The CPF claim processing application has numerous built-in edit checks designed
to prevent input and processing errors during claim entry and review. To illustrate with a simple
example, the application will not permit the entry of a year of death that is
prior to the year of birth. The application also limits the available input
choices for a number of fields based on the circumstances surrounding the
claim.
Internal Audits
The CPF has a rigorous internal audit program, led by an Audit Manager with a
direct reporting line to the CPF Board of Directors. The internal audit
department is responsible for both internal and external audits. The internal
audit process for the claim processing function is based on the scientific
sampling of all data entry fields, with greater emphasis placed on those fields
affecting claim value. Actual error rates are compared to member approved
benchmarks, and are used as a basis for modifying training plans as
appropriate. Error rates are calculated for all individual fields and on a
summary basis as well (e.g., by department and by employee). Error rates have
been consistently below benchmarks, and are currently in the range of 1% to 2%.
Internal audit also includes detailed procedures covering all administrative
functions.
Third-Party Audits
The CPF also subjects its systems, performance and practices to independent
third-party audits. These audits have covered the CPF’s server and
internet security, its operating efficiency, and the adequacy of its internal
controls. The findings from these engagements have been extremely favorable.
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