Case Studies Case Study #1: “Memorial Hospital” - “Bill” Bill is the controller for a 200 bed Pennsylvania hospital. When we initially contacted him about reviewing his utility and telecom bills for unnecessary taxes, he said that another company had already done a review of their utility (electric & gas) accounts for taxes. We agreed to only review Memorial’s telecom bills for unnecessary taxes. As a result of several other hospitals asking for our service in the same geographic area in PA, UAC performed an on-site audit for Memorial Hospital along with several others. UAC has a history of finding and recovering tax where other companies have already checked. While our auditor was at Memorial Hospital, he asked Bill if he might recheck their utility bills for any unnecessary tax. Bill offered to allow our auditor to review the file he had from the other company who had reviewed his utility bills. It turned out that the other company had actually done a rate-type review of the hospital’s wireless telecom accounts. The review had nothing to do with electric and gas utility accounts. UAC recovered nearly $20,000 in tax refunds on the electric bills for the hospital. Since UAC only charges a fee based on the taxes it recovers, it makes sense to allow us to review all of your utility and telecom accounts for refundable taxes. Study #2: “St. Peter’s Health System” - “John” John is the vice president of finance for St. Peter’s Health System, a well-known healthcare system. Other projects for which he was responsible delayed John’s decision to retain UAC to review St. Peter’s utility and telecom bills for taxes. When UAC conducted its audit, we uncovered a considerable amount of tax, including unnecessary tax on several dozen gas accounts. St. Peter’s had established a system with the gas company whereby all new accounts were to be set up in a prescribed manner using a specified process. However, a number of accounts were set up outside the designated system and were not properly exempted. This resulted in taxes being inadvertently paid. UAC stopped and recovered these taxes in excess of $175,000. An estimated $87,500 in additional tax could have been recovered had John enlisted UAC to perform its audit two years earlier when he first learned about our service. Study #3: “Louisville Regional Medical System” - ”Frank” Frank, the accounting supervisor for a large Kentucky hospital system, wisely used UAC on two different occasions to review their bills for taxes. UAC was successful both times. Their total recovery to date is nearly $300,000. UAC has worked with a number of its clients 2 and in some cases 3 times – often recovering more tax on subsequent audits than on earlier audits. “Taxes just happen”, according to UAC President Byron Horner. The utility companies change billing software and exemption flags drop off. New accounts and sub-accounts are added and the correct process isn’t followed in getting the account properly exempted. And the list goes on. It’s nearly impossible for accounting departments to keep tabs on everything. That’s why it makes sense to use the tax experts at UAC to identify, stop and recover unnecessary taxes on your utility and telecom bills. With considerable tax recoveries on two separate occasions, Frank’s really glad he has UAC available to monitor his bills for unnecessary taxes.