Negotiating a favorable contract with a third party is only part of a successful transaction. Monitoring to ensure complete and timely compliance with your hard-fought terms is necessary tofully realize the desired results. Time slips by, key personnel change roles, modified terms are not updated in payment systems, contracts renew with unfavorable terms, covenants are violated, unanticipated penalties are triggered and money starts to slip through the cracks. Furthermore, with even more pressure to do more with less, some third parties may not be totally fulfilling their promise to your company in providing goods and services. Best practices involve conducting periodic audits to recover money or optimize your spending with third parties. "Trust but verify," is a very important maxim in today's tough economic environment. Armanino offers several contract assurance services.
Revenue Recovery Audits
We provide services to help your company recover under-reported revenues. For instance, we perform royalty audit services for many companied in the technology, biotech, manufacturing, consumer products, entertainment and other industries. Royalty, or license audits, permit licensors to gain a more complete understanding of the manner in which licenses remit royalties due under licensing agreement and can help them identify and recover uncollected royalties owed to them. We also work with the licensor and the licensee to help improve processes and systems so you can collect your money when due on a more timely basis.
We also provide audits of revenue sharing contracts, cross licensing agreements, administrative fee and commission arrangements, all aimed at maximizing the value from your agreements.
Our firm has developed a keen, thorough methodology to answer these questions for a broad spectrum of industries involving many types of intellectual property. And if we discover potential fraud, we have the forensic experts on staff that will help you to build a solid case to defend your rights. Recent audits have resulted in recovery of many millions of dollars of under-reported or unpaid revenues.
Cost Optimization Audits
Do you outsource your manufacturing? Do you use an advertising or marketing agency? Do you use a distributor to get your product to market? Do you use a third party to take support calls or process rebates? When was the last time your company performed a detailed audit of these contracts, if ever? It is possible that you are paying a lot more and receiving a lot less under these agreements. We conduct our cost recovery audits with experienced professionals who have real world experience in finance, operations, and compliance to deliver speed to value.