State Insurance Fund

Procurement and Payments

Our Office examined select State Insurance Fund (Fund) payments to determine if these payments, and related contracts, were processed in accordance with the applicable laws, rules and regulations. We found the Fund spent $84 million on goods and services without obtaining the Office of the State Comptroller’s (OSC) prior approval and did not obtain the required OSC approval for 24 contracts totaling $12 million. Fund officials argue that certain payments and contracts are exempted from OSC’s approval; however, the State Constitution and State Finance Law clearly require Comptroller prior audit and approval.

For a complete copy of Report 2008-BSE-0294, click here.