AWARA PURCHASE MANAGER-ELECTRONIC INVOICE PROCESSINGTHE COMPLIANCE TOOL FOR CONTROLLERSDO YOU REALLY KNOW WHERE THE MONEY GOES?
This leaflet is intended especially for telling what Awara Purchase Manager can do for the company controller and other compliance officers. It serves as a complement to our standard Awara Purchase Manager brochure. Awara Purchase Manager is an electronic invoice processing system that enables the control of each purchase invoice from initiation to payment. It brings efficiency and order into the process of monitoring purchases and their payments. But Awara Purchase Manager does not only bring paperless efficiency. It comes with a lot of other value- added features: • The system enables real-time control of the whole purchase process. • It can be made to communicate automatically with your on-line banking system, feeding the system with payment orders and receiving return feedback data of the payments. • It enables automatic transfer of purchase data to the financial and tax accounting systems. • It enables correct accounting of accruals in IFRS, GAAP, and other international standard reports. • It enables transparent management reporting on all aspects of accounts payable. By using Awara Purchase Manager the controller will have easy access to all data that is necessary for approving a payment and monitoring purchases. Together with the scanned invoice you can readily see, for example, to what contract the invoice refers; who initiated the purchase; who approved it; what limits they had; what was delivered and when. After delivery the system helps to track the receipt of all supporting documents that are needed according to Russian laws. With Awara Purchase Manager you can put in place an efficient financial administration function that meets the highest international standards. And this is the only system globally that is especially tailored to meet the needs of the controller to ensure compliance with anti-corruption laws such as the US FCPA, UK Anti-Bribery Act, and the laws based on the OECD Convention on Combating Bribery. Below follows a list of features that Awara Purchase Manager enables especially from point of view of efficient control.COMPLIANCE WITH INTERNAL POLICIESControl of procurement processes.All purchases have to be recorded in the system. no payments will be executed without following this rule and all the processing steps.• The system will allow the company to set a general rule that all purchases will have to be duly recorded • This functionality serves as the fundament for in the system from their initiation with the control that implementing a proper control system.
Catalogue of approved suppliers.• Enables to establish a catalogue of approved suppliers. AWARA PURCHASE• System may restrict purchases to be done only from MANAGER the choice of approved suppliers.• This feature helps to control that suppliers are chosen lets you control by management decisions as opposed to ad hoc decisions on lower organizational level. Such ad hoc your work and values decisions may interfere with several organizational goals, such as quality management, partnership programs, best practices, discount programs and legal compliance. Ad hoc supplier choices may provide opportunities for personal gain or be initiated in connection with the aim to give an unlawful gain to a supplier or a third party.Authorized Initiators.• System allows to restrict the initiation of a purchase of defined type to pre-determined initiators (persons that have the right to initiate a purchase).• This feature allows to red flag suspicious purchases when person that is not connected with the given business issue interferes in the process.Authorized Approvers.• The main actors in procurement processes are the one who initiates the procurement (initiator) and the one who approves the procurement (approver). Often it makes sense to keep these obligations separated.• System enables the restriction of the rights to approve a purchase to a pre-determined list of authorized approvers.• The approvers can be assigned approval rights for determined types of purchases and they can be limited in their approval rights, for example, what comes to monetary value of the purchase, periodicity (approve one-time transactions as opposed to periodic transactions), and choice of supplier.DETECTION OF IRREGULARITIESThe history of each purchase can be monitored by varioussearch criteria, for example:• By following any of the features in the process in view of the integrated system showing the life-cycle of each purchase from initiation through payment to delivery.• By verifying who was the initiator, who was the approver, what were the relevant levels of authorization.• By supplier verifications. Has the supplier been officially approved according to the procedures and criteria for choice of suppliers? - Comparison of similar purchases from various suppliers; initiator and approver behaviors in respect to various suppliers.• By monitoring deliveries to purchases. The system links all the documentation/records of deliveries that pertain to a certain purchase which enables controlling that the deliverables have actually been received with due quality.
COMPLIANCE WITH ANTI-CORRUPTION LAWSAwara Purchase Manager has been especially tailoredto meet the needs of the controller to ensure compliancewith anti-corruption laws such as the US FCPA, UK Anti-Bribery Act, and the laws based on the OECD Conventionon Combating Bribery. The anti-corruption, or anti-bribery,laws of developed countries are becoming increasinglysevere and pose a new kind of compliance challengefor firms. Of particular significance for the controller isthe fact that not only bribing is a criminal offense but thefailure to prevent the organization from bribing is alsoan offense. This is explicitly stated in the new UK BriberyAct of 2010 (Section 7, UK Bribery Act).This is a strict liability and when charged with a particularcase of bribery the only defence is that the firm can showthat it had in place adequate procedures designed toprevent its employees or other persons associated withthe firm from undertaking acts of bribery.In practice the company management has to createadequate procedures for preventing bribery also underthe US FCPA. And the same follows from the OECDConvention.Six Principles defining Adequate Procedures.According to the guidelines to the Bribery Act publishedby the UK Ministry of Justice (and similarly with theOECD Convention) the ‘adequate procedures’ are definedby 6 principles (and similarly with the OECD Convention):Proportionate procedures - The organizations proceduresare to be proportionate to the bribery risks it faces andto the nature, scale and complexity of the organizationsactivities. The procedures are to be designed to mitigateidentified risks and to prevent deliberate unethical conduct. fostering a culture in which bribery is never acceptable.They have to be clear, practical, accessible, effectivelyimplemented and enforced. Risk Assessment - The organization must assess the nature and extent of its exposure to potential externalTop level commitment - The top management is to be and internal risks of bribery. The periodic risk assessmentscommitted to a zero tolerance of bribery and actively include: country risk, sectoral risk, transaction risk,pursue a strategy of prevention including by means of business opportunity risk and business partnership risk.
Due diligence - The organization should in order to mitigate identified bribery risks apply due diligence procedures,taking a proportionate and risk based approach, in respect of persons who perform or will perform services for oron behalf of the organization.Communication ( including training) - The organization shall ensure that its bribery prevention policies and proceduresare embedded and understood throughout the organization through internal and external communication, includingtraining, that is proportionate to the risks it faces.Monitoring and review - The organization shall monitor and review procedures designed to prevent bribery by personsassociated with it and makes improvements where necessary.Financial Software for Implementing the Bribery Prevention Policies.A central role among the required procedures is assigned to the systems that actually implement the financial andcommercial controls such as adequate bookkeeping, auditing, and approval of expenditure. Awara Purchase Manageris precisely such a system that enables these controls while ensuring transparency of transactions and disclosureof information, as it has been described above.Awara Purchase Manager will help to implement proper decision making procedures and an orderly delegation ofauthority. A proper system for preventing bribery needs to enable the control of separation of functions and theavoidance of conflict of interests. These functions are achieved by Awara Purchase Manager.Other Necessary Procedures.Together with other specialists we can complement our software solution with offering full advice in putting in placeall the necessary elements of a proper system for preventing bribery. These elements comprise, inter alia, thefollowing procedures: the actions to show top-level commitment; risk assessment procedures; due diligenceprocedures; various policies, such as the policy for provision of gifts, hospitality and promotional expenditures,charitable and political donations; recruitment and other HR policies; policies for governing the relations withconsultants, advisors, agents and other associated persons; enforcement and sanctions policies; communicationpolicies. Tel. + 7 495 225 3038 Moscow, St. Petersburg , Tver, Yekaterinburg, Kiev, Helsinki www.awaragroup.com
Created by Awara Marketing with Kai Venäläinen AWARA PURCHASE MANAGER THE COMPLIANCE TOOL FOR CONTROLLERS www.awaragroup.com