18 june 2009
Another stage of the project for the creation of a UAC of the internal control system completed
GMCS announces the completion of another stage of the large-scale project of creating a unified automated complex of the internal control system (UAC) for its client – Rostelecom. 

The stage resulted in the implementation of an integrated solution allowing to form procedures and control their execution in terms of internal control. GMCS was one of the service provider's partners in UAC implementation.

The goal of creating the UAC is to ensure information and analytical support of all risk management and internal control processes. The project involves implementation of a number of information systems aimed at comprehensively solving tasks, such as introducing unified business processes for the entire company and organizing an efficient internal control and risk management system.

UAC construction began in 2005 with the project for the automation of the system of internal control over financial reporting. The project was implemented by GMCS with the methodological support of PricewaterhouseCoopers as part of the implementation of the internal control system aimed at ensuring financial reporting reliability of the service provider in compliance with the requirements of the Sarbanes Oxley Act. The main goal of the project implemented by GMCS specialists on the basis of the  Microsoft Office Solution Accelerator for Sarbanes Oxley (MOSASO) solution was to organize control over the execution of control and monitoring procedures within the internal control system.

The second stage of works on the establishment of a unified internal control complex was to implement an automated procedure formation system for the client. Based on requirements set by the company and taking into account the existing business process structure and internal control system at Rostelecom, GMCS carried out detailed analysis of business process description systems available on the market. As a result the model of internal control system components created by GMCS, was implemented by consultants based on Casewise Corporate Modeler Suite – a system of modern tools aimed at describing and simulating business processes. License supply and user training within this stage were conducted by FORS Development Center.

The goal of the next stage of works was to establish a mechanism ensuring automatic reflection of all changes in business process models, risks and control procedures on the system. With this in mind the business process database based on Casewise Corporate Modeler Suite was integrated with the system of control over execution of internal control procedures based on MOSASO. As a result of integration information on changes in business process organization is currently automatically transferred from the simulation system into MOSASO, which carries out logging of control and monitoring procedure execution. Online monitoring of control procedure execution is carried out by employees responsible for business processes at branch and territorial administration level.

As part of this stage GMCS consultants completed integration of the internal control system with the client's human resource management system based on BOSS-Kadrovik. Thus, the task of monitoring consistency of information on business process participants working in the internal control system was solved. This solution allows to ensure continuity of control and monitoring processes of control procedure execution.

The UAS is currently being used by over 6 000 employees of the client, including its top managers.

"Among the local tasks successfully solved within the project are – first of all, bringing the system of internal control over processes related to financial reporting in compliance with legislative requirements, and secondly, supporting internal control system audit," says Aurika Savchuk, Deputy Head of the Business Process Department at Rostelecom. "UAS implementation also allows to arrange distributed business processes and simplify both business process change management and subsequent centralized control implementation and process efficiency evaluation at Rostelecom."

"Implementation of such systems in distributed companies allows to centrally conduct online monitoring of control procedure execution at local level," notes Valdimir Norenko, Head of the Efficiency and Control System Division at GMCS. "This in turn helps the company ensure efficiency of the internal control system."

About Rostelecom

Rostelecom is Russia’s national telecommunications operator, providing a wide range ofproducts and services. The Company owns and operates the country’s most extensive and technologically advanced nationwide fiber-optic backbone network (about 150,000 km in lengths), which enables Rostelecom to provide voice, data and IP services to business and residential customers across the entire Russian Federation and to domestic and international operators. Svyazinvest, the state-controlled holding company, is Rostelecom’s majority shareholder, with ownership of 51% of ordinary (voting) shares.

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