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Budget Summary FY2016

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17750106 - Enhanced Vendor Auditing
Data Current as of:  8/19/2015

Account Description FY2015
1775-0106 Enhanced Vendor Auditing
For the operation of an enhanced vendor auditing unit within the operational services division; provided, that the unit shall use a risk analysis program to identify vendor areas at high risk of fraud, overbilling or unallowable expenses; provided further, that the risk analysis shall use vendor-filed uniform financial reports, contracts with state entities and Massachusetts management accounting and reporting system billing records; provided further, that in determining risk, the unit shall consider: (i) failure to file in a timely manner annual uniform financial reports and required private audits; (ii) related-party transactions; (iii) use of management companies; (iv) amounts of billed expenditures on credit cards; (v) expenditures for nonprogram expenses such as travel, meals and vehicles; and (vi) referrals or complaints from other state agencies, public officials and consumers; provided further, that the unit shall conduct field audits as necessary to determine evidence of fraud, overbilling or unallowable expenses; provided further, that the unit shall develop a recovery plan to recoup all funds received by a vendor due to fraud, overbilling or unallowable expenses and shall be responsible for recovering such funds; provided further, that any recovery plan that provides for less than the full restitution of misspent funds shall not be implemented without the approval of the secretary of administration and finance; provided further, that all funds recovered shall be deposited in the General Fund; provided further, that audits which indicate criminal fraud shall be referred to the attorney general for investigation; and provided further, that the unit shall file a report with the executive office for administration and finance and the house and senate committees on ways and means not later than March 14, 2016 on the activities of the unit, including the number of audits conducted, the number of vendors audited, the number of vendors demonstrating the risk factors listed in this item, the funds identified for recoupment, the funds recouped, any reasons why identified funds were not recouped, details of recovery plans that required the approval of the secretary of administration and finance
377,082 377,083