Revenue Cycle

White House memorandum mandates additional recovery audits

Recovery Auditor Report, March 18, 2010

A March 10 White House memorandum on finding and recapturing improper payments has mandated additional recovery audits (i.e., payment recapture audits).

The current Administration believes recovery auditors successfully find and recover monies due to payment errors due to duplicate payments, fictitious vendors, overpayments, and payments for service not actually rendered. Auditors paid on a contingency fee basis according to their identification of inappropriate payments have proven effective, according to the memorandum.

“Executive departments and agencies should use every tool available to identify and subsequently reclaim the funds associated with improper payments,” according to President Barack Obama’s memorandum.

The Office of Management and Budget must develop guidance within 90 days detailing the actions necessary to fulfill the memorandum’s requirements. “The guidance may require additional actions and strategies designed to improve the recapture of improper payments, including, as appropriate, agency-specific targets for increasing recoveries.”

This item originally appeared in the March 16 edition of HIM Connection.

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