ACL Connections Chicago June 2, 2009

General Purpose Demonstrate ACL as part of a solution Demonstrate ACL as part of a solution Encourage other uses for ACL Encourage other uses for ACL Direct contact with ACL team Direct contact with ACL team

Using ACL to Automate Scorecard Talecris – Bio-Pharmaceutical & Mfg. Talecris – Bio-Pharmaceutical & Mfg.  60+ Plasma collection centers across U.S. (employees and location in lower-income areas)  7,000 donors daily  $2.5 million cash disbursed weekly

Talecris Challenges Geography Geography Conduct “surprise” cash counts at all centers Conduct “surprise” cash counts at all centers DOS-based mgmt system: month-end reports, focused on operations, data not readily available for data mining DOS-based mgmt system: month-end reports, focused on operations, data not readily available for data mining

Talecris Operations Manual process for donor payments Manual process for donor payments No standardization of payments No standardization of payments Weak cash controls Weak cash controls

Talecris: Donor Mgmt System System-based, automated donor mgmt process System-based, automated donor mgmt process ATM’s used for disbursements ATM’s used for disbursements Control concerns still existed Control concerns still existed –ATM malfunction –Modifications/ addtl pmt to system-generated amounts

Talecris Needs Independent assessment/reporting tool Independent assessment/reporting tool Prioritize “surprise” cash counts Prioritize “surprise” cash counts Ability to monitor center’s cash activity Ability to monitor center’s cash activity

Center Audit Scorecard DB tables imported to ACL DB tables imported to ACL 600-line script calculates metrics and exports an output table to Excel to produce the Scorecard 600-line script calculates metrics and exports an output table to Excel to produce the Scorecard Rolling six months of data are available Rolling six months of data are available Results are summarized or viewed for a specific center Results are summarized or viewed for a specific center Reporting by center, consolidated, metric Reporting by center, consolidated, metric

Scorecard Reporting Center Snapshot Center Snapshot Charts comparing centers or metric Charts comparing centers or metric Consolidated summary Consolidated summary

Fraud Prevention & Detection Dave Goderre – authored books on CAATS, significant contributor to ACL user forum Dave Goderre – authored books on CAATS, significant contributor to ACL user forum Fraud Risk Assessment Program - Lifecycle Approach: Fraud Risk Assessment Program - Lifecycle Approach: Assess – company-wide, fraudster’s perspective Assess – company-wide, fraudster’s perspective Access – identify all available source Access – identify all available source Defend – build and maintain tests, verify data integrity Defend – build and maintain tests, verify data integrity Continuous Assessment – refine scripts as necessary Continuous Assessment – refine scripts as necessary “Fraud prevention/detection is not an end but a journey”

Craig Leming, Sprint Nextel 49M wireless customers 48K employees 3 rd largest wireless provider in U.S. System Analyst from Info Sys

Goals Eliminate random sampling Identify all exceptions from total population Work with multiple formats and platforms from different departments Increase data analytics in IA dept.

Solutions Initial training program for IA dept. Advanced training for IT auditor Periodic training System Analyst performs extracts and queries, Audit Team performs data analysis

Inventory Adjustments Project Create an easy-to-use program for auditor Used dialog boxes Involved over 900K records Through data analytics, reduced auditor time 40% – 60%

Continuous Monitoring Use scripts to access data and automate testing – Build for easy use and understanding Very few companies use continuous monitoring – Lack of time and expertise to implement

General Observations Understand company operations and data Use ACL regularly There are resources available to help you succeed with ACL Not everyone’s going to be an ACL expert but do whatever you can to learn more about ACL.