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Transcript of Automated Information Controls Prepared for: Committee on Finance and Information Technology (CFIT)...
Automated Information Controls Automated Information Controls Prepared for:Prepared for:
Committee on Finance and Information Technology Committee on Finance and Information Technology (CFIT)(CFIT)
Presented By:
Sumit Nijhawan
2008-09-25 © 2008 Infogix, Inc. 2
What is a Top Concern for What is a Top Concern for Financial Executives?Financial Executives?
Integrity of Information Analytical Information Access Rising IT Costs High/Rising SOX Compliance Costs
2008-09-25 © 2008 Infogix, Inc. 3
Top Concerns for Financial Executives Top Concerns for Financial Executives
Integrity of Information Analytical Information Access Rising IT Costs High/Rising SOX Compliance Costs
Source: Technology Issues for Financial Executives
2008 Annual Survey Report
2008-09-25 © 2008 Infogix, Inc. 4
Infogix Eliminates Information ErrorsInfogix Eliminates Information Errors
Information errors is a pervasive and universal phenomenon especially in financial processes.
Cost and impact of information errors can be small or catastrophic.
Infogix is the company that has the expertise and technology to solve this problem.
2008-09-25 © 2008 Infogix, Inc. 52008-09-25© 2008 Infogix, Inc. 5
Managing Errors and Complexity
No Controls Manual Controls Spreadsheets Programming Logic
Integrated
Application
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What We DoWhat We Do
Infogix helps you eliminate information errors
with
independent, automated, and continuous
Infogix Controls™.
2008-09-25 © 2008 Infogix, Inc. 7
Benefits of Infogix Controls Benefits of Infogix Controls
Reduce Costs Eliminate duplicate payments Eliminate SLA penalties Eliminate billing errors
Reduce Risk Protect company brand Avoid litigation Avoid catastrophic errors
Streamline Compliance Eliminate reporting errors Reduce audit time and costs Increase controls effectiveness
Improve Processes Eliminate manual controls Eliminate rework, re-runs Standardize controls
Infogix Controls increase profits.Infogix Controls increase profits.
2008-09-25 © 2008 Infogix, Inc. 8
Infogix Controls Can Be Used Infogix Controls Can Be Used Throughout Your EnterpriseThroughout Your Enterprise
Infogix Controls improve information intensive processes.Infogix Controls improve information intensive processes.
General Ledger Statutory Reporting SOX and Other
Compliance Efforts Electronic Payments Accounts Payable Accounts Receivable Data Warehouse/BI/CPM
Statement Generation Claims Processing Inventory Replenishment Billing Payroll Expense Management Commissions
2008-09-25 © 2008 Infogix, Inc. 9
The Infogix DifferenceThe Infogix Difference
Automated Validate all transactions instead of manual sampling
Independent Validate processes/information independent of controlled systems
Continuous Continuously available controls execute as often as needed
Verifiable Audit trail of control results ensures compliance and speeds audits
Standardized Standardize controls throughout the enterprise
Rule-based Implement and maintain controls without software developers
Non-intrusive Capture controlled information in existing formats and locations
End-to-End Validate information between applications across the enterprise
2008-09-25 © 2008 Infogix, Inc. 10
Gartner ReportGartner Report
Cool Vendors, 2008: Innovations from Around the World
Infogix is “cool” because our solution “focuses primarily on data in flight” “can be implemented in an unobtrusive manner without
changes to existing applications and databases” “enables auditing of data consistency in an independent
manner”
2008-09-25© 2008 Infogix, Inc. 11
How do Infogix Controls Work?
2008-09-25© 2008 Infogix, Inc. 12
Business processes are complex.
2008-09-25© 2008 Infogix, Inc. 13
The potential for information errors exists throughout the business process.
2008-09-25© 2008 Infogix, Inc. 14
Infogix Controls monitor, detect, and prevent information errors.
2008-09-25© 2008 Infogix, Inc. 15
Infogix Controls are deployed as control points.
Process A Process B Process CControl Point 1 Control Point 2
2008-09-25© 2008 Infogix, Inc. 16
At each control point, the Infogix Control:
Process ProcessControl Point
1. captures information,2. compares the information,3. controls the process, and4. communicates the control results.
2008-09-25© 2008 Infogix, Inc. 17
There are four steps to setting up an Infogix Control.
2008-09-25© 2008 Infogix, Inc. 18
To do that, you specify the format of the source information, how it will be accessed,
and where it is located.
First, you define the layout of the information to be captured at the control point.
1
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Infogix Controls can capture data from a wide variety of sources.
financial and
operational reports
applicationfiles and
proprietary formats
databases XML Spreadsheets EDI web
2008-09-25© 2008 Infogix, Inc. 20
You specify the fields of information from your sources that the
Infogix Control will capture.
Layout Layout Fields
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Infogix Controls may capture information from multiple sources.
Layout Layout Fields
2008-09-25© 2008 Infogix, Inc. 22
The layout definition also specifies the control fields into which the
source information is captured.
Layout Fields Control Fields
2008-09-25© 2008 Infogix, Inc. 23
Second, you define the comparison rules the Infogix Control will use to compare the control
fields. The rules can be simple or complex.
2
2008-09-25© 2008 Infogix, Inc. 24
For example, you might want to halt further processing or to execute other Infogix Controls.
3
Third, you define control actions to be performed based on the result of the
comparisons.
Record audit trail into control report.
Stop further processing of this transaction.
Execute reconciliation controls.
2008-09-25© 2008 Infogix, Inc. 25
Finally, you define what and how you want to communicate about the results of the execution
of the Infogix Control.
4
For example, you may want to send alerts to specific people via pager, email, exception report,
Infogix Inbox, etc.
2008-09-25© 2008 Infogix, Inc. 26
Let’s Look at Examples.
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Infogix Controls can automate, simplify and streamline daily or month-end financial
accounting practices. Let’s look at a simplified General Ledger Application example.
2008-09-25© 2008 Infogix, Inc. 28
On a daily basis, all Branch Teller Journal activity is received and tabulated based on Branch location in
different regions of the country.
On that same day, internal applications augment and centralize the information into Sub Ledgers prior to
updating the General Ledger
2008-09-25© 2008 Infogix, Inc. 29
Infogix Controls can automatically verify that transactions in the Teller Journal application are received and processed by the Sub Ledger and accurately posted to the General Ledger before
any month-end information is generated.
Teller Journal General LedgerSub Ledger
2008-09-25© 2008 Infogix, Inc. 30
Teller Journal Activity
Excel or XML File Layout
Layout Fields
2008-09-25© 2008 Infogix, Inc. 31
Sub Ledger Process
Sub Ledger Transaction
Capture
Sub Ledger Summary Capture
Layout Fields
Layout Fields
2008-09-25© 2008 Infogix, Inc. 32
General Ledger Activity
Excel or Database
Layout
Layout Fields
2008-09-25© 2008 Infogix, Inc. 33
Teller Activity Posting Process Control
Teller Activity Detail
Control Point 1
Sub Ledger Detail & Summary
Control Point 2Results
Control Point 3
General Ledger Summary Postings
2008-09-25© 2008 Infogix, Inc. 34
What about more complex processes…..
2008-09-25 © 2008 Infogix, Inc. 352008-09-25© 2008 Infogix, Inc. 35
General Ledger ControlsGeneral Ledger Controls
Infogix Controls
•Balance Corporate General Ledger•Reconcile all GL Accounts to Activity Within Accounts•Reconcile General Ledger to Sub Ledgers
LOB 1
LOB 2
GeneralLedger
TrialBalance
SourceSystems
Sub Ledgers
CorporateGL
GeneralLedger
TrialBalance
•Reconcile Trial Balance to GL•Manage all Outstanding Inventory Items•Manage Production of Posting Entries
SourceSystems
Sub Ledgers
2008-09-25 © 2008 Infogix, Inc. 362008-09-25© 2008 Infogix, Inc. 36
Loan Processing ControlsLoan Processing Controls
Calculated Balance
Origination
Reference Sources-Fee Tables
-Credit Cards
LoanData
GeneralLedger
MortgageProcessing
Payments and Refunds
VendorCharges
Infogix Controls
•Validate loans •Reconcile Fees to Reference Sources
•Validate Payments and Refunds •Validate Vendor Charges•Reconcile GL Posting of Loans
2008-09-25 © 2008 Infogix, Inc. 372008-09-25© 2008 Infogix, Inc. 37
Inventory ControlsInventory Controls
Receiving Inventory MRP Distribution
BillingCost AccountingAccounts
Payable
General Ledger
Infogix Controls
•Account for all units from receiving to distribution•Account for all costs posted to financial systems
2008-09-25 © 2008 Infogix, Inc. 38
Complex ProcessesComplex Processes
2008-09-25 © 2008 Infogix, Inc. 39
Infogix Controls PlatformInfogix Controls Platform
Easy and Non-intrusive implementation leads to Easy and Non-intrusive implementation leads to business benefits in several weeks.business benefits in several weeks.
2008-09-25 © 2008 Infogix, Inc. 40
Infogix Eliminates Information ErrorsInfogix Eliminates Information Errors
Information errors is a pervasive and universal phenomenon especially in financial processes.
Cost and impact of information errors can be small or catastrophic.
Infogix is the company that has the expertise and technology to solve this problem.
2008-09-25 © 2008 Infogix, Inc. 41
The Infogix DifferenceThe Infogix Difference
Automated Validate all transactions instead of manual sampling
Independent Validate processes/information independent of controlled systems
Continuous Continuously available controls execute as often as needed
Verifiable Audit trail of control results ensures compliance and speeds audits
Standardized Standardize controls throughout the enterprise
Rule-based Implement and maintain controls without software developers
Non-intrusive Capture controlled information in existing formats and locations
End-to-End Validate information between applications across the enterprise
2008-09-25 © 2008 Infogix, Inc. 422008-09-25© 2008 Infogix, Inc. 42
Discussion
Infogix, the Infogix checkmark logo, Information With Confidence and Information Integrity are registered trademarks of Infogix, Inc. Other designated phrases and product names used here are the property of their respective owners. For a list of Infogix trademarks, visit www.infogix.com/legal