Compliance Center Has Your Back
There is a phrase that will have any sane person quake in their boots: โYou are going to be audited.โ Crop Insurance has its own flavor of audits and compliance that can strike fear in large farmers. Precision Risk Management takes the fear out of audits with our Compliance Centerโs Audit Protection.
Audit Protection
Audits are part of the crop insurance process and are required by the federal government. It is likely only a matter of time until itโs your turn to go through an audit. Itโs nothing to fear though! Precision Risk Management Compliance Center ensures nothing is amiss and leaps into action if they catch an error or threat. They protect your subsidy and make the process as painless as possible.
From day one, PRM prepares customers for a review. We help ensure the accuracy of data in the planting and harvesting. PRM collects and stores the data to have it on hand when an audit starts. PRM takes the fear out of audits. This all comes together with out Sleep Easy Compliance Promise.
PRM Audit Protection Q&A
What is the Compliance Center?
The PRM Compliance Center performs the reviews for our customers. These reviewers are employed by PRM and are not federal, state, or local government employees. While the federal program has certain requirements for reviews, Precision Risk Management controls the process and procedures of the reviews.
What is a Review/Audit?
The review is a process to check a customerโs crop insurance policy is correct and that they are receiving the correct loss payments owed to them. The process protects the farmer and the federal programโs integrity. Most of the work is done behind the scenes by the Compliance Center and the grower will not need to be actively participating.
Why is PRM Performing Audits and Reviews?
All Approved Insurance Providers (AIP) are required by the federal government to perform reviews on farmers who participate in the federal crop insurance program. There are many reasons a review is necessary such as being related to a crop insurance review or having a high dollar loss payment. In many instances a farmer is selected at random by the federal program to undergo a review. Most reviews are part of the normal process of crop insurance and the farmer did nothing wrong to create the audit.
How is this different than other local agencies?
Local agencies are independent from the AIP structure. They have no control or interaction of compliance or audits by rule of the Risk Management Agency (RMA). Precision Risk Management has a different agreement with RMA to allow direct selling of crop insurance to growers and do the compliance reviews. Learn more about PRM’s direct model here.
What Documentation Do You Need to Provide?
As a PRM customer, most information necessary is already on-hand when a review is started. Part of PRMโs application on-boarding process is to have these ready to go. Most reviews require three years of operation documentation. It can include partnerships, corporations, power of attorney, settlement/disposition records, precision records, and FSA 578 records. If any more documentation is necessary, the Risk Management Advisor will assist the customer in collecting the remaining documents.
How Does Precision Technology Affect Reviews?
Precision records make the review process go much faster and smoother for growers. Most information necessary for a review is in the planting and harvesting records that are already on-hand. Precision records eliminate much of the physical paperwork needed to be faxed or scanned to PRM.
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