State Insurance Fund

Selected Financial Management Practices

The State Insurance Fund, which provides workers' compensation insurance to employers, collects premiums from employers and pays claims to employees. We found that the Fund was holding $12.9 million in checks or bank drafts that had not been cashed by the payees and were at least three years old. According to State law, such unclaimed funds should be transmitted to the State Treasury, and as a result of our audit, these funds were transmitted to the State Treasury. We also found that $474 million in Fund premiums were at least 90 days overdue. We recommend that Fund officials evaluate the appropriateness of their premium collection policies and practices, as they may be overly lenient.

For a complete copy of Report 96-S-12 click here.
For a copy of the 90-day response click here.