Energy Queensland (Formally Energex) is the chief electric power provider for South East Queensland. It is owned by the Government of Queensland. Energy Queensland distributes electricity to more than 1.3 million residential, industrial and commercial customers. They employs over 3,900 staff and reported income for 2012 fiscal year was $282.4 million.
Energy Queensland had been using a data analytics solution prior to the implementation of SatoriCCM. Using this solution, they were doing quarterly tests on Accounts Payable and Payroll. As Brad Pye, Internal Audit Manager of explains, “We picked up a number of errors in payroll and accounts payable which highlighted some gaps in the control environment.” Brad continues, “The detection of these errors got everyone thinking about internal controls and demonstrated the value of data analytics to the business. This led us onto a natural journey from our quarterly reviews to a state of continuous control and monitoring”.
With detection of the errors in Accounts Payable and Payroll, there was suddenly a new emphasis in improving internal controls and to mend control weaknesses in the organisation. As Brad describes, “The key objectives are to detect fraud, to provide continuous assurance over the internal controls, to provide assurance over the integrity of the financial transactions and to monitor compliance with different legislative and compliance requirements”.
In early 2013, they began full implementation of SatoriCCM to their Accounts Payable and Procurement functions. Brad worked with consultants from Satori, as well as third party IT services provider SPARQ, to deliver the solution to everyone’s satisfaction. “The project delivered everything it was supposed to, and hit all the timeline milestones while coming in under budget,” Brad happily reports.
The result of SatoriCCM was almost immediate. In just two months since implementation, Energy Queensland discovered nearly $100k in potentially erroneous payments.
SatoriCCM’s effectiveness has brought about a buzz of excitement for the product and the next step is to implement the solution into other areas of the business. Brad muses, “It has been such a success I’ve now got Accounts Receivable and Payroll constantly in my ear wanting to start implementation for them!”
“Ultimately, this project has shown that we can work collaboratively with other parts of the business to achieve a common goal of achieving an effective and improved internal controls framework. This has brought about much education in risk and control, and there is a real appetite to roll it out to the rest of the business”.