January 2007

Runzheimer International of Rochester, Wisconsin has acquired The Solutions Group (TSG), a Cleveland, Ohio-based firm that specializes in corporate relocation audits, surveying and policy consulting. Terms of the agreement were undisclosed.

Renita Charrlin, formerly the Managing Partner of TSG will now hold the position of Vice President, Global Mobility Services at Runzheimer International. Mike Daugherty, also a former Managing Partner, will now hold the position of
Director – Audit Services with Runzheimer International. The former TSG operations will remain based in Cleveland and will become a satellite office of Runzheimer International.

Definition of an Audit
Audit
Function: noun
1 : a formal examination of an organization's or individual's accounts or financial situation
2 : a methodical examination and review
Function: transitive verb
1 : to perform an audit of or for <audit the books> <audit the company>
2 : to attend (a course) without working for or expecting to receive formal credit

Strange that such a benign definition of a word incites immediate reaction. Fear. Defensiveness, Resistance. Animosity. Creative Avoidance. And many others! It seems we have long been conditioned to react this way. Since we were children, we have been told to think of everything in absolute terms of right or wrong. Unfortunately, audits, in many instances, have been positioned as either "you are right" or "you are wrong" with little opportunity for input or explanation. Adding to the negative feelings surrounding these audits, a threat or penalty, usually severe, could be expected.

However, with the correct understanding and information, an audit can be defined as a planned, independent and documented process to determine whether agreed upon or expected requirements are being met from policies, supplier contracts, service level agreements, and other significant components to conducting your business. Audits are then presented in a manner which provides for a more open, two-way approach to investigate matters. Relocation Compliance Audits conducted in this fashion allow for open communication between the company and the supplier.

Why is it Important to Audit?
We expect to be treated fairly. In a client – supplier relationship every single one of us has expectations which include the following:

• The amount charged is accurate – no more and no less.
• We pay only for the services/products that were delivered/bought.
• The service promised or expected is complied with and delivered.
• The paperwork we sign is complete, appropriate and accurate.
• The product meets our specifications – it works!
• That contracts we sign are honored by all parties.
• That we can confidently demonstrate to management that we have best practices in place, day-in and day-out, for the well-being of all stakeholders

Government Regulations & Corporate Governance
Sarbanes-Oxley (SOX) regulations of 2002 requires a higher degree of financial responsibility and accountability by all publicly held companies and these expectations have also been endorsed by many high-integrity privately held companies. Simply applied, if we treat all business transactions with suppliers as if we were spending our own money – auditing invoices for accuracy of services performed and charges assessed is both logical and prudent management.

The Value of Relocation Compliance Audits
• Supports "Best Practice" initiatives.
• Confidence of Accuracy is independently delivered and documented from an integrated, continuous audit on relocation management company invoices issued; consisting of thousands/millions of dollars.
• Documented Financial Responsibility to safeguard and protect the relocation business process owner(s).
• Data Capture, Retention, Access – detailed, independent data capture on 100% of all invoices and cost components.
• Data Value - Supplier Invoice Accuracy and Comparison - complete and accurate picture on all suppliers; all moves - not just some.
• Data Value - Supplier Cost Component Management Analysis and Comparison - complete and accurate picture - all suppliers; all moves.
• Administrative and AP Support - a single source administrative arm to provide consistent, streamlined invoice processing, audit, handling and payment approvals for the mutual benefit of all parties - on 100% of all invoices - not just some.
• Specialized IT Support – independent capture, data feed, and reporting capabilities over all suppliers, all line item relocation cost details eliminate any need for other internal invoice detail tracking or reporting system.

In the fast-paced business world we exist in, mistakes and errors happen. The only way to ensure that you are paying the correct amount to your suppliers is to have some form of an audit in place. Seek an audit process that is reputable, and high in quality and integrity. Respect that the relocation transaction is high-cost and complex. With an audit process that you trust, your company can have confidence in the accuracy of invoices. The supplier's management team can take the information they learn through independent audit to validate and/or improve processes and systems on a continual basis. The ability to conduct your audit process with your supplier in a way that allows for both teams to feel confident and gain knowledge to improve processes is a definite win-win for all.