the Fraud Division Report. This request will be made at the time the Fraud Division Report is distributed to the FAC.

  • Completion Date: January 2018
  • Response Date: February 2018

California State Auditor's Assessment of 60-Day Status: Fully Implemented

All Recommendations in 2017-103

Agency responses received are posted verbatim.