Steve Birchall

1
Software Tracking/Reporting of Ethics and Legal
Violations for Small Business
Steve Birchall Devesys Incorporated
Wright State University Third Business Integrity
Breakfast Dayton, Ohio June 15, 2005
2
Devesys Product FamilyAll Reside Within Your
Firewall

• TrakEnterprise 5
• Multiple Workgroups, Client-Server
• TrakBasic
• Single Computer
• Solo Intermittent User
• TrakBasic for Ombuds
• Preserves Confidentiality
• TrakWeb
• Access via Web

3
Three Components of a SOXCompliance System

• Anonymous Reporting System
• Hotline, Webform
• Financial Auditing
• Integrity of Financial Reports
• Case Tracking, Reporting
• Effective System, Keep Records

4
What Companies Are Covered by SOX?

• All Publicly Traded Companies
• Competitive Edge (Harris Poll)
• 60 Said SOX Protects Investment
• 57 Very Unlikely to Invest
• Privately Held Companies
• Morally Responsible, Not Legally
• Better-run Businesses More Profitable,
  Acquisitions Easier
• Not-for-Profit Groups
• Donations Govt. Grants

5
SOX Related Laws

• SOX and the USSC Guidelines
• SEC Regulations
• Taft-Petro Act (Ohio)
• Bill 198 (Canada)
• Basel II (Banks)
• HIPAA

• FDA 21 CFR Part 11
• EEO
• OSHA
• Environmental Regulations
• Criminal Codes

6
The Grunch of Giants

• "Corporations are neither physical nor
  metaphysical phenomena. They are socioeconomic
  ploys legally enacted game-playing agreed
  upon only between overwhelmingly powerful
  socioeconomic individuals and by them imposed
  upon human society and its all unwitting
  members.
• From The Grunch of Giants, 1983 by Buckminster
  Fuller

7
Strategy for Effective Compliance(From USSC
Guidelines)

• Appoint an Ethics Officer
• Provide an Anonymous Reporting Capability
• Keep Records of All Complaints
• Maintain Training Programs from Board Down
• Create a Culture of Compliance
• Assess Risk Periodically
• Show That Program is Effective

8
Why a Tracking System Helps

• Identifies Issues and Violations
• Manages Cases to Resolution
• Documents Real-World Events
• Highlights Issues Needing Attention
• Facilitates Detection Prevention
• Creates a Growing, Searchable Database
• Analyzes Performance Over Time

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TrakBasic in Daily Use

• Collects Displays Essential Information
• Add Data As You Gather It
• Find Facts Youve Forgotten
• Prompts You With Follow-up Lists
• Keeps Cases Moving To Resolution
• Shows You What Needs Attention
• Provides Reports for Management
• Case Volumes, Types of Violations
• Resolutions, Trends

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TrakBasic Main Screen
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New Case Entry Screen
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Full Case Report
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Browse List Showing All Open Cases
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Aging of Open Cases by Severity
15
Comparing Q1 to Q2 by Severity