Risk Management User Group
Thursday, August 26, 2004
Welcome
Michael L. Hay, CGFM, CPPM
August 26, 2004 Risk Management User Group 3
Meeting Agenda
8:30 – 8:35 – Introduction 8:35 – 9:20 – Reducing the Risk of Workplace Violence 9:20 – 9:50 – Governor’s Executive Order RP36 –
Preventing, Detecting, and Eliminating Fraud, Waste, and Abuse
9:50 – 10:00 – FY04 SORM 200 Reporting 10:00 – 10:10 – SORM’s New Website 10:10 – 10:15 – FY03 Safety Excellence Award Winner
August 26, 2004 Risk Management User Group 4
Meeting Agenda
10:15 – 10:30 – Break 10:30 – 11:00 – Terrorist Threats and the
Upcoming Election 11:00 – 11:30 – FY04 Workers’ Compensation
Claims Review 11:30 – 12:00 – Roundtable Discussion of FY04
Workers’ Compensation Claims Remedies
Reducing the Risk of Workplace Violence
Garry L. Parker, Senior Trooper
Public Information and Education Resource Officer
Texas Department of Public Safety
August 26, 2004 Risk Management User Group 6
Questions?
Governor’s Executive Order RP36
Preventing, Detecting, and Eliminating Fraud, Waste, and Abuse
Cecile Young, Special Assistant to the Governor’s Office Director of Budget, Planning & Policy
Somaia Farag, MBA, CIA, CGAP, CISAInternal Audit, DirectorOffice of the Governor
August 26, 2004 Risk Management User Group 8
Governor’s Executive Order RP36
Background Information
Governor’s fight against FraudHouse Bill 1743, House Bill 2292, and House Bill 104
Related actions at TDCJRelated actions at TWC
Governor’s Management Council SACC, MACC, and SSATF members
subcommittee
Executive Order How it helps? What it does?
August 26, 2004 Risk Management User Group 9
Governor’s Executive Order RP36
Next Steps: Agency Actions
Designate a Fraud Prevention CoordinatorReview policies, organizational structures and statutes Adopt a fraud prevention and elimination plan based on a risk assessment and common components Report to Governor’s Office statutory changes needed and implementation of program
August 26, 2004 Risk Management User Group 10
Governor’s Executive Order RP36
Next Steps: Governor’s Office Actions
Receive agency reports on statutory changes and implementation of fraud prevention programs
Develop anti-fraud legislation for session
Review plans with assistance of an interagency group to develop a best practices report
August 26, 2004 Risk Management User Group 11
Governor’s Executive Order RP36 Why do we need to talk about fraud
prevention?
Financial ReasonsTaxpayer fundedBetter cost controlsReduction of risk of lawsuitsBetter quality of work from contractors
Moral Reasons Taxpayer trustRole modelUpholding reputationBetter employee morale
August 26, 2004 Risk Management User Group 12
Governor’s Executive Order RP36
Fraud can happen anywhere
August 26, 2004 Risk Management User Group 13
Governor’s Executive Order RP36
Fraud can happen anywhere
August 26, 2004 Risk Management User Group 14
Governor’s Executive Order RP36
Fraud can happen anywhere
August 26, 2004 Risk Management User Group 15
Governor’s Executive Order RP36
Fraud can happen anywhere
August 26, 2004 Risk Management User Group 16
Governor’s Executive Order RP36
The Fraud Triangle
August 26, 2004 Risk Management User Group 17
Governor’s Executive Order RP36 Fraud Program and Risk Assessment
Key Components for Fraud Prevention and Elimination Program
Creating a Culture of Honesty and Ethics
Antifraud Processes and Controls
Appropriate Oversight Process
Risk Assessment
August 26, 2004 Risk Management User Group 18
Governor’s Executive Order RP36 Contractor Fraud – Big Risk Area
Invoices for services/goods which were never
delivered
Low-ball bids, followed by abusive or fraudulent
change orders
Collusion between employee and contractor
Delivery of low quality services and goods and
billing higher
Hundreds of schemes..ever changing
August 26, 2004 Risk Management User Group 19
Governor’s Executive Order RP36
For more information please go to: http://www.governor.state.tx.us/priorities/fraud_prevention
Press Release
Executive Order
Fact Sheet
Examples
Fraud Prevention and Detection Program Key components
Fraud Risk Assessment
Best Practices
August 26, 2004 Risk Management User Group 20
Questions?
FY04 SORM 200 Reporting
Annual Reporting of Risk Management Expenditures and
Property/Casualty Claims
Jeff CoxRisk Management Specialist
August 26, 2004 Risk Management User Group 22
SORM 200
Required by Labor Code Chapter 412.053 Reference rule 28 TAC 4, 252.203
Start Date – 9/1/2004 (Part 1 and Section 1 of Part 2) Property & Casualty Claims available all year around
Due Date – 10/30/2004, 60 days after the end of the fiscal year
Information reported in SORM’s biennial report to the legislature.
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Start Preparing
Communicate with your Budgeting and Accounting Departments to obtain agency expenditure amounts based on Comptroller Object Codes:
Risk Management Expenditures based by SORM categories Insurance payments Property/casualty claims payments
Collect Information on the Number of Notaries
Request Copies of Insurance Policies from agent/broker
Enter & update property and casualty claims. (Available year-round)
August 26, 2004 Risk Management User Group 37
Questions?
SORM’s New Website
Carol Carroll
SORM Webmaster
WWW.SORM.STATE.TX.US
UsabilityAccessibilityMaintainability
A new design for:
Current Website
Current Highlights on Home Page
Links and ContentFor Current Section of Site
Drop Down Menu for Main Sections of Site
Open Style Menu
Questions or Suggestions?
FY03 Safety Excellence Award Winner
Texas Education Agency
Break Time!
See you in
15 minutes!
Terrorist Threats and the Upcoming Election
Steven C. McCraw
Director of Homeland Security
Office of the Governor
August 26, 2004 Risk Management User Group 47
Questions?
FY04 Workers’ Compensation Claims Review
Terry G. Myers
Director of Claims Operations
August 26, 2004 Risk Management User Group 49
3 Years Medical Accepted Claims
0
1000
2000
3000
4000
5000
6000
09/01
10/01
11/01
12/01
01/02
02/02
03/02
04/02
05/02
06/02
07/02
08/02
09/02
10/02
11/02
12/02
01/03
02/03
03/03
04/03
05/03
06/03
07/03
08/03
09/03
10/03
11/03
12/03
01/04
02/04
03/04
04/04
05/04
06/04
07/04
Number of Claims
Linear (Number of Claims)
August 26, 2004 Risk Management User Group 50
3 Year Total Medical Costs
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
09/0
112
/01
03/0
206
/02
09/0
212
/02
03/0
306
/03
09/0
312
/03
03/0
406
/04
Medical Costs
Linear (Medical Costs)
*August Numbers Projected
August 26, 2004 Risk Management User Group 51
3 Year Indemnity Accepted Claims
0
200
400
600
800
1000
1200
1400
1600
1800
09/0
111
/01
01/0
203
/02
05/0
207
/02
09/0
211
/02
01/0
303
/03
05/0
307
/03
09/0
311
/03
01/0
403
/04
05/0
407
/04
Number of Claims
Linear (Number of Claims)
August 26, 2004 Risk Management User Group 52
3 Year Indemnity Expenses
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
09/0
111
/01
01/0
203
/02
05/0
207
/02
09/0
211
/02
01/0
303
/03
05/0
307
/03
09/0
311
/03
01/0
403
/04
05/0
407
/04
Indemnity Expenses
Linear (Indemnity Expenses)
*August Numbers Projected
August 26, 2004 Risk Management User Group 53
3 Year Total Accepted Claims
0
1000
2000
3000
4000
5000
6000
09/0
111
/01
01/0
203
/02
05/0
207
/02
09/0
211
/02
01/0
303
/03
05/0
307
/03
09/0
311
/03
01/0
403
/04
05/0
407
/04
Nu
mb
er
of
Cla
ims
Number of Claims
Linear (Number of Claims)
August 26, 2004 Risk Management User Group 54
3 Year Total Costs
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
09/0
111
/01
01/0
203
/02
05/0
207
/02
09/0
211
/02
01/0
303
/03
05/0
307
/03
09/0
311
/03
01/0
403
/04
05/0
407
/04
Total Costs
Linear (Total Costs)
*August Numbers Projected
August 26, 2004 Risk Management User Group 55
Questions?
Roundtable Discussion of FY04 Workers’ Compensation Claims Remedies
Samuel Arant, Risk Management Specialist
Lisa Bell, Risk Management Specialist
Joseph Deering, Risk Management Specialist
Curt Krill, Risk Management Specialist
August 26, 2004 Risk Management User Group 57
0
200
400
600
800
1000
1200
1400
ClientAggression
Slips, Trips, andFalls
Motor VehicularAccidents
PhysicalExertion
All Agencies Workers’ Comp Accepted Claims by Cause of Injury 1st – 3rd Quarters FY04
August 26, 2004 Risk Management User Group 58
0
200
400
600
800
1000
1200
1400
1600
ClientAggression
Slips, Trips, andFalls
Motor VehicularAccidents
PhysicalExertion
1-3 Qtr FY03
1-3 Qtr FY04
All Agencies Workers’ Comp AcceptedClaims by Cause of Injury
Feedback Form
Please complete the survey form at the end of your packet and turn it in before
you leave.
We value your comments.
Risk Management User Group
Thank you for attending.
We’ll see you December 9th!