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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of the State of Tennessee Self-Insurance Funds," (A-04-91-00023)

March 23, 1992

Complete Text of Report is available in PDF format (1.12 mb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final report, based upon certain agreed-upon procedures performed by a certified public accounting firm, disclosed that the Claims Award Fund (one of Tennessee's self-insurance funds) had a $27.5 million adjusted fund balance at June 30, 1990 of which 20 percent, or $5.5 million represents the Federal share of the excess reserve balance. We recommended that the State make a financial adjustment of $5.5 million. We also recommended that the ensure that charges to Federal programs are in accordance with OMB Circular A-87 and the Statewide Cost Allocation Plan. Tennessee officials basically concurred with our findings and recommendations.