# Billing Audit Report: Meridian Media October 2026 Invoice
**Client:** Northstar Ops
**Vendor:** Meridian Media
**Invoice Reference:** MM-2026-1042
**Invoice Period:** October 1–31, 2026
**Status:** DRAFT (Internal Review Only)
---
## 1. Executive Summary
A comprehensive audit was conducted on Meridian Media’s October 2026 invoice (`MM-2026-1042`) by cross-referencing the **Signed Services Agreement**, the **Published Rate Card**, and the **October 2026 Delivery Log**.
* **Total Invoiced Amount:** **$11,550.00**
* **Correct Audited Amount:** **$10,500.00**
* **Total Discrepancy (Overcharge to Dispute):** **$1,050.00**
Two of the three invoice lines contain material billing discrepancies totaling **$1,050.00** in overcharges. Line 3 is completely accurate and should **not** be disputed.
---
## 2. Line-by-Line Detailed Audit & Arithmetic
### Line 1: Newsletter placement (Ops Weekly #204–#209 incl. resend)
* **Invoiced:** 7 placements @ $450.00 = **$3,150.00**
* **Delivery Log Verification:**
* 2026-10-01 (`Ops Weekly #204`): *ran* (1)
* 2026-10-08 (`Ops Weekly #205`): *ran* (2)
* 2026-10-15 (`Ops Weekly #206`): *ran* (3)
* 2026-10-22 (`Ops Weekly #207`): **canceled — did not run** (0)
* 2026-10-27 (`Ops Weekly #208`): *ran* (4)
* 2026-10-28 (`Ops Weekly #208 resend`): *ran* (5)
* 2026-10-30 (`Ops Weekly #209`): *ran* (6)
* **Actual billable quantity delivered:** **6 placements**
* **Rate Card vs. Contract Verification:**
* Meridian applied the standard published rate card effective Oct 1 ($450.00).
* **Services Agreement, Section 2 (Negotiated rate — newsletter placements):** explicitly states: *"Newsletter placements are billed at a negotiated $410 per placement. This supersedes the rate card for newsletter placements only."*
* **Make-Good / Cancellation Terms:**
* **Services Agreement, Section 4 (Make-goods):** *"A placement that does not run is not billable. Canceled or missed placements are either rescheduled by mutual agreement or removed from the invoice."*
* **Services Agreement, Section 5 (Delivery log):** *"Meridian's delivery log is the agreed record of which placements ran."*
* **Correct Arithmetic:**
$$\text{Correct Line 1 Total} = 6 \text{ placements} \times \$410.00/\text{placement} = \mathbf{\$2,460.00}$$
* **Discrepancy Breakdown:**
1. **Quantity Discrepancy:** Invoiced 7 placements instead of 6 billable placements (invoiced for canceled issue #207).
2. **Rate Discrepancy:** Invoiced at $450.00 instead of the negotiated contract rate of $410.00 ($40.00 overcharge per placement).
* **Line 1 Overcharge:** $\$3,150.00 - \$2,460.00 = \mathbf{\$690.00}$
*(Breakdown: 1 canceled placement billed at $\$450.00$ + 6 delivered placements overbilled by $\$40.00$ each $[\$240.00] = \$690.00$)*.
---
### Line 2: Sponsored article
* **Invoiced:** 6 placements @ $1,200.00 = **$7,200.00**
* **Delivery Log Verification:**
* 2026-10-06 (`Playbook: onboarding handoffs`): *ran* (1)
* 2026-10-12 (`Guide: workflow ownership`): *ran* (2)
* 2026-10-19 (`Checklist: quarterly planning`): *ran* (3)
* 2026-10-20 (`Story: two-team rollout`): *ran* (4)
* 2026-10-26 (`Deep dive: intake forms`): *ran* (5)
* 2026-10-29 (`Recap: fall ops summit`): *ran* (6)
* **Actual billable quantity delivered:** **6 placements** (Correct)
* **Rate Verification:**
* Published rate card effective Oct 1 lists Sponsored Articles at $1,200.00 each.
* Gross charges before discount: $6 \times \$1,200.00 = \$7,200.00$.
* **Volume Discount Audit:**
* **Services Agreement, Section 3 (Volume discount — sponsored articles):** *"If sponsored-article line-item charges before discount exceed $6,000 in a calendar month, a 5% discount applies to that month's sponsored-article line items only."*
* Pre-discount sponsored article total is $\$7,200.00$, which strictly exceeds the $\$6,000.00$ threshold.
* Discount percentage: 5%.
* **Correct Arithmetic:**
$$\text{Gross Amount} = 6 \times \$1,200.00 = \$7,200.00$$
$$\text{Volume Discount (5\%)} = \$7,200.00 \times 0.05 = \$360.00$$
$$\text{Correct Line 2 Net Total} = \$7,200.00 - \$360.00 = \mathbf{\$6,840.00}$$
* **Line 2 Overcharge:** $\$7,200.00 - \$6,840.00 = \mathbf{\$360.00}$ (Omission of contractually mandated 5% volume discount).
---
### Line 3: Podcast spot (Ops Chatter ep. 61–64)
* **Invoiced:** 4 placements @ $300.00 = **$1,200.00**
* **Delivery Log Verification:**
* 2026-10-09 (`Ops Chatter ep. 61`): *ran* (1)
* 2026-10-16 (`Ops Chatter ep. 62`): *ran* (2)
* 2026-10-23 (`Ops Chatter ep. 63`): *ran* (3)
* 2026-10-30 (`Ops Chatter ep. 64`): *ran* (4)
* **Actual billable quantity delivered:** **4 spots** (Correct)
* **Rate Card & Contract Verification:**
* Published rate card effective Oct 1 lists Podcast spots at $300.00.
* Agreement Section 1 confirms billing uses published rate card rates where no negotiated rate exists.
* Agreement Section 3 explicitly notes that volume discounts never apply to other placement types.
* **Correct Arithmetic:**
$$\text{Correct Line 3 Total} = 4 \times \$300.00 = \mathbf{\$1,200.00}$$
* **Discrepancy:** **$0.00**
* **Status:** **CLEAN / ACCURATE.** Do not dispute Line 3.
---
## 3. Invoice Audit Comparison Table
| Line | Placement Description | Invoiced Qty | Invoiced Rate | Invoiced Total | Audited Qty | Audited Rate | Audited Total | Variance (Overcharge) | Audit Finding / Basis |
|:---:|:---|:---:|:---:|:---:|:---:|:---:|:---:|:---:|:---|
| **1** | Newsletter placement | 7 | $450.00 | $3,150.00 | 6 | $410.00 | $2,460.00 | **+$690.00** | Billed unperformed #207 (Sec. 4 & 5); applied rate card instead of negotiated $410 rate (Sec. 2). |
| **2** | Sponsored article | 6 | $1,200.00 | $7,200.00 | 6 | $1,200.00* | $6,840.00 | **+$360.00** | Omitted contractual 5% volume discount for monthly charges over $6,000 (Sec. 3). |
| **3** | Podcast spot | 4 | $300.00 | $1,200.00 | 4 | $300.00 | $1,200.00 | **$0.00** | **Clean.** Correct quantity delivered and correct rate applied (Sec. 1). |
| **TOTAL** | | | | **$11,550.00** | | | **$10,500.00** | **+$1,050.00** | **Dispute $1,050.00; approve $10,500.00.** |
*\*Line 2 gross rate is $1,200.00/unit ($7,200.00 gross), less 5% ($360.00) = $6,840.00 net ($1,140.00 effective unit rate).*
---
## 4. Concrete Discrepancy Summary
Northstar Ops should formally dispute **$1,050.00** based on the following specific contractual items:
1. **Line 1 Newsletter Placements ($690.00 Overcharge):**
* **$450.00** for Ops Weekly #207 (canceled/did not run on 2026-10-22, in violation of Services Agreement Section 4 and Delivery Log).
* **$240.00** rate discrepancy ($40.00/placement across the 6 delivered placements: Ops Weekly #204, #205, #206, #208, #208 resend, #209), in violation of Services Agreement Section 2 establishing the $410.00 rate.
2. **Line 2 Sponsored Articles ($360.00 Overcharge):**
* **$360.00** unapplied volume discount. Pre-discount charges equaled $7,200.00, exceeding the $6,000.00 monthly threshold and triggering the mandatory 5% discount under Services Agreement Section 3 ($7,200.00 × 0.05 = $360.00).
---
## 5. Professional Next Step & Action Plan
### Recommended Action
Contact Meridian Media’s billing department (`billing@`) within the Net 30 terms to communicate the audit findings, submit the formal billing dispute of **$1,050.00**, and request a revised invoice for **$10,500.00** (or an immediate credit memo).
### Draft Communication to Vendor
```text
Subject: Billing Inquiry / Adjustment Request: Invoice MM-2026-1042 (Northstar Ops)
Hi Meridian Media Billing Team,
Thank you for sending over invoice MM-2026-1042 for October 2026. In reconciling the invoice against our signed Services Agreement and the October delivery log, we identified two discrepancies totaling an overcharge of $1,050.00:
1. Line 1 — Newsletter Placements (Invoiced: $3,150.00 | Correct: $2,460.00 | Discrepancy: $690.00):
• Quantity: The October delivery log indicates Ops Weekly #207 (2026-10-22) was canceled and did not run. Per Section 4 of our Services Agreement, unperformed placements are not billable. The delivered count is 6 placements (including the #208 resend), not 7.
• Unit Price: Per Section 2 of our Services Agreement, newsletter placements are billed at a negotiated rate of $410.00 per placement, superseding the rate card rate of $450.00.
• Correct Line Total: 6 placements × $410.00 = $2,460.00.
2. Line 2 — Sponsored Articles (Invoiced: $7,200.00 | Correct: $6,840.00 | Discrepancy: $360.00):
• Pre-discount line charges totaled $7,200.00 (6 articles × $1,200.00). Per Section 3 of our Services Agreement, line-item charges exceeding $6,000.00 in a calendar month qualify for a 5% volume discount ($360.00).
• Correct Line Total: $7,200.00 - $360.00 = $6,840.00.
3. Line 3 — Podcast Spots ($1,200.00):
• Confirmed clean and approved as invoiced (4 spots × $300.00).
Audited Invoice Total: $10,500.00 (Variance of -$1,050.00 from the invoiced $11,550.00).
Could you please issue an updated invoice reflecting the corrected total of $10,500.00 (or provide a $1,050.00 credit memo) so our accounts payable team can schedule timely payment under our Net 30 terms?
Best regards,
Operations & Finance Team
Northstar Ops
```