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Performing arts organizations, music labels, and broadcasters often face audits from Performance Rights Organizations (PROs) to ensure proper licensing and royalty payments. Preparing thoroughly for these audits can save time, reduce stress, and ensure compliance. Here’s a guide on how to prepare successfully for audits by PROs.
Understanding the Audit Process
Before preparing, it’s important to understand what an audit entails. PROs typically review your licensing records, royalty payments, and usage reports. They may request documentation for performances, broadcasts, or streaming activities. Knowing what to expect helps you gather the right information and avoid surprises.
Gathering Necessary Documentation
- Performance logs and schedules
- Licensing agreements and contracts
- Royalty payment records
- Broadcast and streaming reports
- Event attendance and ticket sales (if applicable)
Organizing Your Records
Organize your documents chronologically or by event to make review easier. Use digital folders, spreadsheets, or dedicated record-keeping software. Clear, accessible records facilitate quick responses and demonstrate transparency during the audit.
Conducting an Internal Review
Before the PRO arrives, review your records for completeness and accuracy. Cross-check your licensing agreements with usage reports and royalty payments. Address any discrepancies proactively to avoid issues during the audit.
Implementing Compliance Measures
Ensure your licensing and reporting processes are up to date. Regularly audit your own records to maintain compliance. Training staff on proper record-keeping and licensing procedures can prevent errors and streamline future audits.
During the Audit
Be cooperative and transparent. Provide requested documentation promptly and clearly. Keep a record of any communications or additional requests from the PRO, and seek clarification if needed.
Post-Audit Follow-Up
Review the audit findings carefully. Address any identified issues and implement corrective actions. Maintaining good records and compliance practices will facilitate smoother future audits and foster a positive relationship with PROs.