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| Questions and Answers to the RFP for Audit Services for the Administrative Audit |
Please note a correction to the definition of Field Work in section 2.0. The definition currently refers to work performed at the offices of carriers, but should read: Field Work – means the work performed by the auditor in gathering documents and other information at the IHC Board offices in Trenton. |
| The questions shown in bold below are copied directly from the questions submitted by the prospective bidders: |
1. If we are selected to audit the aforementioned administrative aspects of the IHC, would that conflict us from the RFP to Audit Losses of Carriers Seeking Reimbursements from the IHC Program?
2. It would appear that carrier losses should be audited before auditing the administrative aspects of the IHC, do you concur?
3. We noted that a number of administrative orders have been issued by the IHC since inception; will IHC provide access to the background data, including any legal opinions, that support their treatment of an issue?
4. Will the IHC entertain a pre-bid meeting for perspective bidders to question program staff directly?
5. Minutes are available on the IHC website but exclude Executive Session discussions; will this information be available to the successful bidder?
6. Since it appears that the IHC wants 9 separate audits, should the bid be per audit or in aggregate for all 9?
7. Overview outlines among many things the MLR and access loss recovery requirements of carriers; how can we assess IHC procedures without knowing if the carrier(s) have had either financial condition or market conduct reports that might impact our review? If these reports exist, will we have access to them?
8. Will we also have access to the AG’s office since they are counsel to the IHC?
9. Are IHC financial statements for each year online for review, we do not see them and it would be important for assessing work to be performed.
10. Also, since the IHC expects GASB standards to be followed, does that mean you require a “Yellow Book” audit?
11. It is unclear if the IHC is expecting 9 separate invoices or one invoice for all 9 audits.
12. Would the IHC consider progress billing throughout the course of the audit or each separate audit?
13. Fieldwork implies that we may have to travel to a carrier to obtain documentation is this correct?
14. Since most HMOs and insurers have calendar year ends, does this affect the IHC accounting for payments (i.e.: cash basis vs. accrual)?
15. Attachment E seems to suggest a limited scope audit of defined items versus a normal audit and the report would reflect this fact. Can you please clarify what type of audit the IHC expects?
16. Does the IHC have formal written policies and procedures related to accounting and IT controls and will they be made available to the selected bidder at the beginning of fieldwork? In the Administrative RFP, page 7, 3rd paragraph, what State rules are you specifically referring to and is the Department of Treasury, by reference, the NJ Department of Treasury?
17. Section 4.3.2 references availability of the auditor to meet with the IHC Operations and Audit Committee, do you know how many meetings are anticipated? Also, from an audit perspective, how accessible would the BOD and OAC be to the auditor for inquiries that pertain to the audit?
18. Is the distribution of the reports limited to the IHC? If not, who are the final readers anticipated to be (legislature, DOBI, general public)?
19. Reference 4.4.4, this paragraph seems to suggest that the auditor can bill with any frequency they want, is this correct?
20. Does 4.4.5 suggest that the BOD and/or the OAC can via review and increase scope of an audit plan that has already been pre-approved? If so, will fees be adjusted accordingly? Also, workpapers will be maintained on a licensed software audit database, does the State intend to purchase a license for its own use?
21. In 5.3 - The IHC is only suggesting that bidders discuss approach and we are not obligated to provide an audit plan per se with the RFP.
22. If the bidder already has a completed Business Registration Certificate and/or W-9 on file with the Treasury, is another one required to be sent since the information is on file already?
23. Are proposal submissions by bidders to previous RFP’s received by the Department of Banking and Insurance for the IHC Program available to be reviewed by the bidders at the IHC Program Office in Trenton?
24. Can the latest audited financial statements be reviewed for both RFP’s?
25. Can you provide the names of the IHC Board of Directors?
26. Has an audit of the IHC Program ever been completed prior to this request? And if so, would a copy of the report(s) be available for our review?
27. If there was a prior audit, who were the prior auditors?
28. Are the financial statements prepared internally or by the auditors?
29. Can you provide a detailed Organizational Chart of the Accounting, Financial Reporting and Information Technology (IT) Departments?
30. How many individuals comprise the Accounting, Financial Reporting and Information Technology (IT) Departments and what is the experience level / background contained in the departments?
31. Please describe the accounting and financial reporting systems used
32. Does the IHC Board file / submit any unaudited annual financial statements?
33. Has there been any significant changes in the nature of operations over the period requested for audit (fiscal years 2000 – 2008)?
34. Are the policies and procedures around internal controls documented?
35. Have key controls been identified and tested?
36. What are the key audit issues and what are the key risks that have been identified that would impact the audit?
37. Has an enterprise risk management (ERM) assessment been performed?
38. In reference to completing the field work with 180 days, when does the IHC Board anticipate the records being available to the auditor?
39. Can you provide the names of the Operations and Audit Committee?
40. Is there an overall budgeted cost for the audits?
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