Cost Recovery: Turning Your Accounts Payable Department into a Profit Center
By Richard B. Lanza
Cost recovery is not a new concept to organizations looking to improve the bottom line. In 1996 the U.S. Secretary of Defense instructed departments to begin looking at ways to recover overcharges by vendors. Rich Lanza, an audit technology expert, provides a step-by-step process to develop an organization wide cost recovery effort. The first chapters cover the benefits of cost recovery services and overcoming obstacles. Obviously the benefits are financial however it is much more than just identifying overpayments. There are obstacles including management resistance. Understanding both the benefits and obstacles are important to developing an organizational cost recovery program. There are sections for assessing opportunities and risks, the cost recovery marketplace, categories, selecting a provider and, recovery technology. Rich’s experience as an auditor, audit technology expert and champion of cost recovery auditing gives him a unique perspective and approach to this topic. There are practical examples and case studies of how to save money for functional areas such as accounts payable and procurement, advertising, freight, healthcare, leasing, fixed assets, utility reviews and more. The last chapter covers the technology used in recovery efforts. Rich makes the point that technology alone will not ease the problem. Understanding the process definitely precedes the introduction of technology. This book sets the standard for data recovery auditing. Every audit department should add this book to their professional library and incorporate the author’s guidance into their audit plans to consider cost recovery in every project.
JK2010