Financial Management: DoD Recovery Audit Program

Abstract

DoD financial managers and contracting officials responsible for identifying and reducing erroneous payments should read this report. It discusses efforts and methods for using recovery audits to identify and collect overpayments. Recovery auditing is a function of management, and the Office of Management and Budget (0MB) does not consider it auditing in the traditional sense. Recovery auditors generally use proprietary software to review and analyze a company's books, supporting documents, and other available information to identify duplicate or errogeous payments to vendors. Recovery auditing has become standard practice in the private sector over the last 20 years. Section 831 of the FY 2002 National Defense Authorization Act (Public Law 107-107) requires all Federal agencies with annual payments to contractors exceeding 8500 million to implement a cost-effective recovery audit program. Congress delegated implementation of this law to 0MB. 0MB requires Federal agencies to report results of their recovery audit programs in annual Performance and Accountability Reports.

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Document Details

Document Type
Technical Report
Publication Date
Aug 17, 2005
Accession Number
ADA437282

Entities

People

  • Ann Thompson
  • Benjamin M. Howison
  • Curt W. Malthouse
  • James L. Kornides
  • John R. Williams
  • Meredith H. Johnson
  • Paul J. Granetto

Organizations

  • Office of the Inspector General, U.S. Department of Defense

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Air Force
  • Business Administration
  • Commerce
  • Congress
  • Contract Administration
  • Contractors
  • Contracts
  • Cost Benefit Analysis
  • Department Of Defense
  • Finance
  • Financial Management
  • Governments
  • Money
  • National Security
  • Navy
  • Recovery
  • United States Government

Fields of Study

  • Business

Readers

  • Defense Financial Management and Audit.
  • Government Contracting/Procurement.