This private university, with over 15,000 students and $800M in annual revenue, operates under a decentralized accounts payable process. Each group/department has the ability to initiate requisitions and approve and pay supplier invoices. In addition, several non-integrated payment systems are used, making it difficult to impossible to check for prior payments.
Broniec’s use of technology in identifying level one (duplicate payments and unapplied credits) overpayments, and its use of traditional auditing techniques to identify level two (sales/use tax, unclaimed property, freight, pricing errors) overpayments, has provided the university with a valuable control. Broniec’s auditors pointed out that the university would gain operational efficiency from using Purchasing Cards (P-Cards) and from a consolidated billing system; positive steps towards minimizing future overpayment.
Broniec’s partnership with the university has enabled it to improve its operations by self-funding additional resources and improving its process. The large financial recoveries identified in past audits have allowed the university to move forward with infrastructure investments to further process improvements, while at the same time mitigating potential financial risk. These recoveries have also been used to fund headcount for the Finance Group. Broniec’s recommendations continue to provide the university with additional ways to fix gaps in its process and minimize future overpayments. As a result of these recommendations from Broniec, the university has reduced their DPO which in turn has reduced duplicate payment risk.