Enterprise Services will begin distributing payments on May 15 totaling $4 million to more than 300 public agencies and non-profits as the result of a settlement agreement reached in 2012 with IKON Office Solutions Inc. and its parent company, Ricoh America Corp.
Settlement amounts for each account will range from $100 to $140,000, with most being for less than $1,000. The agreement followed a review of IKON's billings under the state's master contract for copier equipment.
King County will receive nearly $736,000, the largest single consolidated settlement payment. All settlement payments are final and non-negotiable.
About $3 million of the settlement relates to charges for equipment and about $1 million for copies and maintenance. The use of statistically determined audit results and usage of specific IKON accounts was used to determine the settlement disbursement amount for each IKON account.
Enterprise Services and Ricoh in 2010 hired the auditing firm PricewaterhouseCoopers to perform a review to help evaluate compliance by IKON after invoicing variances were discovered by the state in 2009 relating to a sampling of contract sales. The state designed the review, which covers IKON's customer transactions from April 1, 2007 through Oct. 31, 2010. Ricoh agreed to pay for all associated review fees.
After issuance of the review results by PricewaterhouseCoopers and separate analyses of the results, IKON agreed to the payment to resolve any variances. In addition, at the beginning of the review in 2009, the state worked with Ricoh to revise invoicing and payment procedures to provide greater transparency and to prevent recurrences.
Among its many duties, Enterprise Services develops and oversees about 1,000 contracts for various goods and services, ranging from vehicle purchases to office supplies to fuel and more.
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