Comptroller Fiscal Year Memo Letter Head


M E M O R A N D U M

To:Chief Fiscal Officers and MMARS Liaisons
From:Martin J. Benison, Comptroller
Date:December 1, 2008
Re:Cost Recovery Services Review is UnderwayComptroller Memo
FY#2009-13

Executive Summary

As announced at the CFO Conference on November 18 th, the Office of the Comptroller (CTR) has recently completed a procurement for Accounts Receivable Cost Recovery Services. The outcome of these services includes providing the Commonwealth with an independent review of vendors' accounts receivable records to identify credits (rebates, refunds or any unclaimed amounts) due the Commonwealth. We are pleased to announce that Gryphon Financial Group Inc (Gryphon) has been selected to perform these services. The Gryphon team will be conducting reviews of Commonwealth vendors' account receivables under contract PRF38designtedOSC.




This specialized cost recovery review will include the electronic analysis of vendors used in the last two (2) years and their disbursement files from MMARS. Its purpose is to identify and agree to a recovery method for credits on the records of our vendors. Recovery can be in the form of a check to the Commonwealth or, more commonly, an offset to a future payment from the Commonwealth using our intercept functionality. Consistent with the Comptroller authority under section 29E of Chapter 29 MGL, the cost for performing these services will be deducted from realized recoveries and paid to Gryphon on a contingent fee basis. In other words, there will be no out of pocket cost to the Commonwealth.

The review is designed to be minimally intrusive to the department and the vendor. Gryphon's professional staff will begin the review process using proprietary software applied to vendor files. The engagement is beginning now and is expected to be completed by November 2009.

To avoid duplication of effort Gryphon requires periodic updates from the Commonwealth regarding credits known to agencies. In accordance with Encumbrance Correction Policy doc format of    po_procon_encumbrance_correction.doc  , the CEC, using event type PR22, is the credit transaction that provides this evidence and systematic recovery in MMARS. Current policy states that credits due to agencies from active vendors should utilize the CEC transaction. In the event a known credit is not recorded in MMARS but is currently negotiated to be received by an agency or is being pursued by an agency, please immediately forward evidence of these known credits in the form of ongoing management tracking reports, email correspondence or other written documentation identifying the specific credits due and then update this information no less than monthly during the contract period.

Credits should be recovered in a reasonable period or a check should be requested. You will receive more information as the process moves forward. If you have general questions about this new program or are tracking vendor credits not recorded on MMARS, please contact Michael Weld Eyob, Director of the Accounts Payable Bureau 617.973.2310 or Kathy Sheppard, Deputy Comptroller 617.973.2666.

Thank you for your continued cooperation in this endeavor.





CC:Department Heads
General Counsels
Payroll Directors
Internal Distribution