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Identify and correct under reported baseline operating expenses

Client: Multinational Diversified Business Conglomerate

Project Scope: Identify and correct under reported baseline operating expenses, project future expenditures based on models and economic data utilizing known factors and extrapolated data. Develop alternative solutions to current cost centers inherent in the overall project spend.

Success Factors: Completeness of payment records, contracts, and communication with Client. Comprehensive studies and analyses regarding the current vendor staff, accounting system and procedures in place. Research and on site field analysis that resulted in identifying weaknesses, staff turnover, and inferior accounting practices.

Project Challenges: Limited cooperation from the vendor, inadequate vendor record keeping and accounting practices. These challenges were overcome by the involvement of Client’s Legal Department; effective forensic accounting practices, re-engineering the baseline expenses, detailed analysis of vendor payment ledgers.

Outcome: $3,000,000 in secured retrospective and prospective benefits.

ROI - 300%

Recommendations: Ongoing annual analysis to ensure prior corrections were adhered to by the vendor, and to identify and eliminate future noncompliance. Implementation of an enterprise wide program designed to effectively and proactively address all noncompliance billing matters and reduce overall spend.

Risk/risk mitigation strategies: Provide complete and comprehensive baseline analysis prior to the addition of any new indentures. Establish and implement client favorable audit clauses. Conduct in-depth examinations on a semiannual basis. Develop a set of guidelines and procedures for a mutually beneficial dispute resolution processes.