It is important for the claims audit function to be viewed as more than just a claim-by-claim review and to consider the function in the broader scope of your operations. The body or official auditing claims should be aware of trends in expenditures that may provide opportunities for improvement in procuring goods and services. An analytical review may also indicate that certain types of expenditures may have been inappropriately incurred. Periodic reviews of vendor payment summary records or reports can alert you to changes in expenditure trends and areas for possible improvement and investigation. The following are examples of areas to consider:
- Increases in utility usage (consumption) and telephone and cell phone expenditures.
- Increases in expenditures for consumable inventory items such as office and cafeteria supplies.
- Increases in expenditures for moveable items such as technology equipment (i.e., computers and printers) and maintenance equipment (i.e., chainsaws and lawn mowers).
- Large repair costs for equipment may be an indication that it is more cost-effective to purchase new equipment instead of repairing aging equipment.
- Items that, in the aggregate, have exceeded competitive bidding or competitive offering monetary thresholds and should be acquired through competitive bidding or competitive offering procedures.