For companies to stay on top of their financial health, they need to make regular efforts to track certain indicators. With the help of recovery audits, businesses can discover the source of discrepancies in accounts, allowing them not only to possibly rectify these losses but fix the issues that generated them in the first place.
According to KCUR-FM, a recovery audit performed on the Port Authority of Kansas City, Missouri, recently revealed significant money management problems. The investigation found that between 2003 and 2008, the city lost around $135,000 in transactions relating to the Port Authority's redevelopment of the Richards Gebaur Air Force Base, including $92,000 in duplicate payments.
The Kansas City Star noted that Port Authority president Michael Collins has expressed a willingness to work with the city to pay back numerous overcharges if required. However, he also told the Kansas City City Council's Finance and Audit Committee that his agency no longer operates with the same staff or financial controls. KCUR-FM pointed out that Collins has asserted the organization now has systems in place to prevent duplicate payments and other costly mistakes.
For any enterprise looking to gain insight into its financial condition, conducting a recovery audit is well worthwhile.