The Legislative Audit Bureau makes 10 recommendations to the Office of the Commissioner of Insurance, Injured Patients and Families Compensation Fund.

We recommend the Wisconsin Office of the Commissioner of Insurance, Injured Patients and Families Compensation Fund:

1. review its financial reporting process; (p. 13)
2. establish adequate procedures and controls to ensure the accuracy of the Fund’s financial statements; and (p. 13)
3. report to the Joint Legislative Audit Committee by October 28, 2022, on the status of its efforts to implement these recommendations. (p. 13)

We recommend the Wisconsin Office of the Commissioner of Insurance, Injured Patients and Families Compensation Fund, take steps to adequately understand and appropriately apply financial reporting requirements, including by:

4. attending relevant training on financial reporting and government accounting standards; (p. 54)
5. proactively identifying and applying applicable changes in accounting standards; (p. 54)
6. seeking guidance and clarification on relevant financial reporting requirements to the Fund from other resources, such as the Department of Administration State Controller’s Office and the State of Wisconsin GAAP Conversion Manual; and (p. 54)
7. further educating the Fund’s external accounting firm on the Fund’s operations and financial reporting process. (p. 54)

We recommend the Wisconsin Office of the Commissioner of Insurance, Injured Patients and Families Compensation Fund, take steps to improve its financial reporting and review process, including by:

8. completing a year-to-year comparison of the Fund financial statements, and analyzing and resolving significant changes in account balances or unusual trends; and (p. 57)
9. documenting its year-to-year comparison for the external accounting firm and other reviewers to access in their review of the financial statements. (p. 57)
10. Further, we recommend the Fund reassess the scope and depth of the actuarial audits performed to ensure these audits meet the needs of the Fund. (p. 57)