State Auditor Suzanne M. Bump today released an audit of the Department of Industrial Accidents Workers\u2019 Compensation System which has brought about changes to improve its insurance assessment review processes.\nThe Department of Industrial Accidents (DIA) administers and oversees the state\u2019s workers\u2019 compensation system. All private-sector employers operating in Massachusetts are required to carry workers\u2019 compensation insurance and pay for workers compensation benefit claims by individuals through a commercial insurance policy, self-insurance, or membership in a self-insurance group.\nToday\u2019s audit, which reviewed the period of July 1, 2010 through September 30, 2012, examined fee collections, claims payments, and internal procedures. From this scope, the audit reported that DIA does not ensure that assessment amounts paid by insurance companies are accurate. Companies calculate their own assessments based on DIA\u2019s formula and the agency\u2019s web-based reporting template does not provide sufficient guidance to ensure accurate calculations. Reviews of assessments conducted by private accounting firms typically take place several years after the submission of payment, which can result in unresolved discrepancies for extended periods of time. A sample review by state auditors of past assessments found more than $200,000 in net underpayments.\nThe audit also found that DIA performs reviews of self-insurers\u2019 personal injury liabilities annually, instead of semi-annually as required by law.\nIn response to the audit, DIA has taken steps to address the findings, including: hiring two new internal auditors to improve its review of insurance assessments, initiating improvements to the online reporting template and website, and pursuing a statutory amendment to allow for annual review of self-insurers\u2019 personal injury liabilities. DIA believes annual reviews are sufficient, a better use of resources and minimize duplicative and ineffective burdens on businesses.\nThe Office of the State Auditor conducts technical and performance assessments of state government\u2019s programs, departments, agencies, authorities, contracts, and vendors. With its reports, the OSA issues recommendations to improve accountability, efficiency, and transparency.\n\nThe\u00a0Department of Industrial Accidents\u2014Review of Certain Aspects of the Workers\u2019 Compensation System audit is available here.