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Ask ABC: What can my magazine do to ensure the smoothest audit possible?
How does ABC define the start of service date in regard to sponsored sales payment requirements?
What can my magazine do to ensure the smoothest audit possible?
NewsBulletin turned to ABC’s Joe Kaley, senior audit manager, for a magazine-focused auditing perspective. Here, Kaley offers some helpful tips for magazine members:
- Do a self audit. There should be no surprises in regards to auditor requests or what is required to complete the audit. If you work with a lot of third parties, like agents or sponsors, you should know the condition of their records.
- Have circulation programs reviewed in advance. ABC’s Publisher Relations staff exists to advise members on ABC rules and review circulation programs in advance. If you are unsure about the compliance of your program, have it reviewed. This also helps ABC auditors to adequately plan for your audit.
- Prepare for your audit by maintaining an organized filing system. The auditor will often request the same type of information each year so maintain a file of your printer invoices, 3541's, premium invoices, and sponsored sale information. When a request is made for this information it should be readily available. It's not uncommon for several weeks or even months to go by between an auditor request and receipt of required information. If you have any questions about what is required for the audit, contact your assigned auditor or audit manager.
- Get to know your auditor and audit manager. It is very important to build relationships with the audit staff because it will make the audit process run that much smoother. The audit staff is highly trained and is willing and able to answer any questions that come up during the audit. If they don't have the answer right away they will do their best to guide members in the right direction. I always tell my audit staff about the importance of building and maintaining relationships with ABC members.
- Use ABC's Web site - it has a wealth of information on it. Get to know what is available because most of the answers to questions that you have can be found at www.accessabc.com. Auditors and audit managers use it all the time to get up-to-date information. If you need clarification please contact an ABC staff member.
How does ABC define the start of service date in regard to sponsored sales payment requirements?
In July 2006, the ABC board of directors agreed to modify the sponsored sales rules to require that payments be received within four months of the start of service date. This change was effective Jan. 1, 2007.
During your annual audit, ABC auditors work to determine the mailing date of the first issue of the sponsored sales contract. If the payment was received within four months of the mailing of the first issue of the contract, then the requirement was fulfilled.
If the payment was not received within four months of the mailing date of the first issue, then the auditors would determine that the rule was not fulfilled and appropriate adjustments to the sponsored sales circulation would be made.
For more information or clarification, please contact your Publisher Relations manager.
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