The following is a listing of what the auditor will do during one of these audits. If your billing policies and procedures or your billing practices do not meet these standards, you are at risk.
- Compare billings with cash receipts to identify contract overpayments and ensure amounts due the Government are refunded or offset in a timely manner;
- Identify and resolve overpayments due to liquidation differences in a timely manner;
- Reconcile recorded to billed costs to ensure costs are not over billed;
- Identify contract administration adjustments to determine if adjustments are needed to billings and, if so, that they are computed correctly and appropriate refunds or offsets are processed timely;
- Ensure timely and documented responses are prepared in response to demand letters;
- Review contractors’ processes for monitoring subcontractor billings and identifying/resolving any overpayments timely;
- Ensure offsets are properly authorized, adequately documented, and applied against billings for previously identified overpayments;
- Ensure refunds are processed in a timely manner; and
- Timely notification to the cognizant paying office and contracting officer timely of significant overpayments.
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