Payables Audit & Supplier Review

Payables Audit Process

Telesolv's payables audit process targets suppliers and contracts where errors and contract non-compliance are most likely to occur. These "hot spots" are worked first, and based on the results of this initial audit decisions are made to audit other AP areas. The audit process is outlined below:

	Obtain AP data and identify potential problem areas  Audit problem areas for billing and payment errors  Identify candidates for in depth supplier review  Provide client with detailed report of results  Work with client & suppliers to receive credits and refunds

Supplier Review Process

Based on the initial payables review, certain suppliers may be targeted for a more stringent compliance audit. This process is outlined below:

	Planning   Telesolv obtains AP data and supplier contracts   Telesolv identifies potential candidates for review   Telesolv/Client identifies relevant risks   Telesolv meets with appropriate parties from client organization for background information and to obtain buy-in   Telesolv customizes work program during our scoping process to test identified risks	Fieldwork    Client notifies suppliers of intent to review    Telesolv holds initial calls with vendors    Telesolv requests data from vendor    Telesolv performs detailed testing to identify areas of contract compliance and non-compliance	Reporting    Telesolv drafts report    Findings are validated with our contact and as needed with the appropriate Business Unit, Finance, and Legal as necessary    Telesolv communicates the results to the vendor with a final report	Follow-Up    Remediate non-compliance    If necessary, client executes amendments or re-negotiates agreements    Client retains report for future contract negotiations    Client determines if vendor should be reviewed on a regular rotational basis
	Types of findings commonly encountered during a payables audit/supplier review:      Hourly rates exceeding executed rate card      Non-compliance with travel and expense reimbursement policy      Failure to reconcile estimated payments to actual costs      Failure to pass through discount/rebates      Inappropriate mark-up of pass through expenses      Billing in excess of production guidelines if applicable      Inappropriate overhead charges      Unused media credits      Discount earned but not credited      Erroneous transfers      Unsupported costs      Miscellaneous charges (i.e. Management fees)      Related party fees