State auditor finds insurance authority controls deficient

Auditor finds lack of controls in handling of revenues and travel reimbursements, among others

State auditor finds insurance authority controls deficient

Insurance News

By Allie Sanchez

The Office of the Superintendent of Insurance (OSI) needs tighter controls in its processes, especially in the handling of income and disbursements, according to New Mexico state auditor Tim Keller.

“The annual audit highlights areas throughout the agency where safeguards of public funds are not adequate or existing rules aren’t being enforced,” nmpoliticalreport.com quoted him as saying.

“These are critical areas that concern the collection and administration of hundreds of millions of our tax dollars each year. They need to be addressed for the financial health of our state.”

Among others, the auditor found that the OSI has been lax in implementing travel reimbursement rules.

In addition, the audit noted that checks sent to the Office are not properly documented on receipt, and the auditor was unable to determine whether the protocol for depositing cash receipts within 24 hours was being followed. This lack of compliance could have led to “lost or misappropriated cash receipts,” the audit said, which applies to $300 million in deposits.

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The Patient’s Compensation Fund likewise posted a $35 million deficit, which, the publication said, “has been increasing annually.”

Another audit on the OSI’s tax revenue collection is ongoing and is separate from the results released this week.

 

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