PRG Schultz Asia & PacificTransaction Assurance & Audit Recovery

ServicesIQPC Shared Services 8-9 September 2009

2

What is a Recovery Audit ?

Financial Best Practice recognized by leading companies world wide as a method for:

1. Reducing erroneous payments

2. Improving internal processes

3. Enhancing bottom-line results

3

Recovery / Transaction Audit

Methodical process of :

Reviewing disbursement txns and supporting data

Identification of overpayments

Recovery of otherwise lost profits / resources

Identification of Root Causes

Provision of Actionable Recommendations

Recovery Audit is a cost effective way to ensure Procurement and AP departments are collaborating for maximum accuracy – Business Health Check!

4

Why use an External Transaction Assurance Service provider?

Incremental Return on Assurance Investment

Incremental Cost of Assurance Investment

Your Systems, Procedures, Controls, Management and Internal

Audit get you to here.PRG finds and recovers the rest!

Degrees of Accuracy

99.5% 99.8% 99.9% 99.95% 99.999%

$$

There is a point at which degrees of accuracy becomes uneconomical… this is where organizations can leverage PRG's experience.

5

Complex Transactional Environment

Small errors can cost companies more than 1/10 of 1% of annual sales - $1M in recoveries per $1B in sales

Why Recovery Opportunities Persist?

Multiple contact points & systems

Increased business demands and limitation

on resources

IT constraints and priorities

Organizational Change

Complex Pricing Arrangements

Increased Transaction Volumes

6

Scope of a Transaction Assurance Review

PRG Schultz analyses your complete procure to pay transaction cycle.

7

Recovery through to Corrective Action Support

Our correction action support approach is comprised of a 6-step process that encompasses both our recovery audit and retail consulting offerings.

● Error Detection

● Root Cause Analysis & Insights

● High-Level Recommendations

● Solution Development

● Solution Implementation

● Continuous Monitoring

Our clients all have different priorities…as a whole all want to maximize Our clients all have different priorities…as a whole all want to maximize recoveries but not at the expense of process improvement…..recoveries but not at the expense of process improvement…..

8

Deliverables : Status & Management Reports

Status Reporting– Regular updates on audit status

Management Reports– Full breakdown of audit findings

– Recovery Audit Results

– Process Improvement Recommendations

Status Reporting and Engagement Management Report

9

Deliverables : Benchmark Analysis

Visibility into largest claims

database

Query by claim category, industry,

and audit year

Identify new recovery and process

improvement opportunities

Define Best Practice targets

Benchmarking provides insights into your business

10

Disbursement Analysis Reporting

Deliverables : Disbursement Analysis Reports

Tool used to identifies process improvement opportunities

Suite of analytical reports that provide a deeper insight into your business

These reports provide insight into:Supplier SpendCash ManagementTransaction Processing MetricsGrief Transactions Vendor Master File Maintenance

11

Electronic Fraud Analysis Report - EFAR

12

Fraud Detection & Analysis

PRG Schultz has developed the Electronic Fraud Analysis Tool (EFAR) to assist businesses in their fraud protection and identification efforts.

The EFAR is a sophisticated and in depth analysis of your accounts payable, procurement and payroll data files.

The EFAR aids in the detection of fraud by looking at conditions which are directly attributed to dishonest of fraudulent activity.

Key tests conducted by PRGS include –

Vendor & Employee AnomaliesVendor & Employee Anomalies Vendor Transaction Spikes & IncreaseVendor Transaction Spikes & Increase Non Compliant ABN & Deregistered Business EntitiesNon Compliant ABN & Deregistered Business Entities Authorisation Level AnalysisAuthorisation Level Analysis Bank Account / Address comparisons between suppliers & Bank Account / Address comparisons between suppliers &

employeesemployees

SpendGuardian

• View all contracts• Contracts Dashboard• Monitor Contract Compliance• Monitor Maverick Spend• Linked to Spend Analysis

• Supplier Benchmarking• Supplier Performance• Profiling (SME/Diversity)• Parent-Child Relationships• Supplier Fragmentation

• Duplicate Payments• Pricing Fluctuations• Identify Missed Discounts• Rebate Analysis• Fraud Reports

• Spend Visibility at transaction level• View Global Spend • Savings Analysis• Variance Analysis• Fragmentation of Spend

SPEND ANALYSIS - SpendGuardian

FRAGMENTED SPEND ANALYSIS ACROSS THE ENTERPRISE

P-CARDSLEGACY

SYSERP E-PROC

Impending Obstacles

Data is captured cleansed and categorised

•Multiple coding structures•Multiple data formats•Inconsistent/Inaccurate Data

•Corporate Reporting•Sourcing Visibility•Procurement Compliance•Supplier Relationship Mgt

Spend Data can be leveraged to provide insight into

15

Who are PRG-Schultz ?

World’s largest Transaction Assurance / Recovery Audit firm

Public Company (NASADAQ: PRGX)

30 years of industry experience

Our global experience includes industry experts, process improvement consultants, buyers and merchandisers,

Pioneers of Recovery Audit in Asia Pacific Core Service Includes:

– Recovery Auditing

– Transaction Assurance & Process Improvement

– Forensic Analysis

– Spend Analytics

16

AustraliaArgentinaBelgiumBrazilCanadaChinaChileColombiaCosta RicaCzech RepublicDenmarkFranceGermanyHong KongIrelandItalyMalaysiaMexicoNew ZealandNorwayPolandPorto RicoPortugalSingaporeSouth AfricaSpainSwedenSwitzerlandTaiwanThailandThe NetherlandsUnited KingdomUnited States

Corporate HeadquartersAtlanta, Georgia

Pacific Region Offices: Sydney, Melbourne,

Auckland

Servicing Clients across 30 Countries

Reviewed over 20 Billion Transactions

Recover Globally $5mill USD per day

Global Coverage – More Categories Across More Industries

17

Why Choose PRG?

Industry Leadership - Serve largest companies across the globe

Cutting Edge Technology – high capacity, robust security, evolving audit toolsets.

Proven Expertise – in a broad range of retail and commercial businesses

Superior Service – delivering highest level of client and vendor satisfaction

We work as part of your team providing independent transaction assurance service

We work constantly on approval – total transparency, flexible engagement

PRG earns its fee on a contingency basis – so if we make no recoveries – NO FEE