Realized and Potential Audit Savings

In the State fiscal years 2001-2003, Legislative Post Audit reports identified more than $53 million in opportunities to save money or increase revenues. As of October 2003, nearly $23 million of that amount had been realized. In the same 3 fiscal years, the Division's expenditures totaled $5 million, yielding a return on investment of at least $4.57 for every dollar spent. And because many of the savings or revenue enhancements will recur year after year, the true return on investment is greater still.

The accompanying table counts savings as realized if we confirmed that the recommended change (for example, an increase in Medicaid rates) has taken place, even if the savings aren't yet on the books. We showed savings as potential if the recommended change has not yet been made. In either case, the estimates shown are conservative. For example, if the audit estimated a range of possible savings, this document shows the lower value.