Recovery audit reveals prison’s overpayments

Performing a recovery audit is an excellent way for organizations to save money by determining whether they are accidentally doling out extra funds. Recently, an audit examined the finances of North Carolina Department of Safety's Division of Adult Correction and found that the state could have benefited from using audit solutions sooner.

According to the Triangle Business Journal, an audit report discovered that the prison system had racked up $105,700 in overpayments related to hospital services in 2012. The recovery audit revealed that charges could be traced to duplicate billings, separate billings for covered services and procedures that did not provide any benefits to patients, the news source reported.

The audit report recommended that the Department of Safety employ a professional firm to further recover costs, and the Journal claimed the organization has already put out a call to potential solutions providers.

This is not the first example of audits finding some state prison systems lacking when it comes to keeping track of funds. In 2009, a recovery audit found that the Department of Corrections and Rehabilitation in California had overpaid its employees by nearly $590,000 due to what the Orange Country Register called "problematic internal controls." Had the institution used audit solutions sooner, it may have been able to save a significant amount of money.

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