State Insurance Fund

Monitoring and Management of Payroll Expenditures (Follow-UpReview)

In our prior audit report 92-S-42, we found that, because of a significant reduction in the number of insurance claims processed per employee, the Fund incurred a significant amount of overtime and temporary service costs. We also noted that employee productivity may have been impaired to some extent by an excessive use of sick leave. We made several recommendations aimed at improving the productivity of the claims processing operations. In our follow-up review, we found that action had been taken by Fund officials to implement the recommendations contained in our prior report. However, additional action was still needed. 95-F-28