Control Domain Control Segment Number
Business Process Controls Client Relationships 3.0 Control Objective(s)
Controls provide reasonable assurance that client account managers are available during normal the business day after hours for client requests and problem resolution
Control Activity Specified by L&E Meridian
Test(s) of Controls Performed by CliftonLarsonAllen LLP
Results of Test(s)
3.01 Clients have a statement of work (SOW), signed Client Agreement or Purchase Order/Instructions that specifies the scope of work as well as the pricing structure.
Obtained and inspected the Client Setup and Maintenance procedures.
Inspected a random sample of invoices and compared pricing to SOW, Client Agreement and Purchase Order/Instructions.
No Exceptions Noted
BUSINESS PROCESS CONTROLS
Control Domain Control Segment Number
Business Process Controls Production Print Job Request 4.0 Control Objective(s)
Controls provide reasonable assurance that L&E and clients jointly agree to perform work based on mutually agreed upon terms, conditions and timelines.
Control Activity Specified by L&E Meridian
Test(s) of Controls
Performed by CliftonLarsonAllen LLP Results of Test(s)
4.01 Online production schedules are reviewed by all account managers and department managers daily.
Obtained and inspected the Production Schedule Monitoring procedures.
Inquired of management that all account and department managers are required to review online production schedules daily.
Inspected the online production schedule report for a sampled day during our walkthrough.
No Exceptions Noted
4.02 Access to production schedules is limited to appropriate authorized individuals.
Obtained and reviewed the listing of those with the ability to add, modify, and delete jobs from the schedule.
No Exceptions Noted
BUSINESS PROCESS CONTROLS
Control Domain Control Segment Number
Business Process Controls Warehouse Inventory Controls 5.0 Control Objective(s)
Controls provide reasonable assurance that incoming raw materials are inventoried and entered into a warehouse system. This includes inventory of purchased by clients and stored at L&E and inventory purchased by L&E on behalf of clients that is also stored at L&E.
Control Activity Specified by L&E Meridian
Test(s) of Controls Performed by CliftonLarsonAllen LLP
Results of Test(s)
5.01 Physically verify counts of all incoming materials by using the customer packing slip to compare to actual material received.
Any exceptions require Warehouse Personnel to contact an Account Manager on how to proceed.
Obtained and reviewed procedures relating to physical inventory management.
Observed procedures for verifying quantity of items received.
Inspected documentation for a delivery, verifying that shipment received matched the packing slip.
No Exceptions Noted
5.02 Inventory is delivered based on requests originating from the online inventory system.
Inquired of management on the process used to pull inventory.
Inspected delivered inventory to the online inventory system to verify accuracy.
No Exceptions Noted
5.03 Unused inventory is returned to the warehouse, where it is verified, stored in an assigned location and entered into the online inventory system.
Observed the returning of excess inventory. Inspected the online inventory system to verify that the correct overage amount was entered.
No Exceptions Noted
5.04 Physical inventory counts are performed on a regular basis for specific clients.
Inquired of management to confirm location audits are performed periodically.
No Exceptions Noted
BUSINESS PROCESS CONTROLS
Control Domain Control Segment Number
Business Process Controls Print Controls 6.0
Control Objective(s)
Controls provide reasonable assurance that print jobs are complete and accurate.
Control Activity Specified by L&E Meridian
Test(s) of Controls Performed by CliftonLarsonAllen LLP
Results of Test(s)
6.01 Printing procedures exist and are formally documented.
CLA obtained and reviewed procedures relating to printing process management.
No Exceptions Noted
6.02 Verify correct version of stock is loaded, review and match against setup and review runsheet.
Observed procedures to verify the correct version of stock is loaded and review and match against setup and review runsheet.
No Exceptions Noted
6.03 Fan through all stock before placing in machine to ensure quality and proper direction.
Observed fanning through of stock before placing in machine.
No Exceptions Noted
6.04 Verify the position and print of laser copy and match to setup sample.
Observed procedures to verify the position and match the setup sample.
No Exceptions Noted
6.05 Verify the data file loaded matches file listed on runsheet.
Observed procedures to verify the data loaded matches data on the runsheet.
No Exceptions Noted
6.06 Verify input counts match the runsheet. Observed procedures to verify input counts to the runsheet.
No Exceptions Noted
6.07 Inspect print quality, looking for faint print, smudges, and extraneous print.
Observed procedures to inspect print quality. No Exceptions Noted
6.08 Verify that sequence numbers when present are consecutive.
Observed procedures to verify the sequence numbers.
No Exceptions Noted
6.09 If a job has a MICR line, a sample is either sent to the Bank for scanline approval or run through MICR reader to verify MICR print.
Inquired of management to confirm that a sample is sent to the Bank for scanline approval or run through the MICR reader for verification.
No Exceptions Noted
6.10 Operator will fan through each stack to confirm all material is oriented correctly.
Observed procedures to verify material is “fanned through” to confirm material is oriented correctly.
No Exceptions Noted
6.11 When applicable, operator will Fan through each stack to confirm that the top of the 3 of 9 or 2D barcode line up from page to page.
Observed procedures to verify material is “fanned through” to confirm that the tip of the 3 of 9 or 2D barcode line up from page to page.
No Exceptions Noted
BUSINESS PROCESS CONTROLS
Control Domain Control Segment Number
Business Process Controls Document Controls 7.0
Control Objective(s)
Controls provide reasonable assurance that documents are accurately assembled prior to packaging and distribution.
Control Activity Specified by L&E Meridian
Test(s) of Controls Performed by CliftonLarsonAllen LLP
Results of Test(s)
7.01 Some of L&E’s inserting machines are equipped with computerized sheet feeder technology to read 3 of 9 or 2D barcodes and validate that the document has a certain number of pages (and that all are present) and that it is a certain numbered document in a sequential set. If either sequential check fails, the machine stops and prompts the operator to intervene and correct the issue.
Observed procedures to inspect samples to ensure they match the material staged at the machine.
Inquired of management to verify that all samples of the ensemble are inspected to ensure they match the material staged.
No Exceptions Noted
7.02 For inserting machines that do not have the camera recognition capability, operators follow all quality control checks and fill out all quality checklists through- out the mailshop process – from insertion samples, inserting and postage method.
Inquired of management to verify that operators are required to follow quality control checks and fill out checklists.
No Exceptions Noted
7.03 Discarded sensitive negotiable items are immediately shredded. Onsite shredding is performed by an L&E employee, and is marked as such on a Quality Control checklist.
Inspected a completed QC checklist to verify the indication of shredding.
No Exceptions Noted
BUSINESS PROCESS CONTROLS
Control Domain Control Segment Number
Business Process Controls Distribution Controls 8.0 Control Objective(s)
Controls provide reasonable assurance that distribution of documents are accurate and in the correct package for both manual and automated delivery
Control Activity Specified by L&E Meridian
Test(s) of Controls Performed by CliftonLarsonAllen LLP
Results of Test(s)
8.01 Distribution procedures exist and are formally documented.
CLA obtained and reviewed procedures relating to printing process management.
No Exceptions Noted
8.02 Job instructions are read thoroughly and completely to determine what material item numbers will be used for the job.
Inquired with management that job instructions are read thoroughly and completely.
Observed procedures for verifying comparison of job instruction sheet to materials used.
No Exceptions Noted
8.03 Live setups are inspected to ensure that they match the material staged at the machine.
Observed procedures to inspect live setups to ensure they match the material staged at the machine.
Inquired of management to verify that all live setups are inspected to ensure they match the material staged.
No Exceptions Noted
8.04 Runsheets/Mailshop P.O. and setups are checked for pull requests and the material, Loadmarker and runsheet/p.o. are all verified against each other. Instructions on the runsheet are followed for the proper disposition of this material.
Inquired of management and staff on the procedures to check pull requests against runsheet/P.O. and material.
No Exceptions Noted
8.05 Postage meter date is set to the date specified in the Purchase Order. If there is no date or if the job is mailing earlier than requested, the date is set to match when the completed job will be
presented to the post office.
Inquired of management to verify procedures to ensure the postage meter is properly set. Inspected the jobs in process to ensure date was properly set.
No Exceptions Noted
8.06 Clients maintain a postage account with L&E and postage is deducted from the account as it is used. Invoices provide a recap of the postage billed along with the balance in the clients postage account.
Inquired of management to verify the postage billing process.
Inspected postage meter logs and the
corresponding invoice submitted to the client to verify the client was billed appropriately.
No Exceptions Noted
8.07 Detection checks and “double and miss” settings are performed at the beginning of every job to confirm the machine is
Inquired of management to verify detection checks and “double and miss” settings are in place.
No Exceptions Noted
BUSINESS PROCESS CONTROLS
Control Domain Control Segment Number
Business Process Controls Distribution Controls 8.0 Control Objective(s)
Controls provide reasonable assurance that distribution of documents are accurate and in the correct package for both manual and automated delivery
Control Activity Specified by L&E Meridian
Test(s) of Controls Performed by CliftonLarsonAllen LLP
Results of Test(s)
8.08 Envelopes are checked for proper sealing at least two to five times per tray based on tray size.
Inquired of management to verify envelopes are checked at least two to five times per tray based on tray size.
No Exceptions Noted
8.09 Meters are checked for imprint clarity and completeness at least three times every tray.
Inquired of management to verify meters are checked for imprint clarity and completeness at least three times every tray.
No Exceptions Noted
8.10 The sequence (or record) number is checked on every single piece by a camera recognition system. This system makes sure that each piece of mail is accounted for and that there are no double feeds or missing pieces of mail.
Inquired of management to verify that the sequence number is checked on every single piece.
No Exceptions Noted
8.11 A handful of mail is fanned at least one time per tray to inspect for presence of a postmark and that the address is showing through the window. In addition, correct presence of meter imprint and address in envelope window is verified.
Inquired of management to verify that mail is fanned at least one time per tray to ensure a postmark is present and that the address and meter imprint are visible
No Exceptions Noted
8.12 In the event an error is detected by the L&E inserting equipment, an error message is reported and the operations staff can resolve the issue.
Inquired of management to verify the system generates job termination error messages.
No Exceptions Noted
8.13 Negotiable items are secured at all time prior submission to L&E’s in-plant post office area.
Observed that negotiable items are secured prior to submission to the post office.
No Exceptions Noted