eBook_Impact_Awards_2013

ACL 15th Annual
Impact Award Winners
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ACL Impact Awards
The premier awards for audit, finance, risk and compliance
professionals, the Impact Awards celebrate the outstanding
achievements of customers making an impact and boosting the value
they provide to their organizations through the use of ACL software.
The awards are presented by ACL Executive Chair, Harald Will, during a
luncheon at ACL Connections, our annual customer conference.
Impact Awards Ceremony, Atlanta GA, ACL Connections 2013

Award Winners
GRAND PRIZE
RichardTwilley,Analyst-Commercial Card Services, Phillips 66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
BEST USE OF AUDIT MANAGEMENT TECHNOLOGY
LisaTraina,President, Traina and Associates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
BEST APPLICATION OF CONTINUOUS AUDITING OR MONITORING
EnriqueVazquezEscobar,Supervisor Sr CAATTS, Nacional Monte de Piedad IAP. . . . . . . . . . . . . . . . . . . . . . . . . 10
BEST USE OF ANALYTICS
DesolynFoy,Director, Operations Analysis and Assurance, Harris Health Systems. . . . . . . . . . . . . . . . . . . . . . 12
ChristinaErvin,Sr. Operations Assurance Analyst, Harris Health Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
MaureenBremo,Internal Auditor, Harris Health Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
MOST PROMISING NEW USER
EduardoStaino,Internal Auditor, Construtora Andrade Gutierrez SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
MOST INNOVATIVE USE
MichelPicinin,Junior Auditor, Suzano Papel e Celulose SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
REGIONAL WINNER: ASIA PACIFIC
GlenLaslett,Group Business Assurance Manager, Metcash Trading Limited. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
REGIONAL WINNER: EUROPE, MIDDLE EAST & AFRICA
SiameMathews,Internal Auditor, Public Services Management Department of Zambia. . . . . . . . . . . . . . . . . . 20
REGIONAL WINNER: LATIN AMERICA & CARIBBEAN
FranciscoOrtiz,Auditor, Office of the Comptroller of Puerto Rico. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
REGIONAL WINNER: NORTH AMERICA
SeanPinto,Manager - Global Operations/Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

6 ACL 15th Annual Impact Awards
Grand Prize
Richard Twilley,
Analyst-Commercial Card Services, Phillips 66

Philips 66
Phillips 66, a Fortune 500 company, is the second largest refiner in the
US. Responsible for auditing all of the company’s travel and procurement
charges purchased on a credit card or through cash, RichardTwilley is using
ACL™ Analytics and ACL™ Direct Link for SAP® ERP to compare data from
Phillips 66’s General Ledger and Human Resources systems to find transactions
that violate policy or are possible fraud.
Richard’s goal was to move from periodic to continuous auditing to identify
policy violations, mistakes, and fraud quickly before violations could compound
and become more substantial. Richard’s axiom: Never let the audit be more
than a month removed from the approval date of an expense report.
He can now produce a monthly report for management showing policy
violations, their amount and their violation category. His reports have
been used by the Compliance, Global Security, Audit and the Controllers
departments.With support from the ACL customer community, Richard has
transformed the audit department at Phillips 66 by using ACL technology to:
§§ Identify over $3M of transactions as having some violation of
policy (and growing)
§§ Increase accuracy by 50% —information from SAP was being pulled
inaccurately in the past
§§ Increase efficiency by 1000% —previously had to take a random sample
11 times larger for the same results
§§ Increase productivity by 500% with automated analyses
Identify over $3Moftransactionsas having some violation of policy.

Best Use of
Audit Management Technology
Lisa Traina,
President, Traina & Associates
ACL 15th Annual Impact Awards

Traina & Associates
Traina & Associates is a CPA firm providing IT audit services to help businesses
ensure their data is secure. Honored three consecutive times as a member
of the‘LSU 100’fastest growingTiger-led businesses in the world, the firm is
growing at a rapid pace and the team of auditors often faced very long work
hours to complete audit engagements on time.To avoid employee burnout,
LisaTraina turned to ACL™ GRC.
For two years they have performed 100% of their audit work using ACL GRC
and have achieved:
§§ Increased productivity, and removed the backlog of work they had
experienced for over seven years thanks to the ability to divide the audit
work into sections that can be completed and signed off by the auditor,
making work immediately available for review.
§§ Increased audit management efficiency by 25%.
§§ Increased audit revenues by 5% without increasing staffing—auditors
work less and produce more work.
§§ Improved information security by eliminating the risk of lost or stolen
laptops containing confidential client information and discontinuing the
sharing of confidential information through internal email.
§§ Ability to work anytime from anywhere with cloud-based access and
mobile apps—and soon may be ready to close the physical office
completely, resulting in additional savings.
§§ Ability to immediately update audit procedures to keep up with fast-
moving technology within client businesses.
§§ Retained a highly valuable employee across the country thanks to cloud-
based collaboration.
Increased audit management efficiency by25%

Best Application of
Continuous Auditing or Monitoring
Enrique Vazquez Escobar,
Supervisor Sr CAATTS, Nacional Monte de Piedad IAP

Nacional Monte de Piedad IAP
El Nacional Monte de Piedad (NMP) is a non-profit private loans institution that
has offered its services to over 20 million families for 236 uninterrupted years.
NMP strives to be more efficient by minimizing manual processes.
Enrique Escobar implemented an automated monitoring project using
ACL™ Analytics Exchange to ensure compliance with internal policies, improve
operational efficiency, and prevent fraud.The team set up 85 analytic tests
(one test per risk identified) to analyze an average weekly five million records,
resulting in the following impact:
§§ Identification of opportunities to improve operational efficiency in
branches and agencies for business process owners.
»» Analyzed business process efficiency and the effectiveness of corrective
actions, resulting in increased customer satisfaction, reduced operational risk
and increased profitability.
»» Reduced potential loss of customers by reducing service times by 85%,
representing thousands of hours that customers would have been spending
in lines.
»» Increased customer satisfaction without hiring additional staff by supporting
process owners with a better basis for decisions, representing a savings about
MXN$500,000.
§§ Snapshot of high level branch risk indicators, regional analysis and
detailed data by branch for the internal audit department.
»» Helped transform the perception of the audit function from being“cops”to
being a value-add consultative role.
»» Identified symptoms of fraud, enabling internal audit to be more effective in
protecting the assets of the entity.
»» Saved approximately US$400,000 in branch visits last year with continuous
auditing, which acts as a deterrent and reduces the need to physically be in
the branch.
Reduced potential loss of customers by reducing service times by 80%.

Best Use of Analytics
Desolyn Foy,
Director, Operations Analysis and Assurance, Harris Health Systems
Christina Ervin,
Sr. Operations Assurance Analyst, Harris Health Systems
Maureen Bremo,
Internal Auditor, Harris Health Systems

Harris Health System
Harris County Hospital District d/b/a Harris Health System (Harris Health)
is the largest network of public primary care clinics inTexas, USA, and is
predominantly comprised of three hospitals, 16 community health clinics,
seven school-based clinics, a dental center, a dialysis center, and mobile health
units, employing 8,400 individuals, directly or indirectly through staffing
agencies. As in any industry, failure to provide accurate and timely reports to
management can result in less efficient or effective use of resources.
To meet the needs of providing timely payroll information for this large
healthcare system, the team of Desolyn Foy, Christina Ervin, and Maureen
Bremo zeroed in on improving payroll expense management by using
ACL™ Analytics.The Harris Health analytics team developed continuous
monitoring scripts to identify labor inefficiencies and consequently reduced
the negative budget impact. Benefits gained include:
§§ Providing an efficient means to analyze the payroll in less than
15 minutes and providing management with timely information for
revising schedules.
§§ Providing Senior Leadership with monthly score-cards indicating
departmental cost utilization trends on both a year-to-date and period-
by-period basis. The data also identifies the top 10 employees with
the highest labor costs, which helps Leadership monitor departmental
budgets. With this data, Leadership can generate year-to-date payroll
transactions and reports on all individual employees by pay type in
seconds instead of days or weeks.
§§ Analyzing reports from different timekeeping and payroll systems which
greatly reduces the manual effort required to analyze the data and
increases the accuracy, efficiency, and timeliness of the data provided.
§§ Quickly searching payroll records to identify terminated employees and
verifying that payment to terminated employees does not continue
inappropriately.
§§ Comparing expected per-employee budget costs to the actual earnings
per pay period and annually and providing tracking of employee costs.
§§ Analyzing 100% of the payroll transactions and reporting exceptions
within minutes.
§§ Identifying areas for cost saving opportunities in unbudgeted expenses.
§§ Providing Leadership with a valuable analytics to respond more quickly
to negative impacts on the budget.
Analyzing 100%ofpayrolltransactions... within minutes.

Most Promising New User
Eduardo Staino,
Internal Audit Coordinator, Construtora Andrade Gutierrez SA

Grupo Andrade Gutierrez SA
Founded in 1948, Grupo Andrade Gutierrez (AG) stands as one of the largest
infrastructure conglomerates in Latin America, with operations in Brazil and
abroad.The company is participating in the construction of infrastructure for
the 2014World Cup and 2016 Olympics.
With the world’s focus on maintaining the pace of growth in developing
countries, regulatory pressures are in the spotlight. Globally distributed units
of AG must perform in a standardized manner without losing the agility
required to do business and comply with regulatory requirements where it
operates.This, coupled with the backdrop of steady cost reduction and profit
maximization to ensure good financial performance, means that only a process
based on the strong pillars of corporate governance will enable the company
to be competitive and reach expected growth objectives for its shareholders.
By assessing their key processes to determine risk-based analyses, Eduardo
Staino used ACL™ Analytics to achieve the following:
§§ Reduced time to audit: the time spent per visit to 50 active units
decreased 40%, with a savings of 4,000 hours—a cost savings equivalent
to R$500,000.
§§ Quantification of risk materialized: it is now possible to measure the
degree of exposure of the company with respect to labor and supply
purchasing risks.
§§ Expansion of the units audited: With less time spent per visit, they were
able to expand their scope and audit units not previously visited.
§§ Improved mapping and control of risks by analyzing the entire
population of a given universe.
§§ Identification of internal control deficits, with a clearer channel of
communication with staff to correct problems and mitigate risks.
§§ Having recently implement continuous auditing and monitoring using
ACL™ Analytics Exchange (AX), they now also use AX’s automated
dashboard to assist senior management in decision making and
constantly evaluate the progress of the units.
... a savings of 4,000hours-a cost savings equivalent to R$500,000.

Most Innovative Use
Michel Picinin,
Junior Auditor, Suzano Papel e Celulose SA

Suzano Papel e Celulose SA
With over 80 years in business, Suzano Papel e Celulose SA is a publicly-traded
subsidiary of Suzano Holding operating in the pulp and paper markets. As a
forestry-based company, Suzano’s areas total approximately 803,000 hectares,
including 346,000 planted with eucalyptus.
The forestry sector faces significant competition. Fluctuating product prices
influenced by international markets, diverse global regulatory and political
risks, and other supply disruptions can adversely affect operations. Systems
to meet those demands are not available and therefore Suzano depends on
customizations for operation and control of its forestry activities.
Michel Picinin identified the need to conduct an analysis of existing planted
areas versus areas identified on maps in their ERP system over a three year
period, for all forest units spanning four states in Brazil. Because their systems
do not interface with each other, Michel used ACL™ Analytics to extract data
from their various systems to cross-check maps with invoices to identify and
address inconsistencies. Michel created an output to allow other audit test
based on geographical data.
The Internal Audit team applied ACL software to generate the following unique
benefits:
§§ Faster delivery of results, since the process of development and
execution of an ACL Analytics test took about eight hours of work, as
compared to 500 hours of work to perform a manual visual comparison
of maps against invoices.
§§ Improved accuracy of results by automating data extraction, reducing
the risk of georeferencing errors resulting from manual typing and
comparison of information from invoices and maps.
§§ Creation of a database with the areas of forests contained in maps (a
Georeferencing extract that their ERP system does not allow) enabling
the development of other audit tests that rely on assessing the
registration of forests.
... abouteighthoursof work, as compared to 500hoursof work.

Regional Winner: Asia Pacific
Glen Laslett,
Group Business Assurance Manager, Metcash Trading Limited

Metcash Trading Limited
MetcashTrading Limited (MTS:AU) is an Australian food and liquor wholesaler
with more than 5,000 staff and AUD$12B in annual sales.The principal division
is Metcash Food and Groceries (METFG), which supplies groceries and fresh
produce to several thousand independent grocery retail outlets.
With highly divisionalised business units and acquisitions using disparate and
legacy systems, coupled with variable attitudes towards compliance, the audit
effort was challenged to adapt the successful continuous controls monitoring
“engine”to deliver a dashboard view to management of the key exposures
faced by the company.
Using ACL™ Analytics and ACL™ Direct Link for SAP® ERP, Glen Laslett
transformed the audit effort into a business assurance partner to realise direct
cost savings, fraud detection and prevention, and process improvements:
§§ Identified duplicate payments totaling approximately AUD$6M; the
system continuously monitors more than AUD$13B yearly of purchases
processed through various systems.
§§ Strengthened control over SAP Fire Fighter emergency change
processes by capturing emergency change records and routing them to
responsible managers for review and closure—considered unique and
world-class, it is now also relied upon by Metcash’s external auditors.
§§ Significantly reduced costs by identifying usage of non-authorised
suppliers and realising contract benefits.
§§ Reduced the submission of the leave applications as a balance sheet
liability—achieved through the automated cross-matching of system
logins to the human resources leave records.
§§ Ensured that products meet regulatory requirements by cross-matching
product records with technical food safety reviews to safeguard
Metcash’s reputation in this vital area.
§§ Continuous fraud auditing and Vendor Master File management across
geographically distributed outlets.
§§ Gained greater visibility among Executives and Senior Management
with ongoing development of Key Risk Indicator (KRI) dashboards for
senior management, such as an HR“leading”KRI that has improved
management’s ability to identify staffing trends that could erode
the bottom line. With multiple drill-down levels, the dashboards are
distributed electronically to board and executive management iPads.
Identified duplicate payments totaling approximately AUD$6M.

Regional Winner:
Europe, Middle East & Africa
Siame Mathews,
Internal Auditor, Public Services Management Department of Zambia

Ministry of Finance and National Planning, Zambia
The Ministry of Finance and National Planning (MOFNP) is mandated to
achieve sustainable performance levels in management of public financial
and economic resources for the benefit of the people of Zambia.The Public
Service Management Division (PSMD) oversees Payroll management and
administration.
The highly customised SAP HR payroll management system, which houses
thousands of tables and is used by more than 1,250 users around the country,
generates more than 1.9 million monthly transactions and produces an
average wage bill of US$101M/month.
Siame Mathews uses ACL™ Analytics Exchange and ACL™ Direct Link for
SAP® ERP to test financial processes and internal controls to detect early
warning of fraud and loss, improve bottom line performance, reduce
operational risks and increase data quality—having achieved the following
results:
§§ Detected weaknesses in internal controls and opportunities for cost
savings and recoveries
»» Recovered US$16,000 from SAP HR users making changes ranging from
promotions to transfers to their own records.
»» Detected more than US$5M in payroll discrepancies.
»» Revealed US$9M of unrecovered Government loans and advances.
§§ Improved efficiency and effectiveness of the Audit Section, saving audit
staff overtime and enabling:
»» Reduced time on new engagements and improved teamwork with the ability
to easily share and re-use work performed by team members, along with
standardization of data and quality of audit results
»» Provision of timely results and advice to management for appropriate action
before a wrong can be committed and therefore provide assurance that
Payroll and Expenditure Internal Controls are working.
»» Recognition and appreciation of the audit team’s work by top Government
officials and the World Bank.
Revealed US$9MofunrecoveredGovernment loans and advances.

Regional Winner:
Latin America & Caribbean
Francisco Ortiz,
Auditor, Office of the Comptroller of Puerto Rico

Office of the Comptroller of Puerto Rico
With over 600 employees including 450 auditors, the Office of the Comptroller
of Puerto Rico (OCPR) is responsible for auditing all the agencies in the
government of Puerto Rico, including 78 Municipalities that, by law, must be
audited every two years.
Challenged to extract and analyze large print image text files from all
municipalities, of which 70% were using outdated accounting systems,
Francisco Ortiz used ACL™ Analytics to quickly extract, analyze and investigate
digital information, enabling the OCPR to:
§§ Quickly examine and evaluate 400 fund accounts.
§§ Reduce analytical review time from processing two reports in two
months to now processing 10 reports in under a minute.
§§ Audit the whole transactions universe of purchase orders, disbursement
vouchers and checks:
»» By comparing the check register data against digital statements from the bank,
they discovered thousands of unregistered checks (representing US$6M) in
the accounting system as well as payments made without purchase orders,
which is illegal in government accounting in Puerto Rico.
»» They can easily check for gaps in construction and services contract numbers
and audit suspicious contracts.
§§ Detect fraud for better oversight of the transactions made with the
public funds and property of Puerto Rico.
»» Red flags led to an investigation of a construction project that uncovered
millions of dollars in illegal payments.
»» With the ACL log, an investigation can be replicated so any auditor, lawyer or
judge can repeat the same steps and arrive at the same conclusions.
§§ The Comptroller of Puerto Rico was so impressed by the success of these
results, she initiated plans for data analytics to be incorporated into every
audit that the Municipalities Division performs.
...discovered thousands of unregistered checks (representingUS$6M).

Regional Winner: North America
Sean Pinto,
Manager - Global Operations/Technology, The Coca-Cola Company

The Coca-Cola Company
The Coca-Cola Company is the world’s largest beverage producer, currently
present in more than 200 countries with more than 3,500 products across 500+
brands. Global challenges for the company span issues that challenge the risk
profile of individual operating units and company-wide risks that impact the
business as a whole.
The Corporate AuditTeam is charged with protecting the company from
breakdowns in the internal control environment.The company also
continuously monitors red flags to support Sarbanes-Oxley (SOX) compliance,
adherence to a robust Foreign Corrupt Practices Act (FCPA) compliance
process, and fraud prevention and detection.
Kicking off with a DiscoveryWorkshop by ACL Consulting Services to identify
issues and solutions, Sean Pinto implemented ACL™ Analytics Exchange
to achieve automated data extraction, repeatable analysis and proactive
continuous monitoring, enabling:
§§ Detection of internal control issues and dollar loss recovery
opportunities, including:
»» Detected GL issues related to Journal vouchers, totaling about US$14M.
»» Identified issues in procure-to-pay (P2P) cycle such as duplicate vendors,
inappropriate processes, and POs in violation amounting to US$20M.
»» Discovered a large exposure issue around posting Goods Receipts resulting in
a balance sheet misclassification of US$16.2M.
§§ Increased audit efficiency representing time/cost savings of
approximately US$100,000 in data extraction and report processing
compared to previous manual processes.
§§ Improved consistency, increased coverage to 100% of transactions,
improved transparency in testing methodology, and improved risk focus.
§§ Improved efficiency and effectiveness of FCPA compliance, SOX
compliance and fraud prevention/detection through continuous
monitoring.
Detected GL issues related to Journal vouchers, totalingaboutUS$14M.

Congratulations from ACL

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A N N U A L
Impact
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© 2013 ACL Services Ltd.
ACL and the ACL logo are trademarks or registered trademarks of ACL Services Ltd. All other trademarks are the property of their respective owners.130123-IA-eBook

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