Client Case Study
Within the scope of the client’s operations, a retroactive audit became pivotal. NovaData, entrusted with auditing five paid restoration company bills against the client’s negotiated contract/rate sheet, embarked on a crucial verification process.
Challenge
The need to ensure adherence to negotiated rates and contract terms prompted the decision for a retroactive audit. The client, with five submitted bills totaling $1,857,055, aimed to validate the accuracy of charges against the pre-established contractual agreements.
Audit and Findings
Using NovaData’s Rest-Assured™ platform for the audit revealed critical findings. Upon assessing the bills against the negotiated terms, a discrepancy of 23% was identified, translating to $430,066 in clawed back funds. This discrepancy represented charges that exceeded the agreed-upon rates and terms outlined in the contract.
Outcome
The audit’s findings of overcharges highlighted the significance of retroactive scrutiny. Uncovering and reclaiming $430,066 underscored the importance of precise billing adherence to negotiated contracts, emphasizing the potential financial impact of discrepancies and the value of rigorous audits.
This case illustrates the critical role of retroactive audits in ensuring compliance with negotiated contracts. The $430,066 clawed back through meticulous scrutiny signifies the importance of precise billing adherence and the necessity of periodic audits to safeguard against financial discrepancies in contractual agreements within the client’s framework.
