Bill > A04412

This bill establishes a comprehensive system for conducting recovery audits of state agency expenditures to identify and recover overpayments. The bill defines overpayments broadly, including duplicate payments, missed vendor discounts, improper late payment penalties, incorrect shipping costs, unnecessary sales tax, and payments for undelivered goods or services. The state comptroller is required to contract with audit consultants to perform mandatory recovery audits for state agencies with annual expenditures exceeding $100 million, with potential exemptions for agencies with minimal vendor payments. The audit consultants can be compensated based on a percentage of recovered funds and may pursue judicial actions to recover overpayments. The bill mandates strict confidentiality requirements for consultants handling sensitive financial information and provides for the recovery of both state and federal funds. Additionally, the comptroller must forward audit reports to key government officials, including the governor and legislative leaders, and submit a biennial summary report to the legislature. The comptroller is required to adopt implementing rules by August 1, 2025, and the act takes effect immediately upon passage.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A4412