District Gets Clean Insurance Audit
A months long State Comptroller's audit of Huntington School District retiree health insurance payments has come up clean, according to a recently released report.
Huntington was one of 20 districts throughout the state selected for the audit. "The objective of our audit was to determine whether school districts have adequate internal controls over the payment of health insurance payments for retirees or their spouses and/or dependents where eligibility had been precluded by death," according to the Office of the State Comptroller.
Auditors reviewed internal controls over retiree health insurance payments for the period from July 1, 2008 to May 31, 2010. The names of the Huntington retirees, spouses and eligible dependents were compared to the Social Security Administration's Death Master File to determine if insurance payments were made on behalf of deceased individuals, thus wasting taxpayer monies.
Auditors found that no improper payments had been made by the Huntington School District. Of the 20 districts audited, 10 were found to have made payments for deceased individuals.
The Huntington audit contained one recommendation:
"The Board and District officials should develop written policies and additional procedures to periodically monitor the status of retirees and their spouses/dependents receiving health insurance coverage. Such procedures could include periodic contact by phone or mail, and/or requiring that retirees update their information regularly to verify eligibility and ensure continued coverage."
"We currently have approximately 570 people who receive this benefit," said David H. Grackin, assistant superintendent for finance and management services. "Obviously it would be impossible to contact each of these people personally by telephone; hence we will develop a form letter to be sent to each individual requesting an update of their status on an annual basis."
Mr. Grackin said his office will be generating the written policies and procedures suggested by auditors.
"We felt that the audit process was completed in a fair and timely fashion," Superintendent John J. Finello said. "The district recognizes that the recommendation is meant to improve this facet of our operation."