Commercial Contract Audits
Commercial Contract Auditing helps ensure that UT has been accurately charged and has received its full entitlements under established vendor/supplier agreements. Every interaction with external vendors or businesses is somehow covered by a contractual agreement. Internal Audit attempts to determine whether UT and the vendor are adhering to every term and being paid (and paying) accordingly.
A typical commercial contract audit will include a thorough examination of expenditures, contract terms and conditions on selected agreements with key suppliers/contractors. We will conduct a line-item review and analysis of invoices, monetary transactions, and purchase orders. We will perform a price and volume validation. We will confirm contract provisions are accurately translated. We will identify and implement cost reduction and cost improvement credits.
Historically, we have reviewed vendors in industries such as outsources services, staff augmentation, engineering, contractors/construction, third party labor, technology/equipment/software (including telecommunications billing), and maintenance/repair supplies.
We partner with your department and the vendor in the resolution of any findings arising from the audit, which usually translate into hard dollar recovery of overpayments, removal of inaccurate charges from future invoicing, cost reduction strategies, and improved contract terms - which all add up to reduced overall operating expenses.