Crop Insurance: FCIC's Internal Controls on Safflower Coverage Must Be Improved
PEMD-91-27
Published: Jul 15, 1991. Publicly Released: Aug 05, 1991.
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Highlights
GAO reviewed the Department of Agriculture's (USDA) response to allegations concerning the Federal Crop Insurance Corporation's (FCIC) management of California nonirrigated safflower crop insurance, focusing on internal control improvements FCIC could make in expanding coverage for existing crops or establishing new crop insurance programs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Crop Insurance Corp. | The Administrator, FCIC, should promptly evaluate the FCIC compliance division's recommendations and fully implement those that are needed as well as any other internal controls necessary to ensure that new and revised county crop programs are implemented in an actuarially sound manner. |
Closed – Implemented
FCIC is currently developing a new crop program development handbook which specifies procedures, standards, and criteria for the research, development, and implementation of new crop insurance programs (to be completed August 1993). FCIC also plans to contract an actuarial consulting firm in 1993 to review methods for expanding programs to cover new crops or areas.
|
| Federal Crop Insurance Corp. | The Administrator, FCIC, should establish a specific implementation schedule. |
Closed – Implemented
A five year timetable has been established for new crop programs. Requests for new program are evaluated against set criteria and then, if approved, scheduled for implementation.
|
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Topics
Agricultural policiesAgricultural programsClaims settlementInsurance claimsInsurance cost controlInsurance lossesInternal controlsProperty damage claimsProperty lossesCrop insurance