Audit review leads to client savings of $18,940



The insured is a family-owned trucking company with 20 employees. Its primary business is hauling dirt, sand and gravel, as well as landscape product sales.


In early April 2008, the insured received an additional premium from the 2006/07 final audit in the amount of $15,129.


Following established guidelines as set forth by the Institute of WorkComp Professionals (IWCP), the CWCA reviewed the final audit billing and determined that the audit should be placed under protest. Audit worksheets were requested from the insurance carrier. Once the worksheets were received and analyzed, major discrepancies became apparent.


Examination of the final audit worksheets revealed that the auditor had not properly identified payroll, due to a split Normal Anniversary Date during the policy period. As a result, the carrier had front-loaded the first rating period, which had significantly higher rates. To offset this, the CWCA had spreadsheets prepared that properly recorded the payrolls by rating period, which in turn provided a calculation that correctly identified the proper earned premium.


The carrier’s audit supervisor agreed with the findings and processed the revised final audit billing. Subsequently, this produced a final audit return premium of $3,811. As a result of the findings by the CWCAs, the net premium savings for the client was $18,940.


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