1. Risk Management User Group Thursday, August 26, 2004

2. Welcome Michael L. Hay, CGFM, CPPM

3. August 26, 2004 Risk Management User Group3 Meeting Agenda 8:30 – 8:35 – Introduction 8:35 – 9:20 – Reducing the Risk of Workplace Violence 9:20 – 9:50 – Governors Executive Order RP36 – Preventing, Detecting, and Eliminating Fraud, Waste, and Abuse 9:50 – 10:00 – FY04 SORM 200 Reporting 10:00 – 10:10 – SORMs New Website 10:10 – 10:15 – FY03 Safety Excellence Award Winner

4. August 26, 2004 Risk Management User Group4 Meeting Agenda 10:15 – 10:30 – Break 10:30 – 11:00 – Terrorist Threats and the Upcoming Election 11:00 – 11:30 – FY04 Workers Compensation Claims Review 11:30 – 12:00 – Roundtable Discussion of FY04 Workers Compensation Claims Remedies

5. Reducing the Risk of Workplace Violence Garry L. Parker, Senior Trooper Public Information and Education Resource Officer Texas Department of Public Safety

6. August 26, 2004 Risk Management User Group6 Questions?

7. Governors Executive Order RP36 Preventing, Detecting, and Eliminating Fraud, Waste, and Abuse Cecile Young, Special Assistant to the Governors Office Director of Budget, Planning & Policy Somaia Farag, MBA, CIA, CGAP, CISA Internal Audit, Director Office of the Governor

8. August 26, 2004 Risk Management User Group8 Governors Executive Order RP36 Background Information Governors fight against Fraud House Bill 1743, House Bill 2292, and House Bill 104 Related actions at TDCJ Related actions at TWC Governors Management Council SACC, MACC, and SSATF members subcommittee Executive Order How it helps? What it does?

9. August 26, 2004 Risk Management User Group9 Governors Executive Order RP36 Next Steps: Agency Actions Designate a Fraud Prevention Coordinator Review policies, organizational structures and statutes Adopt a fraud prevention and elimination plan based on a risk assessment and common components Report to Governors Office statutory changes needed and implementation of program

10. August 26, 2004 Risk Management User Group10 Governors Executive Order RP36 Next Steps: Governors Office Actions Receive agency reports on statutory changes and implementation of fraud prevention programs Develop anti-fraud legislation for session Review plans with assistance of an interagency group to develop a best practices report

11. August 26, 2004 Risk Management User Group11 Governors Executive Order RP36 Why do we need to talk about fraud prevention? Financial Reasons Taxpayer funded Better cost controls Reduction of risk of lawsuits Better quality of work from contractors Moral Reasons Taxpayer trust Role model Upholding reputation Better employee morale

12. August 26, 2004 Risk Management User Group12 Governors Executive Order RP36 Fraud can happen anywhere

13. August 26, 2004 Risk Management User Group13 Governors Executive Order RP36 Fraud can happen anywhere

14. August 26, 2004 Risk Management User Group14 Governors Executive Order RP36 Fraud can happen anywhere

15. August 26, 2004 Risk Management User Group15 Governors Executive Order RP36 Fraud can happen anywhere

16. August 26, 2004 Risk Management User Group16 Governors Executive Order RP36 The Fraud Triangle

17. August 26, 2004 Risk Management User Group17 Governors Executive Order RP36 Fraud Program and Risk Assessment Key Components for Fraud Prevention and Elimination Program Creating a Culture of Honesty and Ethics Antifraud Processes and Controls Appropriate Oversight Process Risk Assessment

18. August 26, 2004 Risk Management User Group18 Governors Executive Order RP36 Contractor Fraud – Big Risk Area Invoices for services/goods which were never delivered Low-ball bids, followed by abusive or fraudulent change orders Collusion between employee and contractor Delivery of low quality services and goods and billing higher Hundreds of schemes..ever changing

19. August 26, 2004 Risk Management User Group19 Governors Executive Order RP36 For more information please go to: http://www.governor.state.tx.us/priorities/fraud_prevention Press Release Executive Order Fact Sheet Examples Fraud Prevention and Detection Program Key components Fraud Risk Assessment Best Practices

20. August 26, 2004 Risk Management User Group20 Questions?

21. FY04 SORM 200 Reporting Annual Reporting of Risk Management Expenditures and Property/Casualty Claims Jeff Cox Risk Management Specialist

22. August 26, 2004 Risk Management User Group22 SORM 200 Required by Labor Code Chapter 412.053 Reference rule 28 TAC 4, 252.203 Start Date – 9/1/2004 (Part 1 and Section 1 of Part 2) Property & Casualty Claims available all year around Due Date – 10/30/2004, 60 days after the end of the fiscal year Information reported in SORMs biennial report to the legislature.

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36. August 26, 2004 Risk Management User Group36 Start Preparing Communicate with your Budgeting and Accounting Departments to obtain agency expenditure amounts based on Comptroller Object Codes: Risk Management Expenditures based by SORM categories Insurance payments Property/casualty claims payments Collect Information on the Number of Notaries Request Copies of Insurance Policies from agent/broker Enter & update property and casualty claims. (Available year-round)

37. August 26, 2004 Risk Management User Group37 Questions?

38. SORMs New Website Carol Carroll SORM Webmaster

39. WWW.SORM.STATE.TX.US Usability Accessibility Maintainability A new design for:

40. Current Website

41. Current Highlights on Home Page

42. Links and Content For Current Section of Site Drop Down Menu for Main Sections of Site Open Style Menu

43. Questions or Suggestions? SORMWEBMASTER@SORM.STATE.TX.US

44. FY03 Safety Excellence Award Winner Texas Education Agency

45. Break Time! See you in 15 minutes!

46. Terrorist Threats and the Upcoming Election Steven C. McCraw Director of Homeland Security Office of the Governor

47. August 26, 2004 Risk Management User Group47 Questions?

48. FY04 Workers Compensation Claims Review Terry G. Myers Director of Claims Operations

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50. August 26, 2004 Risk Management User Group50 *August Numbers Projected

51. August 26, 2004 Risk Management User Group51

52. August 26, 2004 Risk Management User Group52 *August Numbers Projected

53. August 26, 2004 Risk Management User Group53

54. August 26, 2004 Risk Management User Group54 *August Numbers Projected

55. August 26, 2004 Risk Management User Group55 Questions?

56. Roundtable Discussion of FY04 Workers Compensation Claims Remedies Samuel Arant, Risk Management Specialist Lisa Bell, Risk Management Specialist Joseph Deering, Risk Management Specialist Curt Krill, Risk Management Specialist

57. August 26, 2004 Risk Management User Group57 All Agencies Workers Comp Accepted Claims by Cause of Injury 1 st – 3 rd Quarters FY04

58. August 26, 2004 Risk Management User Group58 All Agencies Workers Comp Accepted Claims by Cause of Injury

59. Feedback Form Please complete the survey form at the end of your packet and turn it in before you leave. We value your comments.

60. Risk Management User Group Thank you for attending. Well see you December 9 th !