FWCJUA Audit Committee Meeting Report: August 21

On Thursday, August 21, 2008, the Florida Workers Compensation Joint Underwriting Association (“FWCJUA”) held an Audit Committee (“Committee”) meeting to review the FWCJUA Audit Committee Charter Procedures Checklist (“Checklist”) and discuss the financial auditor appointment process. To view a copy of the meeting materials packet, click here.

The meeting was called to order by Chairman Fred Bennett with a quorum of Committee members in attendance.

Laura Lopez of the FWCJUA presented the Checklist and the Committee reviewed its third-quarter responsibilities.

The following items were reviewed and briefly discussed:

• The Committee charter was found by members to adequately describe its duties.
• The next Committee meeting is scheduled for November 19, 2008.
• There were no significant, pressing audit risks to the FWCJUA found by Committee members, although the workers’ compensation Supreme Court ruling on Emma Murray v. Mariner Health/ACE USA to be issued will be monitored.
• The Committee found the FWCJUA management promotes high-quality financial reporting effectively, as well as adequately addresses the efficiency of internal control issues.
• FWCJUA management gave an update regarding correspondence from the Florida Office of Insurance Regulation about the FWCJUA’s investment agreements with US Bank and Sun Trust Bank. FWCJUA management will present updated agreements to the Investment Committee at its next meeting.
• The independent auditors’ quality control procedures over the audit function were reviewed by the Committee.
• A determination of whether the independent auditors are adequately compensated was reached by the Committee.
• The independent auditors’ quality control safeguards and independence were discussed by the Committee.

Ms. Lopez then detailed the financial auditor appointment process. It was determined that since the level of service from the FWCJUA’s current auditor is sufficient, instead of soliciting financial auditor bids in 2009, an engagement letter will be crafted in 2009 for submission in 2010 and bids will be received at that time.

The meeting was then adjourned.

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.

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