The claims auditing process is known as a "super control" because, when conducted effectively, it can identify claims that have violated or bypassed purchasing and other important internal controls. When a thorough and deliberate audit of claims is conducted, a message is sent to all officers and employees that this oversight function is being exercised in a diligent and thorough manner. When a local government or school district has a strong claims auditing process, the control consciousness of its staff is enhanced, because officers and employees will be cognizant that a careful review of claims will occur before public funds are disbursed. As the old saying goes, "the buck stops here;" nothing could be more true when an improper or poorly documented claim is rejected, or even held temporarily, until it meets requirements. A thorough and deliberate claims auditing process also builds taxpayer confidence in the operations of their local government or school district. Allocating resources to improve the effectiveness of your claims auditing process or establishing a claims auditing position can enhance the control environment of your organization.

OSC will be pleased to assist you with any questions you have regarding the information contained in this guide or any special circumstances with which you may need assistance. The addresses and telephone numbers for each of our regional offices is located at the end of this publication. Please contact the regional office for your locality with any questions you may have. Legal questions can be directed to OSC’s Division of Legal Services at 518-474-5586.