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Sponsors
7 Co-sponsors
History
- Held for consideration in governmental operations
- Referred to governmental operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Establishes audits of state agency expenditures to recover overpayments and lost discounts
In Senate Committee · Finance · Sponsor Michael H. Ranzenhofer
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A10614
Title of bill
An act to amend the state finance law, in relation to establishing audits of state agency expenditures to recover overpayments and lost discounts
Purpose or general idea of bill
Establishes audits of state agency expenditures to recover overpayments and lost discounts.
Summary of specific provisions
Section The state finance law is amended by adding a new article 7-B to read as follows: Recovery of Certain State Agency Overpayments- Section 124-A. Contract consultants for recovery audit s for certain overpayments. Section 124-B. State agencies subject to mandatory recovery audits. Section 124-C. Payment to contrac- tors. Section 124-D. Forwarding reports.
Justification
New York state government agencies, by virtue of their size and complexity, have the potential of experiencing accounting irregularities that may result in overpayments to vendors or potentially allow for criminal mischief. To combat this problem state law allows for internal controls or external audits conducted by the Comptroller's Office. In budget areas that are significantly large, new state agencies are created, the Office of Medicaid Inspector General being an example. Devoting staff and resources to these functions costs taxpayers millions of dollars every year, regardless of how much fraud or mismanagement is recovered.
This legislation would provide a process by which the Comptroller's Office can recover improperly distributed funds and also root out corruption and fraud without incurring costs to the taxpayer. It outlines a procedure for the Comptroller to follow in hiring private- sector recovery audit firms as well as a process by which the firms would conduct their audits. A report is generated that outlines the specific courses of action the firms would like to follow and requires approval before attempting recovery. Once approved, the firms would take actions to recover the funds and retain a previously agreed upon percentage of the amount recovered as its fee for service.
This process allows for the recovery of funds without having to incur personnel and office expenses. The Comptroller would retain control over the process and reports would be sent to the Governor, Speaker, Presi- dent of the Senate and Minority Leadership.
The Office of Management and Budget estimated the federal government, for fiscal year 2009, had improper payments of 598 billion. President Obama signed an executive order allowing for Recovery Audits in the divisions of Homeland Security, Transportation, Commerce and NASA. In addition, Texas and Utah utilize these firms for Medicaid Prescription Drug audits.
Prior legislative history
New bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.