We are excited to announce a new partnership with Rutgers University and UHY Advisors, Inc.! Together, we will use machine learning to detect fraud, waste, abuse, mistakes, and control failures in local government vendor payments. This initiative seeks to enhance fiscal responsibility, reduce financial losses, and strengthen public trust by providing local governments with cutting-edge fraud detection and analytics tools.

The collaboration combines ThirdLine’s expertise in government audit analytics and fraud detection, UHY Advisors’ government accounting experience and Rutgers’ continuous audit knowledge and advanced methods capabilities. Together, they aim to transform financial oversight in local government by applying advanced data analytics to uncover anomalies and patterns indicative of fraud and errors in vendor payments.

Transforming Financial Oversight with Advanced Analytics in the DOGE Era

This partnership is part of a broader mission to equip local governments with tools to streamline processes, improve transparency, and enhance accountability. The initiative aims to empower public sector entities with actionable insights into their financial operations by deploying fraud and outlier detection models, continuous auditing techniques, and internal audit analytics.

“Governments are increasingly facing scrutiny over how they manage public funds,” said David Osborn, CEO and Co-Founder of ThirdLine. “By partnering with Rutgers, we are delivering state-of-the-art solutions not only to detect and prevent fraud and waste but also help governments demonstrate their commitment to fiscal responsibility.”

Building on Rutgers’ Recent Partnership with GFOA

This partnership builds on the momentum of Rutgers’ recent collaboration with the Government Finance Officers Association, which leveraged AI to automate financial data extraction from local government reports, reducing manual efforts and enhancing data accuracy.

“Rutgers is excited to continue to work with local governments and use AI to revolutionize public sector finance,” said Miklos A. Vasarhelyi, Director of the Rutgers Continuous Auditing Lab. “By applying continuous audit principles to vendor payment data, this partnership represents a natural evolution of our work with cities, counties, and school districts. Together, we’re tackling fraud and mistakes in local government payments with a level of precision and efficiency previously unattainable.”

Piloting Innovation in Local Governments

The collaboration will begin with pilot programs in several local governments to refine the statistical models and validate their effectiveness. The project’s findings will lay the groundwork for a broader rollout, making these tools accessible to governments nationwide.

“We’re fortunate to be able to work with ThirdLine and Rutgers on this project.  Local governments need better tools to demonstrate spending transparency to their constituents.  This team will help develop new ways to present how well government monies are being spent,” stated Jack Reagan, Managing Director with UHY.

About Rutgers University

Rutgers, The State University of New Jersey, stands among America’s highest-ranked, most diverse public research universities. The oldest, largest,and top-ranked public university in the New York/New Jersey metropolitan area,you’ll find us at our main locations in three New Jersey cities, and ourfootprint can be seen around the region. Its Accounting Information Systems area has been ranked #1 in the world for over 20 years.

About UHY Advisors

UHY is one of the nation’s largest professional services firms, providing audit, tax, consulting, and advisory services to clients. We are trailblazers who bring our experience from working within numerous industries to our clients so that we can provide them with a360-degree view of their businesses. Together with our clients, UHY works collaboratively to develop flexible, innovative solutions that meet our clients’ business challenges.

“UHY” is the brand name under which UHY LLP and UHY Advisors, Inc. provide professional services. The two firms operate as separate legal entities in an alternative practice structure. UHY LLP is a licensed independent CPA firm that performs attest services. UHY Advisors, Inc. provides tax and business consulting services through subsidiary entities. UHY Advisors, Inc. and UHY LLP are U.S. members of Urbach Hacker Young International Limited (UHY International), a UK company, and form part of the international UHY network of legally independent accounting and consulting firms.