CorpEye-H™ – Payroll Process Control
Payroll accounts for 30-40%, and possibly more, of the total expenditure in a typical organisation. While protected by a number of automated controls and manual controls, it still accounts for 10.2% of all fraud cases, with a median loss of $50,000, according to Association of Certified Fraud Examiners (ACFE).
For example, it’s very difficult to build into an ERP system a strong overtime control. Organisational units are very different and some experience fluctuations in overtime, while in others overtime stays constant. Thus, a “one size fits all” control is not very effective and instances of unreasonable overtime claims need to be discovered by line managers. Similar logic applies to allowances, ordinary payments and employee leave.
Consequently, in organisations with even a moderately high number of employees, the financial impact can be substantial.
The key features of CorpEye-H™ are:
- Preventive focus – used within Payroll, CorpEye-H™ allows potential issues to be identified and managed close to the time of occurrence leading to better prevention and/or recovery
- Multidimensional-regression analytics – CorpEye-H™ looks at deviations over periods of time as opposed to threshold-based rules. This, in turn, leads to a higher number of detected “true positives”. For example, overtime of 7 hours per period would me more acceptable for an employee with an average of 5 hours over the last 2 quarters, as opposed to someone who only had 2 hours of overtime in the preceding 12 months
- Purpose-built workflow – CorpEye-H™ “remembers” transactions that have been identified and fixed, thus eliminating redundant effort, e.g. checking the same exception multiple times
- Full automation – CorpEye-H™ is scheduled to run according to organisational needs, e.g. fortnightly, monthly, etc. After each run identified irregularities are available immediately for analysis and action
- Future-proofing – CorpEye-H™ is based on a “brick”-like architecture that is easily extended to monitor additional risks, when a business need is identified.
Contact us for more information.