Review of Regional Administrative Support Center's Procedures for Recording, Maintaining and Reconciling Sustained Audit Disallowances in Region IV

EXECUTIVE SUMMARY:

This final report provides the results of our review of the Region IV Regional Administrative Support Center's (RASC) procedures for recording, maintaining and reconciling sustained audit disallowances. We identified weaknesses in the debt collection process used by the RASC which allowed $1.1 million in sustained audit disallowances to go without collection actions. We also identified interest charges, penalty charges and administrative costs that should have been accrued on recorded accounts receivable. The RASC generally agreed with our findings and recommendations for corrective actions.