Solutions Summit 2014 Automated Account Assignment Shannon A. Parker, CPA, CGMA

Chesapeake System Solutions, Inc. Proprietary and Confidential Learning Objectives After the presentation, attendees will be able to: Identify the most effective anti fraud controls to reduce the duration of fraud. Understand the timing associated with reassigning account reconciliation responsibilities Understand the characteristics associated with an account that can be used to reassign reconciliation responsibilities. Design rules to automatically reassign account reconciliation responsibilities.

Chesapeake System Solutions, Inc. Proprietary and Confidential Fraud Definition The intentional deception to cause a person to give up property or some lawful right. - Webster’s New World Dictionary The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of employing an organizations’ resources or assets. – Association of Fraud Examiners

Chesapeake System Solutions, Inc. Proprietary and Confidential Cost of Fraud A conservative estimate is approximately 5% of annual revenue, or over $3.7 trillion annually. The median loss caused by the frauds in our study was $145,000. The median duration — the amount of time from when the fraud commenced until it was detected —for the fraud cases reported to us was 18 months. The presence of anti-fraud controls is associated with reduced fraud losses and shorter fraud duration. - Association of Fraud Examiners 2014 Report to Nations

Chesapeake System Solutions, Inc. Proprietary and Confidential Portrait of an Employee Fraudster Trusted and valued employee Likely to be a married male with a family, religious affiliation and above average education. Most likely to be early 40s. A hard worker that arrives first, leaves last and takes few vacations.

Chesapeake System Solutions, Inc. Proprietary and Confidential Most Effective Anti-Fraud Controls To Detect Fraud Tips 40% of all cases detected by a tip More than twice the rate of any other method To Reduce Duration of Fraud Job rotation/mandatory vacation Reduced duration 62.5% (from 24 months to 9 months)

Chesapeake System Solutions, Inc. Proprietary and Confidential Automating Account Assignment Rotation Job Rotation for Account Reconciliations Scheduled Ad Hoc Based on User Defined Rules Rules contain an Operational Structure Rules assigned to Rule Sets Rule Sets selected in the task to run Accounts that meet the rules are reassigned to Pre defined workflows With selected assignees

Chesapeake System Solutions, Inc. Proprietary and Confidential Auto Account Assignment (AAA) Reassignment Rules are based on Account parameters Application New Accounts, Existing Accounts or Both Timing Current in process reconciliations (Existing) Future reconciliations (New or Existing) Selection by Operational Structure

Chesapeake System Solutions, Inc. Proprietary and Confidential Rules Based on Account Parameters T-Recs Account ID Segment T-Recs Account Name Grouped Reconciliation Name Account Type Import Account Balance Debit/Credit Base Currency Reporting Currency Balance Sheet Type T-Recs Account Number T-Recs Account Final Difference Risk Rating Additional Information Fields, T-Recs Account Additional Information Fields, Import Account Source Type

Chesapeake System Solutions, Inc. Proprietary and Confidential New Account ID Segment Used as a parameter for AAA rules Built in AAA Based on components of general ledger accounting code Example: Company-Department-Account-Sub Account-Product

Chesapeake System Solutions, Inc. Proprietary and Confidential Account Assignment Action Selections Workflow – Select the workflow to which the accounts meeting the rule should be assigned. Recon Workflow Parameters – Select the default RWP assigned to the Workflow, or select an Override RWP for the accounts meeting the rule. Fiscal Calendar – Select the currently assigned Fiscal Calendar (on the T- Recs Account) or select a Fiscal Calendar to be applied as an override. Workflow Roles – Select the users that should be assigned to accounts meeting the rule. Roles are predefined to the workflow.

Chesapeake System Solutions, Inc. Proprietary and Confidential Let’s Take a Look Insert a graphic of a T-Recs Enterprise screen

Thank you!