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Contract Compliance Services for Third-Party Vendors
Maximize your third-party contracts
Contract terms and costs are often highly complex and difficult to interpret, monitor and verify. The potential for noncompliance is high—especially if your organization has complex agreements, a large volume of contracts to manage, international considerations or staff without specific contract expertise. Whether your third parties are not accurately reporting, meeting their financial obligations, or you’re paying in excess of the agreed terms, you could be leaving substantial amounts of money on the table.
RSM’s contract risk and compliance services help you identify overpayments made by your organization and underpayments or overbillings by your third parties—helping you realize all the benefits of your contracts in a nonadversarial manner.
RSM’s team of contract compliance specialists work with you to navigate areas of compliance across numerous types of relationships, including but not limited to:
Contract risk and compliance services provided across the various stages of the contract life cycle include, but are not limited to:
Negotiation and execution
Agreement and template review
Review of your contract template’s accounting terminology, audit clause and key definitions, as well as the contract reporting template, to suggest additional considerations, best practices and enhancements to agreements before execution.
Monitoring, management and termination
Risk assessment and audit plan development
For organizations with multiple agreements, we inventory and analyze your contracts based on qualitative and quantitative factors, assessing the contractual risk of monetary misstatements. Based on these risk factors, your agreements are ranked and an audit plan is developed to determine if third parties are paying in accordance with the terms of the agreement.
Contract compliance audits
When issues arise during the term of the agreement or at the end of the contract life cycle, companies must understand how to validate that third parties are performing as expected and assess compliance with the monetary provisions of the agreements. Our audit methodology includes developing a collaborative project plan and procedures specific to your unique agreement and concerns, to ensure the completeness and accuracy of your third-party reporting. Through the execution of the right to audit clause in the underlying contract, our monetary findings deliver significant return on investment and commonly the cost of our contract compliance audit passes to the third party by what we find.
Conversely, if your organization has been selected to undergo an audit, we can partner with you through the audit process to navigate the audit and ensure that scope is focused solely on the terms and conditions of the agreement and help you respond to and resolve any potential issues.
Data integrity and validation
It is critical that organizations have contract management and monitoring systems in place to ensure that accurate terms and conditions of the agreement are properly tracked to identify potential noncompliance issues as they arise. RSM provides independent assessments related to the accuracy of data in organizations’ contract management systems. Additionally, we work with organizations to abstract agreements for input or transfer to contract management systems or repositories in instances where this has not been established, as part of the acquisition process of other companies, or through the implementation of new systems.
Internal control assessments related to contract risk
Our team works with organizations to assess internal controls over several aspects of contract compliance, including monitoring financial obligations owed to our clients to maximize profitability as well as any obligations our clients may owe to third parties to minimize exposure to late fees and/or other penalties.
Dispute resolution and litigation support
In the event that your situation with your third party may result in dispute resolution or litigation support, our team of professionals can assist in the dispute resolution process, including serving as expert witnesses.
RSM delivers contract compliance consulting services through dedicated client service teams comprised of local, national and global advisers. Our team’s experience working through complex agreements, assessing large datasets, and navigating through sensitive situations and key business partner relationships lets us deliver value to our clients and enhance transparency in their third-party relationships no matter where they’re located across the globe.