Download Rodney Wood-VA

Recovery Auditing
May 13, 2009
Rod Wood, Director
Sally Goetz, Supervisory Auditor
Overview
 VA
approach to recovery audits
 Financial Services Center (FSC)
recovery audit program
 FSC audit recovery portal demo
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VA Approach
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Aggressively pursuing recovery auditing
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Contract recovery audits
FSC Audit Recovery Program
Objectives
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Recovery of funds
Enhanced internal controls
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Interest Penalty Improvements
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Financial Services Center
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Franchise Fund “fee for service” entity
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Supports VA and 10 other Federal customers
Provides common financial services
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Commercial and medical claims payments
Credit card payment processing
Accounting services
VA payroll processing
Recovery audits
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FSC Audit Recovery
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Recovery Audit Program
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Hired commercial audit firm FY 2000
Brought in-house FY 2001
GAO “best practice” FY 2002
Types of payment reviews
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Vendor credits
Vendor/medical claims duplicate payments
Employee awards
Interest penalties and sales taxes
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FSC Audit Recovery (Cont’d.)
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Data mine high probability duplicates
Validate/recover via collection or offset
Payment cancellations
Process managed via web application
Recovery audit “benchmark” contract
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Audit Recovery Results
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Causes for
FSC Collections
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Vendor credits
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Duplicate payments
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Consolidated / duplicate invoices
Employee awards
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Incomplete orders / returned goods
Duplicate inputs
Interest penalties and sales tax
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Not authorized IAW Prompt Payment Act
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FSC Preventive Approaches
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Require original invoices for payment
Research payment history before
processing second payments
Enforce contract provisions for
exemptions from taxes claimed
Provide staff training on root causes
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Enhancing Internal Controls
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FSC enhancements
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Transition from paper to e-invoicing
OCR technology for invoice processing
Centralizing VA medical claims payments
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Audit Recovery
Web Based Audit Recovery Portal Demo
Sally Goetz
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Audit Recovery Portal
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Audit Recovery Portal (Cont’d.)
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Audit Recovery Portal (Cont’d.)
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Audit Recovery Portal (Cont’d.)
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Audit Recovery Portal (Cont’d.)
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Audit Recovery Portal (Cont’d.)
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Audit Recovery Portal (Cont’d.)
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Audit Recovery Portal (Cont’d.)
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“Why the FSC”
Recognized by GAO as “Best Practice”
 Government employees vs. contractors
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Over 50 years of Federal experience
 More familiar with governmental operations
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Provide a variety of audit recovery services
 Use a secure web based application
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PRE-DECISIONAL DRAFT
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“Why the FSC”
 VA keys to recovery audits
 Centralized payment processing
 Leverage tools to perform/manage
recovery audits
 Improve internal control posture
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FSC available for recovery audit
consulting/recovery audit work
FSC Director: Rod Wood
[email protected]
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Questions
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