This bill amends the Administrative Code of 1929 by adding a new article, ARTICLE XXVIII-J, which introduces provisions for recovery audits of Commonwealth agency expenditures. The Secretary of the Budget is tasked with establishing a schedule for reviewing expenditures of agencies that have $50 million or more in payments. The bill mandates that the Secretary contract with an auditor to conduct these recovery audits, which will focus on identifying improper payments made by Commonwealth agencies. The auditor may pursue judicial actions to recover overpaid amounts and is required to maintain confidentiality regarding sensitive information obtained during the audit process.

Additionally, the bill outlines specific requirements for auditors, including the prohibition of conflicts of interest and the necessity for experience in recovery audits for public entities. It defines key terms such as "improper payment" and "recovery audit," and establishes guidelines for the implementation of these provisions. The Secretary is also required to adopt rules or guidelines necessary for the execution of the recovery audit process. The act will take effect 180 days after its passage.

Statutes/Laws affected:
Printer's No. 2634 (Nov 19, 2025): P.L.177, No.175