HB2240 Summary

• Auditor General shall contract with consultants to conduct recovery audits of state agency vendor payments from the previous three fiscal years to detect and recover overpayments.

• Initial contract must be entered into on or before October 1, 2010, and consultant compensation may include a percentage fee based on total amounts recovered.

• Recovery audits cannot be conducted on payments made within 180 days prior to the audit to allow time for existing state payment auditing procedures.

• Auditor General must review all overpayment claims and may authorize additional audits of two additional fiscal years if a pattern of overpayments is identified with a specific vendor.

• Auditor General must provide electronic copies of consultant reports within seven days to the Governor, State Comptroller, affected vendors, Joint Legislative Budget Committee, and Secretary of State.