Jumping on the Data Analytics Bandwagon Parappilly
Transcript of Jumping on the Data Analytics Bandwagon Parappilly
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Jumping on the Analytics BandwagonHow to Utilize the Data Within Your Organization’s Systems to Gain Valuable Insight
• Data vs Information• Garbage In – Garbage Out• Analytics to Intelligence
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Background
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Data vs Information
Data
Data is unprocessed facts and figures without any added interpretation or analysis.
• “We serve 500,000 constituents.”
Company Data Examples• Journal entries• Customer lists• Vendor lists• Invoices• Expenses• Employee listings
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Information
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Information is data that has been interpreted so that it has meaning for the user.
• “The number of constituents that we serve has increased from 300,000 to 500,000 in 3 years" gives meaning to the data.
Company Information• Financial statements• A/R Aging• A/P Aging• Sources of Funding• Employee Retention
• Data is raw, unorganized facts that need to be processed. Data can be something simple and seemingly random and useless until it is organized.
• When data is processed, organized, structured or presented in a given context so as to make it useful, it is called information.
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Information
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Information from DataAny thoughts on what this is?
Garbage In – Garbage Out
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GI-GO
• Computers, since they operate by logical processes, will unquestioningly process unintended, even nonsensical, input data ("garbage in") and produce undesired, often nonsensical, output ("garbage out").
• Data is not entered into the system at all
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GIGO
PO Analysis• 52% of records do not have an associated PO, which totals to
$28m• The next most used PO was PO 100, with $13m in total expenses,
and 3% of all POs identified with an expense• PO 210 had the most associated expense records, 2,397 for $10m
Note: Names, dates, and amounts have been modified for presentation purposes.
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• Data is not entered in correctly
• The purpose/ usage of the field is not defined
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GIGO
Causation & Correlation
• Correlation: a relationship between two variables
• Causation: an act that occurs in such a way that something happens as a result
14Correlation does not imply causation
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Correlation Analysis
Analytics to Intelligence
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Historical• Descriptive Analytics: condense large amounts of
data into smaller, more useful nuggets of information• Diagnostic Analytics: determining if the correlation is
causal
Forward Looking• Predictive Analytics: probability of different
outcomes• Prescriptive Analytics: integrate tried-and-
true predictive models into our repeatable processes to yield desired outcomes
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Types of Analytics
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• Review the data by skimming through it• Performing various trial summarizations• Identify anomalies or odd data
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Review the Data
Differences between Transaction Date and Bill Date range from ‐302 days (Transaction Date is
12/31/2011 & Bill Date is 2/28/11) to 654 days (TRANS Date is 8/13/10 & Bill Date is 6/7/12)
Differences between Transaction date and Activity Date range from ‐745 days (TRANS Date =
5/23/13 & Activity Date is 4/28/11) to 360 days (TRANS Date is 12/31/11 to Activity Date
12/31/12)
Differences between Bill Date and Activity Date range from ‐798 days (Bill Date of 7/31/13 to
Activity date is 5/12/11) to 300 days (Bill Date of 2/28/11 to Activity date is 12/31/11)
Reversing Entries. The amounts do negate out, however, the notation under the reversing entry is ‘update with actual invoice amount’, but the Transaction Date and Activity Date for both the entry and the reversing are the same dates.
TRANDT BILLDT ACTVDT VEND_NAME INVOICE Total Descr
1/18/2010 2/18/2010 1/18/2010 ABC Company PrePay 2,000,000 Prepay to Secure Date
1/18/2010 2/18/2010 1/18/2010 ABC Company PrePay ‐2,000,000 Update w/actual inv amt
Accounts Payable - Input
• Check Register• Vendor Master• Invoice Master• Employee
Master
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• Check Gaps and Duplicates
• Vendors– Lacking Key Data– Duplication of Key
Data– Employees Set up as
Vendors• Vendor Payments
– Dormant to Increased Activity
– Rounded Amount Payments
• Duplicate Payments– Vendor, Amount – Vendor, Amount,
Date• Cash Payments• Payments below
threshold approvals• Vendors with
Consecutive Invoice Numbers
• Trend Analysis on Vendor Payments 21
Accounts Payable Analytics
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AP ExampleCheck Register GapsGap_Start_
Check
Gap_End_
Check
Number_Items
_Missing
178140 178142 1
178142 178144 1
178260 178262 1
178386 178388 1
178422 178424 1
178466 178468 1
178472 178474 1
178506 178523 16
1782523 178661 137
VendorID VendorTaxID VendorName
Vendor 1099
Status
Vendor
Status Check Amount
NumberOf
Checks
85 00‐0000000 Company A Y T 164.44 1
456 00‐0000000 Company B Y T 500.00 1
356 Company C N 1,283,504.16 53
4 00‐0000000 Company D N T 3,687.63 7
36845 00‐0000000 Company E N T 20,487.30 107
6 00‐0000000 Company F N T 19,672.59 103
5674 00‐0000000 Company G N T 9,562.00 3
7897 00‐0000000 Company H N T 61,270.41 390
4667 Company I N 255.00 3
341 00‐0000000 Company J N T 4,199.52 1
99500 Refunds A N 25,633.71 70
9999 00‐0000000 A/R Refunds N T 303,326.44 244
Missing Tax ID
VendorID VendorName CheckAmount #Of Checks VendorAddr1 VendorCity VendorState
1 Company A 7,896.29 3 PO BOX 8 Anywhere TX
2 Company A 74,199.82 16 PO BOX 1 Anywhere TX
56 Company B 756.00 4 PO BOX 3 Anywhere TX
77 Company B 186.00 1 PO BOX 3 Anywhere TX
9879 Company C 57.00 1 1100 Main Here TX
23 Company C 675.00 2 PO BOX 3 Here TX
345 Company D 5,372.00 3 PO BOX 141 Here TX
456 Company D 11,743.00 1 PO BOX 149 Here TX
234 Company E 1,500.00 1 PO BOX 32 Here TX
8421 Company E 52,185.14 9 101 15 Here TX
215 Company F 574.80 2 PO BOX 30 Anywhere TX
8753 Company F 30,314.65 19 PO BOX 26 Elsewhere WA
Multiple Vendor Records for 1 Vendor
VendorID VendorName CheckAmount 2016 total NumberOfChecks
A Sparrow 27,647.51 28
B Eagle 13,634.83 11
C Mockingbird 6,632.05 15
D Hawk 101,411.09 12
PY Zero Payments, CY Payments
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Payroll
Noted 1 employee record with with no name or address. No payroll disbursements were made.
15 employees who met scope of GrossPay>=$10,000 and Deduction Ratio < .1
5 employees with PO Box as their addresses.
Only 10 salaried employees who were paid during the year. Calculated an average hourly rate for these EE and they were all paid a consistent rate for all pay periods.
Purchase Cards
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Several charges on the same day for an amount slightly under the single transaction limit.
Transactions occurring on weekends or holidays.
Duplicate transactions made by the same user on the same day
Vendor Analysis.
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Tools
• Microsoft Excel • Microsoft Access
Database• ACL and IDEA
Questions?Reema Parappilly, CISASenior Manager, IT
832.320.3254