Audit Division Audit Summary Rick Management Division Follow-up Report LA98-18

Purpose of Review

In December 1997, the Legislative Auditor completed an audit of the Risk Management Division. That report contained 10 recommendations addressing weaknesses in the Division's administration of the state's group insurance program. In 1997, this program had almost 26,000 enrollees and expenditures exceeding $93 million. The Division's response to the audit, dated December 23, 1997, indicated that 8 of the 10 recommendations had been implemented.

On January 15, 1998, the Audit Subcommittee of the Nevada Legislative Commission approved the audit report of the Risk Management Division. Because of the significance of this program and concerns regarding the implementation status of the audit recommendations, the Audit Subcommittee requested the Legislative Auditor to review the Division's implementation of the recommendations. The purpose of our review was to determine if the Division had taken action on the 10 recommendations, and if those actions were sufficient to address the problems identified in our audit report.