Uncovering Overcharges

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Inn Industry Audit Results

NovaData’s AI-driven Rest-Assured™ platform conducted an industry audit for a brand of inns, examining mitigation invoices across three locations, totaling $1.13 million. The primary objective was to ensure accuracy in billing and adherence to contractual terms.

Challenge

The audit aimed to identify discrepancies between invoiced amounts and negotiated terms. Initial assessments uncovered significant overcharges amounting to $435,445, representing a staggering 39% deviation from the agreed-upon rates.

Audit Focus and Findings

NovaData’s analysis flagged several crucial areas contributing to the overcharges:

  1. Management/Staff and Overtime Ratios: Discrepancies were found in the allocation and billing of management/staff hours and overtime, leading to inflated costs.
  2. Rate Adherence: Deviations from agreed-upon rates were identified, indicating discrepancies in billing accuracy.
  3. Equipment Term Discount: Issues were highlighted regarding the application of equipment term discounts, leading to overcharged amounts.
  4. Small Tools and Lunchtime: Invoices revealed discrepancies related to charges for small tools and lunchtime, contributing to the overall overcharges.

Outcome

The AI-driven analysis by Rest-Assured shed light on critical areas where discrepancies existed, uncovering overcharges of $435,445. This meticulous scrutiny highlighted the necessity of precise adherence to contractual terms in billing processes.

The findings emphasized the significance of accurate billing practices within the industry. They underscored the importance of periodic audits, utilizing AI-driven platforms like Rest-Assured, to identify and rectify discrepancies, ultimately safeguarding against financial losses due to billing inaccuracies.

The inn industry audit conducted by NovaData’s Rest-Assured platform exemplifies the crucial role of advanced technology in identifying overcharges and emphasizing the importance of precise adherence to contractual terms. This case study serves as a testament to the value of leveraging AI-driven analysis in ensuring billing accuracy and mitigating financial risks within the hospitality sector.