Thursday, August 4, 2011

More on Recouping Improper Payments

Four senators have introduced legislation intended to improve the Government's ability to recoup money that it has erroneously to Government contractors. The proposed legislation adds several features to the existing law on recouping improper payments.

First, it would prevent agencies from relying only on voluntary disclosure of improper payments by contractors. In various hearings, these senators concluded that the government's estimates of improper payments were anemic and superficial.

Secondly, it would mandate that each agency set up an audit coordinator for recovery audits.

Thirdly, it would require a nationwide "do not pay" list.

And finally, it would require agencies to produce documentation to prove a payment was correct.

Many contractors have already been subjected to one or more "payment recapture audits". From our limited perspective, it does not seem like the Government is getting "bang for the buck" in these audits. No contractor that we know of has had to refund erroneous payments.

No comments:

Post a Comment