Malone Petroleum Consulting



Vendor and Contract Audits Must Always Protect Relationships

Contractor Audits

The preparation, selection and the award of a contract with specific terms and conditions is only the beginning since it is imperative that a cost control framework be in existence from the first day, in order to identify, associate, and monitor performance of contracts. This will provide the client the necessary confidence that what they are paying for and what they are receiving are fair and reasonable for both the contractor and the client. We can provide an effective means of implementing the important and necessary framework to help achieve this obvious objective.

There are many benefits realized in performing effective contract compliance audits: Cost recoveries; fraud awareness and deterrence; identification, development and implementation of process improvements; risk management and other items. However, it is critical to understand that any audits should be initiated when the customer can still intervene in order to change processes or recover overpayments, discounts and rebates from the contractor.

By initiating the audit as an early control is also critical since it gives the client a better understanding of the contractor's systems, controls, and supporting documentation being generated to support costs billed to the client. As a result, the majority of audit issues and recommendations will relate to improving communications, streamlining processes and avoiding future over expenditures. Finally, recovery audits can be executed towards the end of the project in order to determine whether any contractor charges are not valid, do not relate to the project, were duplicated, paid on a prior invoice or are overstated. Our contractor audits are customized to each contract in order to ensure contractual compliance with the specific terms and conditions of each contract are adequately followed as originally intended. We conduct regular compliance or forensic examinations of all aspects of the contract in order to provide a complete picture of the financial management and operational performance of the contractor ensuring that the agreement is being executed in accordance with the intent of all parties to the contract. The earlier our involvement in the venture, the greater the benefits will be for our clients.

Apycom jQuery Menus