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An example of the Regulatory Consulting services that we provide is cost recovery for organizations in the context of government-mandated activities. Corporations, both large and small, seek to surcharge their customers to recover a portion of select costs associated with complying with nearly 100 government mandates. Having been incurred over decades, these expensed and capitalized costs, known to reside across most of an organization’s departments and business units, have not been carefully tied back to specific compliance activities, properly measured, and appropriately placed into billable cost pools with sufficient documentation and tracking. The process for and required levels of support necessary to take an authorized recovery position have increased as sophisticated corporations have implemented new and rigorous support processes.
GlassRatner helps clients to identify, create compliance linkage, measure, and document compliance costs according to best practices. Forensic accounting techniques and methodologies help overcome obstacles that naturally arise when seeking to take a recovery position. Our experienced team not only helps find and prioritize the opportunities, but knows how to handle the inevitable issues connected to building a support position.
Typical challenges include:
- Use of appropriate job grades, wage rates, and benefit factors
- Time allocation and tracking
- Knowing which overhead allocations are appropriate
- Dealing with data residing in mothballed and altered or replaced financial systems
- Understanding network and IT components relevant to compliance and incremental with mandates
- Coping with the complexities brought about by acquisitions
- Understanding the regulations, compliance mandates and numerous cost categories that naturally track to these mandates
- Educating client personnel on concepts, benefits, flexible opportunities, and data requirements
- Creating appropriate audit trails, including support memorandums and document archives
- Building “go forward” data capture methods and processes
- Recommending fixes to missed and erroneous past practices
- Articulating recommendations for recovery process changes
- Dealing with geographic cost breakdowns
- Handling business unit level stratification of costs
- Knowing the level of support that competing service providers are building
- Knowing the tools that industry players are relying upon to build support – e.g., time and motion studies, sampling, invoices, analytical estimation, ledger downloads, key word searches and more
- Understanding billing strategies and the role that recovery plays within the larger framework of customer ARPU and retention management
- Knowing how to best turn recovery into a risk management, economic benefits, and customer stickiness platform
Where hundreds of millions or even billions of dollars are at stake, this service offering provides our clients the experienced resources they need to complete the work in a timely manner, with minimal disruption to day-to-day activities of client personnel. The outcome is a defensible position resulting in sustainable EDITDA increases, lowered corporate risk, greater financial flexibility, and enhanced customer stickiness. Managed Regulatory Cost Recovery ranks among the highest payback opportunities available to our qualifying clients.