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 customer’s 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 program’s 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.
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 PRM’s 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.