- Are Your Vendors Putting You
- What is The Global EDGE Advantage?
- How is the Global EDGE Model Different?
- How Do I Authenticate My Vendors?
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Today's Risk EnvironmentCorporations are subject to civil enforcement and criminal prosecution under a wide array of Federal and state laws, including the:
Sherman Antitrust ActProhibits certain business activities that reduce competition in the marketplace and requires the United States federal government to investigate and pursue trusts, companies, and organizations suspected of being in violation. The Act states that "every contract...in restraint of trade or commerce...is declared to be illegal" and that "every person who shall monopolize...any part of the trade or commerce...shall be deemed guilty of a felony."
Federal False Claims ActProhibits conspiring to defraud the government by getting a false claim paid, presenting a false claim for payment or approval, or using a false record to avoid or decrease an obligation to pay the Government. This act allows for penalties of $5,500 to $11,000 per claim, threefold damages and costs of civil action brought to recover.
Wire and Mail Fraud ActsThere are three elements to mail and wire fraud: intent; a "scheme or artifice to defraud" or the obtaining of property by fraud; and, a mail or wire communication. These three elements have constituted a Federal crime since 1872.
Foreign Corrupt Practices Act (FCPA)Enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Under the anti-bribery provisions of the FCPA, corporations and other business entities are subject to a fine of up to $2,000,000. Meanwhile officers, directors, stockholders, employees, and agents are subject to a fine of up to $100,000 and imprisonment for up to five years.
General Services Administration (GSA) Excluded Party ListThose excluded from Federal procurement and reciprocal programs. Any penalties or liability for doing business with an excluded party depends on the violation that led to ineligibility.
Department of Treasury Office of Foreign Asset Control (OFAC)Prohibits any transaction with persons on the specially designated nationals list. Maximum civil penalty is the greater of $250,000 or twice the amount of the transaction that is the basis of the violation
Department of Health and Human Services Office of Inspector General (HHS/OIG) List of Excluded Individuals and EntitiesEstablishes categories of parties excluded from payment by any Federal health care program for any items or services provided by an excluded individual or entity. This payment prohibition applies to the excluded person, anyone who employs or contracts with the excluded person, any hospital or other provider where the excluded person provides services, and anyone else. Providers have an affirmative duty to check the program exclusion status of individuals and entities (List of Excluded Individuals and Entities (LEIE)) prior to entering into employment or contractual relationships or run the risk of Civil Monetary Penalties (CMPs) if they fail to do so. The list includes over 40,000 entries and is updated monthly. CMPs are delineated as up to $10,000 for each item or service furnished by the excluded party as well as up to three times the amount claimed.
Federal Anti-Kickback Statute of the Social Security ActCivil and criminal penalties for an individual or entity that knowingly and willfully requests, solicits, gives or pays any renumeration, overtly or covertly, to induce a referral, purchase or lease of any good service which may be paid under a Federal health care program, including Medicare. Criminal fines may amount to up to $25,000 per offense and/or 5 years imprisonment, in addition to imposed Administrative fines, exclusion from Medicare/Medicaid programs, and civil penalties up to $50,000 plus treble damages.
Physician Self-Referral/Stark LawProhibits hospitals from submitting—and Medicare from paying—any claim for a “designated health service” (DHS) if the referral of the DHS comes from a physician with whom the hospital has a prohibited financial relationship. This is true even if the prohibited financial relationship is the result of inadvertence or error. In addition, hospitals and physicians that knowingly violate the statute may be subject to CMPs and exclusion from the Federal health care programs.
Risk from A to ZThere is a certain level of risk that is created with each new relationship that develops with your business, be it with a supplier, employee, or other necessary contributor. Below is a list of common instances that may be exposing your organization to increased risk of fraud.
- Alleged services that were never performed
- Business location is a drop box and does not make business sense
- Changes in product quality, substitution of material for faulty or inferior goods
- Decline in financial stability putting you at risk
- Exchanged product
- Fictitious “shell entities” set up by employees or others outside the organization
- Goods not delivered
- High prices when goods could be bought directly for less, or on contract rate that was not disclosed
- Improper payments and kickbacks, conflicts of interest, gifts or unauthorized commissions
- Jumping the gun with invoices before product delivery
- Keeping unapplied cash without notifying you of the over payment
- Late Annual Report to the Secretary of State resulting in “Inactive” or “Not in Good Standing”
- Management on Sanction lists
- New false vendors
- Ordering for other clients at a lower rate, under your contract, then pocketing the difference
- Partial shipments that do not meet minimums for discounted rate
- Quantities shipped is flipped between months in order to do bulk purchase discount
- Receiving department fails to inventory all goods received, allowing the un-documented products to walk out the door
- Suspicious purchasing patterns
- Transportation and freight discounts are not consistent with the conditions of the contract
- Unusual patterns and correlations between vendors and a contributor (ex. accounts payable clerk)
- Vacation not taken by key financial personnel in order to shield their activities
- Wrong vendor or account number on invoice
- eXact quantity shipped versus received are mismatched, resulting in higher supply costs
- Yearly contract compliance audits reflect significant variances in rebates, discounts, and the application of net terms
- Zero tolerance fraud policies are rarely applied at organizations resulting in 1 out of 3 businesses being victims of fraud
Global EDGE Vendor Authentication
The math is simple: 1 in 3 businesses will be de-frauded. To protect your business all contributors within your organization should be authenticated. The Global EDGE Vendor Authentication Model takes a comprehensive view of all vendors and suppliers with which you transact business. The goal is to assess validity, financial stability and the inherent risk associated with the relationship.
Business Risk Failure: Global EDGE uses Vendor Authentication to ensure that your relationship with a supplier is sustainable. Our Global EDGE technology assesses the likelihood that an organization has the financial stability to remain in business for the forward-looking twelve months. Although we do not believe that an organization with financial difficulty will necessarily commit fraud, the situation does lend itself to a greater likelihood of operating outside the bounds of the contract.
Authentication: Global EDGE screens your contributors against 40 dimensions to determine whether or not the business is real entity. From there, we look across 210 additional conditions to ensure a vendor is in good standing, assessing potential for risk and the financial stability of the organization. In total, our Authentication platform screens vendor for 250 high risk conditions.
Individual-to Business Linkage: Our model works to ensure that the individual who says they own or run the vendor organization is, in fact, that individual. We take steps to ensure the linkage is valid.
Fraud Probability: Our Global EDGE technology looks at thousands of companies historically and assesses past fraud patterns to identify future risk potential within your vendor organizations.
Transactional Behavior: Global EDGE is a contract neutral company that works to ensure the terms of a contract are understood by the vendor and client. When the outlined terms of the contract are not experienced, by way of our extensive Accounts Payable Auditing technology, we service those exceptions and work to ensure that each party is fulfilled.
Patterns and Trends: Given all data secured relative to the supplier, the transaction and other contributors, Global EDGE looks for patterns, coincidences and linkages. Through this seemingly unrelated data, the Global EDGE Platform will surface instances of fraud, waste and abuse, including overpayment, contract exceptions, and fraudulent relationships between contributors.
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Vendor Authentication: The Global EDGE Vendor Authentication service measures each vendor’s risk elements against decisioning criteria to identify potential areas of concern. The conditions are researched and either resolved or confirmed. The goal is to standardize your Vendor Master File and reduce the opportunity for fraud and overpayment to your suppliers.
Procure-to-Pay Personnel (or Contributors): Isolating risk means you, the company, fully understand the complete interaction of those who touch the supply chain process. This includes the individual that requests an item, orders the supply, receives the material, stocks the item, and pays the invoice. By looking for patterns in this process, along with vendor contributions, Global EDGE is able to isolate trends that could suggest fraud.
Fraud Prevention: The platform's strength is driven by the assimilation of various datasets and the mechanism through which it processes this data and facilitates communication. The ability to create interaction and quantitative relationships between: (1) the Client, (2) the supplier, (3) contributors and participants in the Risk Management process, and (4) Global EDGE Risk Management professionals is vital to eliminating Fraud, Waste, and Abuse. The overarching purpose of implementing the Global EDGE program is to ensure cost containment, risk mitigation, and revenue recovery goals. The Global EDGE Suite facilitates these activities with a robust workflow engine and case management queuing structure.
- Remove duplicate vendor names
- Load accurate vendor documents
- Correct address errors
- Maintain adequate contact information
ePay: Offers clients the ability to pay your supplier invoices electronically using ACH Direct. This functionality can reduce your organization's payment processing costs by as much as 95%.
eNotice: Client organizations reduce inbound call traffic from vendors regarding the status of their invoice payments by 50% or more by enabling the Global EDGE payment notification platform. eNotice allows a client to completely customize the remittance notification and efficiently distribute to a targeted list of its vendors.
eBroadcast: Gives clients the ability to electronically communicate with their suppliers at a fraction of the usual cost. Our eBroadcast tool allows clients to upload documents and customize messages to a targeted list of vendors.
Accounts Payable (AP) Recovery Audit: Global EDGE technology solves a number of business challenges with its proprietary audit software, by evaluating line item transactional detail. MicroScan performs filtering and modeling routines to identify areas of recovery, which include: (1) Transaction level; (2) Purchase Returns; (3) Foreign Currency; (4) Tax and Regulatory Issues; and (5) Vendor contracts. At the completion of any specialized contract audits, we provide the following:
- A detailed narrative report describing our procedures and findings, including a list of suggested practices for increasing control and minimizing future billing and payment errors.
- Delivery of payment history reports that can be used to obtain additional pricing leverage in negotiating with large dollar value vendors.
Contract Compliance: We recover objective, verifiable payment errors. We do not consider the quality of your contracts; we simply ensure you are billed in accordance with the specific terms and conditions. We help you arrive at an appropriate settlement by compiling documentation providing the highest possible leverage for settlement negotiations.
Card Management Solutions: Global EDGE Card Encompas technology, the winner of two national technology awards, provides the client with transaction level auditing against any card that’s used within the organization, including Purchase Cards, Travel Cards, Fleet Cards, or Credit Cards. This functionality operates in real-time to identify discrepancies between a card-holder's user profile and their purchases to reduce your organization's risk.
Global EDGE built a one of a kind platform that spans the procure-to-pay process. Our platform links seemingly unrelated data into a single Risk Management Solution for our Clients. Now you have the ability to identify risk; stop fraud, waste and abuse; and recover lost dollars that were misappropriated throughout the accounts payable process, all through a highly secure web-based platform.
Global EDGE achieves this by focusing on three core areas: (1) Knowing Your Suppliers, (2) Isolating Your Risk, and (3) Managing Financial Controls.Expand All | Collapse All
At Global EDGE we know that implementing new tools and processes can be difficult and time-consuming. We also know that it doesn't have to be that way. We have made it easy to become a Global EDGE client because we want your organization to experience the benefits of our Risk Management Platform as soon as possible! The first step is to Contact us. From that point on, a Global EDGE Relationship Manager will be at your side throughout each step in the process to ensure a successful implementation.
Know Your SuppliersThe Global EDGE Solutions Gateway provides a true partnership between the client and the vendor by facilitating the exchange of data, improving the efficiency of interactions by moving communications online, and providing increased convenience to both parties in a single sign-on platform.
Isolate Your Risk
Isolating your risk has never been easier than utilizing the Global EDGE platform to monitor and track processes and spend activity within your organization. Our Multi-Factor Authentication analyzes, but is not limited to, accounts payable, employee and Equifax data to determine where potential risk exists within your organization.
- Vendor Master File Management – Reduce the number of duplicate payments by using Global EDGE to merge redundant vendors and consolidate Remit-to addresses within your Vendor Master File.
- eBusiness and Document Management – Streamline vendor communication with eBroadcast, eNotice, and eAlerts using Global EDGE. Document Management allows you to source, warehouse, and retrieve key vendor documents in one platform, and supports an organization’s “Green” initiatives.
- Recall Trax – This application records, tracks, and monitors the product recall process. Alerts, workflow triggers, inventory integration and disposition instructions help to ensure that an organization is not dependent on the use of a recalled product.
- Business Intelligence – With such vast amounts of information in one platform, knowing your suppliers’ organization and procurement behavior has never been easier, or more intuitive. Global EDGE assembled the tools you need for intelligent decision-making.
Manage Financial ControlsGlobal EDGE puts over 120 revenue enhancement reports at your control. Clients can review audit exceptions, contract compliance issues, user details and fraud risk trends.
- Recovery Audit – The primary objective is bringing an organization’s lost monies back to the bottom line. MicroScan performs filtering and modeling routines to identify areas of recovery, which include: (1) Transaction level; (2) Purchase Returns; (3) Foreign Currency; (4) Tax and Regulatory Issues; and (5) Vendor contracts. The advantage of Global EDGE Recovery Audit is that we identify problem areas within an organization’s procedures and advise on “best practices” to improve those processes and prevent issues from reoccurring.
- Contract Compliance – This functionality allows the user to upload key terms and conditions to any contract, including supplier details, price, and the names of those parties connected to the agreement. Through integration with Accounts Payable data, Global EDGE monitors exceptions and reports on missed discounts, term violations, and waste and abuse within the agreement.
- Card Management Solutions – EncompasTM focuses on Travel Cards, Purchase Cards, Fleet Cards, and Credit Cards. The platform hosts a series of customizable scorecards that are used to monitor and track cardholder usage. This powerful tool provides extensive insight into usage patterns, policy violations, and exceptions to cardholder permissions.
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Become a Global EDGE Client
Our Global EDGE product is unlike any other revenue enhancement tool on the market.
Our technology links seemingly unrelated data into a single Risk Management Platform.
We help organizations manage risk, reduce fraud waste and abuse, recover lost revenue dollars, and increase productivity.
Our clients enjoy a single sign on which eliminates the need to give protected information to multiple vendors.
Sign Up is Quick & Easy!
We take risk management seriously so we make becoming our Client easy to provide the benefits of our Global EDGE Platform to your organization.
Step One: Contact Us for a Demonstration
We would be happy to review the Global EDGE Suite and Platform with you and the leaders of your organization. Contact us and we will be flexible with your time to get the meeting scheduled. We are confident our services will be a benefit to your organization.
Step Two: Evaluate Products
We will assist you in developing the best Risk Management plan offered and help you determine which products are right for your organization. Through our comprehensive suite of products your organization is sure to receive the best Risk Management support all in one location, our Global EDGE Platform.
Step Three: Get Started!
We will work together to get your Vendor Master File prepared and ready for our Global EDGE Platform. The set-up is quick and easy with the Invitation Letters to follow soon thereafter. Progress reports and details of your Vendor Master File will come shortly after we get your Vendors through our Global EDGE Authentication process.