Few organizations can claim a 702% return on investment from technology implementation but one government organization has been able to achieve exactly that with ACL GRC and Analytics.
ACL commissioned Forrester Consulting to conduct an independent Total Economic Impact (TEI) study on a US state government organization to examine their return on investment of ACL. This customer uses ACL to manage state-wide purchasing, HR, and fleet management functions for various agencies, universities, colleges and authorities.
Addressing the customer’s pain points
Monitoring vendor compliance was critical for the central procurement department to ensure that the state does not lose millions in vendor overcharges. Manually monitoring vendor compliance for an annual volume of transactions amounting to $1.6 billion was practically impossible and could result in up to $1.2 million in overcharges going undetected each year.
Manual review of purchase card (P-card) transactions meant that over $100,000 in fraud, waste and abuse could go undetected each year as well. The sheer volume of these transactions and the time constraints of a small team also meant that audits could not be performed frequently, exposing the state to significant risk of P-card fraud.
The human resources team was also challenged with manual processes when collecting information on key compliance metrics across state agencies. Before implementing ACL, it would take several months to collect these assessments and analyze data in spreadsheets before the team could gain visibility to recommend necessary changes.
“It’s about being timely in providing information and working with [the various] agencies… [Our team] could get back to working on improvements rather than chugging through data,” said the deputy CIO for the organization.
With ACL, the organization has become a strategic advisor to state entity stakeholders.
Automation and continuous monitoring with ACL
The study reveals that automation with ACL has led to significant efficiencies and quantitative benefits. For example, removing manual work and standardizing processes for HR compliance management and vendor reporting has led to labor-time savings of $933,000 and $362,000 respectively.
Achieving 100% coverage of P-card transactions with ACL continuous monitoring also meant more quality reviews, leading to recoveries of $2.9 million in vendor overpayments and prevention of more than $250,000 in P-card fraud.
Optimizing risk performance in governments worldwide
Using ACL, the organization was able to proactively manage its enterprise risks with the ability to flag overcharging vendors, employee errors, P-card fraud, and HR non-compliance and most importantly, provide management oversight of statewide activities. The ability to gather data from various sources and continuously monitor them with ACL Analytics has enabled the organization to quickly identify exceptions and escalate issues as they arise.
With ACL GRC, these exceptions can be centrally captured and actioned by engaging appropriate personnel for remediation, while fostering greater team collaboration.
This customer is just one of more than 900 local, state/provincial, and federal governments worldwide that ACL supports in preventing fraud and optimizing risk performance.
Access the full Forrester Total Economic Impact study