Contract Compliance Audits
Recovering lost dollars and eliminating future exposure from complex contracts.
Supplier contractual language can be extremely complex and unique in nature. Examples of clauses within a contract that may result in profit recovery include pricing, terms, discounts, incentives, rebates, returns, freight, staffing levels, overtime, as well as many other variables. Our SAS team has industry experts in identifying the breakage points within these intricate contracts and recovering the lost dollars.
Our Contract Compliance Audit Program
Like any engagement, performing a comprehensive contract compliance audit requires a thorough recovery audit plan outlining the nature of the project, each step of the process, scope, recommended approach, data requirements, deliverables and timeline.
Utilization and implementation of our Accounts Payable Transaction Analysis will assist in identifying those suppliers and contracts for potential opportunities for profit recovery based on commodity, spend category, volume, number of transactions, and additional variables.
Alignment with the contract business owner and supplier is essential in an effective contract compliance audit. These are the individuals that are well versed in the arrangement and need to be involved throughout the engagement.
In addition to recovering these lost dollars, SAS identifies and presents a root cause analysis documenting our cost recoveries with recommendations to safeguard your disbursements and avoid future losses.
A contract compliance audit is conducted as a contingency based engagement with no risk to our clients.