Implementing a Compliance Monitoring System: A Detailed Report

This report provides a comprehensive overview of the necessity and implementation of a compliance monitoring system within various corporate bodies, particularly focusing on public and non-profit institutions. It includes an executive summary detailing internal, external, and industry compliance requirements, along with an analysis of compliance effects, risk management systems, and potential penalties. The report further delves into the establishment of a compliance management system, emphasizing personnel training, process implementation, and administrative oversight. It illustrates the monitoring methodology, including reporting systems and board approval processes, followed by a result and analysis section. The report concludes with recommendations for enhancing the effectiveness of compliance monitoring, highlighting the importance of integrating compliance models, utilizing survey tools, and adopting compliance management software to ensure adherence to regulatory and quality standards.

The Compliance Monitoring System 0
Title: The Compliance Monitoring System
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The Compliance Monitoring System 1
Abstract
This report summarizes the need for compliance monitoring system in different corporate bodies.
An executive summary has been given with a detailed project report and compliance monitoring
system implementation is explained in detail. The risk management system and its
implementation, industry compliance requirements, industry requirements, risk and effects are
studied. A large emphasis has been on the establishment of compliance management system with
the corporate body and processes, training and administration with a help of example has been
illustrated. The monitoring methodology with reporting system and approval has been provided.
The result and analysis of compliance monitoring system has been given followed by a
conclusion and recommendation.

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Contents
Introduction....................................................................................................................................5
Assessment 1...................................................................................................................................5
1) Executive Summary.................................................................................................................5
1. Compliance Requirements...............................................................................................................5
2. Compliance Effects..........................................................................................................................6
3. Risk Management System................................................................................................................7
Assessment 2.................................................................................................................................10
2) Establishment of System........................................................................................................10
1. Compliance Management System.................................................................................................10
2. Personnel.......................................................................................................................................11
3. Training..........................................................................................................................................11
4. Processes.......................................................................................................................................11
5. Administration...............................................................................................................................11
Assessment 3.................................................................................................................................13
3) Monitoring Methodology.......................................................................................................13
1. Reporting System...........................................................................................................................14
2. Approval by Board of Directors......................................................................................................14
4) Result and Analysis................................................................................................................15
5) Conclusion..............................................................................................................................17

The Compliance Monitoring System 3
Recommendations.................................................................................................................................17
References......................................................................................................................................19

The Compliance Monitoring System 4
Introduction
The present study has been undertaken for the public Institution and not for profit
Institution for providing the charity and essential services to the community. These Institutions
are established with a certain mission and vision and provide charitable services to the
community. A Few times, the Institution may not have the enough resources to provide for the
health care services. The private Institution has encountered with a number of inconsistencies in
the past and an evaluation has been made. The consumer perspective is of great importance and
not for profit Institution must have strong compliance system.
Assessment 1
1) Executive Summary
1. Compliance Requirements
a. Internal Compliance Requirements, including information management and
recordkeeping requirements-
The monitoring of internal compliance with relevant regulations and rules is one of the
major concerns in practice. The organization will have the information management and
recordkeeping requirements. The approaches must be streamlined with the compliance
requirement functionalities
b. External Compliance Requirements-

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External compliance systems are sanctioned through the state in which the business is
conducted. The Report plan for the External compliance system is enumerated
below-
Report plan
 Annual Statement- The state governance requires companies to submit the Annual
statements ad a fee is also generally submitted with the report.
 Tax-Few Companies are operated in which they require to pay the tax. This is referred to
as Franchisee Tax.
 The Labor standards Act-All the corporations are needed to comply with the
regulations of Labor Standards Act.
c. Industry Compliance Requirements-The systematic comparison of present and
existing approaches for monitoring the business processes, a company must adhere
with the Industry compliance requirements.
2. Compliance Effects
a. Areas affected-The effective compliance monitoring system identifies the areas in a
corporate structure that are affected-Financial department (non-submission of
auditing reports, unclear dues, irregularities in payments), Production department
(over-capacity production), IT Department (Problems experienced in configuration
or installation of systems)
b. Risk-The risk in a corporate structure may arise due to external or internal
environment variables. The internal variables can be attributed to wage
discrimination, ineffective controlling systems, production controls and others. The

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external variables can be attributed to changes in monetary or fiscal policy,
economic recession and the high cost of workers.
c. Penalties-The state government may require the LLC and corporate bodies to pay a
fine up to 300 dollars depending on the operations of business and non-compliance
with the statutory guidelines.
d. Risk Minimization-The Risk minimization is possible through the recognition of
need of implementing the compliance monitoring systems at an enterprise level. The
proper measures to be undertaken and priority risk areas identified.
3. Risk Management System
a. Implementation of Risk Management system- The prioritization of risks, assessment
and evaluation of different enterprise levels is necessitated with adequate amount of resources
and maximization of opportunities.
b. Comparison of systems with relevance to-
i. Cost-The Implementation of Risk management system with relevance to cost can
be identified with the implementation of ISO 31000 in the organization. When the
company undergoes through ineffective collaboration, the risk factors are
identified.
ii. Effectiveness-The term effectiveness of a risk management system is relevant to
brand and corporate image. The risk management system allows the immediate
benefits from the variables that causes risk.
iii. Efficiency- Efficiency is a term that is conjunction with employee output and
productivity. The effective placement of the compliance monitoring system and
risk management systems can lead to enhanced output.

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iv. Feasibility-The feasibility study is undertaken to assess the strengths and
weakness of a given project. In an enterprise, the research methodology adopted
for implementation of the compliance monitoring system is-
1. Defining the selected criteria
2. Systematic review and case study analysis
3. Designing of Risk management and compliance monitoring framework
4. Classification of present approaches
5. Comparison and application of compliance system in different areas.
v. Match to Organizational Culture-The monitoring of business processes is
essential to match with the external variables or organizational culture.
Compliance rules must be extracted from the public data sets.
c. Recommend system or Components- A systematic assessment on compliance system
or components is relevant to the context of business functionalities existing within a system.
COSO, COBIT5 and compliance monitoring system are a few of them.
i. Survey Tools-The feasibility of a project can be determined through survey tools.
A survey tool is a comprehensive study that analyzes the different demographic,
technological and environmental factors. This includes- Questionnaires.
A Summary of Charity Care Case Study
Health services in any community must be studied to address the institution behavior
related with compliance system. The not for profit Institution require corporate finance through
which they can provide charity care. The private Institution need to implement the compliance
management system management of risks is possible (McGuire, 2006).
Consumer Protection Laws

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A compliance system must be established with consumer protection laws and formal
enactment of action is must. An effective compliance management system in non-for profit
Institution and private Institutions must comprise of three essential elements-compliance audit,
compliance management and management oversight. An unequivocal compliance system must
be established within the system with a clear vision statement. The institution needs to appoint
the compliance system officer with accountability. Conducting periodic audits is necessary and
assessment of recurrent reports through compliance officer is another concern for the institutions.
Compliance Management Software
The profile of the charitable institution is of great significance as management committee
needs to devise the compliance program. Development of compliant procedures and policies is
another major concern for the not for profit and private institutions. The employees working for
charity care must receive proper training. The compliance officer is required to review
procedures and review policies with applicable consumer laws. The audit or review must be
undertaken with corrective action. The not for profit or private institutions need to implement
the robust information systems. Compliance management software is configurable and
interactive solutions that provides better policies with a platform to meet with the needs of the
consumer. The effective management of documents, audits, employee training and customer
complaints and form based guidelines are effectively managed through Compliance systems (N.
Davilas, 2014).
The industries have a wide number of challenges and offering real time solutions to
clients is not possible without the compliance system approach. Today, the market launched
integrated compliance system software that is easy to use and offers connected approach to
compliance system. Document control, audit and training control are some of the major areas

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that are included within the compliance management software. The innovative compliance
systems manage the organizational problems. The research and discovery are undertaken in the
different stages of a product. Cost-effective compliance management systems make the given
institution approval process easier. A quality standard is one of the biggest concerns for the
institutions and assessment of compliance management systems must be streamlined with the
requirements from different bodies. The regulatory and quality authority’s policies must be in
compliance with the organizational policies. The automated compliance management system
tools will provide the benefits to an institution.
Assessment 2
2) Establishment of System
1. Compliance Management System
The basic principle behind compliance management is to recognize, monitor and analyze
the risk factors and extraction of knowledge through data input or variables given. Every
event in a process refers to a process instance. The compliance management system needs to
store the information about a given scenario. The corporate body needs to focus on the
implementation of compliance models which are-de facto and de jure. The de facto models
control the real scenario where as the de jure model specifies how the things must be
handled. The compliance management system includes following processes-
1. Discovery of a problem
2. Auditing
3. Navigation

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2. Personnel
A systematic compliance monitoring system needs to have compliance monitoring
employees that are entrusted with the responsibility of preparing the reports. The compliance
monitoring employees need to prepare the report with a few adaptations and elicitations
made on compliance monitoring approaches.
3. Training
The compliance monitoring employees are given relevant training. A compliance
monitoring employee needs to enhance its skills and assessment of different regulatory
bodies is necessary. In order to deal with compliance monitoring, the CMF and CMA
framework must be studied. This serves as the basis for evaluation design-time
methodologies. A compliance monitoring employee must be well versed with the compliance
monitoring language.
4. Processes
The relevant studies on different compliance processes must be studied by the
enterprises. These include-Pre-activities of reviews, transaction activities, review of quality
checks and external data. A comprehensive review of staff checklists. The review of
customer calls and attending the presentations. The compliance monitoring process can be
independent or dependent on certain external and internal sources. The objective of
compliance monitoring system must be concise and must not bias the audit activity.
5. Administration
The top management leadership is responsible for the audit of any given event. An
administration framework must be developed and written procedures must be maintained that

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ensure compliance monitor with written rules. Supervisory credentials are necessary for
establishing primary and secondary guidelines. An event audited must be double checked to
evaluate and respond to any error. Business processes must be integrated with a corporate
activity. Differing goals of a corporate body must be ore-written and necessary steps taken for
effectively achieving the process goals.
The compliance monitoring system can be illustrated with the help of a given instance-
The formulated questionnaire on a demographic variables and underlying motives studied for a
given brand or a product is presented to Board of Directors in the form of a sales presentation.
The less or more risky variables with relevance to economic policy are depicted in the sales data.
The compliance monitoring team and management committee needs to monitor the validity of
presented data. The team is expected to assess the single transaction, external changes, and
employee’s stress (with respect to the respond given to a particular set of questions). The
accuracy of presenting data and highly risky transactions must be evaluated with the help of a
compliance monitoring team.
The data are pertaining to a demographic area or situation which may encounter a wrong
set of parameters. The management team reviewing the sales presentation is likely to emphasize
on the data sensitivity and core competence requisite for performing a given task. These errors
can be attributed to oversight of few parameters which stresses on appropriate training and
monitoring for itself. The compliance monitoring teams have a different point of view which
includes the movement towards implementation of an enterprise model which assesses the risk
factors and identifies the wrong parameters at initial stages. This can be achieved through the
adoption of apt statistical techniques aligned with the compliance software and evaluation of
highly risky transaction.