Citizens Audit Committee Meeting Report: Financial Statement Audit

Recently, Citizens Property Insurance Corporation (“Citizens”) held an Audit Committee (“Committee”) meeting to receive updates from Citizens’ Office of the Internal Auditor (“OIA”) that included the Financial Statement Audit. To view the complete agenda, click here.

The meeting was called to order by Chairman Earl Horton, with a quorum of members in attendance. Also in attendance were Joyce Bellows, Citizens’ Chief of Internal Audit and Beth Brenneis from Carr, Riggs & Ingram, Citizens’ external auditor.

Ms. Bellows gave the OIA status update. Since the last Committee meeting, the OIA has hired a Senior IT Auditor. Initial meetings also have been held with Citizens’ executives and senior management to gather data, review reports, discuss risk assessments and financial statements, and receive an analysis on information technology. Citizens’ risk assessment process and draft 2008 Audit Plan (“Plan”) also have been completed, along with corporate compliance initiatives relating to Citizens’ complaint reporting, policy introduction and the Tell Citizens third-party customer service hotline. To view a copy of the complete 2008 Audit Plan, click here.

The OIA has several action items pending, including:

• final selection of the Senior Financial/Operational Auditor
• development of a complaint evaluation process and procedure
• development of pending items policy and procedures
• evaluation of an internal electronic audit work paper application system
• OIA departmental development and staff training

 

To view the complete OIA status report, click here.

The OIA developed its Plan using a risk-based approach to further understand Citizens and its inherent risks.

Based on the Plan’s assessment results, audit coverage for Citizens’ high and medium risk areas will be provided through detailed internal audits and management advisory services.

The Plan will be reviewed continuously by the OIA and adjusted as needed to fit Citizens’ needs. Key events that could impact the Plan include the Auditor General Exam, legislation and Florida’s storm season.

To administer the Plan, the Committee approved the addition of a managerial staff member, and the use of additional resources to perform audits where support is needed.

The Committee approved the 2008 Audit Plan with the additions.

Ms. Brenneis, who reported on the Financial Statement Audit, indicated that no audit adjustments are needed and no material weaknesses have been found. To view a copy of the complete Financial Statement Audit, click here.

The meeting was then adjourned.

Should you have any questions or comments, please do not hesitate to contact this office.