Audit & Control of Contracts

 

Instructor:  Charles E. Wertheimer

About Our Contracts Courses

After presenting construction courses for a number of years a very astute client requested that we develop a course on contract administration.  Several clients reported they applied our construction auditing approach to other contracts - leases, maintenance contracts, even IT contracts, and achieved similar results - cost recoveries and improved control of their projects.  As a result we developed an owner oriented course on contract auditing.  Attendees like it and we think you will as well. 

Effective Contract Auditing

Contracts and contracting are a way of life for most large organizations.  Organizations are relying on outside contractors more than ever in areas such as construction, joint ventures, consulting, technology, real estate, maintenance, benefits administration and advertising.  Many organizations have found their controls over contracting activity and contractor payments have not been sufficient to protect them from erroneous billing and performance problems.  This one-day seminar explores how auditors can identify contract-related problems and help management address the challenges of contracting in today's world.

Topics covered include:

  • Risks associated with contracting and contractors.
  • Why controls over contracts break down.
  • Exposures in different types of contracts.
  • Fraud exposures in contracts.
  • Assessing contract auditing practices.
  • Common problems in contracting and barriers to auditing contracts.
  • Determining contract audit objectives and strategy.
  • An Audit Plan - A Preliminary Survey
  • Checklist for development of a contract audit program.
  • Approaches to auditing contracts for cost recovery.
  • Maximizing the return on the contract audit resource.
  • Common cost exceptions and how to find them.
  • Using technology in contract auditing.
  • Auditing technology contracts.
  • Contract audit findings.

At the end of this seminar, attendees will:

  • Know common problems encountered in contract auditing.
  • Know exposures related to contracting performance and administration.
  • Know a model audit approach to apply to virtually any type of contract.
  • Know suggested contract language for better contract administration and auditing.
  • Be able to develop objectives of contract auditing for their organization.
  • Be able to audit to identify some cost overcharges.
  • Be able to identify performance issues related to contracts.
  • Be able to mobilize management to improve the management of contracting activity.
  • Know some best... and worst practices!

Contract Auditing (adapted for government auditors)

Effective contract auditing can pay off for local and state government auditors and their organizations.  Some departments recover more than the cost of the audit department by identifying overcharges and revenues not collected.  Perhaps of even more value, lessons learned through contract auditing can lead to improvement in contract management practices.

Topics include:

  • Assessing your organization's contract controls
  • Understanding what can go wrong
  • Identifying and responding to fraud in contract management
  • Relating "beliefs" to results
  • Establishing responsibilities and accountability
  • Best practices in contract management, including policies and procedures for effective controls
  • Auditing contracts - the audit process (including contract selection criteria) and recovery

At the end of this course, attendees will:

  • Be able to identify cost overcharges.
  • Be able to enhance revenue.
  • Know exposures in both contracting performance and administration.
  • Know common problems encountered in contract auditing.
  • Be able to develop objectives of contract auditing for their organization.
  • Know a model audit approach to apply to virtually any type of contract.
  • Provide a model approach to control of contracts.
  • Be able to identify performance issues related to contracts.
  • Be able to mobilize management to improve the management of contracting activity.
  • Know suggested contract language for better contract administration and auditing.
  • Know some best... and worst practices!

This two-day course provides beliefs, knowledge, skills and techniques auditors can use to recover costs, enhance revenues and help their organizations better administer and manage contracts.  The course presentation draws heavily on Mr. Wertheimer's personal experience in establishing and managing a contract audit program, providing a practical assessment of the challenges and opportunities in contract auditing.

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