In order to help your agency make proper payments, you need to be aware of the most common Post Payment Audit errors and how you can avoid making those mistakes. Once you educate yourself on these errors, your agency will able to better comply with the laws and rules of your state when it comes to expenditures, save a lot more money, avoid any future audits and improve internal controls.
1. Incomplete or Missing Documentation
It is highly important that your agency keeps all of your documentation in order so that you can prove that the expenditures are legal and proper. With every type of expenditure, you’re going to have to follow different requirements for documentation.
2. Double Payments and Reimbursements
Most agencies have made the mistake of duplicating payments or reimbursements to various vendors. This error causes payments to be very difficult to identify, especially on an individual basis. It is going to be difficult unless you go through monthly payments and monitoring reports on a quarterly basis. That is one of the best ways that duplicate payments or reimbursements can be identified.
A good idea would be to create and develop some reports to help monitor the payments on a monthly basis and a quarterly basis to catch duplicate payments and duplicate reimbursements.
3. Incorrect Amounts
According to the terms that both parties have agreed upon in a contract or order, agencies need to pay their vendors. Agencies do not need to pay more than what was agreed-upon unless the vendor is going to provide any additional consideration. Make sure that you contact the vendor before you make any payments in an effort to resolve discrepancies. Also, don’t forget to document any issues properly.
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