Improving the Effectiveness of Your Claims Auditing Process

Local Government Management Guide

Overview

Improving the Effectiveness of Your Claims Auditing Process
Local Government Management Guide

The Office of the New York State Comptroller (OSC) has written this guide as a resource for those governing bodies and officials who are responsible for the audit of claims. It also is our hope that the information contained in this guide will be valuable to new board members and inexperienced claims auditors. This guide provides a foundation of knowledge that users can build upon as they gain experience auditing claims.

The following is an overview of the information contained in this guide:

  • What Is a Claim?
  • Who Is Responsible?
  • Appointment of Claims Auditor
  • Claims Auditing
  • Payments Not Requiring Pre-Audit
  • Payments Allowed in Advance of Audit
  • Problem Claims
  • Red Flags
  • Analytical Reviews

Appendix A provides additional information on the body or official responsible for auditing claims in school districts, counties, fire districts, libraries, towns and villages and pertinent legal references. Appendix B lists statutes that provide audit of claims requirements applicable to various types of local governments. In the case of cities, the city’s own charter typically contains audit of claims provisions. These statutes and charters contain similar, but not identical, requirements in connection with the claims auditing process. Therefore, Appendix B is intended to provide only general information, and you should consult the applicable law pertaining to your type of local government for more specific details on audit of claims requirements.