Yesterday audit/assessment notifications went one beyond a hat-trick with clients informing us of four types of forthcoming LSC activity.
First up a Civil “Fixed Fee Contract Compliance Audit” of the type discussed in my last training round. Essentially a check of main contract rules, e.g. eligibility, rather than line-by-line cost assessment. Their expressed intent, as the gradation of results demonstrates, is to find files which can be “nil assessed”. 7 or more and you are in for a much more thorough examination and potentially significant “recoupment”. It is the usual 20 file sample.
Next a standard Peer Review sample, a process which continues to rumble on and about which I was training yesterday afternoon.
As we have stated before KPI audits are also being arranged especially in the CLS, with your performance especially against the 20% fixed fee margin proving an important trigger of their interest.
Finally, and most surprisingly, the notification of an old fashioned “Control Audit” to a CDS client. The surprise is caused by the strong probability, on our experience, that the underlying data on which this is based is likely to be flawed.
All of which suggests an upsurge of the LSC inspection regime.

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