FINANCIAL ADMINISTRATION MEMORANDUM NO 2008-13
September 3, 2008
FINANCIAL ADMINISTRATION MEMORANDUM NO. 2008-013 (II.J.)
To: Director, Office of Acquisition and Properly Management
Bureau Assistant Directors, Administration
Director, National Business Center
Bureau Finance Officers
Bureau Procurement Chiefs
From: Mary Braun, /s/
Chief, Internal Control-Audit Follow Up and Financial Operations
Office of Financial Management
Subject: Recovery Audits for Improper Payments
The purpose of this Financial Administration Memorandum (FAM) is to provide options for the
recovery audit contracts currently administered through the Department of the Treasury by
FedSource.
Appendix C to OMB Circular A-123 provides guidance for conducting recovery audits to fulfill
the requirements under the Improper Payments Information Act of 2002 (IPIA) and the National
Defense Authorization Act for FY 2002, Subchapter VI - Recovery Audits. The law requires
eacli agency to annually identify programs and activities susceptible to improper payments,
estimate the amount of improper payments, report that estimate to Congress, and for agencies
that enter into contracts totaling more than S500 million in a fiscal year, to carry out a cost
effective program to identify errors in payments and recover amounts erroneously paid.
The Department of the Interior requires annual recovery audits of all payments made to vendors
and reports on recovery auditing activities annually in the IPIA portion of the Management's
Discussion and Analysis section of the PAR.
The attached correspondence from Treasury, subject: Transition of FedSource Audit Recovery
Business, announces that FedSource will no longer support audit-recovery contracts and directs
current clients to seek alternative vehicles to meet audit recovery audit requirements. Bureaus
and offices may contract with other servicing contracting offices, or they may perform recovery
audits with in-house resources.
The choice must be made expeditiously, whichever avenue chosen, and copies of all agreements
entered into for Recovery Audit purposes must be sent to PFM. Please take timely action to
ensure FY09 commitments are met.
Direct your questions on recovery audits to Lynnell Green at (202) 208-3127 or email at
Lynnell_Green@ios.doi.gov.
Prior Financial Administration Memoranda on this subject:
Risk Assessments and Recovery Audits for Improper Payments FAM 2007-004
Attachments
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