Review of InvoicesIn auditing of invoices we ensure that the following specific items are adequately addressed prior to approving the invoice, as
applicable to their specific contract –
- Have the required items been delivered and/or the required services been performed? Certified and Re measurements of all quantities as per actual at Site.
- Are delivery and/or performance in accordance with the contractual terms and conditions?
- Are any billed items and/or services included in previously paid invoices?
- Are all submitted costs consistent with requirements in the contract, including contract ceilings, key personnel, subcontract costs, travel and equipment?
- Have all Other Direct Costs (ODCs) been properly substantiated and are the costs consistent with the requirements in the contract?
- Are all costs allowable and allocable to the contract?
- Is the invoiced period within the period of performance of the contract?
- We are technical oversight and assessment results of the contractor’ s performance reviewed against the invoice?
Are labor hours billed at appropriate rates?
- Are contractor employees qualified to perform the work consistent with the terms of the contract?
- Were progress payments under a fixed-price contract reviewed for accuracy and completeness and do they match other contractor reported data?
- Are all identifying data on the invoice (contract number,contractor name, address, date of invoice, etc) accurate?
- Was consideration given to any unique contractual terms and conditions (discounts, inspection periods, etc.)?
- Are provisional rates and fees billed consistent with contractual terms and conditions, and are the rates applied appropriately to costs?
- Are arithmetic calculations correct?
- Are claimed costs within the estimated cost of the award?
- Are payments within the ceilings established in the Limitation of Cost or Limitation of Funds clauses?
- Are deductions being made in the invoice amount? If so, was the contractor appropriately notified?
- If an overpayment was detected, was there a prompt follow-up and recovery of the funds?
Although this list of items may not be all-inclusive, ollowing a methodical invoice review and approval process that includes analyzing these kinds of invoice items can ensure that the Client makes payments to contractors only for goods and services received and accepted pursuant to contractual terms and conditions.