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Highlights

The General Services Administration (GSA) requested approval of its modified proposal to combine elements of fast-pay procedures and statistical sampling techniques to pay and audit utility invoices. GSA advised that, under the proposed system, it would: (1) establish monthly cost estimates derived from historical data; (2) audit all invoices exceeding the estimates by 15 percent; (3) audit a random sample of 3 percent of the remaining paid invoices; (4) audit previous bills under any account it determined had received an overpayment; (5) annually review any such accounts for 5 years; and (6) be able to recover overpayments from future billings. GAO held that the proposed system provided for effective monitoring, a sampling of those invoices not subject to complete audit coverage, audit emphasis commensurate with the risk to the government, and a basis for payment certification. Accordingly, GAO had no objection to the proposed system.

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