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.