Scope of Work: Review all local and long distance telecommunications services.

Results: 65% reduction in long distance expenses!

The audit began in June2006 with the collection of all the local and long distance bills. The annual telecommunications budget totaled approximately $2.1 million. The purpose of the audit was to compare the billed services to rates invoiced, identifying billing errors, get refunds for overcharges and find ways to save money going forward.

During the course of the audit, after only two of the three carriers were reviewed the following results were produced:

• A discrepancy in the contracted international long distance rates vs. the billed rates was found.
• There was also an error in the rates billed for long distance circuits.
• A $431,147.00 refund was obtained for these errors.
• The resulting annual savings is $270,240.00

Scope of Work: Review telecommunications costs to reduce expenses.

Results: Total Savings of 75% of long distance budget.

Two telecommunications audits were conducted on a large north Texas School District, one in 1996 and the other in 1999. The district consists of 133 elementary, middle and high school campuses plus a large administration facility.

The first audit (1996) included the review of the local telephone service consisting of approximately 4300 Centrex lines, fixed data circuits and long distance services. Cost Reduction Group thoroughly examined all billing for accuracy. Site surveys were done to determine the use of all services and this is what was found:

• By correcting the inaccuracies of the lines billed to the long distance account The District enjoyed an annual savings of $269.00.
• Significant call abuses were found and once restricted, resulted in an annual savings of $4,870.00.
• Recurring charges were found for an unused data circuit contract resulting in an annual savings of $5,380.00.
• The local telephone carrier was overbilling directory assistance resulting in an annual savings of $928.00.
• Removing numerous unused services resulted in an annual savings of $11,315.00.
• A renegotiation of the long distance contract resulted in an annual savings of $17,532.00.

The second audit conducted in 1999 was a more focused review of only their long distance billing. There had been some changes to fees that were to be accessed to all long distance customers. The district knew something wasn’t right but could not get a straight answer from their carrier. The Cost Reduction Audit found that the carrier did not have The District’s lines classified properly hence charging them a significantly higher rate than necessary. Once corrected, the results were as follows:

• Monthly savings of $14,080.00 or $168,969.00 annually!
• A one time refund of $336,000.00!

The total savings translated in a 75% savings in their long distance budget!