1. A New Kind of Timesheet Brings Biometrics to Main Street Neal Katz Vice President Count Me In, LLC Mt. Prospect, IL 800-958-8779 neal@countmeinllc.com

2. The Small Business Market 16 Million Small Businesses Primarily Retail and Service Industries Most Employ 1-19 Workers Many Hourly Most Expect to Grow Services Retail Child Care Medical Manufacturing

3. In Most Businesses

4. Sales Customer Service Collections The Business Mind Important Customer Satisfaction Doing the Job Working with Employees Making $$$ Satisfying Taxes Organizing Filing HR Accounting Payroll Time Consuming PayrollPayroll

5. First, There Were Timesheets Employees Recorded Their Hours on Paper Timesheets When did they fill them out? On Entering and Leaving? Daily? Weekly? Sheets Handed to Supervisors Regularly (Daily, Weekly, Etc.) Managers review, approve and forward HR/Accounting Enters Data into Payroll System

6. Paper Production, Distribution and Collection Manual Analysis and Reconciliation Entries Entered Manually for Processing Errors Likely: Complaints only on Underpayment Entry Accuracy Depends on Employees’ Honesty Timesheets: Problems and Costs Estimated Time Per Pay Period Per Employee 2-3 minutes 1 minute 7-10 minutes

7. Costs of Timesheets ~12 minutes per employee per period 26 periods 15 hourly employees 4680/minutes=78 hours/year @$15/hour Annual Cost = $1170 Annual Cost = $1170 Timesheet Distribution and Entry, with No Calculations and No Added Value = $1,170

8. Remember Punching the Time Clock? Recorded units of time worked Basic tool of businesses with hourly employees Each employee “punches” in and out Date and Time recorded on paper cards Payroll/Accounting processes manual Periodic Computation of: Hours Wages Schedule Adherence

9. Time Clocks Increased Timekeeping Accuracy Time was recorded accurately Times were consistent and standardized Collection of “timecards” centralized All processes except timekeeping remained manual

10. Next: Electronic Time Clock Next: Electronic Time Clock Replaced Timecards and Timesheets Employees Identified by Badge, PINS, and other IDs Time Entered Following Identification Time Worked is Calculated at the Terminal Terminal “Dumps” Data to Printer (or PC)

11. Computerization: Benefits Paperwork Reduction Accuracy of Timekeeping Elimination of Data Entry Accuracy of Calculation Reduced Buddy Punching

12. Additional Benefits Reduced Check Adjustments and Reissues Fewer HR Inquiries Single Data Entry; Multiple Purposes Timekeeping Payroll Human Resources (Benefits/Time Off) Project Management/Project Costing

13. Electronics Lack Intelligence: Is 3 hours and 13 mins. really 3.15? Was she LATE or not?

14. Importance of Business Rules How to Define Regular and Overtime Hours? What is Weekend? Holiday? Split Shift? Did the Employee Work as Scheduled?

15. Electronic Time Clocks Lack Flexibility and Breadth Business Rules for Time and Attendance are “Hard Coded” Limited Flexibility Payroll Periods: Weekly, Bi-Weekly, Semi-Monthly & Monthly Specific Shifts/Schedules Limited Overtime Periods: Daily or Weekly Limited Holiday Recognition

16. Is Millie Millie? What you have or what you know can be shared, lost, or stolen

17. Costs of Buddy Punching and Employee Time Theft $ Employees

18. Primary Sources of Fraud and Errors in Timekeeping Buddy Punching Errors in Data Entry Errors in Rule Interpretation

19. Biometrics Allow Business to Discard the Time Card System Recognizes and/or Verifies the Individual Automatically Captures Entry/Exit Times Replaces Manual Timesheets and Electronic Timecards

20. Verification vs. Identification Identity Verification Identity Verification Q: “Is this who s/he claims to be?” A: Yes / No 1:1 Requires Prompt (e.g., PIN, card) Identification Identification Q: “Who is this person?” A: Albert Einstein 1:N or 1:Many Requires Differentiation

21. Four Key Steps in Recognition Capture - a physical or behavioral sample is captured during enrollment Extraction - unique data is extracted from the sample and a template is created Comparison/Match - the template is compared with a new sample and the system determines whether there is a match. Storage - the system stores template data only on the server, workstation, etc. Courtesy:I/O Software, Inc

22. Biometrics Assures Identities : Enrollment process Image CaptureImage Processing RAW TEMPLATE DATABASE StoredFeature Extraction 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0

23. Biometrics Assures Identities : Authentication process Image Processing TEMPLATE DATABASE Image Capture RAW Search and Compare Feature Extraction 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0 1-0-1-0-0 1-0-1-1-0 1-0-1-0-0 1-0-1-1-0 1-0-1-0-0 0-0-1-1-0 1-0-0-1-0 1-0-1-0-0 0-0-1-1-0 1-0-0-1-0 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0 1-0-1-1-0 0-0-1-1-0 1-1-1-0-0 1-1-0-1-0 0-1-0-1-0 1-1-1-0-0 1-1-0-1-0 0-1-0-1-0 1-1-1-0-0 1-0-0-1-0- 1-0-1-1-0- 1-0-1-0-1- 1-0-0-1-0- 1-0-1-1-0- 1-0-1-0-1- 1-0-1-1-0- 0-0-1-1-0- 1-1-1-0-0- 1-0-1-1-0- 0-0-1-1-0- 1-1-1-0-0- 1-0-1-1-0- 0-1-1-0-1 1-1-0-1 -0- 1-0-1-1-0- 0-1-1-0-1 1-1-0-1 -0- 1-0-1-1-0- 0-0-1-1-0- 1-1-1-0-0- 1-0-1-1-0- 0-0-1-1-0- 1-1-1-0-0- 1-0-1-1-0- 0-0-1-1-0- 1-1-1-0-0-

24. Selecting Biometric Technologies Involves Tradeoffs Convenient Intrusive Fingerprint Hand Iris Retina Voice Handwriting Face Complex Simple

25. Return on Investment (Time and Attendance) Managerial/Clerical Savings Reconciliation/Auditing Data Entry Time Theft/Human Error Buddy Punching Time Entry Fraud

26. Return on Investment Reconciliation and Auditing Savings FACTORQUANTITY Number of employees 10 employees Minutes saved reconciling & auditing each timesheet 10 minutes/ timesheet Minutes saved per pay period 100 minutes/period Weeks per pay period 2 weeks Department head/auditor's hourly rate$30.00/hr Department head/auditor's labor savings per pay period $50.00/pay period Department head/auditor’s annual labor savings $1,300/yr

27. Return on Investment Data Entry Savings FACTORQUANTITY Average hours/ employee/week 40 Hrs Number of employees10 Employees Total hours per week400 Hrs Employee’s average hourly rate $25/Hr Total weekly payroll$10,000/week Estimated human error factor (1-3%) 2% Weekly savings$200/Wk= $10,400/Yr

28. Return on Investment Reduced "Time Theft" Return on Investment Reduced "Time Theft" FACTORQUANTITY Average weekly "time theft"4.08 hours Number of employees10 Total "theft" per pay period40.80 Average hourly rate$25/hour Total wages recaptured/weekly $1,020/week Total wages recaptured$53,040/year

29. Return on Investment (Time and Attendance) Managerial/Clerical Savings Reconciliation/Auditing$ 1,300 Data Entry$10,400 Time Theft/Human Error $53,040 Buddy Punching ---- Time Entry Fraud ---- Total Estimated Savings $64,740 Based on 10 Employee Company, $25/hr. Avg. Salary

30. Additional Benefits Complementary Business Solutions Integration of Identification/Verification Engine(s) and Time and Attendance Access Control and Security (Child Care, etc.) Membership Validation (Health Clubs, etc.) Complementary Business Applications Integration of Output Data with Accounting/HR (QuickBooks, ACCPAC, etc.) Payroll Processing (ADP, Paychex, etc.)

31. ROI Ease of Use Robust Solution Flexible Business Rules Type of Entry/Input Device Integration with Complementary Applications Integration with Complementary Solutions Choosing Time and Attendance Solutions