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Exchange may form an audit committee

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The California Health Benefit Exchange Board may create an audit committee.

The latest board meeting packet includes an audit committee recommendation from the exchange staff.

Covered California, a state-based exchange, is supposed to have an independent auditor monitor its operations.

The audit committee would oversee:

  • Accounting and reporting practices and controls;
  • Compliance with state and federal requirements;
  • The performance of internal auditors and the independent auditor;
  • Enterprise risk management; and
  • A “whistleblower” system.

The whistleblower system would track reports of abuse, theft and fraud.

California state law requires any state agency that performs or reviews internal audits to have an audit committee.

The American Institute of Certified Public Accountants calls for an audit committee to have three members, including two who are members of the board that creates the committee.

Having just two members on the Covered California audit committee would make scheduling meetings easier, according to the exchange staff.

The committee would meet twice a year.

The two members of the committee would serve two-year terms.

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