THE NEWSLETTER OF IMAGE PROCESSING SYSTEMS - ISSUE 5 JUL 1, 2006
IPS to Host Vital Records Seminar with Elin Group and Allstate Business Archives
On September 28, IPS will co-host a Vital Records seminar at the Crowne Plaza Hotel and Exhibition Center in Secaucus, New Jersey, in collaboration with the Elin Group and Allstate Business Archives.
The event will spotlight topics in three major areas of Vital Records professional practice and will feature presentations by each company president covering their particular area of expertise:
- Vital Records Regulatory Compliance and Policy Development, presented by Elin Group president Dr. Phyllis Elin
- Vital Records Protection - Digital Imaging Strategies, presented by IPS president Gregory J. Bartels
- Vital Records Protection - Vaulted Storage Strategies, presented by Allstate Business Archives president Joseph Germinario
The seminar will be moderated by IPS Business Development Manager, Eric Labiak, who describes the event as "a valuable opportunity for stakeholders to get up to date with current practices and access a wealth of executive-level consulting resources." No fee will be charged for the event, which includes a light breakfast, and all clients and partners are invited to attend.
Complying with Sarbanes-Oxley: The Next Level
Sarbanes-Oxley (SOX) has been making headlines recently due to the unexpectedly high cost and complexity of complying with the law. Some of that cost and complexity results from the need to retain and ensure access to documents. We asked two experts in the field to share their views on the most important requirements of SOX for document retention and the essential policies that public companies must put in place. They are Dr. Phyllis Elin, Managing Director of records management consultancy The Elin Group in New York City, and Maury Mechanick, attorney with White & Case in Washington DC.
Question: What does Sarbanes-Oxley require of companies when it comes to record retention and access?
Elin: Compliance with Sarbanes-Oxley remains a challenge for organizations, as recordkeeping requirements are very vague and in most cases only implied by the Act. There is no "one size fits all" answer. The key to compliance is to have a set of uniformly-implemented and enforced policies and procedures. This, in itself, is an enormous undertaking that covers the normal records management program as well as specific SOX-related accounting processes.
Mechanick: The ironic thing is that SOX does not actually impose any new requirements for document retention. What it does impose are significant new criminal penalties, including fines and imprisonment, for destruction, alteration or concealment of any document with the intent to obstruct or influence Federal proceedings. This open-ended exposure has created a de facto mandate to put in place a rigorous document retention program.
Question: How can companies determine what is a vital record from the standpoint of SOX?
Elin: There is also no express definition of what constitutes a vital record under SOX. Vital records can be defined as those containing information essential to the continuation of the organization, that are necessary to continue operations during an emergency, and/or specific information that would be impossible or too costly to recreate.
Mechanick: It would be easy to conclude that public companies can never, ever destroy documentation from this point forward! Fortunately, that's not the case. The important thing is to have a written policy and procedures that establish reasonable timeframes for retention and disposal.
Question: What should a written policy cover?
Elin: Records management policies and procedures should ensure:
- Proper retention and disposition of corporate records under the company's control as well as those under the control of outside parties
- Controlled storage that ensures availability
- Protection of records identified as vital to the organization
- Testing of compliance with recordkeeping procedures
- Policies and procedures that ensure accurate financial recordkeeping, reporting and testing of internal financial/accounting controls, including audit procedures
- Policies and procedures for receipt, retention and treatment of complaints about questionable accounting matters
- Procedures and adequate records documenting disciplinary actions and employee dismissals in connection with protection of whistle-blowers under SOX
- Policies and procedures that define due diligence activities that support certifications, standards of conduct, reports and disclosures required under SOC
- Internet publishing procedures for posting required SEC forms on public company Web sites and maintaining them for one year
Mechanick: A written policy is only the beginning. Companies must also make sure that employees are trained about the policy and that there is a means of monitoring and enforcing compliance. If the company faces legal proceedings, or even a reasonable likelihood of them, it must also make sure to retain all relevant documentation, even if the written policy would normally permit it to be destroyed. Under SOX, having a program in place that is not followed may be as bad as having no program at all.
Dr. Elin (973-726-8237 or pelin@elingroup.com) and Mr. Mechanick (202-626-3635 or mmechanick@washdc.whitecase.com) caution that the advice they provide here should not be considered the last word in ensuring compliance, and urge readers to consult their own documentation experts as well as legal counsel in order to ensure compliance with the requirements of Sarbanes-Oxley.
IPS Enters Reseller Agreement with Scan-Optics
IPS has entered a strategic relationship with Scan-Optics, a recognized leader in data capture and recognition technology. As a Scan-Optics reseller, IPS now offers sales, installation and support for the company's SO Series in-line scanners. These advanced units render high-quality color images at a rate of 240 pages per minute using the best in optics, illumination, paper transport and image output technologies. Based on software rather than proprietary hardware, the SO Series uses an open architecture built on Microsoft Windows and operates on an Intel platform, allowing it to take advantage of the latest advances in computer processing. "The Scan-Optics relationship," says IPS president Gregory Bartels, "allows us to meet a broader spectrum of client needs. In addition to our digital document services, IPS can now help clients build a state-of-the-art scanning capability in-house as well." For more information on the SO Series, see the Scan-Optics Web site at www.scanoptics.com.
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