Improving the Effectiveness of Your Claims Auditing Process

Local Government Management Guide

Payments Not Requiring Pre-Audit

Certain payments generally may be made without going through the routine claims auditing process. Generally these payments are approved through some other authorization process or are the result of statutory requirements, existing contractual commitments or some other required obligation. They include:

  • Fixed salaries of officers or employees regularly engaged at agreed-upon wages by the hour, day, week, month, year, or other authorized period, including any payroll withholdings.
  • Principal or interest payments on debt.
  • Payments made pursuant to a court order.
  • Amounts due upon lawful contracts for periods exceeding one year.
  • Retirement contributions by a participating employer in the New York State and Local Retirement System as billed by OSC.

These types of payments should not be included on the abstract of audited claims.