Citizens Audit Committee Meeting Report: January 26, 2011

The Citizens Property Insurance Corporation (“Citizens”) Audit Committee (“Committee”) met on January 26, 2011, during which it reviewed Citizens’ 2010 annual report and proposed 2011 Audit Plan.  To view the meeting materials, click here:

A summary of the meeting discussion is below:

Joyce Bellows, chief internal auditor for Citizens, explained that the Committee charter and the Office of Internal Audit Charter underwent only minor adjustments. The Committee unanimously approved the documents, both of which will be presented to Citizens’ Board of Governors at its scheduled March meeting. 

Ms. Bellows reported that the 2010 audit was successfully completed.  Among the internal assessment measurements was overall productivity, which averaged about 74 percent as of December 21, 2010–a percentage well within the acceptable target range, she said.

“As we move into 2011, we will focus on developing further performance metrics to measure the efficiency and effectiveness of the department,” Ms. Bellows said.  A more formalized audit rotation schedule should be in place by 2013, she reported.

“In previous years our approach was to look at the entire process of the underwriting area, or other areas.  We want to be more focused and more targeted and to have maybe a greater number of audits but smaller in size,” Ms. Bellows added.

She said the audit plan is divided into four categories:  Financial and operational, technology, compliance and key management advisory services.

Direct support allocation, which includes continuous monitoring activities and client assistance to external auditors, accounts for about 75 percent of all activities.  Professional development and other general administrative activities make up the remaining 25 percent, she said.

After hearing her report, the Committee approved the 2011 Audit Plan.

With the Committee having no further business to discuss, the meeting was adjourned.

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