Case Studies

There’s opportunity for recovery and process improvements within many different contract areas of your business. These case studies illustrate the actual benefits Connolly delivers to its clients.

Recalculating federal excise tax credits results in $50,000 recovery

Audit:  Cost plus contract for supply of fuel and fuel services

Discovery:  Supplier received Federal Excise Tax credits but failed to pass through to client

Focus:  Reviewed each element of cost to determine “true cost”

What We Did:  Analyzed total fuel costs to contractor over life of contract and quantified “accompanying” Federal Excise Tax (FET) credits for bio-diesel and ethanol purchases. Reviewed the invoice history and determined that the credits had not been passed on to our client.

Value:  Connolly netted the credits against the fuel charges to determine the actual cost to the contractor and recalculated allowable invoice charges. Our analysis resulted in recovery claims of $50,000.

Recommendation:  Connolly recommended that when contracting for purchases qualifying for tax credits, a special notice be placed in the system to regularly inform users of the need to reconcile taxes. At a minimum, finance personnel should track purchases on a quarterly basis to ensure that proper tax credits are received.