Fortna Assists with Sarbanes-Oxley (SOX) Compliance.
The Sarbanes-Oxley (SOX) Act impacts the manner in which public companies approach large distribution projects. As a pioneer in our industry, Fortna's proven accounting processes, multiple-supplier bidding, and the advanced functionality of FortnaPlus™ Warehouse Control Software all greatly assist in keeping our publicly offered clients in compliance with SOX.
Detailed Accounting and Project Auditing
Initially, Fortna developed its current accounting model as a method to more aggressively identify and remove any unnecessary costs from projects. After several years in practice, this model acts as an additional safeguard to the core SOX compliance issues.
Fortna utilizes real-time project accounting software, which provides our clients with extremely detailed insight to the project. Man hours, equipment costs, professional service hours, outstanding purchase order balances, and current project cost status, among other data are available to the client through a secure extranet. With the majority of the data exportable to common third-party software, importing the up-to-date information into the client's accounting system is streamlined.
Accurate data results in accurate reporting, as required by SOX.
Using Fortna's audited project financials as the foundation for a client's project related accounting eliminates the need for the client to employ its own auditors to ascertain the project's financial data. This frees up many of the client's personnel to perform other tasks associated with the SOX requirement, and ultimately reduces the number of staff required by the client.
Fortna, unlike any other design-build firm, provides detailed summary reports of which the user can drill down to Fortna's subcontractors, equipment vendors, and other third party invoices, in addition to the time sheets of Fortna's professional service personnel.
Multiple-supplier Bidding Process
In order to defeat potential corruption or "kick-back" situations, some public companies are adopting an internal COSO framework, which recommends receiving multiple-bids on all projects. For years, Fortna has utilized a multiple-bid model as a way to deliver the best possible solution at a competitive price. Now, our public clients can rest-assure that the same multiple-bid process is assisting with their SOX and COSO compliance.
Throughout the duration of a project, Fortna acts as the purchasing agent for our client. We collect and evaluate multiple bids from industry-leading equipment vendors and suppliers to ensure a competitively bid environment. Our clients have the right to review the actual bid invoice of each supplier, not just a bid summary.
Once Fortna and the client select the vendors and the project is completed as per the specifications, Fortna refunds half of any amount saved on the project. If, however, the project runs over budget (exclusive of change orders), Fortna will absorb the entire overage amount. This method of shared savings has proven to be very successful in that it promotes joint ownership of the project, thus reducing the client's uneasiness after system commissioning.
FortnaPlus™ Delivers Expected Security, Accuracy, and Reliability
Working with a client's IT personnel is second nature to Fortna. As a foundation, Fortna developed a suite of software tools such as FortnaDCmodeler™ and FortnaPlus™ Warehouse Control Software, using only time-tested integrations with most of the leading warehouse management and ERP software companies in the business.
Seamless integration with the client's host not only reduces risks to the client, but can also provide other benefits. For example, through FortnaDCmodeler™, Fortna can provide external validation logarithms, accurate facility modeling, and SKU movement.
Most importantly, one hundred percent accurate shipping and manifesting can be ensured by FortnaPlus™. If the client chooses, FortnaPlus™ could run concurrently with the host system as a redundant check to the client's host. This example of redundancy would suffice several companies' COSO framework of which it must comply.
