Premium Audit Services
1. Each responding contractor agrees to provide policy auditing services as follows:
2. The Contractor agrees to respond to any audit referral from State Fund within forty-five (45) working days; either by completion of the audit or written notification of any delay, specifying the reasons for delay and the estimated date of completion of the audit. Referral means written notification of a referred audit, including copies of relevant policy information provided to the Contractor, or written notification of a referred audit and provision of access to relevant portions of the State Funds database by the Contractor. Completion of an audit means a satisfactory Audit Report has been delivered to the State Fund. The Contractor agrees to complete the Audit Report within seven (7) days of the date the audit is actually performed.
3. The Contractor agrees to perform audits within the guidelines of the State Funds Underwriting Manual (located on the State Funds website at http://www.montanastatefund.com/ under Resources/Manuals and Guides) and the Montana Workers Compensation and Occupational Disease Laws, and any addendum to those manuals and additional directives from the Operations Support Department of the State Fund.
4. The Contractor agrees that if any question of classification code, policy or law is encountered, the auditor will first contact the Underwriting Specialist of the Operations Support Department for guidance.
5. The Contractor agrees to complete the Audit Report as provided with each audit assignment or supplement each audit in format that substantially contains the information in Appendix C of the RFP, inclusive of the data collected on the Audit Report. The exact format of the Audit Report may be determined by the Contractor.
6. The Contractor agrees to compile payroll by individual within each class code for the report period and provide the data in a format substantially conforming to the requirements of Appendix C that readily identifies any necessary adjustments to the previous payroll.
7. The Contractor agrees that it will audit or re-audit without charge if errors exist in the audit; the audit is not completed within sixty (60) days of referral; the audit does not substantially conform to the requirements of Appendix C; or if the audit is not performed to the reasonable satisfaction of the State Fund. Any re-audit or corrective audit required under this agreement shall be completed within thirty (30) days of notice thereof.
8. The Contractor agrees that the individual auditor assigned each audit will be responsible to submit complete and accurate audits, including, but not limited to; detection of unreported payroll of individuals found to be employees, under-reported or over-reported payroll of reported employees, officer/owner minimum or maximum adjustments, and reclassification of payroll as appropriate to the risk.
9. The State Fund does not guarantee a minimum number of audit referrals.
10. In order to assure quality control, Contractor shall provide in-house review of audits. Contractor shall provide the State Fund with a copy of a specific quality control program within 60 days of contract execution.
