When it comes to third-party contracts, the axiom is "trust, but verify." What's more, recovery of money is not the exception, it is the norm in most cases. Some organizations can lose revenue, license fees, royalties, or pay higher amounts to partners than they should to third parties with which they have contractual arrangements.
Contract Compliance Services (CCS) can help recover those funds and improve internal processes to help ward off further losses and over-payments. In addition, other non-financial benefits can be achieved, such as process enhancement and improved relationships between business partners, among others.
CCS helps clients identify financial misreporting and reset the compliance baseline underpinning contractual relationships with business partners, which can result in potential collections or savings with significant return on investment (ROI). CCS can help increase the communication and understanding of contractual terms and obligations between the client and its business partner, leading to improved reporting processes and partner relationships.
CCS services include:
- Vendor Contracts — advises on management of vendor relationships and reviews payments to identify over billings for goods or services or missed revenue opportunities
- Royalty Compliance — aims to recover fees, help strengthen licensing relationships and identify opportunities for mitigating risk
- Software End-User License Review — monitors license compliance for software vendors, leading to increased current and future licensing and maintenance revenue
- Ad Agency Contract Compliance — aims to identify significant cost recoveries or other improvement opportunities
- Reseller and Distributor Review — assists with the enforcement of contracts with channel partners
- Digital Distribution — assists digital content owners in assessing the completeness and accuracy of self-reporting of content distribution.
- Software Asset management (SAM) — can include a review of people, process and technology areas against industry standards
- Intellectual Property (IP) Audit — assistance in assessing and optimizing processes of the IP governance throughout different stages of the IP lifecycle
- Gaining the full value - from contracts is clearly a chief concern for many companies in terms of enhancing income and reducing costs.
KPMG’s CCS professionals can help our clients by advising on:
- Recovered cash from overpricing and over-payments
- Better protection of intellectual property
- Mitigating and managing risks within the extended enterprise more effective financial reporting controls
- Improved relationships with key business partners
- Increased confidence in vendor’s contract compliance process
- Identified opportunities to enhance contract language
- In-depth industry experience and a dedicated practice