Federal Crop Insurance Corporation/Risk Management Agency's Financial Statements for Fiscal Years 2020 and 2019
Perform a risk assessment to identify critical data inputs and risk points within the indemnities estimate model, identify areas in the model execution process that can be prone to manual error, and design procedures to evaluate the completeness and accuracy of critical data inputs and respond to the risk of errors within the model execution process.
Review, update and document policies, procedures, and controls (including reviewing official roles and responsibilities) to review any model program or data preparation query changes to validate the appropriateness of the changes.
Design a review checklist to include a secondary review or validation to ensure completeness and accuracy of files used in the model execution process.
Perform and document a formal assessment on the reasonableness and appropriateness of the critical inputs for its insurance loss estimates.
Enhance documentation related to the methods, inputs and assumptions used in its insurance loss estimates, including their relevance and reliability for financial reporting objectives. Periodically, evaluate and formally document its evaluation of the continued appropriateness of critical methods, inputs and assumptions that support the accounting estimates.