Department of Internal Audit and Compliance

Revenue Management - Billing

Effectiveness and efficiency of operations 

A. Billing queries are efficiently resolved to customers' satisfaction.

1. Have the risks related to information systems been identified and addressed?  These include obsolescence and incompatibility of the billing system with other systems.
2. Do system edits exist to validate invoice data input (such as customer name and number, pricing, amounts and other information) against approved standing data and the customer application system?
3. Is a manual or system check performed to ensure invoice numbers are not duplicated or fall outside a specified range of numbers (check can be preventive or detective)?
4. Are performance measures tracked regularly, such as the number of billing-related customer inquiries per month and the number and amount of adjustments to prior billings?

B. Invoice design and format are effective.

1. Is feedback gathered on the information customers want on invoices, such as service descriptions, unit prices, total prices, and discounts, and then take this feedback into account when designing invoices?

C. Billings facilitate timely customer payments.

1. Are credit control procedures documented and the nature and timing of follow-up activities defined (for example, when to send reminder notices, when to telephone, or when to use credit collection agencies)?
2. Has a solid and trusting relationship developed between the University’s credit and collections department and the customer to facilitate timely payments and dispute resolution?
3. Is it required that the credit and collections department maintains contact with each customer so it can resolve disputes in a timely manner?

D. Billings are properly authorized.

1. Does the billing system use detail from correct and authorized files to record transaction information, such as quantities, service codes, transaction dates, customer order details, and prices?
2. Do customer service personnel reconcile control totals of the invoices generated for the day with the total services per the customer service system?
3. Is the billing system configured to identify any exceptions on the invoices and produce an exception report for accounts receivable personnel?
4. Are exception reports prepared and reviewed for invoices over a specified amount and invoices containing unusual prices, terms, and discounts in a timely manner?

E. Billings are reliably processed and reported.

1. Are controls implemented to maintain the integrity of the programs used to process transactions (for example, for authorization of all program changes and access security controls)?
   
   

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