We examined select payments made by the Office of Temporary Disability Assistance (OTDA) to Supplemental Health Care (SHC) from July 1 through August 31, 2011 for temporary personnel provided under contract numbers PS63471. Under the contract, OTDA is entitled to a cash discount for payments made within the contract’s specified discount period. We found OTDA did not receive cash discounts it was entitled to for eligible payments made during the examination period. As a result, OTDA overpaid SHC $1,336.
Since OTDA staff were not aware of the discounts available to them under this contract, there is a high likelihood OTDA did not receive all the discounts it was eligible for. We estimate the State missed the opportunity to obtain an additional $29,947 in cash discounts, or a total of $31,283, for all payments that were eligible for a discount since the inception of the contract in November 2007.
For a complete copy of Report 2011-0035-3 click here.