212-362-1111
[email protected]
460 Park Ave South, 12th Floor
New York, NY 10016
www.ProfitRetrieval.com
Generating Higher
Profits Using Profit
Retrieval Corp
Why Recovery?
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In a process flow of 100 million, a 0.1% error margin (that is
standard for recovery engagements) translates into $100,000 in
recoveries! Most recovery methods generate much higher returns
from 1% to 10% of the spend category.
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Cost. These are contingency based engagements with PRC. If we
do not find savings for your organization, there are no fees.
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Profit recovery audits measure the need for improvements within the
business process.
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Recovering $1 million to the pre-tax bottom line can equate to $10
million in sales, theoretically.
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Recovery audits create a new bill of health and transparency
between your company, your business partners, suppliers, and
vendors.
Value Proposal
A risk free process to identify and
recover overpayments and underdeductions unintentionally made to
suppliers of goods and services
that would otherwise remain
undetected and lost.
Profit Opportunities
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Accounts Payable
Audit Fee Benchmarking
Advertising Agency
Document Fleet
Freight
Health Benefits
Lease
Media
Order to Cash
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Proactive Fraud Detection
Project Fraud
Real Estate Depreciation
Sales & Use Tax / VAT / R&D
Tax / Employee Tax
Strategic Sourcing
Telecom
Travel and Entertainment
Utilities
Creating a Perpetual Cash Register
Our Process
Phase 1 – We meet with you and your team to learn about your organization. This helps us identify current operating procedures
and systems in place, as well as document known opportunities for improvement in each.
Phase 2 – Based upon the results from phase one – we submit a detailed data request which identifies all the information we will
need to complete your audit(s).
Phase 3 – During this phase we get into the details that are impacting your bottom line. We analyze the data meticulously to
make sure we identify all possible sources of profit loss.
Phase 4 – We share our findings in a detailed audit report. We document each recovery opportunity we have identified, make
suggestions for operational/procedural modifications, and map out a plan to recover lost monies.
Phase 5 – This is the recovery phase. Once we receive approval from your team, we begin contacting vendors to retrieve lost
revenue. This phase may also include suggestions for vendor contract re-negotiations/replacements.
A/P and Spend Analysis
Client Resources Required
1. We need the following to get started:
• Vendor Master table
• A/P Invoice table
• Invoice Distribution table (optional – but helpful)
• List of vendors to not contact
• Virtual access to you’re A/P system and invoice images
• Email account established on your Email server
• Access to select vendor contracts which will be requested
after analytic review of your data
2. Once our auditors have recovered savings, the internal team must
review the claims and decide which ones to post to the payables
system. Generally this process takes 1-3 days for a client total time
for the engagement
3. At the end of the engagement, we provide an overall summary of
findings and best practice improvements to your process. We will
also make suggestions for procurement contract reviews.
Why Us?
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Unmatched industry experience and expertise
Proven results
Expand your internal audit reach without increasing your
budget
No risk to your organization – all engagements are
contingency based
Transparent and detailed approach/process
No software purchases or training costs
Data requests already built for SAP, Oracle, JDE and other
accounting packages
Reports are ran within hours of data delivery and based on
decades of client engagements
Low cost fraud deterrent
Our Services
Accounts Payable
Data Review
Our trained and highly
experienced auditors, will
closely review, uncover and
identify:
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Incorrect payments
Unclaimed credits
Inaccurate invoicing
Unclaimed discounts
Sales tax errors
Inaccurate freight charges
Spend Analysis Reviews &
Recovery
After our historical data review,
we take it one step further and
add to your bottom line by:
• Collecting erroneous billed
and paid amounts.
• Conducting a thorough
review of internal
procedures and systems to
make sure future errors are
avoided.
And you don’t spend anything until we recover your missing profits.
Case Study – Health
Benefits Auditing
Company A has 500 employees in its self-funded health plan, who all work at the same manufacturing site. Unexpectedly, Company A’s health
plan expenses began to increase rapidly. Company A contracted Profit Retrieval Corp and its partners (PRC) to review and audit their health care
plans.
Immediately, PRC was able to find erroneous payments for eye procedures that had been excluded from the plan as well as spouses who were
no longer eligible to be on the plan. But these findings were minuscule in comparison to the recoveries that PRC found in regards to the firm’s
stop-loss coverage. Stop-loss is a form of insurance coverage some self-funded plans purchase. It takes two forms, specific (coverage for
individual large cases above a given dollar amount) and aggregate (coverage for a whole plan year when overall claims go past a certain level).
The five cases found for Company A were all specific cases. Company A had purchased specific insurance for any case that exceeded $75,000
in claims for the plan.
What PRC found is that claims that occurred in one plan year had not been paid until the next plan year. Had the claims been paid in the
appropriate year, stop-loss levels would have been hit and the excess claims paid. For these five claims, excess payments amounted to
$500,000 or 15% of plan costs. Negotiations with the stop-loss payer recovered $100,000. After the audit and contingency fees paid to PRC,
Company A received a $5.83-to-$1 return on investment.