17750106 - Enhanced Vendor Auditing

Account Description FY2011
Spending
FY2012
GAA
1775-0106 Enhanced Vendor Auditing
For the operation of an enhanced vendor auditing unit within the operational services division; provided, that the unit will use a risk analysis program to identify vendor areas at high risk of fraud, overbilling or unallowable expenses; provided further, that the risk analysis will use vendor filed uniform financial reports, contracts with state entities and MMARS billing records; provided further, that in determining risk, the unit shall consider: (1) failure to file in a timely manner annual uniform financial reports and required private audits; (2) related-party transactions; (3) use of management companies; (4) amounts of billed expenditures on credit cards; (5) expenditures for non-program expenses such as travel, meals and vehicles; and (6) referrals or complaints from other state agencies, public officials and consumers; provided further, that the unit shall conduct field audits as necessary to determine evidence of fraud, overbilling or unallowable expenses; provided further, that the unit shall develop a recovery plan to recoup all funds received by a vendor due to fraud, overbilling or unallowable expenses and shall be responsible for recovering said funds; provided further, that any recovery plan that provides for less than the full restitution of misspent funds shall not be implemented without the approval of the secretary of administration and finance; provided further, that all funds recovered shall be deposited in the General Fund; provided further, that audits which indicate criminal fraud shall be referred to the office of the attorney general for investigation; and provided further, that the unit shall file a report to the executive office of administration and finance and the house and senate committees on ways and means no later than March 7, 2012 on the activities of the unit including number of audits conducted, number of vendors audited, number of vendors demonstrating the risk factors listed in this item, funds identified for recoupment, funds recouped, any reasons why identified funds were not recouped and details of recovery plans that required the approval of the secretary of administration and finance
0 475,000