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2011 Budget Amendment 1C008: From the Interim Director, Employee Benefits Division, submitting an informational report regarding dependent eligibility audits. (Referred to the Committees on Finance and Audit and Personnel.) (INFORMATIONAL ONLY UNLESS OTHERWISE DIRECTED BY THE COMMITTEE)
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In the 2011 Operating Budget, the Department of Audit and the Employee Benefits Division were tasked with developing the process for an audit of dependent benefits eligibility and releasing an RFP for an external administrator to conduct the audit on the County's behalf.
The Department of Audit and the Employee Benefits Division have discussed scope and common practices for an eligibility audit, including the option for allowing an amnesty period prior to the audit to allow employees to self-report covered ineligible dependents without fear of disciplinary action. Further, we have confirmed that there are a number of firms with extensive experience in these types of initiatives, including many of the County's existing benefits vendors, who are able to provide reliable expectations for the return on investment.
However, despite progress on this item, the pending budget actions at the State level could have a significant impact on the timing of our efforts to conduct this audit and the potential outcome. As such, the Employee Benefits Division and Department of Audit intend to return to the committees in the April cycle to discuss any changes that arise from the State's action and the next steps for issuing an RFP.