AGENDA. 1. Introduction* 2. E-billing Best Practices. 3. Tools 4. Summary 5. Q & A. Billing Guidelines Audit Expense Guidelines

Transcription

1 AGENDA 1. Introduction* 2. E-billing Best Practices Billing Guidelines Audit Expense Guidelines 3. Tools 4. Summary 5. Q & A 1

2 WHY IS THIS IMPORTANT? Managing Cost Cost control and captured savings through reductions and audit override of law firm charges Maximizing Efficiencies Setting billing guidelines, policies & procedures Use Tracker tools to create transparency expense guidelines 2

3 COMPLIANCE WITH RETENTION GUIDELINES Are our firms following our retention terms? Are we leaving money on the table by ignoring audits? BILLING GUIDELINE ENFORCEMENT Billing Guidelines Reduction Billing Guideline Override $53, $46, $47, $41, $12, $11, $14, $9, Q1 Q2 Q3 Q4 3

4 E-BILLING BEST PRACTICES Set your guidelines Define your policies and requirements Tell firms what you expect (staffing, rates), what costs are reimbursable*, and how to bill you Define prohibited costs and expenses Acknowledgment Send firms your billing guidelines for acknowledgment Post within Serengeti firms will have access Enforce your policies Reduce flags/reject violations Provide comments (line items, dispute/reject) Be strict 4

5 E-BILLING BEST PRACTICES Survey: How many are using billing guidelines? Respond to the survey in the Webinar Publish your Billing Guidelines Designate Billing Guidelines as such in Tracker footer 5

6 BILLING GUIDELINES BEST PRACTICES Serengeti Specific UTBMS Expense Codes TK Rates/Fee Arrangements Billing Timeframe LEDES/Invoice requirements Budgets/Accruals Status Reports/Documents Non-Serengeti Conflicts of Interest General Engagement of Counsel Corporate Counsel Role Settlement Diversity Insurance Media Coverage

7 BILLING GUIDELINES BEST PRACTICES Invoices: Company X uses Serengeti Tracker ( Tracker ) for all legal invoicing and billing, and all invoices must be submitted to Company X via Tracker in the form of LEDES invoices. Invoices related to services performed for Company X must conform to these Billing Requirements (the Billing Terms ). Exceptions to the Billing Terms must be approved by Company X, in writing, before the cost or expense is incurred. If exceptions are not approved, invoice may be subject to rejection. 7

8 BILLING GUIDELINES BEST PRACTICES UTBMS codes: Company X does not require task codes, however UTBMS expense codes are required* on LEDES invoice submissions. Billing Timeframe All fees must be submitted within 45 days of the work being done or invoices may be subject to delay or rejection by Company X. Fee Arrangements Flat fees entered in a certain way (submit invoice with fee line items and enter invoice level adjustment so invoice = flat fee). 8

9 BILLING GUIDELINES BEST PRACTICES Budgets/Accruals Budgets: For all matters in Tracker, law firms and other vendors will submit budgets for cases through Tracker. The Tracker budgeting process will be in lieu of s or phone calls and should be treated as overhead. Law firms and other vendors may be required to submit this information in order to submit invoices. Accruals: Law firms and vendors may be required to submit their yearly unbilled time through Tracker, for accrual by Company X. The window to submit unbilled time is typically between November 30 and December 10. This replaces the accrual process. 9

10 BILLING GUIDELINES BEST PRACTICES Status Reports Status reports may be required in Tracker for litigation and transactional matters on a monthly or quarterly basis. Users will be notified in Tracker if they are required for your matters. Documents Company X expects all relevant matter documents be loaded into Tracker to individual matters.

11 BILLING GUIDELINES BEST PRACTICES Timekeeper Rate Review By a certain date before your FY begins Only include all timekeepers reasonably expected to bill in upcoming FY (or who have billed in past 2 years) Only accept certain % of increases (if any) The current billable rates for each matter will be as set forth in the timekeeper rate sheet uploaded by your firm and approved by Company X. Attach the Serengeti firm notice template as an exhibit.

12 AUDIT EXPENSE GUIDELINES Survey: How many are using audit expense guidelines? Current stats: 56% of clients are using this tool! Client Confidential Tracker Coordinator wanted to be able to report on document review expenses, but was not requiring either task or expense codes. A lot of manual review would be required! 12

13 AUDIT EXPENSE GUIDELINES 13

14 EXPENSE GUIDELINES BEST PRACTICES Serengeti audit expense guidelines Set max allowable or $0 limit if expense not allowed Expenses beyond unit or total amount triggers audit alert Keep your guidelines current Do you know what your current guidelines are?* Conduct a yearly review to update Audit Override report - view violations UTBMS expense codes Audits work only with LEDES 1998B formatted invoices Require codes within Tracker 14

15 AUDIT EXPENSES - BEST PRACTICES Process improvements Expense violations are automated and transparent audit alerts Attorneys improve review time Achieved cost savings through increased reductions Reportability on expense categories Billing guideline reviewers BGR on invoice approval routes can be used to enforce your billing guidelines BGRs can also reduce review burden on attorneys Do you use a BGR? Review the efficiency 15

16 AUDIT EXPENSES - BEST PRACTICES Category Suggestions Telephone calls: set at $0 for all domestic calls Local travel: set at $0 Local counsel: set at $0 Online research: set at $0 if not reimbursable Other professionals: set at $0 so you can give permission Other: Set a reasonable max amount or at $0; don t let it become a dumping ground for other categories For most categories, set a reasonable amount If you don t set a guideline amount, many codes default to a maximum amount that won t trigger any audit flags 16

17 AUDIT EXPENSES BELIEVE IT OR NOT Actual Flagged Expense Violations: $29-3 movie rentals by outside counsel during business trip $65 - Multiple FedEx deliveries to in-house attorneys, same day and location $185 - Car service from pub in NYC to Long Island $993 & $654 - transportation to and from Brooklyn Marriott hotel to trial; reduced to $0 $ Online research; reduced to $140 ($380K invoice) $ Photocopy charges; reduced to $0 $ Online research; rejected & not reimbursable $6,090 expense for local counsel services rejected b/c local firm set up to bill separately in Tracker 17

18 LEDES EXPENSES REPORT 18

19 LEDES EXPENSES REPORT 19

20 LEDES EXPENSE CODES UTBMS Expense Code Revision In order to complete alignment with legal e-billing Proposed revisions include: Copying: separate B&W and color codes Telephone: separate local, long distance, and mobile Additional IP fees: in addition to existing patent and tm records, searches, applications, and maintenance fees New ediscovery: collection, review & analysis, doc production New technical, tax codes Go to Public comment period until October 26,

21 AUDIT EXPENSES - BEST PRACTICES Things to Think About Too many guidelines? - so many audits that approvers just ignore Not enough guidelines? not generating any alerts Firms just don t comply Serengeti has new tools to assist your analysis Audit Flag Report Card Provides detailed analysis of each audit flag type Focus on categories that produce many flags, but don t currently result in savings and reductions Project additional savings based on revamped guidelines 21

22 AUDIT FLAG REPORT CARD 22

23 Serengeti Tracker Plus A feature upgrade that allows your billing departments to preview invoice audit flags. Eliminate billing guideline violations Highlight errors and get the details you need to fix them before clients see them Avoid audit flags your staff will have to explain and clients will have to address

24 SUMMARY: BIG TAKEAWAYS Use Billing and Expense Guidelines to Facilitate Cost Control and Transparency Strike a Balance Between Spending Too Much Time Reviewing Invoices and Having Flexibility with Firms Use Tracker Tools to Ease Review Burden Small Reductions Can Add Up to Big Savings! 24

25 ACHIEVE TRANSPARENCY 25

26 CRM CONTACT INFORMATION Myles Van Leuven or Abigail Stock or Tyler Norwood or Dawn Ehlke or Ofoe Canacoo or 26

27 QUESTIONS?