When it comes to running a state government, perhaps one of the most valuable elements that is needed is money. The state of Alabama will soon have nearly $5 million extra in its funds, after a recovery audit revealed that the amount was owed to it from various overpayments and financial errors.
According to The Associated Press, the $5 million total was discovered due to a law passed in 2011 that allows Alabama to conduct recovery audits to collect overpaid money from businesses that complete work for the state. The most recent finding is the first time the law has been put into practice, and the case involves the insurance company Blue Cross and Blue Shield of Alabama, $4.8 million to the state.
The news source reports that the recovery audit revealed that the State Employees Insurance Board overpaid the amount to Blue Cross for state employees pharmacy rebates and management fees. Investigators are also looking at overpayments for medical insurance coverage to Blue Cross for the state workers, but those findings have not been finalized yet. The recovery audit law's sponsor, Alabama Senate President Pro Tem Del Marsh, told the AP that he believes there are still many more funds the state needs to collect from various companies.
"We believe there are tens of millions of taxpayer dollars to be recovered by the state," stated Marsh.
Alabama's chief examiner of public accounts, Ron Jones, told the news source that many state departments have been conducting recovery audits for many years, but with the passage of the recent law, the state government as a whole will be able to use the audits to recover funds for Alabama's agencies and municipalities.
Recovery audits can be used by businesses and organizations in a variety of industries to collect money from overpayments and other financial miscalculations.