Pub. 9 2018 Issue 1

www.wvbankers.org 28 West Virginia Banker Always Vigilant: The Potential Cost of Not Auditing Vendor Invoices Vendor contract management is something that every finan- cial institution (FI) undertakes as part of the cost of doing business. The average number of contracts a bank or credit union may have varies, but it is not unusual to see the number fall in a range of between 100 to 500 contracts on average. While every FI is looking for ways to trim costs, many treat vendor contract management as a responsibility that can be simply added to the list of duties held by an employee that probably already has a full plate. The ever-increasing com- plexity of contracts and the growing number of vendors can make this approach very expensive for an institution. For example, in many organizations, the time available for the approval of invoices related to vendor contracts may mean that little more can be done other than confirming the amount due is consistent with previous months. However, like the proverbial frog that doesn’t realize it’s in a pot of boiling water as the temperature gradually rises, a basic comparison The Cost & Savings of Eternal Vigilance in Managing Vendor Contracts By Patrick Goodwin, Strategic Resource Management The average number of contracts a bank or credit union may have varies, but it is not unusual to see the number fall in a range of between 100 to 500 contracts on average.