Audit Spotlights

Real Success Stories

Audit Spotlights

Broniec’s experience is unmatched in both the breadth of our industry expertise and the depth of our reviews.  Simply put, we find overpayments that our competitors do not.  The following Spotlights highlight just a few of the hundreds of audits we perform annually and provide insights into the positive experience you can expect and the results you’ll benefit from when you engage Broniec Associates for your AP Recovery Audit.

Industry - Manufacturing

Annual spend – $300 million

Broniec Associates was engaged by a company in the electrical, plumbing, and hardware manufacturing industry to perform a comprehensive AP recovery audit.  They were especially interested in an audit because they had made two acquisitions in recent years, and also had some leadership turnover within their organization.  Since it was our first audit for this company, we reviewed a total of three years of their transactions up to the most recent closed fiscal year.

The audit was a tremendous success, yielding total recoveries of close to $500,000.00 as well as valuable insights into their P2P process.  Our audit team identified and recovered overpayments in the following categories:  statements/open credits, duplicate payments, deal allowances, and sales & use tax.  Recoveries were from vendors in a variety of industries, including transportation, advertising, chemicals, and materials.  Two of the recoveries in this audit were each over $50k – one for a duplicate payment and the second for a missed rebate allowance.  Additionally, two claims were recovered from the same supplier – an advertising agency totaling almost $80k for billing adjustments.

The audit lasted six weeks.  The client provided outstanding feedback on every aspect of the audit.  They were especially pleased with the total amount recovered, as it far exceeded their expectations, and the comprehensive audit approach which yielded recoveries in several categories which had not been reviewed by a competitor in a prior audit.  This client intends to engage Broniec Associates in annual reviews going forward.

Industry - Food & Beverage

A $4 billion company in the food and beverage industry engaged Broniec Associates to perform an AP Recovery Audit.  Although the client didn’t have one specific reason for concern, they had experienced rapid growth in recent years and had also recently acquired another company in the period under review, so they decided to proceed with the audit.  The audit proved to be very successful resulting in the identification and recovery of more than ninety overpayments totaling well over $500,000.00.

The Broniec Team identified and recovered claims in the following categories:  Duplicate Payments, Statements/ Open Credits, Unclaimed Property and Sales & Use Tax.  The largest single claim recovery was a duplicate payment for more than $100,000.00 which resulted from the vendor having multiple vendor numbers set up in their system.  This continues to be a common source of duplicate payments, and just one of many types of overpayments that our AuditMax software and skilled audit teams are trained to find.  The entire audit lasted approximately eight weeks.  Having never previously had an AP audit, the client was extremely pleased that it took so little of their time and also that communications between the Audit Team and the client’s vendors was always very professional and to the point and never caused any issues.  This client also found tremendous value in the insight and recommendations provided to them in the Final Report.  They also especially liked our Client Services System (CSS) which provided them 24/7 access to their audit results and related insights.  This client intends to engage Broniec Associates in annual reviews going forward as they continue to grow their business at a rapid pace and encounter further changes in their P2P process.

Industry - Healthcare

Auditable spend – $214M

Broniec Associates was engaged to perform a primary review for a private, not-for-profit general medical-surgical facility with annual spend of $214M.  This was first time client.  The hospital had previously signed an agreement with a competitor over 10 years ago, but the audit was never performed.  The audit was primarily conducted in part designed to tell her the state of AP, as she begins her watch and she doesn’t want something NOT reviewed to be a bug going forward.

The hospital’s AP is still primarily paper based, using Lawson as their software.  In recent years, payables have nearly doubled as the hospital has expanded.  A three year audit was performed, with over $550K in recoveries.  The primary audit categories in which claims were identified included vendor credits, unclaimed property, duplicate payments, sales and use tax, and debit balance resolution.  The largest single claim resulted from credits on a vendor account, owing to cancellation of a contract. Invoices were inconsistently submitted by the vendor, making it difficult for AP to identify and apply the credits.

Because bank reconciliations are not performed in Lawson, this disconnect prevents AP from easily reviewing stale dated checks on a timely basis.  The hospital’s existing process is to send due diligence letters after six years. This is outside the bounds of the statute.  However, the hospital’s audit risk is limited since the organization is a consistent filer.  Allowing for such a wide dormancy period diminishes the ability of the organization to strike items from its filing using the described processes.

Through your services, not only have we recovered significant sums of money that we otherwise would not have, but we have also learned how to avoid duplicate payments, unclaimed credits, and erroneous payments of sales tax. Based upon the trend in the audit results over the past 4 cycles, it is obvious that we have improved, and I realize that is due mainly to suggestions we have received from you during our annual audit wrap up meetings.

CV$600M Education client

Schedule Your Contingency-Based Audit Today

Get Started