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Recovery Recovery AuditingAuditing

Department of Department of Veterans Veterans AffairsAffairs

Department of Department of Veterans Veterans AffairsAffairs

Edward J. MurrayVA Deputy Chief Financial OfficerDeputy Assistant Secretary for Finance

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Overview

• VA approach to recovery audits• Focus on Financial Services Center

(FSC) recovery audit program• Resulting improvements to internal

controls

VA Approach

• Aggressively pursuing recovery auditing • Contract recovery audits

• Health Administration Center

• In-house recovery audits• VA Supply Fund• Financial Services Center

• Objectives• Recovery of funds• Enhanced internal controls

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Financial Services Center (FSC)

• Franchise Fund “fee for service” entity • Supports VA and 10 other Federal customers

• Provides common financial services• Commercial and medical claims payments • Credit card payment processing• Accounting services• VA payroll processing• Recovery audits

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• Recovery Audit Program • Hired commercial audit firm FY 2000• Brought in-house FY 2001• GAO “best practice” FY 2002

• Types of payment reviews• Vendor credits• Vendor/medical claims duplicate payments • Employee awards• Interest penalties and sales taxes

FSC Audit Recovery

FSC Audit Recovery (Cont’d.)

• Leverage centralized payments• Data mine high probability duplicates • Validate and recover via collection/offset • Process managed via web application

• On line field station validation• Automated bills of collection

• Recovery audit “benchmark” contract• Three years of payment data ($15+B)• 2 ½ years work: $82K in new collections• Discontinued contract and incorporated

lessons learned6

FSC Recovery Audit Results

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VA Focus on Internal Controls

• FSC enhancements• Transition from paper to e-invoicing• OCR technology for invoice processing• Centralizing VA medical claims payments

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Summary

• VA keys to recovery audits• Centralized payment processing• Leverage tools to perform/manage recovery audits• Improve internal control posture

• FSC available for recovery audit consulting/recovery audit work• FSC Director: Rod Wood,

Rodney.Wood@va.gov

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Questions??

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