NALIT - 2014 Professional Development Seminar Sponsor

Propylon are proud to be a sponsor of this years National Association of Legislative Information Technology (NALIT) Professional Development Seminar. This years seminar will be held in Santa Fe from October 14th - 17th. We look forward to seeing you there.

ASLCS - 2014 Professional Development Seminar

Propylon will be attending this years American Society of Legislative Clerks and Secretaries (ASLCS) Professional Development Seminar in Baton Rouge, Louisiana from October 5th - 10th. We look forward to seeing you there.

NCSL 2014 Legislative Summit

Resources from this years NCSL Legislative summit are available from their website.

Thanks to all who visited the Propylon stand. It was a great opportunity to demonstrate our full suite of Legislative software solutions. Thanks to Padraig and Tyson for managing the stand!

What Compliance Professionals can learn from Accountants

In 1494, Luca Pacioli published “Particularis de Computis et Scripturis,” which is widely regarded as the first written treatise on bookkeeping. In the 600+ years since that event, we have become completely accustomed to the concepts of ledgers, journals and double-entry bookkeeping. Whenever there is a need for detailed, defensible records of the financial state of affairs (such as a company balance sheet or a profit and loss statement), we employ Pacioli’s concepts without even thinking about them anymore.

Governance Risk & Compliance

Now let us turn to the world of governance. Is the world of governance, risk and compliance really so different from the world of financial accounting? Numerous regulations require that financial institutions are capable of demonstrating historic compliance programs “promptly upon request” (AML Programs, Regulation of Swaps, Volcker Rule Compliance Programs….). Financial institutions need to be capable of providing evidence that they were compliant with regulations at any point in time to reduce legal costs and penalties.

”Records sufficient to demonstrate compliance….promptly provide upon request… for a period of no less than 5 years or such longer period required by the Agency”
The Volcker Rule
12 CFR 44.20           

Demonstrating Compliance

Accounts ledgers maintain a full audit trail of transactions. Using accounting systems, accountants can navigate journals and retrieve back up documentation using transaction references.  A complete view of financial performance, principally the profit & loss and balance sheet can be viewed as at any point in time. Is this proven system pervasive in the world of compliance in 2014?"

The answer is “no”. Prior to TimeArc, legal counsel and compliance executives have expended significant time in retrieving and researching historic regulations to demonstrate compliance. In an environment where regulatory reviews are increasing, compliance executives need to be supported in meeting increased demand to demonstrate compliance to regulators, auditors and the board.

In the accounting world, a company cannot simply announce a Gross Revenue figure to tax officials or to investors, without having the transaction ledgers to back it up. Isn’t it interesting that the same ledger-based approach has not generally been used in compliance?

TimeArc®

 

TimeArc is a GRC platform that operates in a similar manner to accounting systems. TimeArc implements a systematic approach to managing regulatory change and significantly reduces time and costs consumed during regulatory review. TimeArc links internal compliance programs to the external regulatory framework. These links provide an audit trail or ‘ledger’ of how a firm has implemented regulations through policies and procedures (similar to double entry and journal referencing principals in accounting). These links remain permanent. By navigating to a selected date within TimeArc, compliance professionals and general counsel have instant access to the exact version of regulations and linked internal policies in effect at the selected date.

Senior executives are provided with complete visibility of the state of compliance (‘The Compliance Balance Sheet’) at any selected date and the relationships with changing regulations. Reports provide insights on how the firm is implementing regulations through compliance programs over time. Innovative reports support executives in assessing the risk of non-compliance.

By linking internal compliance programs to regulations and legislation, TimeArc implements a systematic approach to managing regulatory change. TimeArc reports compliance programs that require review following updates to linked regulations. These reports streamline the process of managing regulatory change to reduce compliance costs and the risk of non-compliance.

At Propylon, we believe that the ledger-based concepts of Pacioli are a perfect fit with today's regulatory change management challenges. With TimeArc and its proven point-in-time technology, we are moving forward the state of the art in compliance. Someday, it will appear obvious. Just as today, accounting ledgers appear obvious.

Breiffni O Domhnaill

As a qualified auditor and tax consultant, Breiffni understands the challenges faced by organizations in maintaining compliance in the current regulatory environment. Coupled with experience of working in a process driven environment, Breiffni has the required skill set to develop efficient and innovative solutions for managing Governance, Risk and Compliance.

Breiffni is currently working with Propylon in implementing TimeArc, an innovative GRC Solution supporting financial institutions to meet current regulatory challenges.

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