They can result from human errors, system glitches, duplicate vendor records, or fraudulent activities. When a duplicate invoice is entered, it includes at least one detail that is different from the original invoice, resulting in both a duplicate invoice and a duplicate payment to the vendor. Invoice details may include the facility location, invoice date, PO number, and so forth. Our Duplicate Payment Identification case study outlines how we’ve helped a multi-billion dollar regional healthcare system recover over $2,700 per staffed bed, including duplicate payments, that would otherwise have been lost. By analyzing transactional data, companies can identify opportunities for cost savings, such as early payment discounts or more duplicate payment recovery favorable payment terms with vendors. This level of analysis can lead to more strategic vendor negotiations and improved cash flow management.
Protection against financial loss
By meticulously examining financial records, invoices, and payment transactions, auditors can uncover discrepancies and irregularities that may indicate the presence of duplicate payments. Through a combination of manual review and data analysis, auditors can pinpoint the root causes of duplicate payments and recommend corrective actions to prevent recurrence. The detection of duplicate payments begins with a thorough examination of accounts payable records. Organizations must regularly scrutinize their financial transactions to spot redundancies. This process often payroll involves comparing invoice numbers, payment amounts, vendor details, and dates of transactions.
Decades Of Experience Over Thousands Of Audit Projects
Often, the biggest blocker to a project is people not having the time to talk and think the process over. When outsourcing your AP audit, keep regular contact with your auditors to resolve issues quickly and create a smoother audit process. Your consultant conducts the audit by using specialist tools, for example, we run the data through our FISCAL software.
Complete Guide to Duplicate Payment Recovery Audits 2024
- Examples of waste include conducting excessive office visits, prescribing more medications than necessary, and ordering excessive or duplicative laboratory tests.
- As the Government Accountability Office (GAO) explains on the relationship between fraud and improper payments, all fraudulent payments are considered improper, but not all improper payments are the result of fraud.
- Implementing these practices can significantly reduce the incidence of duplicate payments.
- Platforms like NetSuite, SAP, and Microsoft Dynamics allow for layered approval workflows.
With a team of experienced auditors and innovative technology solutions, including DupeShield®, we help organizations across all industries identify and mitigate the risk of duplicate payments, safeguarding their financial health and operational efficiency. For inquiries or assistance with duplicate payment prevention, please contact us. The importance of addressing duplicate payments lies in both the direct impact of financial waste and the indirect consequences such as damaged vendor relationships and compromised internal controls. As businesses grow and transaction volumes increase, the risk of such errors multiplies, making it imperative for companies to focus on prevention and resolution strategies. A recovery audit sets out to review transactions specifically with a focus on cash recovery. The cash recoveries will usually come from overpayments or duplicate payments, missing credits or supplier discounts.
Healthcare Supplier Returns Credits
- The improper payment rate was first measured in traditional Medicare starting in 1996 and for Medicare Advantage starting in 2008.
- Duplicate payments can hinder an organization’s financial health, affecting its profitability and growth.
- The importance of addressing duplicate payments lies in both the direct impact of financial waste and the indirect consequences such as damaged vendor relationships and compromised internal controls.
- AP teams have many controls in place, but often outsourced to cover the excess workload of an audit.
- A documented resolution process ensures accountability—and helps your team learn from each incident.
Payments may go to the wrong party, in which case the company has to pay the correct payee and recover the funds sent to the wrong place. Overpayments can occur in many settings, Restaurant Cash Flow Management or a company may pay out funds on a deposit and never get them back or receive a credit. Our team are on standby to help you identify potential invoice fraud, errors and duplicate payments. In 2023, the Biden Administration finalized a rule, which was proposed in 2018 during the first Trump administration, to make adjustments to the RADV program. The final rule extrapolates contract-level findings for audits starting in payment year 2018. In September 2023, Humana sued the government over its methodology and a federal judge denied dismissal of the case in June 2024, but the final outcome of the case is still pending.
There is no cost until you receive an economic benefit for each recovery, in the form of a deduction from payment, or receipt of a check from the respective supplier. However, in this complex environment, no system or individuals operating within the procure-to-payment cycle are 100% error-free. Every system has vulnerabilities through the circumvention of established controls and communications failures between buyers and sellers. Platforms like NetSuite, SAP, and Microsoft Dynamics allow for layered approval workflows. These workflows prevent invoices from being paid before appropriate review, especially when thresholds are exceeded or duplicate behavior is suspected.
- The aim of an AP audit is to recover cash that has circumvented your financial controls, to protect your bottom line and support cash flow.
- Because the more human the process, the greater likelihood there is for human error.
- Recipients of erroneous payments may be reluctant to give them back, even if they were clearly received in error.
- Such a methodical verification process acts as a barrier to prevent duplicate payments from slipping through the cracks.
- A duplicate payment audit can serve as an efficient method to identify and reclaim funds that should not have been disbursed.
- By the time a payment goes out, you’ve already caught the mistakes, flagged the duplicates, and finalized everything in one place.
- This can include ordering the return of funds, asking for credit to use against future payments, or placing liens to make it impossible to sell or transfer assets until the problem is resolved.
There are many areas within the procurement to payment transactional cycle that undergo complete conversions, upgrades, and the introduction of new technologies. These improvements are advancing the goal of increased efficiencies, but often create vulnerabilities. A documented resolution process ensures accountability—and helps your team learn from each incident. Our team is dedicated to providing personalized, responsive support by working seamlessly with our clients for low-touch, high-impact service that delivers measurable results. Our interface features concise dashboards and live reporting so your team can see a full overview of spend.
Contact us today to learn more about how we can bring peace of mind to your company’s finances. SAS’ sophisticated technology identifies all potential duplicate payments by combining our proprietary software, tools, and machine learning to recover funds as a result of duplicate payments. Our extensive experience and continuously improving analytics deliver a more thorough review of all transactions than most organizations can do on their own. Once invoices go unpaid, you’ll then need to follow the payment recovery process by chasing up with the client.
