Say good-bye to expensive cost-recovery services
When internal controls fail, it can come with a big price tag. Not only can an organization lose money because of the revenue leakage itself, but if the loss is significant enough it can compel some companies to seek out the help of cost recovery services—and that help doesn’t come cheaply.
One of our clients knew this truth all too well. A large healthcare company with more than 10,000 employees and operations in over 100 communities was losing large sums of money due to breakdown in their internal controls. In a bid to recoup some of the money, they had hired an audit recovery firm but the service was costing them $500,000 a year—plus a 30% commission on any recovered funds. While the audit recovery service was able to recoup some of the lost money, the healthcare company wanted to identify the root cause of their control failures and stop the loss before it happened. This is where we came in.
Our Analytics and Data Science (ADS) team implemented CaseWare Monitor to analyze and monitor 100% of our client’s transaction data, 24/7. After the ADS team reviewed the risks and controls in the company’s business processes, they found that there were control failures in the accounts payable and vendor management departments. Based on this information, the ADS team configured a range of data analytics tests designed to detect issues in these risky areas.
In accounts payable, the tests found—within a one-year period—more than $2 million in duplicate payments, purchase order increases totaling more than $80 million, and non-employees or employees not identified in internal systems had been paid almost $650,000 in reimbursements. In vendor management during the same period, more than $15 million had been paid to blocked or inactive vendors, over 150 employees shared an address with a current vendor, and several vendors had duplicate entries in the Vendor Dictionary.
By implementing CaseWare Monitor and engaging our ADS team, our healthcare client has introduced new controls and policies to address the issues that had led to millions in lost revenue. And those expensive services of the recovery audit firm? Our client is no longer in need of them, putting hundreds of thousands of dollars back into the business.
To learn more about CaseWare Monitor and how it can help eliminate your organization’s need for pricey cost recovery services, watch our video now.
About Anu Sood:
Anu Sood is the Director of Product and Corporate Marketing at CaseWare Analytics and is responsible for the company’s global marketing strategy. Prior to CaseWare Analytics, Anu worked in various roles in the high-tech industry and her accomplishments range from writing software for telephone switches to launching a new global satellite communication service. Anu has extensive experience in strategic marketing, corporate communications, demand generation, content marketing, product management, product marketing and technology development.