White House memorandum mandates additional recovery audits
Recovery Auditor Report, March 18, 2010
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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.
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.”
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