Citizens Audit Committee Meeting, April 19
Apr 21, 2007
A meeting of the Citizens Property Insurance Corporation (“Citizens”) Audit Committee (“Committee”) was held on April 19, 2007.
Chairman Richard DeChene introduced the Committee’s newest member, Allan Katz.
The focal point of the meeting was the discussion and evaluation of the new Internal Audit Charter and Plan, pursuant to Senate Bill 1980, (“SB 1980), signed into law by Governor Jeb Bush on May 16, 2006. This law requires, inter alia, (1) that Citizens have an internal auditor, (2) that the Auditor General conduct an operational audit of Citizens every three (3) years, and (3) that the Office of Insurance Regulation (“OIR”) perform a market conduct examination of Citizens every two (2) years.
The auditors noted that changes to the Charter and Plan were required so as to comply with SB 1980 and, accordingly presented an executive summary of their proposed Charter and Plan to the Committee.
The salient points of the proposed Charter are as follows:
• Citizens’ internal auditors will periodically perform inspections in order to determine if all objectives are being met and carried out in accordance with SB 1980
• The Chief Auditor will primarily be supervised by the Committee
• Citizens’ structure will at all times be consistent with the Sarbanes-Oxley Act
• Citizens’ Department of Internal Audit (“Department”) shall have sufficient support and resources to achieve its objectives
• Citizens will provide administrative support staff to the Department
• The Department will be independent of Citizens’ management and report directly to the Board of Governors
The main characteristics of the proposed Plan are as follows:
• Consistency with, and supportive of, Citizens’ mission and values
• Accordance with the proposed Charter
• Expression of independence and objectivity
• Explanation of the necessity of two (2) strong internal auditors
• Explanation of the need for an increase in professional fees for auditors
A motion that the auditors return to the Committee with a proposal for a more aggressive audit schedule within the next twelve (12) months passed unanimously. The proposed Charter and Plan were not adopted at this point.
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