The URL can be used to link to this page

RPVCCA_CC_SR_2014_11_04_04_City_Council_Policy_Fraud_Waste_And_Abuse_HotlineCrTYOF RANCHO PAL.as VERDES MEMORANDUM TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE MAYOR & CITY COUNCIL MEMBERS DENNIS McLEAN, DIRECTOR OF FINANCE ~ NOVEMBER 4, 2014 CITY COUNCIL POLICY NO._-ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE CAROLYNN PETRU, ACTING CITY MANAGER RECOMMENDATION 1) Adopt and file City Council Policy No. _ "Anonymous Fraud, Waste, and Abuse Hotline"; 2) Direct Staff to develop a professional services agreement with NA VEX Global, to serve as the City's hotline administrator for the Anonymous Fraud, Waste and Abuse Hotline for the City in accordance with the accompanying proposed City Council Policy; 3) Direct Staff to return with a proposed budget adjustment for FY14-15 for the estimated additional cost of the proposed Anonymous Fraud, Waste and Abuse Hotline; 4) Direct Staff to present a staff report to the City Council prior to one-year from the date of the professional services agreement with the selected hotline administrator to include a review of the use of the proposed Hotline, costs incurred by the City and any other recommendations; and 5) Consider the possible establishment of a phone-based customer service center for reporting incidents outside of the scope of the proposed Anonymous Fraud, Waste and Abuse Hotline and direct Staff on whether to return with a report regarding its research about its merits, additional cost and experiences of other cities. EXECUTIVE SUMMARY In 2012, Mayor Duhovic requested that a staff report be prepared for the City Council to consider the establishment of an Anonymous Fraud, Waste and Abuse Hotline ("Hotline"). In 2013, the Los Angeles County Civil Grand Jury published its 2012-13 report with its investigative findings. In response to the findings, Staff made several recommendations to the City Council on September 17, 2013, including the possible implementation of an Anonymous 4-1 CITY COUNCIL POLICY NO. -ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE November 4, 2014 Page 2 of 12 Fraud, Waste, and Abuse Hotline that would be administered by an independent third party as well as the establishment of a City Council Policy to add clarity to the purpose and use of the Hotline. The City Council approved Staff's recommendations. On June 3, 2014, the City Council approved all of the policy recommendations offered by the City's legal advisor, Mark Meyerhoff of Liebert, Cassidy and Whitmore ("LCW"), for inclusion in the accompanying proposed City Council hotline policy, as described in the Background section of this report. The draft City Council Policy -"Anonymous Fraud, Waste, and Abuse Hotline" (see Exhibit "A") for the proposed hotline that was developed in conjunction with the City's legal advisor, Mark Meyerhoff .of LCW, was provided to the Audit Committee for review on September 3Qth, followed by a revision of it on October 6th. Staff separately emailed the Audit Committee requesting feedback about the draft Policy. In conjunction with drafting a Policy, Staff developed and issued a Request for Proposals for a third-party hotline administrator ("Hotline Administrator") that included policy elements which the Council decided upon during its meeting on June 3, 2014. After reviewing all the submitted proposals and viewing product demonstrations from the two qualified companies on October 15, 2014, Staff concluded that NAVEX Global offered the most cost-effective, comprehensive Hotline Administrator services best matching the needs of the City. NA VEX Global's proposal, dated July 29, 2014 is attached as Exhibit "B". As directed by the City Council on October 21st, the Audit Committee (sub-committee) of the City Council met with Staff, the City Attorney and Mark Meyerhoff of LCW on Monday, October 27th. The meeting allowed both members of the Audit Committee to further discuss the scope, work flow process and other concerns regarding the proposed Anonymous Fraud, Waste, and Abuse Hotline with the City's advisor and Staff. An overview about the discussions during the meeting of the Audit Committee, especially revisions to the proposed Policy regarding the education process and improvements to customer service reporting are included in this staff report. Unknown costs of case management and possible investigations will encompass professional fees of third-party experts. At present time, these costs are difficult to quantify as the number of Hotline Reports that will warrant a third-party expert are not known. Additionally, the number of hours and professional fee costs cannot be determined. However, Staff believes these elements will significantly exceed the known cost of the Hotline implementation. The FY14-15 budget does not include a provision for both additional known and unknown costs. Staff believes these elements may significantly exceed the known cost of the Hotline implementation and services provided by the selected Hotline Administrator. Based upon an assumption that 10 hotline reports will require the use of 3rd party independent experts each year, it appears as though the unknown cost could exceed $55,000 annually. The uncertainty of both the use and cost of the proposed Hotline warrants a one-year review by the City Council, as recommended by Staff herein. 4-2 CITY COUNCIL POLICY NO. _-ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE November 4, 2014 Page 3 of 12 BACKGROUND AND DISCUSSION -HOTLINE POLICY On June 3, 2014, the City Council made several policy decisions regarding the establishment of an Anonymous Fraud, Waste and Abuse Hotline based on a Memorandum prepared by Mark Meyerhoff of LCW for the proposed Hotline, entitled "Rancho Palos Verdes -Whistleblower Hotline Analysis". At the meeting, Mr. Meyerhoff offered the City Council policy recommendations for its decisions concerning the establishment of the Hotline. The City Council concurred with all the recommendations proposed and directed Staff to prepare a City Council Policy that would provide clarity on the role and scope of the Hotline. The following items reflect the City Council decisions on what the City Council Policy No._-"Anonymous Fraud, Waste, and Abuse Hotline ("Hotline Policy") should include: A. The Hotline Policy will cover financial fraud, waste and abuse, as defined in the Government Code, as well as personnel and human resources issues. 8. The City will have a qualified independent third-party service provider operate the Hotline. C. A hybrid process (internal and external) will be used to review Hotline reports, whereby the initial review of certain reports depending on the subject matter, personnel involved, seriousness, and the reported complaint would be conducted by a case manager, who could be either: an independent third-party expert (e.g. CPAs with municipal expertise, legal counsel with Human Resources or forensic expertise); or the Human Resources Manager. D. Depending upon factors such as the subject matter of the report, the individuals involved in the allegations and the seriousness of the allegations, an investigation of Hotline reports would be performed by an appropriate individual, such as an independent third- party expert or a licensed investigator, with the City Manager's approval and City Attorney's guidance, when appropriate. For complaints dealing with personnel/human resources, depending on the type of complaint involved, the investigation could be conducted internally by the Human Resources Manager or, for more significant investigations, by an independent third-party expert. E. The City Council deferred its policy decision on whether or not the City Attorney should receive a copy of every Hotline report. Staff, as well as the City's legal advisor for the proposed hotline, recommend that the City Attorney receive a copy of every Hotline report (unless the complaint involves an allegation against the City Attorney). The City Attorney serves as the City Council's representative in the case management process and shall monitor the City's legal interests. Subsequent to the meeting of the Audit Committee on October 27th and prior to the completion of this Staff Report, Mark Meyerhoff of LCW, recommended the inclusion of examples of possible reportable incidents that would use the proposed Anonymous Fraud, Waste, and 4-3 CITY COUNCIL POLICY NO. _-ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE November 4, 2014 Page 4 of 12 Abuse Hotline and those possible incidents that would be reported using other customer service processes. The attached draft Hotline Policy includes such delineation, based upon Mr. Meyerhoff's recommendation. Overview of Proposed City Council Policy No._ -Anonymous Fraud, Waste and Abuse Hotline If approved by the City Council, the City will adopt a Hotline Policy to provide an Anonymous Fraud, Waste and Abuse Hotline ("Hotline") with the primary objective to provide a procedure for contractors, volunteers, employees, elected officials, and members of the City's committees and commissions, residents and other interested parties to confidentially report: ( 1) any activity or conduct which the person suspects constitutes fraud, waste, or abuse against the City, as defined in the Government Code, and (2) violations of all federal or state laws and regulations relating to fraud, waste, and abuse against the City. This proposed Hotline Policy is established to ensure elected officials, committee and commission members, volunteers, and employees are aware of what items and actions encompass the hotline process: 1. Acts that are considered to be fraudulent, wasteful or abusive; 2. Procedures for reporting suspected fraudulent, wasteful or abusive acts; 3. Steps to be taken when fraudulent, wasteful, abusive, or other related dishonest activities are suspected; and 4. Consequences to expect when a fraudulent, wasteful, abusive, or other related dishonest act is reported. Outreach Once the Hotline processes are defined and operational details are moving toward implementation, a public and employee outreach plan will be launched. When the Hotline goes "live", the City will create a Hotline link that will be prominently placed on the main page of its website. The link will take residents to a dedicated page where residents can learn the benefits and features of the Hotline as well as provide step-by-step instructions on how to submit a Hotline report. In addition to promoting the Hotline on the City's website, press releases about the Hotline will be forwarded to local media. An article will be featured in the City's newsletter and a public service announcement could be created for viewing on RPVtv. The City will also send out a breaking news listserver message to announce the Hotline. The City will also clarify the function and/or purpose of the Hotline to the public and Staff by delineating incidents that would merit its use versus more 'general inquiries', which more appropriately would be directed to the City's "Non-Emergency Customer Service Requests" portal. 4-4 CITY COUNCIL POLICY NO._-ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE November 4, 2014 Page 5of12 Employees The City's Human Resources Manager will distribute an electronic bulletin to every employee in the organization announcing the Anonymous Fraud, Waste and Abuse Hotline. Additionally, the HR Manager will facilitate in-house training to Staff on the use and features of the Hotline. The training will generate employee awareness that the City offers every opportunity for filing of Hotline reports, and that every report will be reviewed and investigated without bias. Most importantly, anonymity throughout the Hotline process (from submission to completion) will be maintained when requested by the complainant. Upon completion of the in-house training, handy pocket cards will be distributed to staff as a reminder of the Hotline telephone number and website address. Printed information (posters, calendars, etc.) about the program will also be posted in the City's break rooms. As an internal best practice, City Management will require that all new employees receive Hotline literature and training as part of all new employee orientations. Elected Officials and Committee Staff and the City's legal advisor recommend that Elected Officials, Committee/Commission members, and certain independent contractors receive information that provides an overview of the Hotline, its process, and how the Hotline should be used. These groups would also be provided information on their responsibilities at this time. Delineating Use -Hotline for Fraud. Waste and Abuse Reporting vs. Non-Emergency Customer Service Requests using Website Portal and Other Customer Service Processes This portal currently resides on the City's website, and is designed to provide the public with a web-based process to report incidents/inquiries that are not related to personnel matters or to fraud, waste and abuse. The process in its current form, requires a user to complete a web- based interface (a form) on the City's website. From there, it would be routed to the City Manager or appropriate department where appropriate action would be taken. Examples of reports/inquiries appropriate for the Non-Emergency Customer Service Requests portal would include, but not limited to: • Fallen Trees • Graffiti • How to obtain a copy of a document • Potholes • Questions about renting park sites • Street signs downed New City Website -Enhanced Customer Report Management System 4-5 CITY COUNCIL POLICY NO._-ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE November 4, 2014 Page 6 of 12 The City's new website, which is expected to go "live" in early 2015, will include a module known as a "request tracker" that will allow users to create a wide variety of service requests electronically and replace the current Non-Emergency Customer Service Requests system. The primary feature of this request tracker module is ease of making reports, as well as use of its Content Report Management (CRM) database that is designed to track service requests, provides the user with status information, and can be used as a reporting tool for the City both to assign resources to the kinds of services residents need most and to ensure issues are handled promptly by the City. The CRM reporting system is also expected to provide periodic updates of open reports by City departments and the nature of the report, as well as the resolution of reports. The City's IT Manager envisions that once the City implements systems able to handle automated requests, it will be able to accommodate more robust customer service processes, for example, use of a mobile-based app to make reports. Best Practices The Government Finance Officers Association ("GFOA") appears to support the recommendation to open the Hotline broadly to both fraud, waste and abuse, and personnel and human resources Hotline reports as cited below from the attached GFOA Best Practice publication titled "Encouraging and Facilitating the Reporting of Fraud and Questionable Accounting and Auditing Practices (2007) (CAAFR)": "Since ensuring or enhancing confidentiality can significantly increase costs, consider minimizing those costs by providing a separate reporting mechanism for employees, who typically desire greater assurance of confidentiality than do outside parties. In this regard, a government may wish to explore the possibility of engaging the services of an outside vendor to receive complaints from employees. The use of an outside vendor offers a number of potential advantages, including the following: • Employees may be more readily persuaded of the confidentiality of their calls if they are made directly to a party outside the government. • Vendors may be able to provide extended hours of service, thus avoiding the need to place a call during regular working hours (i.e., while the employee is still at work)." In addition, the GFOA publication cites the following: "A government should regularly publicize the availability of these mechanisms and encourage individuals who may have relevant information to provide it to the government." Oversight by the Audit Committee -Feedback from Audit Committee Members In accordance with best practices, the guidance offered by both the Sarbanes Oxley Act and the American Institute of Certified Public Accountants, as well as the recommendation by the City's legal expert, the draft Policy includes the oversight role by the Audit Committee during implementation as well as the on-going monitoring of reporting to ensure the Hotline process is working. As described previously, the Audit Committee has reviewed the draft Hotline Policy 4-6 CITY COUNCIL POLICY NO. -ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE November 4, 2014 Page 7of12 and has provided comments and suggestions that have been incorporated into the accompanying draft Hotline· Policy. If the City Council adopts the proposed Hotline Policy, Staff will bring back a revision to City Council Policy Number 44 to add its oversight of the Fraud, Waste and Abuse Hotline to its scope of responsibility. Review by Audit Committee and Role of Council and Commission Members On September 30, 2014, Staff, the City Attorney, and Mark Meyerhoff of LCW met with Audit Committee member Councilmember Misetich, to provide an overview of the draft Hotline Policy and to obtain feedback. At that time, Councilmember Misetich offered the following suggestions which were subsequently incorporated into the draft Hotline Policy: • The Audit Committee shall meet quarterly over the first year of implementation of the Hotline in order to review summary reports on Hotline usage and case resolution. Thereafter, the Audit Committee shall meet annually to monitor the ongoing Hotline utilization. • A City Council member or commission/committee member shall not attempt to personally investigate or interfere with Hotline reports. Preservation of Anonymity and How Confidentiality Could Be Assured By the Complainant On October 15, 2014, both NAVEX Global and The Network, Inc. provided demonstrations of their Hotline platforms' features and functionality to Staff. Audit Committee member Councilmember Campbell participated in one of the web-based demonstrations. At that time, Councilmember Campbell made inquiries regarding the preservation of anonymity and how confidentiality could be assured by the complainant. Based on these concerns, Staff has reached out to both providers to determine how they maintain absolute confidentiality of complainant telephone numbers and/or IP addresses in the company's voice or computer database logs. NA VEX Global communicated to Staff they do not store IP addresses of reporting complainants in their database application. Their webservers do temporarily capture all web connections, but these are not connected to the hotline database reporting application and can only be accessed by one of their IT systems administrators. The protection and control of this information is outlined in the company's annual SSAE 16 compliance report; whereby, the company attests to its adherence to compliance with controls for the protection of service organizations it serves (e.g. customers like the City). In addition, NAVEX Global personnel stated they will not release any call or web logs without a court order, and that there has never been an occurrence where they were compelled by a court action to release IP or call log information. The other Hotline Provider finalist, The Network, reported that it does not track telephone numbers or IP addresses either. Of course, telephone numbers are maintained in the Hotline database if the complainant chooses to provide it. 4-7 CITY COUNCIL POLICY NO. _-ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE November 4, 2014 Page 8of12 Case Management Workflow On October 16, 2014, Councilmember Campbell expressed concerns to Staff about the proposed Hotline Policy, specifically the proposed case management workflow and how reports are disseminated and investigated. Additionally, he expressed an interest in including incident complaint categories in the policy that go beyond financial fraud, waste, and abuse and personnel/ Human Resources matters as defined in the California Government Code. As directed by the City Council on October 21 5 \ the Audit Committee of the City Council met with staff, the City Attorney and Mark Meyerhoff of LCW on Monday, October 27th. The meeting allowed both members of the Audit Committee to further discuss the scope, work flow process and other concerns regarding the proposed Anonymous Fraud, Waste, and Abuse Hotline with the City's advisor and Staff. Staff informed the Audit Committee that the proposed Hotline Policy was designed to direct the majority of Hotline reports to an independent third-party expert to serve as the Case Manager; thereby, protecting the integrity of the proposed case management workflow and ensuring independence. Example: Hotline Report asserting a fraud (e.g. improper payments or loans, kickbacks) or accounting irregularities would be forwarded directly to an independent third-party CPA with municipal expertise to serve as the Case Manager. Possible Expansion of Scope of Use of the Hotline -Non-Emergency (Customer Service) Request Website Portal There was also considerable discussion about the possible expansion of the use of the proposed Hotline to provide the opportunity for the public to report concerns beyond fraud, waste and abuse (such as public safety concerns). During the discussion, Mark Meyerhoff of LCW recommended that the use of the Anonymous Fraud, Waste and Abuse Hotline not be expanded to include other customer service reports. Staff suggested that the education process that would be conducted with implementation of the proposed Hotline would direct the public to use of the City's "Non-Emergency Customer Service Requests" portal, residing on the City's website, as well as other customer service processes to report their concerns. The Hotline Administrator would be trained to re-direct customer service reports to the appropriate department and/or member of City staff, use of the Non-Emergency (Customer Service) Request website portal or other governmental agencies and utilities as appropriate. The City Council may wish for Staff to research other customer service reporting systems. Notwithstanding such, the Audit Committee advocated that the following actions occur during the meeting on October 27th: • Increase community awareness of the "Non-Emergency (customer service) Requests portal and it functionality. • Modify the name of the "Non-Emergency Requests link to "Non-Emergency Customer Service Requests". • Educate the community on incidents that would warrant the use of the "Non-Emergency 4-8 CITY COUNCIL POLICY NO. _-ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE November 4, 2014 Page 9 of 12 Customer Service Requests" portal versus the Fraud, Waste and Abuse Hotline. The Audit Committee also discussed the possible establishment of a phone-based customer service system with Staff during the meeting. Based upon a recommendation by the City's legal advisor, Mark Meyerhoff of LCW, it appeared as though there was consensus among the Audit Committee and Staff that the proposed Anonymous Fraud, Waste and Abuse Hotline should not be used for customer service reports. The City Council may wish to direct Staff to explore the merits, the additional cost, as well as the experiences of other cities using a phone- based customer service reporting system. BACKGROUND AND DISCUSSION -RECOMMENDATION FOR THE HOTLINE PROVIDER Staff developed and issued a Request for Proposals modeled to include components the Council desired in the implementation of the Anonymous Fraud, Waste, and Abuse Hotline. On June 27, 2014, the Request for Proposals was released to the nine (9) Hotline industry leaders Staff identified as potentially capable of providing the service standards required to meet the City's needs. After reviewing the submitted proposals, Staff narrowed its selection to two (2) finalists, NA VEX Global and The Network, Inc. Both proposals were provided to the Audit Committee on September30, 2014. On October 15, 2014, both companies provided a demonstration of their Hotline platforms' features and functionality to Staff. Councilmember Campbell participated in one of the demonstrations. After viewing the demonstrations, Staff deliberated and concluded that NAVEX Global offered the most cost-effective value to the City. The submitted proposals and product demonstrations were thoroughly reviewed and evaluated by Staff. Several criteria were considered by Staff to base its recommendation. These criteria included: • Company reputation and experience • User-friendly interface • Reporting system available in multiple languages • Toll-free telephone service providing users with live, anonymous and confidential hotline reporting capabilities, 24/7/365, with trained staff • Web-based Complaint Reporting System • A secure, integrated incident management system that can be configured for use by appropriate case managers and investigators • Robust reporting and analytic tools • Effective educational materials • Ongoing technical support • Cost • Security and data protection 4-9 CITY COUNCIL POLICY NO. -ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE November 4, 2014 Page 10of12 Staff believes both finalists have demonstrated industry leadership and a proven track record of success. Both proposers work with government entities, including municipalities of all sizes and complexity. Both finalists are similarly situated to maintain a robust and professionally managed hotline system for the City. That being the case, undefinable overage costs became the main consideration in making the recommendation. Below is a table that illustrates the cost differential between the two finalist Hotline Providers. Proposer NAVEX Global1 Initial Cost Web Annual Fees 50 reports $500 -----···------··-·---r-----·-··-· ·-·----·- Outreach Annu~I Co$t 1'11-terials $2,500 50 reports $8,500 Fees $950 (optional) 1- i I l Totals $3,450 50 reports $11,500 ~ ! The Network2 $2,500 100 reports 100 reports $450 est. 100 reports II $900 1 $10,700 1 (optional) 1 $14, 100 1 l 150 reports ] 150 reports I i 150 reports I $1,200 I $12,750 I I $16,450 I ----------------------------"-~----c~-_l _________________ j __________ ---_____ L ------__________ --~ 1 Annual cost includes four (4) dedicated licenses and unlimited number of concurrent licenses 2 Annual cost consist of 12 licenses. Both Proposals include an Integrated Management System At this time, Staff cannot measure the level of activity (general inquiries and reports submitted) that the Hotline will generate upon its implementation. Therefore, Staff felt it prudent to choose a provider that offered a fixed annual cost regardless of the number of reports submitted. Unknown Costs The Hotline Policy was drafted with a case management workflow that strives to match the hotline report with the appropriate case manager professional. (Example: a hotline report asserting an accounting fraud by Finance Department Staff would be directed to an independent third-party CPA with municipal expertise to serve as the Case Manager). Additionally, there might be times when the complexity and risk associated with some Hotline Reports could require additional resources or experts currently not available within the City who may be utilized to assist in the investigation, oversee the investigation, or to conduct an independent review. These third-party experts may include, but are not limited to: an independent CPA with municipal expertise, specialized labor counsel, a Certified Fraud Examiner, forensic experts, or an independent legal expert. The cost associated to retain these third-party experts to participate in the investigation of Hotline Reports is difficult to quantify. However, there is a possibility these costs could be substantial if a large number of reports require the engagement of one or more of these aforementioned experts. Implementation 4-10 CITY COUNCIL POLICY NO. -ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE November 4, 2014 Page 11 of 12 Staff anticipates an implementation timeline of approximately eight to twelve weeks after a Professional Services Agreement is executed. This timeframe will allow for a process data table to be created and loaded, communicating the Case Managerworkflow processes to the Hotline Administrator, creating the City's webpage design and web link, administrator and employee training, and a public outreach process for the community, Staff and Officials. FISCAL IMPACT The contract agreement is for one year, renewable upon mutual agreement. The costs outlined below were guaranteed by NAVEX Global until October 31, 2014. Known Costs $2,500 Unknown Costs $950 (optional) $3,450 Unknown costs will encompass professional fees of third-party experts. At present time, these costs are difficult to quantify as the number of Hotline Reports that will warrant a third-party expert are not known. Additionally, the number of hours and professional fee costs cannot be determined. However, Staff believes these elements will significantly exceed the known cost of the Hotline implementation. The FY14-15 budget does not include a provision for both additional known and unknown costs. Based upon an assumption that 10 reports annually will require the use of 3rd party independent experts, it appears as though the unknown cost could exceed $55,000 annually. An unknown cost scenarios document (Attachment D) provides examples of incident scenarios that involve a third-party expert and the estimated costs the City may incur to complete each investigation. Staff encourages the City Council to direct Staff to present a report regarding the Hotline prior to one-year from the date of the professional services agreement with the selected hotline administrator to include a review of the use of the proposed Hotline, costs incurred by the City and any other recommendations ALTERNATIVES As described previously, the City Council could direct Staff to return with additional information about the establishment of the expansion of the scope and functionality of the Non-Emergency Customer Service Requests system via the City's website, by establishing a more robust customer service center that could include features like a toll-free number, a mechanism to 4-11 CITY COUNCIL POLICY NO. _-ANONYMOUS FRAUD, WASTE AND ABUSE HOTLINE November 4, 2014 Page 12 of 12 track reports in real-time and provide updates on the inquiry/report status. From cost information that Staff has gathered, to establish a fully functional Customer Services Center, similar in functionality to that in the City of Redondo Beach, could cost approximately $16,000 a year, depending on the functionality and selected workflow modules. Attachments Exhibit A-Proposed City Council Policy No._ -Anonymous Fraud, Waste and Abuse Hotline Exhibit B-Proposal(s) -NAVEX Global and The Network Exhibit C -Hotline Process Exhibit D -Complaint Scenarios with Unknown Costs 4-12 "Exhibit A" 4-13 CITY COUNCIL POLICY NUMBER: XX DATE ADOPTED/AMENDED: XX, 2014 SUBJECT: Anonymous Fraud, Waste & Abuse Hotline INTRODUCTION: The City of Rancho Palos Verdes ("City") is committed waste and abuse. Accordingly, it is the policy of the any potential fraudulent, wasteful or abusive a personnel (Human Resources) or the public's a remedies available under the law. DEFINITIONS ecting its assets against fraud, entify and promptly investigate impact the City's finances, ppropriate, to pursue legal Membe forces s to serve on City committees, City task Every complete" shall be immediately forwarded to a designated "Case Manager". Every that is validated by the Case Manager as being within the scope of this Policy s ,, forwarded to the City Attorney who shall ensure that every validated Hotline Reporf stigated without conflict or bias. The Case Manager shall be sufficiently trained to evaluate the validity and urgency of the Report and may review any Hotline Report with the City Attorney and City Manager, as appropriate, to determine if further investigation is warranted. Depending on the subject matter of the Hotline report, the Case Manager could be a City employee or an independent third-party. The Case Manager and/or City Attorney and/or City Manager shall determine whether certain Hotline Reports warrant immediate action and, if so, shall take such action, including providing the Hotline Report to any appropriate law enforcement and/or government agencies. 862443.l RA025-001 1 4-14 Case Reporting System The Hotline Administrator shall provide a web-based interface to its secured database to enable authorized Case Managers, the City Manager, the City Attorney, and Investigators access to view and update cases, including attachments to reports, evidentiary documents, and case status reports. Complainant The person(s) filing a complete Hotline Report is the "Co disclosed through the Hotline, including the identity of parties identified by the person(s) making the Hotli accordance with the California Government Code.,,~~, ·~~ Contractor' · ant". At all times, information nymous Complainant and any rt are to remain confidential in An independent person or company that pro the City pursuant to a contract. Elected Official A member of the City Council. Employee Fraud, Section ordance with California Government Code cal ag cy or employee that is undertaken in f the employee's official duties, including activi to be outside the scope of his or her employ s in violation of any local, state, or federal law or regulati ting to corruption, malfeasance, bribery, theft of government property, fraudulent claims, fraud, coercion, conversion, malicious prosecution, misuse of government property, or willful omission to perform duty, is economically wasteful, or involves gross misconduct." Fraud, Waste & Abuse Hotline Administrator The City shall retain a Hotline service provider ("Hotline Administrator") that shall facilitate the receipt of Hotline reports. Reports may be made anonymously (confidentially) at the 862443.1 RA025-001 2 4-15 discretion of the complainant. The Hotline Administrator shall provide hotline services, including, but not limited to: (1) operating a telephone call center, staffed 24/7 by competent, trained personnel; (2) forwarding hotline reports to a designated Case Manager; (3) maintaining a secure database for all reports submitted; (4) providing status updates to complainants, upon request; and (5) providing status and analytical reports to be used by Case Managers, management, elected officials and the public, as appropriate. The phone number for the Hotline and the website URL address for the Hotline shall be prominently displayed on the City's website and other appropriate methods of public outreach will be implemented. · Hotline Report Every complete report submitted to the Hotlin web-based reporting system shall constitute Investigator The investigation of a Hotline Rep or organization ("Investigator") ex be selected by the Case Manager, with this Policy. There might be tim Hotline Reports could r · addition the City who may b conduct an indepe to: the Case Mana counsel, a Certified Fra Valida hone call center and/or its ·ne Report"). ut conflict or by a person(s) overnment. The Investigator shall the City Attorney in accordance nd risk associated with some rrently not available within o see the investigation, or to ay include, but are not limited n independent auditor, specialized labor dent legal expert. A Hotlin activities th ·s Policy that alleges fraudulent, wasteful or abusive that has been that is covered b Volunteer rsonnel (Human Resources) or the public's assets tline A inistrator and Case Manager and deemed a report which requires further review. A person who voluntarily o ers unpaid services to the City. POLICY This policy is established to ensure members of the public, elected officials, committee and commission members, volunteers, and employees are aware of the following: 1. Acts that are considered to be fraudulent, wasteful or abusive; 862443.l RA025-001 3 4-16 2. Procedures for reporting suspected fraudulent, wasteful or abusive acts; and 3. Steps to be taken when fraud, waste, abuse, or other related activities are suspected; 4. The responsibility of City officials and employees to institute and maintain a system of internal controls to prevent and detect fraud, waste and abuse as set forth in this Policy. APPLICABILITY OF POLICY This Policy applies to all contractors, volunteers, e · of the City's committees and commissions regar · , lected officials, and members ulent, wasteful or abusive activities. · Examples of report would be appropriat include, but not limited • • CONFIDENTIALITY :hder t·~,~~rview of the Fraud Hotline, but ustomer Service Requests" portal would All information disclosed through the Hotline, including the identity of anonymous person(s) making the Hotline Report, and the parties identified by the person(s) making the Hotline Report, are to be held in confidence in accordance with Section §53087.6 of the California Government Code as follows: "The identity of the reporting individual may not be disclosed 862443.l RA025-001 4 4-17 without written permission of that person, unless the disclosure is to a law enforcement agency that is conducting a criminal Investigation. Id., subd. (e)(1). Accordingly, the procedures for receiving complaints must be tightly controlled, and the City staff responsible for complaint intake must be absolutely trustworthy." PROCEDURES It is the City's intent to fully investigate every validate A line Report objectively. A. City officials and employees are responsi prevention of fraud, waste and abuse, ass 8. The Case Manager has the primary all validated reports as defined in th E. The City sh Report. F. the detection, reporting and ·s Policy. · y Manager, City and the Audit onnel, neither the City nor any etermination with regard to , mpleted. any individual who makes a results will be reported by the Case ager and City Attorney, as appropriate. reporte Department Director(s), HR Manager, in nd/or the City's independent auditors and the Audit Com e. ~lb G. The City ' .v priate, City Manager, or designee, following review of the investigation findings, shall take appropriate action regarding misconduct. ry action may include: suspension, termination of employment, an re appropriate, referral of the case to an appropriate law enforcement agency and District Attorney's Office for possible investigation and prosecution. H. The City will pursue every reasonable effort, including court ordered restitution, to obtain recovery of City losses from the offender, or other appropriate sources. AUDIT COMMITTEE RESPONSIBILITIES 862443.l RA025-001 5 4-18 The City Council established an Audit Committee in accordance with City Council Policy Number 44. The Audit Committee shall be responsible for ensuring this Policy is properly implemented and that procedures exist and are being followed with regards to the receipt, retention, treatment and appropriate resolution of Hotline Reports. The Audit Committee shall meet quarterly over the first year of implementation of the Fraud, Waste, and Abuse Hotline in order to review summary reports on Hotline usage and case resolution. Thereafter, the Audit Committee shall meet at least annually to monitor the ongoing Hotline utilization. CITY OFFICIAL AND COMMISSIONER RESPONSIB A. If a City Council member or commission/ an in.cident of fraud, waste and abuse contact either the City Manager, c· applicable, or immediately submit a B. C. EMPLOYEE RESP ber has reason to suspect r she shall immediately . endent auditor, when not attempt to ii. pport e City's responsibilities and cooperate fully with r involved departments, and law enforcement agencies reporting of criminal acts, including the prosecution of iii. Employees mus give full and unrestricted access to all necessary records to the I n vest i gator and Case manager. All City assets and property, including desks and computers, are open to inspection at any time by authorized personnel. INVESTIGATOR RESPONSIBILITIES 862443.1 RA025-001 6 4-19 A. The Investigator will promptly investigate the Hotline Report. B. If evidence is uncovered showing possible fraudulent, wasteful, or abusive activities, the Investigator shall perform the following: C. E. i. Discuss the findings with the Case Manager, City Manager, City Attorney and/or independent third-party expert, and/or Department Directors and/or the HR Manager. ii. iii. If applicable, report such activities to the indep independent auditor and the Audit Committ. of the illegal activity upon the City's fin ent third-party expert, City's rder to evaluate the impact atements. Take immediate action, in consultatio . and Case Manager, to prevent evidentiary records. Such acti ~~:f:1 (a) Removing the records and · access to the records. (b) Preventing the ind access to the recor ity Attorney, City Manager tion, or destruction of not limited to: an alleged fraud or audit City , . nager and City Attorney son to respond to the media vestigator will document the results in a riate. F. Upon co vestigation (including all legal and personnel actions), and other evidentiary material obtained from the ation will be returned by the Investigator to the Human all record department u Resources Dep ACTION This Policy is effective on the date approved by the City Council. 862443.l RA025-001 7 4-20 "Exhibit B" 4-21 The Ethics and Compliance Experts NAVEX GLOBAL RESPONSE TO YOUR REQUEST FOR PROPOSAL FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES City of Rancho Palos Verdes Presented by: I Greg Shoals Account Executive +l (503) 352-7167 direct gshoals@navexglobal.com NAVEX Global: The Ethics and Compliance Experts 6000 Meadows Rd., Suite 200 Lake Oswego, OR 97035 www.nave)(global.com 4-22 COVER LETTER July 29, 2014 Dennis Mclean, Director of Finance 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 Dear Dennis, r\JAVEXcLoBAL. The Ethics and Compliance Experts Please find enclosed our response to the City of Rancho Palos Verdes' (the "City") Request for Proposal (RFP) for a Fraud, Waste, & Abuse Hotline Services solution. We greatly appreciate the opportunity to bid on this project and look forward to discussing with you how we can help you with this initiative. Since the merger of two of the largest, most established hotline and case management companies, Global Compliance and EthicsPoint, NAVEX Global is in the strongest position to offer clients more choice when it comes to decisions around their hotline and case management needs. Required Cover Letter Information: Our proposal shall remain valid for a period not less than ninety (90) days from the date of submittal (July 21, 2014). We partner with the following third parties for Hotline Report Interpretations and Translations: 1. Transatlantic Translation Company, LLC (Primary Provider) 2. Certified Languages International, LLC (Alternate Provider) In the event an external interpreter is brought onto a call, NAVEX Global personnel lead the call and are always present to enter the interpreted information. The employees of these providers are required to sign confidentiality agreements, as are the provider companies, and are reminded prior to each report of their obligation to maintain confidentiality. Moreover, in order to meet current European Union data privacy laws, the provider companies are required to either be Safe Harbor Certified with the US Department of Commerce or to enter into Data Transfer Agreements with NAVEX Global. NAVEX Global does use additional outside resources to assist with periodic programming, design work, subject matter expertise, and some other aspects of productions. Proposing Business Entity: Contact Person: NAVEX Global, Inc. Greg Shoals, Account Executive coc .. o ivit,Mows p,)a".t t 1 !~)7112Ei<H125 4-23 6000 Meadows Rd., Suite 200 Lake Oswego, OR 97035 (971) 250-4100 I (866) 297-0224 toll free 6000 Meadows Rd., Suite 200 Lake Oswego, OR 97035 1\1/\ VEX CLOBAL_' The Ethics and Compliance Experts +l (503) 352-7167 I gshoals@navexglobal.com On behalf of NA VEX Global, we thank you for considering this proposal and our team. We look forward to the opportunity of working with the City on this project. Regards, /original signed/ Shon Ramey General Counsel 6000 i'·l1bBOO'/JS ?oaj:l Su:: 200 t 1 f;?;(if.i 29 ?·C22·< i<if f 1!9~?j12~}(}.t;i2fj V\J~:;n \!.i>f, Vi n~IVt;>,9l(:hB: 4-24 l\JAVEX GLOBAL The Ethics and Compliance Experts CONTENTS RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES COVER LEITER ............................................................................................................................................................... 4 INTRODUCTION ............................................................................................................................................................. 5 GENERAL SCOPE OF WORK ............................................................................................................................................ 6 WORK PLAN ................................................................................................................................................................. 11 SCHEDULE .................................................................................................................................................................... 12 FEE AND COSTS ............................................................................................................................................................ 15 ABILITY OF NAVEX GLOBAL TO PERFORM ................................................................................................................... 15 CITY AITACHMENT 5 INFORMATION .......................................................................................................................... 19 OTHER CITY AITACHMENTS ........................................................................................................................................ 23 .O.PPENO!CES Appendix A: NA VEX Global Proposal -City of Rancho Palos Verdes Appendix B: NAVEX Global MSA Appendix C: Sample Order Form © 2014 NAVEX Global. All rights reserved. PAGE 4 OF 2.4 4-25 NAVEXGLOBAL The Ethics and Compliance Experts INTRODUCTION RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES The City seeks a qualified firm to establish, operate, and maintain a dedicated toll-free telephone and online hotline for employees and residents of Rancho Palos Verdes {"CITY"), as well as non-resident concerned persons, to anonymously report complaints of fraud, waste, abuse, and other wrongdoing in connection with City government. In addition, the City is seeking a central repository to input, track and record all activity related to case investigations (integrated case management). To meet the City's organizational needs, NAVEX Global recommends the comprehensive and integrated solution detailed below. The solution will: • enable City employees and other stakeholders to easily and confidentially report any issue or instance of misconduct via multi-lingual toll-free telephone-based contact centers and anonymous and secure web reporting • enable manager-submitted reports received from employees through "open-door" meetings and "hallway conversations", investigator or auditor generated reports ("Internal" Reports), and intake via custom web Report Forms • through automated case management, allow City to have a consistent and efficient business process, integrating the collection and reporting of incidents and allegations with related investigations, while keeping accountability and autonomy at the department level Our recommended solution begins with our Hotline Service Solution, which includes 24/7/365 multilingual telephone-and web-based reporting mechanisms and access to our EthicsPoint Case Management System with advanced analytics and reporting capabilities. Our Case Management System will enable City to centrally store received reports, respond to reporters; enter new reports received from internal sources, search report data, and view management summary reports. The inherent Case Management functionality will accommodate the managing of cases from open through closed, regardless of whether cases are reported via telephone, web, or internally. Our end-to-end service offers a flexible, on-demand hotline and case management solution that will empower City to centralize, standardize, and streamline investigative case management processes-City case investigators will enjoy the robust browse, sort and filter capabilities (grid control), while leveraging Assignments and Participant functionality to drive cases to resolution. The full response of NAVEX Global to the RFP will provide more detail on the features of the NAVEX Global Hotline and Case Management and how they fulfill your requirements. NA VEX Global provides a high degree of transparency in our service levels and the performance of both our Contact Centers and supporting technology. NAVEX Global recognizes that our system and service reliability is critical to our success. We contract with third-party auditors to monitor our uptime, performance speeds and system security. We maintain our systems in a state-of-the-art collocation facility and we have a top tier disaster recovery solution to support our offices and our systems. We also contract with a nationally recognized independent service that utilizes separate hosted server sites located in multiple cities to test all NAVEX Global web sites simultaneously. The collected data is then used to provide a comprehensive view of web site performance and availability. © 2014 NAVEX Global. All rights reserved. PAGES OF 24 4-26 NAVEXGLOBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES We are committed to providing service within our Services Level Measurement ("SLM") set forth under following metrics: • 80% of calls answered within 25 seconds • 4% or less calls abandoned after 25 seconds • Average Speed of Answer of 25 seconds or less • Website availability 99.0% Annual Minimum Uptime • Report dispatch time within 12 hours of receipt SERVICE LEVEL SUMMARY AS OF JULY 1, 2014 Service Level Metric Annual Targeted Actual Past 30 days Actual Past 90 days Actual YTD Level Calls answered 80% 83.9% 86.5% 86.1% within 25 seconds Abandonment Rate 4% 2.4% 1.9% 2.0% Average Speed to 25 seconds 22 seconds 19 seconds 20 seconds Answer Report Dispatch/ 98% within 12 hours 100% 100% 100% Delivery Time of receipt 44-minute average 35-minute average 45-minute average Systems Availability 99.0% minimum 100.0% 100.0% 100.0% uptime during scheduled availability When our clients choose the NAVEX Global Hotline and EthicsPoint case management, they get a powerful, flexible case management tool. They also receive NAVEX Global's expert, timely and friendly support services. Our clients regularly comment on their satisfaction with the EthicsPoint application and with NAVEX Global's Client Care support team. We are confident that City will find the product and the service to be an excellent choice for its needs. Moreover, NAVEX Global offers the only truly integrated ethics and compliance Ecosystem, bringing together the key applications, technology and services an organization needs to take compliance management from reactive to predictive. By choosing NAVEX Global today for hotline and case management, City will invest in a scalable platform that you can leverage as your organization's ethics and compliance requirements grow. GENERAL SCOPE OF WORK Based on your RFP requirements, NAVEX Global recommends the comprehensive and integrated solution detailed below. This custom solution will establish a world-class culture of business integrity and signal to your employees, partners, and key stakeholders a maximum commitment to minimizing risk. © 2014 NAVEX Global. All rights reserved. PAGE 6 OF 24 4-27 NAVEX Gi_OBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES High Level Description of Recommended Solution • NAVEX Global's Hotline has been designed to enable your employees and other stakeholders to easily and confidentially report any issue or instance of misconduct. The Contact Center is globally accessible 24/7 /365 with system availability ensured by end-to-end network redundancy, scalability, and reliability. Live telephone interpretation support is available in 200+ languages (to include Chinese, English, Hindi, Japanese, Korean, and Spanish). All calls are serviced within the United States. • Standard Telephony Package, a preconfigured solution of non-branded greetings and pre-configured language bundles based on country. These language bundles represent more than 70 of the most widely used languages and together represent close to 99 percent of our global hotline business. This package comes with the following features and flow, in the following order: • Pre-configured default language bundle (provided as a language menu) • Standard Automated Greeting and "Notice of Consent Statement" (provided in the language option selected by the caller). "Thank you for calling your ethics and compliance hotline. All information you provide will be kept confidential" • Menu of Services (provided in the language selected by the caller): • Press Oto file a new report • Press 8 to follow up on an existing report • Press Oto learn more about NAVEX Global and our reporting process • Press 8 to repeat the menu • NAVEX Global's EthicsPoint case management provides consistent collection of reports and allegations from multiple intake sources, consistent investigative processes and workflows across the organization, and actionable reporting and analytics to provide visibility into potential risk areas. EthicsPoint supports secure role and/or skill-based access and meets international data privacy requirements. It integrates with the other elements of the NAVEX Global ecosystem, providing a more holistic approach to managing ethics and compliance across the enterprise. A starting point for any company looking to combine the qualities of a compliance hotline with straightforward business processes, the EthicsPoint Foundation solution supports the collection and investigation of reported issues from multiple sources and provides the necessary controls and transparency dictated by governmental mandates. Foundation is a great starting point for any company looking to combine the benefits of a world-class confidential and anonymous compliance hotline with consistent case management for efficient investigation, resolution and analysis and is a good choice for companies with fairly simple organizational structures with straightforward business processes around the collecting and investigation of reported issues. With Foundation the City can: © 2014 NAVEX Global. All rights reserved. PAGE 7 OF 24 4-28 NAVEXGLOBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES • Increase risk awareness by capturing critical information through hotline, web, portal, survey intake or other data gathering methods. • Standardize best practices by managing cases in a single repository while maintaining process consistency across your enterprise. • Minimize risk by leveraging NAVEX Global pre-formatted industry-focused Issue Types so that you are accurately categorizing reports filed by employees, vendors and other key stakeholders. • Increase productivity by enforcing workflow that routes cases based upon your business rules to those who are best qualified to resolve the issue. • Gain insight and visibility into organizational risk through robust reporting and analytics • Reduce IT costs by leveraging the Software-as-a-Service (SaaS) capabilities of our solution • Implementation Services. Our implementation approach and methodology help ensure that the integration of our applications into customers' business operations meets deadlines while exceeding expectations. You will be assigned a professional implementation account specialist who will lead you through the process while providing best practices on how to use our software solutions to best meet your unique GRC goals and objectives. We employ industry best practices processes to ensure we ask the right questions, involve the correct people, train them on the correct processes and set appropriate timelines in place to achieve deployment both quickly and effectively. NAVEX Compliance with Scope of Services Required. The proposed solution meets or exceeds all requirements contained in section 4 of the RFP, "Scope of Services Required" with the exception of those requirements listed below: lrl•4fllllllli_,__l _~_:_~~-p~1_ia_n_t_-+-~-:-~-t~1~_1i_a_n_t __ ,.IJlll•IL••illf•ll1.I! 4,18 Allegations submitted X NAVEX Global makes every reasonable telephonically must be effort to make Reports (both web and appropriately routed to the phone) available to our clients in the designated City contact(s) by the English language within 12 hours of receipt, Hotline Administrator within three for Reports submitted by a Reporter in (3) hours of the submission. English. Reports submitted by a Reporter in any language other than English are typically available within 48 hours © 2014 NAVEX Global. All rights reserved. PAGE 8 OF 24 4-29 NAVEXGLOBAL The Ethics and Compliance Experts 4.2.5 Allegations submitted via the website must be read and appropriately routed to the designated City contact(s) by the Hotline Administrator within three (3) hours of the submission. 4.2.9 The website shall be accessible to persons with disabilities, including, but not limited to, accessible elements such as alt tags, long descriptions, and/or captions for photos, graphics, scanned images, and video. Documents posted on the website should be in HTML or a text-based format [even if posted in another format, such as Portable Document Format (PDF)], in order to be read by reader software. Online forms and tables should also be accessible. 4.3.4 The Hotline Administrator shall provide a dedicated account representative as the single point of contact for any Contract and technical issues. The representative shall be a Hotline Administrator senior staff member. © 2014 NAVEX Global. All rights reserved. RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES ------------ (excluding weekends and United States national holidays) of receipt; however the client Administrator is always notified of a foreign language report within 12 hours of receipt, in the original language. NAVEX Global will notify the client Administrator if complications or delays in Translations arise. Actual average YTD report dispatch time has been 50 minutes. x See 4.18 above. x We can better address this requirement once we understand what reader application the City's employees are going to use; the website is accessible to those with disabilities, the intake questions can be developed to accommodate the reader software the employees use. x As standard practice, once a client's implementation project is complete a team of Client Care Specialists will be available to the client's designated System Administrator(s) for program level discussions and questions. Our Client Care Specialists are trusted advisors who offer resources and tools to ease your System Administrator(s)'s daily use of our solutions. Clients always have access to the Senior Manager of Client Care and to the Vice PAGE 9 OF 24 4-30 NAVEX GLOBt\L The Ethics and Compliance Experts 4.4.2 The system shall generate and deliver an electronic notification to the City of all new complaints, including a complaint summary, within three (3) hours of a new case being creclted in the system. 4.4.12 The system shall provide the ability to set a reminder for needed actions for specific cases. 4.4.15 The system shall provide a method for the City to communicate with intake representatives regarding specific cases, including providing follow-up information and questions to be shared with the complainants by the intake representative. 4.6.1 The Hotline Administrator shall provide dedicated support from the client services team for program set up, system training, and on-going system maintenance. © 2014 NAVEX Global. All rights reserved. RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES ---~------------ President of Client Care, if necessary. Furthermore, a client always has access to their Sales Account Manager, who remains a key point of contact throughout the term of the relationship with NAVEX Global. -x For reports submitted through the NAVEX Hotline (telephone or web), see 4.2 above. For reports manually entered into the system by a City EPCM user, users who are assigned to the case will be notified almost immediately (well before the 3 hour time frame.) x The case management solution's reminder feature triggers email alerts regarding tasks associated with reports to be completed. Personal reminders can be set to assist individual case workers in completing case steps, including custom email reminder text of why the reminder was created. Advanced case management is required to set up tasks and reminders for other users of the system. x The system allows a client to communicate with the reporter (not the NAVEX intake representative, the "Communication Specialist"), via anonymous follow-up functionality. For follow-up purposes, the reporter is given a unique report key and creates a four digit PIN (personal identification number) that serves as an ID number; therefore a client investigator would not have a need to contact the Communication Specialist directly for follow-up information. x Rather than being assigned specific accounts, our team of Client Care Specialists collectively service our entire client base for ongoing support. Your account manager, Greg Shoals, will PAGE 10 OF 24 4-31 NAVEXGLOBAL The Ethics and Compliance Experts WORK PLAN RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES also continue to be available to the City. All clients are assigned a designated NAVEX Global Implementation Specialist as a primary point of contact for implementation of the chosen solution(s), and we have a dedicated Product Training Team that specializes in training our clients on NAVEX Global product in a virtual environment (web-based). With regard to system maintenance, NAVEX Global delivers the software via a Software-as-a-Service delivery model; therefore all clients are kept on the most up-to-date version of their licensed product and updated accordingly. Operating system, server, telecommunications, and technology platforms are updated on a continuous basis to support the most advanced features, uptime, security, and performance possible. With regard to interrelationship of the proposed products, the EthicsPoint case management product is designed to integrate reports from varied input sources, supporting normalized collection of all reported incidents and events from the hotline, web reporting forms, manual input, integration with other systems, etc, By integrating all channels, it forms a comprehensive overview of all activities. In addition, all investigative activities are tracked in one system to ensure appropriate confidentiality and documentation -no matter which avenue (hotline, web portal, or internal input) was the source for bringing forward the concern. The City will be assigned an Implementation Specialist that will work with the City and internal NAVEX Global resources to provision and deploy the system. The NAVEX Global team will be comprised of: an Implementation Specialist who manages the implementation project and Client Interface and Telephony team members responsible for any Contact Center and web-related deliverables for the project. Depending on the services agreed to in the contract, a Technology Specialist may also be involved in project initiatives to ensure client needs are met and delivered in a timely fashion. © 2014 NAVEX Global. All rights reserved. PAGE 11 OF 24 4-32 NAVEXGLOBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES Our experienced Implementation Specialist is the primary contact between NAVEX Global and our clients during implementation. A successful implementation is a critical component to the overall success of any solution, and we take a best-practice approach to each and every engagement. Our implementation approach and methodology help ensure that the integration of NAVEX Global's EthicsPoint case management application into our customers' business operations meets deadlines and budget while exceeding expectations. Our team will work with identified City stakeholders to create a plan to ensure the success of the implementation. Our Implementation Team: • Reviews and validates client contracts and products/services selected • Coordinates all implementation timeframes and deliverables • Assures the quality review of client solutions, noting opportunities for improved efficiency based on continued or increased use of the EthicsPoint Case Manager solution • Assures the quality and continuous improvement of NAVEX Global's internal implementation methods and procedures • Provides best practice approaches for both internal and external stakeholders • Ensures timely, accurate, and thoughtful responses to client needs • Establishes a collaborative, team-oriented environment both within the team and across all functional areas of the company SCHEDULE NAVEX Global's hotline reporting solution, as part of the EthicsPoint Foundation Case Manager, is typically implemented in six (6) weeks. EthicsPoint Enterprise and Enterprise Lite generally require a slightly longer implementation period --averaging 8-12 weeks-the length of which depends on the compliance complexity and risk dynamics facing your organization. © 2014 NAVEX Global. All rights reserved. PAGE 12 OF 24 4-33 NA \/EX GLOBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES Set Up and Configuration Timeline: EthicsPoint Case Manager (EPCM) Foundation Below is a typical Implementation project timeline. NA VEX Global will develop a specific timeline for your implementation project based on the contracted requirements and implementation timeframe. Please note that change requests received after the contracted 6 week implementation window will be scoped and charged for at our normal services rates. SETUP -NAVEX GLOBAL ACTION (WEEK 1) 0 EPCM Database Configured 0 New US/Canada Toll-free Number Ordered 0 Initial Web Intake Site Built IMPLEMENTATION KICK-OFF CALL (WEEK 2, 1 HOUR) 0 Introductions 0 Roles and Responsibilities 0 Review Goals and Objectives 0 Establish timelines, expectations, and deliverables 0 Review Initial Web Intake Site Build 0 Review Configuration Workbook © 2014 NAVEX Global. All rights reserved. PAGE 13 OF 24 4-34 l\JAVEX GLOB/2\L The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES CONFIGURATION WORKBOOK COMPLETION -CLIENT ACTION (WEEKS 2·3) 0 Web Intake Site Configuration Workbook submitted 0 Web Intake Site Development begins 0 Location Database requirements submitted 0 Tier and Organizational requirements submitted 0 Telephony/Hotline Requirements submitted ADMINISTRATOR TRAINING (WEEK 2, 3, OR 4, 1 HOUR) 0 Group System Administrator Training sessions available weekly for client participation 0 Client System Administrator may attend as many regularly scheduled Group Administrator Training sessions as they would like for the life of their contract 0 Topics Covered Include: o User Setup and Management o EPCM Settings Configuration o Overview of Case Management and Analytics Tools USER TRAINING (WEEK 4 OR 5, 1 HOUR) 0 Group System User Training sessions available weekly for client participation 0 Client System Users may attend as many regularly scheduled Group User Training sessions as they would like for the life of their contract 0 Topics Covered Include: o Case Management o Analytics Tools o Configurable Home Screen o Configurable Grid Views o New Case Creation o Case Assignment o Resource Center and Help Sections CLIENT ADMINISTRATION -CLIENT ACTION (WEEKS 4-5) 0 Client builds user profiles and assigns to appropriate access levels WEB INTAKE SITE MODIFICATIONS-NAVEX GLOBAL ACTION (WEEKS 4-5) 0 NAVEX Global develops any applicable Web Intake Site modifications to insure appropriate report distribution 0 NAVEX Global develops any applicable call center intake page modifications to insure appropriate report distribution 0 Final Web Intake Site provided for client confirmation PROJECT COMPLETION (WEEK 6) 0 NAVEX Global completes QA and sign-off on production EPCM database 0 Client completes QA and sign-off on production EPCM database © 2014 NAVEX Global. All rights reserved. PAGE 14 OF 24 4-35 NAVEXGLOBAL The Ethics and Compliance Experts D "Go Live" for system RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES D Ongoing support provided by a variety of tools, including the Resource Center and NAVEX Global Client Care professionals through the life of the contract FEE AND COSTS Kindly refer to Appendix A: NAVEX Global Proposal -City of Rancho Palos Verdes. ABILITY OF NAVEX GLOBAL TO PERFORM NAVEX Global has championed improvements in ethics and compliance programs for more than 30 years and offers the industry's most comprehensive ethics and compliance solution enabling our clients to obtain the many elements of an effective ethics and compliance program through a single provider. Not only will this provide you a more holistic program, but will result in lessened administrative burden and decreased cost. • Expertise -A collaboration of veteran ethics, compliance and legal professionals, exclusively supported by the world's largest workplace compliance law firm • Data Driven -The largest proprietary database of ethics and compliance cases across every industry, informing everything we do • Experience -Servicing and actively partnering with the largest client base in the industry-8,000 leading organizations and growing • Innovation -An unwavering commitment to the best global ethics and compliance solutions now, and in the future • Integrated -An integrated ecosystem that meaningfully connects each component of a comprehensive GRC solution and provides cross program insights NAVEX Global continues to invest the human and monetary resources to ensure that we keep pace with our clients' global evolving ethics and compliance needs. We are confident that you will find no other provider that can match our experience, global reach, multi-national client base, breadth of offerings, consultative guidance, and industry leadership. Related Work Projects NAVEX Global provides expert advisory services, hotlines, case management, policy management and online training services to approximately 8,000 clients including almost 75% of the Fortune 100; approximately 6,500 are hotline and case management clients. A representative list of NAVEX Global customers can be found at http://www.navexglobal.com/company/custome..12, and a selection of case studies for your consideration at http://www. n avexgloba I. com/resou rces/126/types/ case-studies. © 2014 NAVEX Global. All rights reserved. PAGE 15 OF 24 4-36 NAVEXGLOBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES NAVEX Global is proud to support the reporting programs for over 300 city, county, or other government clients. In addition to the five (5) listed as references, our client list includes City of Boulder, City of Palo Alto, City of Fort Worth, City of Oakland, City of Peoria, City of Branson, City of Bowling Green, and many, many more. Federal, State and Local government agencies all use NA VEX Global to provide a high level of transparency and oversight to their operations as they enforce high ethical standards across their operations. Whether they are trying to ensure compliance to mandates such as the Federal Acquisition Regulation (FAR), increase communication with their constituents, or providing a safe and productive work environment for their employees, NA VEX Global helps these government entities mitigate risk and ensure public trust through our world-class hotline and case management system. Please refer to the references section for information regarding experience with similar projects. Key Personnel Greg Shoals, Account Executive, will be your dedicated advocate throughout the RFP process and your continued relationship with NA VEX Global. He has been with NAVEX Global for over three years, serving as a member of the Implementation Team, and as an Account Manager. As such, he knows first-hand the great job your specific Implementation Specialist will provide you during the implementation process and can assist as needed along the way. Greg demonstrates experience working within city, county, and state government agencies as well as financial institutions, retail, insurance, and energy environments while helping those organizations succeed in the ethics, compliance, and quality arena. He believes that gaining an extensive understanding of an organization's initiatives, for today and into tomorrow, is the key to providing the best overall experience to his customers. Should NAVEX Global be awarded this business, Greg will be involved in a transfer meeting to properly introduce the City to the project team and will have purview into project communications as needed during the engagement lifecycle where appropriate. Automated notifications communicate deployment completion to sales and other internal teams. NAVEX Implementation Roles/Resources NAVEX Global assigns resources on a best endeavors basis. Essentially, with the City will receive assignment of an Implementation Specialist will be assigned who will configure system components and will serve as primary point of contact for implementation of your chosen solution(s). NAVEX Global Role: Implementation Specialist Responsibilities Our Implementation Team consists of client-facing Implementation Specialists who ensure proper deployment of NAVEX Global's compliance ecosystem. Their focus is to ensure basic alignment of the selected application(s) within client defined business processes, further develop our customers understanding of the core functionality and support client administrators as questions arise. © 2014 NAVEX Global. All rights reserved. PAGE 16 OF 24 4-37 NAVEXGLOBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES This resource is the configuration specialist and is responsible for setup of the selected application (e.g. EthicsPoint Case Manager, PolicyTech, etc.) according to requirements identified and provided by the NAVEX Global Principal Consultant (with a Professional Services engagement). The Implementation Specialist is responsible for high quality delivery of requirements in a timely manner according to the project plan. • Provide functional application expertise where appropriate • Attend required meetings and workshops to gather configuration requirements, where scheduled • Lead application overview session. • Implement system configuration according to project requirements • Perform quality testing on configurations applied to IEM • Provide regular status updates to both the Principal Consultant and the Principal Consulting Project Manager (where appropriate) • Communicate project issues and risks to the Principal Consulting Project Manager Experience All Implementation Specialists are well versed in the methods and procedures of NAVEX Global solutions and possesses a strong commitment to service across diverse organizations. All NAVEX Global Implementation Specialists undergo an extensive, multi-step interview process to assure that they not only have the necessary technical and organizational skills and professional acumen required to perform the job function, but also that they reflect and embody the core values that continue to set NAVEX Global apart from its competitors. Their dedication to provide clients with excellent service upholds the high standard and reputation of the Implementation team. NAVEX Global Role: Integration Services Technical Specialist (if services are purchased) Responsibilities The Technical Specialist will engage with the Professional Services Team at the beginning of the project, to determine the technical points-of-contact with the client. Once communication has been established through the kickoff meetings or direct contact, the Technical Specialist will coordinate access and Secure FTP account setup for transmission of legacy and/or HRIS data to our data center. Legacy Data Migration -EthicsPoint Case Manager (if applicable} Upon receipt of the legacy data, the Technical Specialist will go through an analysis process to determine the quality of the data, the consistency or distribution of common data elements, and other information that assists the project team and the client with the proper mapping of legacy data into the EthicsPoint system. This Team Member will continue to work with Professional Services and the client to bring legacy data into the system so that it is relevant to and potentially consistent with new case data coming into EthicsPoint. After loading the system into a preview environment for the client to review, the Technical Specialist will finalize changes and updates, and ultimately schedule and manage the process to import the data into the live EthicsPoint system. © 2014 NAVEX Global. All rights reserved. PAGE 17 OF 24 4-38 l\JAVEXGLOBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES HRIS Integration -EthicsPoint Case Manager (if applicable) After connectivity is established; the Technical Specialist will work with the Professional Services Team and the client to determine the sources of the HR data, and help to establish a process to import HR data that will be useful to the client for reporting and case tracking. Once the import fields are determined for the daily update process, and daily schedule decided upon, the Technical Specialist builds and schedules the process that will refresh the lookup data to keep the lookup data current with the client's changes in personnel. Location Integration -EthicsPoint Case Manager (if applicable) NAVEX Global's Location Database service makes available a method for storing client defined location information within EthicsPoint Case Manager that enables users and reporters to select appropriate case-specific locations based on client provided data. Location accuracy is ensured by the utilization of consistent parameters throughout the database, streamlining the process for keeping your Location Data in sync. Location data updates are completed on a monthly frequency. The Technical Specialist is responsible for the continued monitoring and tracking of HRIS feeds, and will contact the client when errors arise. This Team Member is engaged in projects involving re-mapping projects, or other more complex changes that cannot be directly applied using the EthicsPoint application. Experience Our Technical Specialists are experienced in multiple scripting technologies as well as relational database architecture and standards. Their background with SQL, SSIS, data analysis, integration and migration bring great value to the quality of the customer experience. Technical Specialists are trained on sFTP standards supported through our offerings, encryption technologies and processes to securely receive and send data and they work with multiple file formats, such as XML, csv, delimited text and many others. They are trained in the application user interface as well so that they can apply best practice thought leadership while working with the transfer of data in or out of our systems. Working hand-in-hand with the project team, they are able to process requests on tight timelines and with high quality. Once the City's implementation project is complete, your System Administrator(s) will have access to our highly experienced team of EthicsPoint Client Care Specialists by phone Monday through Friday, 6:00 am to 6:00 pm Pacific Time (excluding the following business holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Day after Thanksgiving, and Christmas Day). You will also have 24 hour access to our support portal to research solutions to common issues as well as to create and monitor support cases. Due to obligations of confidentiality, NAVEX Global does not provide employee resumes in response to requests for proposal. We have provided Greg Shoals' bio above. Implementation Specialist assignment is also dependent on a variety of factors, such as scope of project and number of active implementations within Implementation Services at the time of Kick Off, as such we do not assign an Implementation Specialist to a particular project until execution of a Services Agreement occurs. Upon execution of a Services Agreement, we will be happy to provide a biography of your assigned Implementation Specialist. © 2014 NAVEX Global. All rights reserved. PAGE 18 OF .i4 4-39 NAVEXGLOBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES NAVEX Global supports clients' day-to-day needs primarily through the pooled resources of the Client Care team. All NAVEX Global Client Care Specialists undergo an extensive, multi-step interview process to assure that they not only have the necessary technical and organizational skills and professional acumen required to perform the job function, but also that they reflect and embody the core values that continue to set NAVEX Global apart from its competitors. Kindly refer to City Attachment 5 for a list of references. TERMS AND CONDITIONS NAVEX Global does not routinely negotiate contract terms in response to requests for proposal. We would be happy to engage with the City in this matter if we are selected to advance in the selection process. The NAVEX Global Master Services Agreement (MSA) addresses the specialized services we provide; for example, our MSA contains a detailed discussion of terms relevant to delivery of products and services within a Software-as- a-Service (SaaS) environment which differs from traditional software development or consulting services agreements. Our MSA also contains language regarding each of the unique products or services contemplated under this RFP, within the relevant Order Form. We are willing to discuss additions and adjustments as a Client requires but, due to the specific nature of the services we provide, we suggest using our Saas-Specific MSA as the base template to build from. Accordingly, we have not reviewed or provided exceptions to your terms and conditions. However, although we have not provided exceptions at this time, it should not be assumed that we have agreed to the provisions. Attached for your consideration is Appendix B: NAVEX Global MSA. At the time of order, an Order Form will be generated that contains additional terms and conditions for the specific product families being purchased (see Appendix C: Sample Order Form for a sample Order Form). CITY ATTACHMENT 5 INFORMATION Organization Provide the address of the office that will service this account. NAVEX Global, Inc. 6000 Meadows Rd., Suite 200 Lake Oswego, OR 97035 © 2014 NAVEX Global. All rights reserved. PAGE 190F 24 4-40 l\IAVEXGLOBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES Give a brief history of your firm's involvement in the hotline services industry serving California municipalities, including the year of organization. As of July 1, 2014, for how many years has your firm provided hotline services serving California municipalities? NAVEX Global brings to each relationship the expertise gained from more than 30 years of experience in the day- to-day operations of fully integrated telephone and web-based reporting hotlines. We provide more employee hotlines -and more advanced incident reporting methods -than any other vendor globally. A merger of longstanding industry leaders Employment Law Training, Inc. (ELT), EthicsPoint, Inc., Global Compliance Services, Inc. (GCS), and PolicyTech Technologies International, Inc., our collective expertise provides data-driven· solutions our clients trust. Prior to the merger GCS had been doing business since 1981, when it was founded as the Pinkerton Compliance Services division of Pinkerton, Inc. Pinkerton Compliance Services was acquired by Angelo Gordon in 2003 and rebranded Global Compliance Services. ELT had been providing training services as ELT for 15 years prior to being merged into NAVEX Global, Inc. ELTwas created in 1997 by Littler Mendelson, the nation's largest labor and employment firm, to provide quality workplace training that the firm was proud to recommend. EthicsPoint, Inc. was founded in 1999, and PolicyTech started as a subsidiary of lmaginality Productions, Inc., which was founded in 1996. The ownership of GCS, ELT, EthicsPoint, and PolicyTech capital stock was purchased on December 30, 2011, January of 2011, March 1, 2012, and June of 2012, respectively, by NAVEX Global Holding Company, and merged into NAVEX Global, Inc. on October 10, 2012. GCS Compliance Services Europe Limited (GCS EU) was formed in October 2008 to service our EMEA clients. GCS EU is a wholly owned subsidiary of NAVEX Global Holding Company. As noted earlier in the document, we support the reporting programs for over 300 city, county, or other government clients. What are your firm's consulting specialties and strengths? NAVEX Global employs a robust methodology for evaluating the needs and business processes of our customers both pre-sale, during implementation and post deployment. During the pre-sale process, our team of Solution Engineers, Subject Matter Experts, and Professional Services Consultants (if purchased) work to provide our clients with detailed analysis of their business processes including Return On Investment, Process Diagrams, and Statements of Work to articulate both the solution vision and benefits received through the project. Establishing a clear vision up front, helps us ensure project success and maximize the client's Return on Investment. Our approach to Professional Services moves beyond the technical integration challenges found in typical engagements, and more appropriately targets a deeper understanding of the business challenges our customers face. We work to better align our application with our clients' GRC initiatives and approach each engagement with a successful track record of improving an organization's overall compliance-based initiatives. Emphasizing the importance of integrating all associated business processes, our consultants develop a manageable strategy to fully leverage the NAVEX Global suite of services. © 2014 NAVEX Global. All rights reserved. PAGE 20 OF 24 4-41 NAVEXGLOBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES With a Professional Services engagement, NAVEX Global's consultants guide clients through our documented Professional Services Methodology. The methodology serves as a general guideline, with each project designed around our clients' unique goals, objectives, and time frames. Our approach has evolved using fundamentals and best practices established during thousands of successful implementations across a wide-range of industries, and involving a variety of key business drivers and stakeholders. Our consultants are experienced in establishing a consistent and measurable Project Management (PM) framework that is based on the unique business objectives of our clients. Our consultants ensure all activities and deliverables are clearly defined, time lines are well managed, and stakeholders are involved and actively participating at the appropriate level. Communication and change management plans, and project team roles and responsibilities, are defined and agreed upon in advance, providing a solid foundation for each services engagement. We believe·it's imperative to keep our clients apprised of developments in the compliance space. NAVEX Global is committed to working with industry experts to arm legal, HR and compliance professionals with powerful compliance training resources. We provide unlimited access to a comprehensive selection of exclusive resources to help you make the most of your compliance programs. Available resources include whitepapers written by industry experts, newsletters, our corporate blog on timely industry issues, and frequent webinars on a number of topics. Moreover, no other single organization can provide the breadth and depth of expertise found within the Ethical Leadership Group (ELG), the advisory services division of NAVEX Global. Recognized by ethics and compliance officers worldwide for their experience and expertise, the ELG team provides program and risk assessments, live training, code of conduct authoring and consulting services to help companies strengthen their compliance programs. More information can be provided upon request. What differentiates your firm from your competitors? What differentiates NAVEX Global from our competitors is the true integration of our products and services, the innovation of our technology, and the expertise that stands behind everything that we do. There is no other single organization has the entire suite of products needed to efficiently and effectively manage an ethics & compliance program from start to finish. As the largest hotline provider in the world, our expertise -and resulting reputation -in the hotline/whistleblower management is second to none. We receive and process more product requests from our 8,000+ global clients than anyone else and, as a result, our products and related services better reflect the needs of the market than any other solution. Our in-house team of expert advisors has also taken that feedback and expertise and has written extensively about hotline best practices, something clients now look to us to provide. In addition, we pull together aggregate data from all the hotline data we collect (sanitized versions only) in an annual Hotline Benchmark Report and toolkit to demonstrate trends in data overall, where the upticks in reporting are, benchmarks to compare yourselves with among other key findings. We find that clients anxiously await this report and the intelligence it provides and would be happy to provide a copy of the toolkit for your reference.) More broadly, the NAVEX Global solution suite has been recognized by Michael Rasmussen of Corporate Integrity as "a major player in the ethics and compliance industry with the integration and experience of the companies that comprise it." We are also exclusively endorsed by SHRM, the Society of Human Resource Management, and our © 2014 NAVEX Global. All rights reserved. PAGE 21 OF 24 4-42 NAVEXGLOBAL The Ethics and Compliance Experts RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES policy management solution has the exclusive endorsement of the AHA, the American Hospital Association, as the best option for their hospital members. Moreover, our expert advisory team, the Ethical Leadership Group™ (ELG), has become known throughout the industry as the leading ethics and compliance group. Our consultants have served as ethics and compliance officers for private and public corporations, lead organizations focused on ethics issues in business and helped write the Federal Sentencing Guidelines. Annually, the majority of our consulting business is generated from clients who initiated relationships with us in prior years, and have asked us to do additional work for them. We believe this is the single best indicator of the quality we demonstrate in all of our work and our obsession with client service. Our consultants are frequently published, respected speakers at industry conferences, and widely recognized for thought and practice leadership. What are your firm's limitations? Clients may be subject to laws which limit or otherwise restrict usage of the NA VEX Global Hotline. We see this primarily with clients with operations or employee populations in countries outside the US, such as France, Germany and other EU countries. NAVEX Global recognizes that many organizations are in a unique position when balancing compliance with Sarbanes-Oxley (SOX) and the laws of international jurisdictions, such as those in the European Union. Companies often struggle to simultaneously comply with both rules of law. Additionally, organizations must consider the sensitive nature of handling private data in international countries. The Data Privacy Performance Module for our EthicsPoint Case Management solution resolves many of these issues with the technological tools necessary to support an organization's compliance. The Module is an "off-the-shelf" solution using common issue types across all jurisdictions. Customization is available with additional cost; or included as a component of our Global Whistleblower Compliance (GWC) engagements. Clients Please provide a listing of clients that may be used as reference checks: Name of Client Contact Name Contact Number Contact Email City of Tolleson Victoria Prins 623-936-2778 vprins@tollesonaz.org City of Peoria Dawn Prince 623-773-7103 Dawn.Prince@peoriaaz.gov City of Watauga Deby Woodard 817-514-5833 dwoodard@wataugatx.org City of Arlington Lisa Zepeda 817-459-6842 lisa.zepeda@arlingtontx.gov City of Oakland Sharon Ball 510-238-4975 sball@oaklandnet.com © 2014 NAVEX Global. All rights reserved. PAGE 22 OF 24. 4-43 NAVEXGLOBAL The Ethics and Compliance Experts OTHER CITY ATTACHMENTS © 2014 NAVEX Global. All rights reserved. RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES PAGE 23 OF 24 4-44 NAVEXGL_OBAL The Ethics and Compliance Experts This page intentionally left blank. © 2014 NAVEX Global. All rights reserved. RESPONSE TO THE CITY OF RANCHO PALOS VERDES RFP FOR FRAUD, WASTE, & ABUSE HOTLINE SERVICES PAGE 24 OF 24 4-45 " " ,. ,:_.. r} "' ., ·<· .-:-. " ;. ,';( (_~ •'.:: 0 'i"· •(. ·::· ·::. .... " .;:, {"' '" " " •;:i (.~. .; .. '/. ,. ;. "~i ri ~ f ~ R~~·x ~~ ~ 1:\\l~ > .·•·· <" .. « ., (") !,o::• '.·~· "{, g r L0 8 i\ 1 ''!<; ~ '\j v ~ . \ 'u U '-\L } . l '« , ~..-.....iv,.. , l~ r, 0 ., .:; ''=" " " <• The Ethics and Compliance Experts ~' ._;..; •;:; ·1:~ " ;:. -;.:;· " ,•;t ,., ,, <· ;. *· " 1,:. " 'i',i ~, t. (.· ;::: " ,""J <· ., 0 > >· » ;;.:, * ., ·} ., " & "' " • • e " 'I!· .. " " " "' e. "' e. t,:< ·< ·;:,. " " r.· :'l & « .. • -~; :;.~ e :::-" 'I.\ ,, " 'l· i'j "' .,. > " « (,o;i :t-'.i:· (: <· <· ,, " • .:;; " « ·8 .;-:; " ~ ti ~· " <· 1, ,, ~· ·~ 0 <}.; ·~, •· ·;.;) ~=· ~=-<· ,, <-,. ~.:. ~-~=· -;~. v:~ r~ •1 ,, ., {,· " ~-'i.'• f, ,; .. i;•. ,. -:~ ,~· 'i" ,, •;:. >'~- Presented By: Greg Shoals ., r..~ .:,· .·;· ~,;~ -;: . 1,:. 'l· gshoals@navexglobal.com r~ c;· -~' 1;. ,;,, <· . :,. <·' r..:~ . ,, (:· c;, ~--1:~. .... / 4-46 July 10, 2014 Rosalee Wood Human Resources Intern Rancho Palos Verdes CA 90275 Dear Rosalee Wood, Thank you for the opportunity to provide City of Rancho Palos Verdes with a proposal to address your ethics and compliance program requirements. NAVEX Global helps protect your people, reputation and bottom line through a comprehensive suite of ethics and compliance software, content and services. The trusted global expert for more than 8,000 clients, our solutions are informed by the largest ethics and compliance community in the world. Based upon best practices developed after launching similar programs for other organizations, we bring together: • Superior Software: our industry-leading solutions standalone to meet your immediate ethics and compliance needs, but also integrate to ensure that critical components of your ethics and compliance program management are connected, allowing you to see your risks and address them. • Engaging Content: we provide modern approaches to communicating with today's workers through training content that's engaging and relevant. Our courses are vetted by the world's largest employment law firm, Littler, and exclusively endorsed by the world's largest HR membership organization, SHRM. • Best-in-class Services: our Advisory Services team is the industry's foremost group of compliance experts- most of whom are former in-house ethics and compliance officers and/or legal counsel-who advise global organizations of all sizes as well as help to shape our own solutions through their unique knowledge. Also, our seasoned Professional Services team guides clients through proven methodologies, business process analyses and demonstrated change management principles to ensure successful technology implementations based on each clients' unique needs. As the largest technology and services organization in the ethics and compliance space, we are confident that we can work with you to meet your unique internal program needs. We currently work with more than 70 percent of the Fortune 100 and more than half of the Global 500 to do just that. Our client retention rate of more than 96 percent is a testament to the trust those organizations place in us, and we'd be happy to put you in touch with a number of clients who can share their perspectives and experiences. Please note that we consider the information contained in this document as proprietary and/or confidential, and as such, we respectfully request that the contents be held in the strictest of confidence by your organization. On behalf of NAVEX Global, we thank you for your interest and we look forward to partnering with you to achieve your ethics and compliance goals. Sincerely, Greg Shoals Account Executive NAVEX Global Ref.: 01-000075227 6000 Meadows Road, Suite 200 Lake Oswego, OR 97035 I Toll Free: 1 {866) 297-0224 I Fax: {503) 352-1090 Confidential © 2012 NAVEX Global, Inc. All rights reserved. Page 1 of7 4-47 Recommended Solution Pricing Summary !!FJ;!'.tf;tUl.lflllllllllllllJl.%.ll.'.lllllfJl.!lllllJl/llll.rllllfliillflllflf.111~ I Standard Global Telephony (US Contact Center) Subscription [ 1 I 12 [ -I $0.00 PRODUCT SUB-TOTALS: $ 0.00 $ 0.00 :1t;i[lJ1u:fi11111&r1111r111mr111111•••jBf111111111.1111•&ri&11wiiu~~;;;: US Hotline -Small Business Subscription 60 ~2 _ I $1 800.00 I Includes EthicsPoint Case Management Foundation Subscription ---1---=--i l US Hotline -Small Business Setup ____ 1_H _ J I~~___ _ _____ $~;~~~-~ L _ -------___ -J PRODUCT SUB-TOTALS: $ 0.00 $1,800.00 wiwo/.lJW>t••..,~._•rrPA.,••11l•~%tWf1~wm@:® rv;#;~Mf:i1ft1if.W£r~za~AillusS4':8,?A_m:.;•l~/&.,Bffrz@trnWl•£f4Jfa;ji,1 Awareness Standard (Optional) . . . _ 1 _ N/ A ... _ $950.00 [ .. . . -I Ref.: 01-000075227 PRODUCT SUB-TOTALS: $ 950.00 $ 0.00 1n111Ammw11 SUB-TOTALS: $950.00 $1,800.00 YEAR ONE: TOTAL SAVINGS: TOTAL: $2,750.00 $950.00 $2,750.00 6000 Meadows Road, Suite 200 Lake Oswego, OR 97035 I Toll Free: 1 (866) 297-0224 I Fax: (503) 352-1090 Confidential© 2012 NAVEX Global, Inc. All rights reserved. Page 2 of7 4-48 Description of Products Ql-000006617 Standard Global Telephony (US Contact Center) Subscription Total Employees: 60 Telephony by Country: UNITED STATES (60 employees) Call Plan: US Dialing Plan. Greetings: 1. English, 2. Spanish (Latin American) US Hotline -Small Business Subscription Includes EthicsPoint Case Management Foundation Subscription NAVEX Global's Hotline (Hotline) has been designed to enable your employees and other stakeholders to easily and confidentially report any issue or instance of misconduct. The Contact Center is globally accessible 24/7/365 with system availability ensured by end-to-end network redundancy, scalability, and reliability. The annual subscription supports unlimited reports via web, telephone, or internal to the case management software. EthicsPoint Case Management Foundation subscription includes: • Base-line single configuration management system including foundational case component functionality • Built in management tools include baseline reporting and standard analytics • System level administration for user management • Two (2) Dedicated and Three (3) Concurrent Seat Licenses • One (1) Gb storage Note: Non-English interpretations will be invoiced monthly at $3. 70 per minute. Translation of web reports will incur additional fees which will be invoiced monthly in arrears at $.0.35/word with a minimum of $120 per report (fees for translation of Web Intake Pages and Report Forms are priced separately). US Hotline -Small Business Setup Navex Global pre-configured US only telephony solution which includes: Ref.: 01-000075227 • Choice of pre-configured language bundle for language prompts • Non-branded greeting and notice of consent statement with a pre-configured menu of hot line 6000 Meadows Road, Suite 200 Lake Oswego, OR 97035 I Toll Free: 1 {866) 297-0224 I Fax: {503) 352-1090 Confidential© 2012 NAVEX Global, Inc. All rights reserved. Page 3 of7 4-49 services Design and development services to support the creation of a custom Web Intake Site includes: • A single English Web Intake Site (translated pages are priced separately) • Assignment to an industry-specific issue package with the option to modify issue titles and descriptions • Web intake site and system configuration in response to client instructions in the Web Intake Site workbook • One round of edits to Web Intake Site text and layout, issue type names and descriptions, and attachments • QA and configuration of the Hotline and Web Intake Site to make live for reporting • Customizations of intake questions scoped and priced separately -Small Business EthicsPoint Case Management Foundation setup includes: • · Initial timeline providing an overview of expectations, documentation, and client responsibilities for a successful implementation • Kick-off call to establish key stakeholders, implementation goals, and timelines • Selection of issue types & descriptions from industry specific issue package • Mapping of the Hotline and Web Intake Site intake methods to the EthicsPoint Case Management Foundation system • System structure configuration to support key business and reporting needs • NAVEX Global Administrator I User training available via the web, through regularly scheduled webinars • Six (6) week implementation timeline starting at the kick-off call to complete configuration items included above. Additional changes or requests made after this period will be scoped and priced separately. If purchased in conjunction with a Professional Services engagement, the Professional Services timeline will supersede this one Awareness Standard Awareness program will include awareness materials to be used to communicate hotline services, benefits and contact points. The materials are full color print options. The Awareness Standard offering are template- based services (semi-custom) selected from the pre-configured options with the option to include a hotline telephone number, website intake url and one (1) 300 dpi vector-based logo. Any other requested changes are considered non-standard customizations. Templates are available in Global and EU versions. Pre-translated versions of the Global materials are available without charge for the following languages: UK English, Latin American Spanish, Canadian French, Japanese, and Brazilian Portuguese and Simplified Chinese. Pre-translated versions of the EU materials are available without charge for the following languages: UK English, Castilian Spanish, European French, Dutch, German, Italian, and European Portuguese. Ref.: 01-000075227 6000 Meadows Road, Suite 200 Lake Oswego, OR 97035 I Toll Free: 1 (866) 297-0224 I Fax: (503) 352-1090 Confidential© 2012 NAVEX Global, Inc. All rights reserved. Page 4 of7 4-50 Customer will review proofs for accuracy of input information. No other changes are permitted under the Awareness Standard scope. Revisions do not include NAVEX's correction of NAVEX defects in the Deliverables. Additional fees shall be due for Client revisions in excess of those stipulated above. POSTER SPECIFICATIONS Size Finished: llx17 Paper: 80# Gloss Text Color: 4/0 Bleed: Full Finishing: Trim to size Template: 000 Template to be determined, Country: United States, Language: English, Digital: No, Print Quantity: 5 BROCHURE (2 PANEL) SPECIFICATIONS Size Flat: 8x9 Size Finished: 4x9 Paper: 80# Gloss Text Color: 4/4 Bleed: Full Finishing: Trim to size & fold Template: 000 Template to be determined, Country: United States, Language: English, Digital: No, Print Quantity: 100 WALLET CARD SPECIFICATIONS Size Finished: 2.125 x 3.375 Paper: 100# Gloss Cover -Laminated Color: 4/4 Bleed: Full Finishing: Trim to size, Rounded Corners Template: 000 Template to be determined, Country: United States, Language: English, Digital: No, Print Quantity: 100 Upon approval of proofs, materials will be produced per the versions and quantities specified. Pricing assumes distribution to one (1) central location. Distribution of materials to multiple locations is available for an additional fee. Shipping and handling fees are included in the project price. Project completion time frame is four (4) weeks depending upon the scope of project and level of engagement by the client. If the scope includes languages beyond those already available, project completion time may extend to six (6) weeks. Gateway -Subscription Includes access to the NAVEX Global Gateway, which provides seamless access to the client's supported NAVEX Global solutions. Gateway -Setup Ref.: 01-000075227 6000 Meadows Road, Suite 200 Lake Oswego, OR 97035 I Toll Free: 1 (866) 297-0224 I Fax: (503) 352-1090 Confidential© 2012 NAVEX Global, Inc. All rights reserved. Page 5 of7 4-51 Implementation of a new client on the Gateway solution. Includes setup of Client's Gateway Administrators. Ref.: 01-000075227 6000 Meadows Road, Suite 200 Lake Oswego, OR 97035 I Toll Free: 1 (866) 297-0224 I Fax: (503) 352-1090 Confidential© 2012 NAVEX Global, Inc. All rights reserved. Page 6 of7 4-52 lntegralad GRC Solution& City of Rancho Palos Verdes Attn: Dennis McLean, Director of Finance 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 310.544.5212 DennisM@rpv.com August 13, 2014 The Network I 333 Research Court I Norcross, Georgia USA 30092 I www.tnwinc.com 4-53 TABLE OF CONTENTS Cover Letter -------------------------------·3 Introduction 4 General Scope of Work 8 Toll Free Hotline 8 Internet-Based Complaint Reporting System 9 Staff 10 Integrated Incident Management System with Reporting & Analytics 11 Marketing and Educational Materials 14 Technical Support and Requirements 15 Annual Meeting 17 Work Plan 18 Schedule 20 Fee and Costs 22 Ability of the Proposer to Perform 24 Experience 24 Case Studies 25 Project Team 25 References 27 Attaclunen~-~~~~~~~~~~~~~~~~~~~~~~~~~~__,28 Attachment 1 • Minimum Qualifications Certification 28 Attachment 2 -Company Questionnaire 30 Attachment 3 -Warranties 31 Attachment 4 -Fee Proposal 32 Attachment 5 -Questionnaire 34 Attachment 6 -Gift Disclosure Form 39 Attachment 7 -Disclosure Form -Communication with City Staff and/or City Council 40 Attachment 8 -Detailed Scope of Services Required Answers 41 Exhibi~ 62 Exhibit A -Sample Incident Report 62 Exhibit B -Reporting & Analytics 64 Exhibit C -Sample Communication Materials 71 Exhibit D -Sample Project Plan/Gantt Chart 73 Exhibit E • case Studies 75 City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 2 August 13, 2014 -Confidential & Proprietary 4-54 COVER LETTER August 13, 2014 Dennis Mclean 30940 Hawthorne Blvd Rancho Palos Verdes, CA 90275 Dear Mr. Mclean, On behalf of The Network, thank you for the opportunity to respond to City of Rancho Palos Verdes Fraud, Waste, & Abuse Hotline Services. The Network has carefully analyzed the City's stated goals, objectives, solution requirements and other specifications, and is confident that we can offer the City of Rancho Palos Verdes a compelling solution to take care of your ethics & compliance needs. With more than 30+ years of experience developing programs to foster an ethical workplace and assist in risk mitigation, we are pleased to offer Governance, Risk and Compliance (GRC) solutions specifically targeted to meet the needs of organizations like yours. The Network's response will summarize our understanding of your requirements, detail our capabilities and demonstrate the value The Network will provide to you and the City of Rancho Palos Verdes. The Network's RFP's response shall remain valid for no less than ninety (90) days from the date of submittal. Non-English speaking callers are served utilizing The Network's bilingual interview specialists or Certified Languages, a professional 24/7-translation service. English and Spanish- speaking interview specialists are always available at The Network 24/7 /365 and Portuguese and French are available during peak intervals. The Network uses Certified Languages International to assist our interview specialist with real-time translation in 200 different languages. Thank you for your time in reviewing this response. The Network looks forward to working with the City of Rancho Palos Verdes, if there are any questions or if you require any additional information, please do not hesitate to reach out to me directly. ~~ully~~ Vv~on Chief Financial Officer Lucy.Skelton@tnwinc.com (770)-810-6646 City of Rancho Palos Verdes RFP for Fraud, Waste & Abuse Hotline The Network, Inc. 333 Research Court/Norcross, GA 30092 www.tnwinc.com 1-800-253-0453 Response from The Network, Inc. 3 August 13, 2014 -Confidential & Proprietary 4-55 INTRODUCTION To the City of Rancho Palos Verdes Evaluation Team, On behalf of The Network, thank you for the opportunity to respond to your RFP for a dedicated toll-free hotline and online web reporting for employees and residents of Rancho Palos Verdes. All callers may remain anonymous to report complaints of fraud, waste, abuse and other misconduct in connection with City government. We have carefully analyzed your stated goals, objectives, solution requirements and other specifications, and are confident The Network can offer the City a compelling solution for your Ethics & Compliance program. We believe that a partnership with The Network will help the City establish a program of Ethics & Complianae across the City. The Network's response will summarize our understanding of your requirements, detail our capabilities and demonstrate the value The Network will provide to the City. Overview With more than 30 years experience, The Network Is uniquely positioned to provide a superior level of service to the City. We believe The Network has a clear understanding of your business needs and will be a strategic resource to the City moving forward. The Network's proposed solution leverages four core competency areas of our company: 1) intake for hotline reporting (telephonic and web); 2) Integrated incident Management with Reporting & Analytics; 3) implementation and ongoing account support; and 4) recommended best practices for managing a compliance program. Recommended Solution Intake tor Hotline Reporting We believe that the City1s ethics compliance program is only as good as the quality of the information captured and processed by your hotline and incident management systems. For this reason, we have the highest standards in the industry with respect to our people, processes and technology to make sure our clients have "actionable" information on as many reports as possible. Based on our 2013 Corporate Governance and Hotline Benchmarking Report, 72% of our client's reports were serious enough to warrant an investigation, with 44% of all reports requiring corrective action. This means there are fewer chances of incidents falling through the c·racks and that corrective action will be taken in a timely manner. City of Rancho Palos Verdes employees, residents and non residents will have telephonic access to The Network's highly trained and experienced interview specialists 24 hours a day, 365 days City of Rancho Palos Verdes Response from The Network, Inc. . RFP for Fraud, Waste & Abuse Hotline 4 August 13, 2014 -Confidential & Proprietary 4-56 a year. The Network will provide additional intake options including web-based reporting. Regardless of the source ofthe report, the City's compliance team will benefit from fast, consistent dissemination and secure round-the-clock access to case information. lntearated Incident Management with Reportina & Analytics Incident Management is one module within The Network's proprietary and natively built GRC software suite that helps drive a collaborative process of assessment, planning and facilitation of incidents that affect your organization. The system ensures that every incident, regardless of how it is captured, is managed in a central location and that everyone involved knows what needs to ~e done. Through this _use workflows created by industry experts, The Network's Incident Management solution ensures that no critical steps are missed, no matter how complex the case. The system provides you with a comprehensive view of all activity across your organization, offering a complete audit trail of every incident, from allegation to investigation to resolution, allowing you to instantly analyze activity and act quickly to address critical issues. Data is only good as long as you can put it to work for you. Analysis, pattern recognition and trending are crucial in your compliance monitoring efforts. In today's sensitive business environment, organizations must monitor and measure risk areas, proactively identify areas of concern, and respond quickly to mitigate issues. But identifving enterprise-level trends can be difficult with silos of critical information and biased views of departmental risk relative to organizational risk. Reporting & Analytics is a vital part of The Network's Integrated GRC Suite and our proposed solution for the City. Our Reporting & Analytics engine is designed to turn data into information so you can make correlations between incidents, cases, courses, policies and corrective or preventative action plans. It is a best in class reporting solution that gives you secure real-time access to all of your information across the governance, risk and compliance {GRC) spectrum. By delivering these solutions through our Software as a Service (SaaS} distribution model, we dramatically reduce the implementation timeline and costs. Easy to maintain, the proposed system includes automatic upgrades of release levels and user license flexibility necessary to scale as the City's needs change. And as was previously demonstrated, reports that currently require hours to prepare can now be generated in minutes. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 5 August 13, 2014 -Confidential & Proprietary 4-57 /mp/ementation Suaport Our primary goal is the effective implementation of all compliance program components into the business operations of the City. As such, we have designed the implementation support strategy around three basic fundamentals that are part of the current business landscape: • Establish a "named" project leader from our organization to guide your implementation • Design a project plan that addresses the comprehensive set of business requirements of the City (sample plan included -Exhibit Din this response) • Leverage focused project participation and assistance from the City What does this mean to the City? It is a commitment to delivering quality on a sustained basis and serving as an additional resource to your compliance team to ensure that the proposed program components are consistently effective. As a team, we will rely on each other for project support. Roles and tasks associated with a project plan, as well as key objectives for this initial phase will be developed at the outset of this initiative. Once the project commences, status updates will be provided on a regular basis. Additlonatly, project statuses are provided to the leadership team at The Network on a weekly basis ensuring that our entire enterprise has visibility as well as accountability to your success. Best Practices for Managing a Compliance Proamm There are many factors that should be taken into consideration in order to implement and maintain an effective compliance program. The Network has the background and the experience to provide the City with guidance on those best practices. We often measure all compliance initiatives against standards set forth domestically. While the DOJ and SEC have no prescribed requirements regarding compliance programs, they do employ a common-sense and pragmatic approach to evaluating compliance programs, making inquiries related to three basic questions: 1. Is the organization's compliance program well designed? 2. Is it being applied in good faith? 3. Does it work? We believe the solution we are presenting to the City of addresses all three of those questions in the affirmative. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 6 August 13, 2014 -Confidential & Proprietary 4-58 Shared Values Finally, the foundation of great partnerships lies in the shared values of the organizations. At The Network, we are guided by our Purpose & Principles, and the result is a 30+year history of helping organizations establish and maintain programs focused on what is right, not only by law but also based on values of the organization. We help build ethical environments. At the end of the day, these values drive each of our organizations to sustained success in our respective fields. Additionally, these same values will guide our relationship over the course of time in a manner that reflects the essence of each company's culture, while taking the City's ethics and compliance program to new heights. Our commitment to you is that we will conduct business with the City honestly and with great integrity every day. Thank you for your time in reviewing this response. We look forward to working with you and if you have any questions or require additional information, please do not hesitate to call. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 7 August 13, 2014 -Confidential & Proprietary 4-59 GENERAL SCOPE OF WORK The Network has reviewed the requirements in Section 4 (Scope of Services) and at a minimal, we meet all requirements outlined. As requested, a brief summary of each area is highlighted below: Toll Free Hotline The Network's toll-free telephone hotline service provides employees and stakeholders with live, anonymous and confidential reporting capabilities 24/7 /365. The toll-free number will be dedicated to the City. Our contact center is located in the United States, based in Norcross, Georgia. Telephone service is available in 200 languages, including Chinese, English, Hindi, Japanese, Korean and Spanish. We will introduce our award-winning intake solution into your operations, combining our advanced, technology with highly trained, experienced interview specialists to consistently produce organized, actionable incident reports. Phone Interviews will begin with a series of open-ended questions starting with the option to remain anonymous or disclose their information. Then, as information is entered, the system will suggest questions, allowing the interview specialist to clarify and make changes while the caller is still on the phone. The system will guide the interview based on your business rules. The City's custom criteria will be built directly into the system's logic engine to meet your unique needs. Dynamic next-steps, integrity checks and closing statements customized by your organization can be incorporated at any data point to ensure you get the right information every time, automatically. Once the report is received, the system will analyze each report and flag any inconsistencies, potential errors or places where additional information is needed. These automated, real-time integrity checks will be built into the process to ensure that each report you receive is complete, accurate and compliant with your specific requirements. In addition to automated analysis, we will apply another layer of quality assurance using a dedicated quality assurance team. Standard incident reports will be disseminated within three (3) hours of completion unless, during scheduled maintenance. Our dedicated dissemination team will monitor all dissemination activity to ensure the successful transmission of all incident reports. The City can also schedule text alerts when a report is being sent or a link into case management. Please see Exhibit A for sample Incident Report. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 8 August 13, 2014 -Confidential & Proprietary 4-60 lnternetMBased Complaint Reporting System In addition to calling the telephone hotline, your employees will also be able to report anonymously through our secure, Web-based self-reporting system. Reports can be anonymously submitted (where applicable) via our secure, web-based self- reporting system, which is available in 45 multiple languages: English, Arabic, Burmese, Chinese (Simplified), Chinese (Traditional), Croatian, Czech, Danish, Dutch, Finnish, Flemish, French, French Canadian, German, Greek, Hebrew, Hindi, Hungarian, Indonesian, Italian, Japanese, Kannada, Korean, Latvian, Macedonian, Malagasy, Malay, Marathi, Norwegian, Polish, Portuguese, Portuguese (Brazilian), Romanian, Russian, Serbian, Slovakian, Spanish, Swedish, Tagalog, Tamil, Telugu, Thai, Turkish, Ukrainian, Vietnamese. The Network offers a variety of customization options ranging from the addition of your logo and organization's color to custom language on the welcome screen and custom categories and intake questions. The Network also offers the ability to customize the City's Web reporting portal landing page with your organizations look and feel. The format will follow the flow of our highly successful telephonic interview process, but use a simplified and user-friendly interface. The reporting form will require the user to respond to certain critical questions in order to complete the report. • A message regarding confidentiality of the data and the ability of the individual making the report to provide his or her name or remain anonymous: A link to a Privacy Policy will be provided for more information regarding confidentiality. • Instructions for completing the report: The individual will be advised to complete all screens and provide all required information. Required information will be identified in bold type and set off by a symbol. • Information regarding reporting emergencies: The individual making the report will be advised to contact emergency services directly should they need to report a critical situation or safety issue that may cause immediate harm or danger. • Information about how to access assistance with their report: The individual is advised that the best and easiest way to report concerns is through calling the hotline (and the only way to report concerns in emergency situations) where a specially trained operator will confidentially document their concerns and make sure all important details are included. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 9 August 13, 2014 -Confidential & Proprietary 4-61 After completing the report and before the final submission, the user is required to enter a user name and password which allows him/her to log in at a later date to respond to follow- up questions or provide additional information regarding the incident reported. The report number is also needed to complete the log-in for the follow-up and is provided at the completion of the report. Through the use of a CAPTCHA key during the submission process, The Network protects it clients from receiving false reports generated by a hacker. After submitting a report, the participant receives a confirmation number as a receipt. The web report displays the following message: '7hank you for your report. Please follow up within the next two weeks to add any further information or to check for questions from your organization. Please print this page or make note of the confirmation number, as this is necessary for you to be able to access this report later. 0 The system will also allow for management to document reports made through internal channels directly into the system. Submission via fax and regular m_ail will also be possible. Regardless of reporting mechanism, our system will direct all reports into one secure database. Staff For reports made by phone, you can rely on a team of experienced, multilingual specialists to conduct the interview. Exacting recruiting practices allow us to identify the most skilled candidates for our contact center, and a rigorous training program ensures a high level of expertise and professionalism beginning with the very first call. The Network's intake specialists are trained to not provide feedback or recommendations for next steps and are to remain impartial. If a report is deemed escalatable the intake specialist will contact the appropriate contacts as provided by the City. Our interview specialist's average nearly four years of service ensuring expertise in handling our clients' calls. Sophisticated call-routing technology and intelligent forecasting and scheduling software have produced a results- driven contact center team with the longest tenure and most extensive training in the industry. Combined with our web, fax, mail and manager report intake options, organizations can rely on a single secure repository for all their hotline information. • 190+ interview staff • The Network's call center turnover rate is less 35% (with top half performers turn less than 10%); the Industry Average Turnover is 100%, and most well-run contact centers average 80%. • Utilization of expert agent selection in call switch which routes calls to the best person who has been waiting the longest for a call, instead of traditional contact City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 10 August 13, 2014 -Confidential & Proprietary 4-62 centers that route calls to the person waiting the longest regardless of skill level. This enables The Network to route 80% of calls to top performers. • Proprietary technology enables customization of the interview format to meet exact specifications and capture incidents from multiple intake sources while ensuring collection of the most comprehensive information possible. • Real-time integrity check system analyzes and flags any inconsistencies and potential errors to ensure every report is complete and accurate. • Three-tiered approach to quality. • Our Disaster Preparedness planning mandates the use of redundant servers in remote hardened locations to ensure we are able to quickly relocate should any event occur with our facilities. • Tenure of our interview specialists is greater than four (4) years. • 10 years of call arrival pattern information to ensure we schedule the right people in the right place at the right time. Account Management -We will provide you with a dedicated advocate who will be invested in your programs' success. This individual will help guide you In applying best practices to your compliance programs and ensure that you are getting the most out of our solutions. They will also be a single point of contact so that you always know who to go to. Integrated Incident Management System with Reporting & Analytics Our Incident Management solution is flexible and scalable and will empower the City users (case managers, case investigators, CAPA managers, etc.) with access to more information and more opportunities for collaboration, in order to better manage incidents and mitigate risk. The interface was designed by human factors engineers, resulting in an easy, intuitive mechanism to capture critical information. As the central repository for all types of Incidents, Incident Management allows your organization to see risk incidents across multiple departments, eliminating information silos. Comprehensive Incident Management at a Personal Level A system that's highly personal, built to offer maximum flexibility and customization, Incident Management from The Network lets you tailor the system to uniquely meet your needs, then grow and personalize the system as the City's program needs change. • The ability to configure the system. Configurability applies to how the system works using your processes to create an experience that fits your users, your operations and your organizational culture. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 11 August 13, 2014 -Confidential & Proprietary 4-63 . • Central repository for all types of incidents. Incident Management allows your organization to see risk incidents across multiple departments, eliminating information silos. • Case Detail provides a personal view into the activities of each case. View details -including status, risk, priority and due date -edit in line or link/download content. See events tied to each case and identify the location and parties involved. At case resolution, track outcome and disposition for the involved party on a specific case. • Powerful reporting and analytics provides greater visibility across your organization. Choose from pre-formatted or interactive reports for greater insight into your operations. Exportable, you can share reports with others in your own organization or benchmark your results against other organizations. Increase Productivity Enjoy quick access to a comprehensive view of all activity across your organization. "At-a- glance situational intelligencen means users don't need to drill down or conduct an exhaustive search to get the information they need. Incident Management offers an audit trail of every case, from allegation to investigation to resolution, allowing the City to instantly analyze activity and act quickly to address critical issues. • Fully configurable dashboard delivers "at-a-glance situational awareness.n Choose from graphical or table views of your information -all of your information. • Industry-first Event Queue lets you track and triage all incidents. Maintain detailed information on every allegation within your organization without having to convert each into a case. • Case Diary offers command/control area for investigators. Users can enter, view and update notes, create reminders and add tasks without ever leaving the page. • One-click view of all current, pending and new cases with comprehensive Case Queue. Perform in line editing and update information in real time, without going into edit mode, from this single, user-friendly work area. • Enhanced filtering. Filtering allows you to display results by any combination of the following: Date Range, Status, Case Type, Person Assigned, Outcome, Disposition, Risk, Priority, and Keyword. Additionally you will have a dedicated Case ID. • At-a-glance case summary. This field gives users the ability to recap the details of the case for later review or exported in the Case Queue or Case Details area. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 12 August 13, 2014 -Confidential & Proprietary 4-64 • Information-sharing between users. With the system's secure collaboration feature, greater visibility into investigations will help the City resolve cases quicker. • Detailed Audit Log. All case information is captured in the audit log by time, date and user stamp and provides the data element in its pre-changed state as well as post change state. Resolve Cases Faster Enhanced information-sharing between users with the system's secure collaboration feature provides greater visibility into investigations and helps the City more efficiently resolve cases. Incident Management offers simultaneous access to multiple users or groups to enhance data collection, communication and real-time decision-making across your organization. • Enhanced information-sharing helps your organization resolve cases faster. Simultaneous access to multiple users or groups aids in data collection, communication and real-time decision-making. • Assurance that your sensitive information will not be compromised. Enhanced user access restrictions and the ability to mask data means you provide end-users with only the information they need to do their job. • Business Process Rules. Incident Management has the ability to automate routine processes in order to make consistent, accurate and timely decisions. Once rules are defined, a rule point then triggers the next task associated to the process. A New Level of Consistency and Thoroughness The system ensures that every incident, regardless of how it is captured, is managed in a central location and that everyone involved knows what needs to be done. The City can create your own customized workflows or choose from a set of best-practice workflows, created by industry experts such as F&H Solutions and BOO Consulting. Workflows streamline the incident management process and ensure that no critical steps are missed, no matter how complex the case. Greater Data Protection and Control Comprehensive security assures that your sensitive information will not be compromised. Enhanced user access restrictions and case level permissions allow your administrators to provide users with only the information they need to do their jobs. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 13 August 13, 2014 -Confidential & Proprietary 4-65 • Robust administration capabilities put you In control of your data. Add, edit or view locations, flag people or groups, create system roles, designate groups as active or inactive-it's your call, your rules, your system. • User roles defined by the City controls system rights. User's ability to see, edit or export information inside the system is determined by the organization's predefined role. The City's program administrator maintains the system. Reporting & Analytics from The Network provides an industry-leading, on-demand reporting solution that enables flexible, real-time, client-customizable access to all client data across the GRC {governance, risk and compliance) spectrum. The Network's Reporting & Analytics Platform provides a secure way to visualize data so you can track trends over time, implement improvements, make better business de~islons and achieve results. A central feature is our easy-to-use report building functionality, so that any User with the appropriate permissions can quickly create reports for any application they have rights to. A single report can be leveraged to create multiple dashboard widgets as well as standard reports that are exportable to MS Excel for further analysis. Enhanced Features and Benefits: • Centralized, web-based report generation and management provides secure access to GRC data across the extended enterprise • Export data to a CSV file for additional analysis • Secure, web-based solution provides client-administered access and permission controls to ensure the right people have access to the right information: o All reports provide row-level security based on client defined role and permissions of the User running the report o Role-based permission control of report creation and publishing o Encrypted login secures all Users' information Please see Exhibit B for additional information and samples of your on-demand reporting capabilities. Marketing and Educational Materials We believe that innovative solutions, custom-built to resonate with your employees, cut through the clutter, engage every employee and achieve better -and longer-term - results. Thars why we never subscribe to a one-size-fits-all strategy when it comes to crafting an effective communications campaign. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 14 August 13, 2014 -Confidential & Proprietary 4-66 • Expanding Awareness Through Online Messaging - A strong corporate intranet presence is an important part of an integrated campaign. We create high-impact web pages, e-newsletters and interactive modules for quick and easy access to your message. • Compelling Print Materials -Letters from the top, employee brochures, posters, calendars and wallet cards send a strong message to employees about your company's commitment to the program. • Management Materials -Lively PowerPolnt presentations, program implementer guides and meeting discussion guides enlist the support of your management team and cascade the message throughout your organization. • Displays that Highlight Your Values -Posters, signs and location materials mounted in high-traffic locations spread awareness exponentially, integrate the campaign throughout the company and create buzz among your employees. • Events that Engage -Don't just say it, do it! Our team has a million ideas for energizing your employees and building excitement about -and the momentum of-your program. We plan, produce and promote events that achieve results. • A Wide Range of Incentives -We offer unique and fun incentive items that reflect your company name, logo and campaign message, to reward and motivate employees See Exhibit C for sample communication materials. Technical Support and Requirements The Network offers several different methods for supporting our clients: 1. Toll-free phone support-available 7:00 AM and 7:00 PM Eastern Time Monday through Friday with dedicated GRC professional services specialists to provide your day-to-day support for service changes and technical support concerns. Calls are answered within an average of 30 seconds and issues are resolved within the first call 80% of the time. 2. Email support-24 hours a day-support issues received by email are logged, executed and completed in a timely manner. An email support request automatically generates a confirmation of receipt along with a case number and point of contact. Within 24 hours, additional contact will be made that either informs the sender that the task has been completed or a date in which the task will be completed. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 15 August 13, 2014 -Confidential & Proprietary 4-67 3. Dedicated account manager -assists you in a consultative approach to resolving your questions or concerns and can act as a liaison between you and our professional services organization. The caller in this case is calling the translator TIY service (TIY stands for Text Telephone) service before calling us -the nv operator dials TNW and we answer the phone -nv announce the call as a service for the deaf and then relays what we ask by typing it -so the deaf caller can read the info on their phone/pc screen. The Network uses multiple levels of security to ensure that your sensitive data remains secure. • At the organizational level, we utilize stringent hiring practices, including background check and fingerprinting, as well as confidentiality agreements and periodic employee training on data privacy. • When an employee leaves The Network, our established procedure is to disable the user account and access rights on the day of departure. • Our information security policies are documented and published in our employee handbook and made available to all employees through our company intranet site. New hires are also required to read and acknowledge that they read the policy. Human Resources recertifies them annually. • Our data center features four tiers physical layers of security, 128-bit SSL encryption and real-time intrusion monitoring. • At the application level, we employ unique user ID's and passwords along with permission levels for access and direct system intake of reports. We also constantly monitor legal developments regarding data privacy. • Our corporate-wide employee standards, guidelines, policies and procedures are detailed within three different documents: (1) Our Written Information Security Program (WISP); (2) Our IT Security Policies and (3) Our HIPAA Security Policies and Procedures. • The Network holds Safe Harbor certification and has affirmed our operational and compliance controls with the successful receipt of the Service Organization Controls Report (SOC 2). The Network complies with the requirements necessary to meet the criteria for the security, confidentiality, availability and processing integrity principles set forth in AICPA Trust Service Principles, Criteria and Illustrations for Security, Availability, Processing Integrity, Confidentiality and Privacy (AICPA, Technical Practice Aids}. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 16 August 13, 2014 -Confidential & Proprietary 4-68 • Network controls in place such as; Intrusion Detection, Patch Management, Anti- Virus, Network Controls/Firewalls, VLAN segmentation and Access Control Lists, Encryption at Rest, Encryption in Transit, Business Continuity/Disaster Recovery The Network maintains capacity levels and performs load balancing on our software. Annual Meeting While implementation is crucial, an essential ingredient to a successful partnership is quality, substantive dialogue and interaction with program owners. Your account manager will meet with you annually {or as needed) via web, conference call or in person to review your program results and provide recommendations. For in-depth answers to all points of section 4. Please refer to Attachment 8. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 17 August 13, 2014 -Confidential & Proprietary 4-69 WORK PLAN Please see Exhibit D for a proposed project plan. Highlights include: We will need the following to begin work on the City of Rancho Palos Verdes project: • Signed Master Subscription Agreement (MSA) and Statement of Work (SOW). • City of Rancho Palos Verdes project team resources identified and a project kick-off meeting • Confirmation of language requirements for Intake (hotline) services To ensure a smooth launch and to provide exceptional performance that's on-time and on- budget, The Network delivers a seamless, automated and customized onboarding process that includes comprehensive data migration for a trouble-free start and unparalleled customer service by a team of tenured professional service representatives. We also offer a diverse array of training and support options, available both before and after implementation, to enable clients to leverage their ethics & compliance investment. The cornerstone of Professional Services is our Account Management structure, a tenured team of experts providing day-in, day-out support to our clients in their program management. Our Account Management team acts as solution facilitators, providing consulting, solution integration, ongoing application maintenance, and relationship management to optimize your GRC initiatives. Service includes: (INCLUDE ONLYTHOSETHAT APPLY) • Hotline Program Set-up o Provisioning of domestic toll-free number o Hierarchy and location configuration o Report dissemination and escalation configuration o Script configuration o Branding and establishment of web addresses and configuration of domestic and international web form languages • Incident Management Implementation Support o Integration with the Hotline service for incident/case management o Best practice business recommendations o Hierarchy and location configuration o User(s), and role permissions configuration City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 18 August 13, 2014 -Confidential & Proprietary 4-70 o Custom fields, business rule and work flow implementation o Branding application o Configuration of lexiconable drop-down values (ex. Status, case types, etc.) • Incident Management Training Support o unlimited online shared training, currently offered three {3) times per month The City will need to assign a project leader for the duration of the implementation. Additionally, there should be representation from every department involved in the process(es} impacted by the implementation (we recommend no more than five resources as part of your key contributor team). The list of affected departments may include, but is not limited to, Human Resources, Ethics & Compliance, Legal, etc. For any implementation involving the import of historical data or the integration with an HRIS or other internal system, there must be a resource from IT involved. These resources will be involved in helping to define the configuration requirements of the implementation as well as testing the resulting system for approval prior to going live. Once the system is live, <<clientShort>> will need to have at least one System Administrator assigned for overseeing the ongoing use of the system. Please note that the project plan will be outlined so that the City's resource personnel will not always be required for each implementation session. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 19 August 13, 2014 -Confidential & Proprietary 4-71 ~· SCHEDULE Implementation Services from The Network begins with a needs assessment to identify an organization's governance, risk and compliance (GRC) objectives, taking a consultative approach with the City to ensure optimal value from our solutions. From uploading a locations database to setting up hierarchies, permissions or establishing best business practices, our team will enable the City with the knowledge needed for a successful implementation. Our collaborative, multi-phase approach will ensure the City is receiving optimal value from our solutions. Our implementation team works with organizations large and small to identify business objectives, apply best business practices;-and get the GRC solution up and running efficiently and effectively.· The implementation plan addresses a recommended process and key milestones, including: 1) Needs Assessment-This process determines how your organization collects and manages information today and what your goals are as it relates to Intake and Incident Management implementation. 2) Best Business Practice Recommendations -:-Our experts will apply best business practice recommendations based on your current organizational workflow and goals. This process includes a validation and remediation process as well as a gap analysis. 3) Information Gathering-This involves the process of gathering basic implementation information to support a uBest Business Practice" implementation. Basic information includes, but is not limited to: a) location hierarchy; b) intake customization requirements; c) escalation and dissemination rules; d) data transfer requirements; e} users and user groups; f} roles; g) workflows and business rules; h) historical import information; i) lexicon values. 4} Product Validation -The Pre-Implementation review provides you with an opportunity to see the system based on previously agreed upon programming rules, which includes a validation and remediation process. The type of training-shared, dedicated. or onsite -is determined and scheduled at this phase. 5) Training-Based upon the method of training, either admin users, all users or internal training resources are trained to use the system and online help guides. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 20 August 13, 2014 -Confidential & Proprietary 4-72 6) Organizational Ro/lout -The application is available in a production environment for full utilization. 7) Post-Launch Follow-Up -Network experts will be available for additional support during the first 90 days of implementation, with key meetings established for 30, 60 and 90days. The City will need to assign a project leader for the duration of the implementation. Additionally, there should be representation from every department involved in the process( es) impacted by the implementation (we recommend no more than five resources as part of your key contributor team). The list of affected departments may include, but is not limited to, Human Resources, Ethics & Compliance, Legal, etc. For any implementation involving the import of historical data or the integration with an HRIS or other internal system, there must be a resource from IT involved. These resources will be involved in helping to define the configuration requirements of the implementation as wefl as testing the resulting system for approval prior to going live. Once the system is live, the City will need to have at least one System Administrator assigned for overseeing the ongoing use of the system. Please note that the project plan will be outlined so that the City's resource personnel will not always be required for each implementation session. Please see Exhibit D for a Sample Project Plan/Gantt Chart. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 21 August 13, 2014 -Confidential & Proprietary .. '·., 4-73 FEE AND COSTS Pricing Proposal: 4 Year Engagement 1. Domestic Hotline and Web Reporting 2. Incident Management Solution for Twelve (12) users 3. Optional Hotline EducationaVAwareness Materials ··-····------------·--·-·--------__J Volume Phone Annual Fee Web Annual Fee Total Annual Fee lmplemen.tation Fee (One· Time) so $2,500 $500 $1,000 100 $4,700 $900 $5,600 $1,000 150 $6,750 $1,200 $1,000 * Overages will be invoiced at $50 per Telephonic Report, $10 per Web Report and $3 per general inquiry. The annual fee Is based upon anticipated call volume and not dependent upon the incidents codes reported by the City. Translations will be invoiced at $125 per translated report. Users Per User Fee 12 $500 City of Rancho Palos Verdes RFP for Fraud, Waste & Abuse Hotline Annual Total Cost $6,000 22 Implementation Fee (One-Time) $1,500 Response from The Network, Inc. August 13, 2014 -Confidential & Proprietary 4-74 Awareness Material (Ready-Made} Options Per Unit Cost 11x17 Speak Up Poster $4.00 Awareness Brochure w/ Perforated Wallet card $0.60 Wallet Card (stand-alone) $0.22 City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 23 August 13, 2014 -Confidential & Proprietary 4-75 ABILITY OF THE PROPOSER TO PERFORM Experience Experience is a critical factor in choosing your ethics and compliance solution provider. With more than 30 years of hotline industry experience, The Network has developed a highly refined process which we use to successfully implement more than 300 new clients each year. Our expertise in serving the global marketplace is second to none. We employ industry-leading security and operational processes to ensure that your data is secure and that your program operates smoothly 24/7 /365. We undergo regular client-and self-audits as well as security penetration tests. We also hold Safe Harbor and SOC 2 certification, a furth~r endorsement of our commitment to ensuring data security. The Network provides compliance hotline services to more than 3AOO organizations while managing more than one million reports annually. The Network has 156 multi-national customers, with 81,000 customer locations In 120 countries. These services include multilingual and localized communications, training, telephonic and web products. We offer account management and operational services in both the US and Europe, including a data center housed in the UK. Many companies can refer to themselves as experts in hotline reporting, but numbers speak volumes about capability, competence and dependability. Today, more than 26 million employees worldwide, including nearly half of the Fortune 500, rely on The Network for reporting services. The Network has experience providing services to government organizations such as the FBI, the Federal Reserve Banks, many state, county and city government agencies across the United States, and foremost, we have been providing services to the SEC since 2008. We understand your business! The Network provides governance, risk and compliance (GRC} solutions that help organizations mitigate risk and promote organizational compliance. Our customized solutions include the reporting of incidents and concerns; centralized, secure case management; advanced reporting and analytics to put valuable data into the hands of your key stakeholders; comprehensive awareness and communications programs to engage your employees and ensure program success; interactive, expert-level e-learning courseware; metrics-enabled policy lifecycle administration to enhance the viability of your policies, procedures and controls; and an unmatched level of customer service and quality assurance. Long recognized as a trusted source and industry leader, The Network provides commentary and thought leadership to numerous media outlets on a wide range of ethics and compliance issues. We have been featured on Fox Business News, Time.com and Forbes.com as well as in Corporate Counsel, Financial Times, Fraud Intelligence, Corporate City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 24 August 13, 2014 -Confidential & Proprietary 4-76 Board Member1 Leadership Excellence, Loss Prevention, Treasury & Risk1 Compliance Week, Corporate Compliance Insights and Directors & Boards. We stay informed and intelligent about the issues that affect our services, our clients and our industry. Our strategic partnerships help us deliver more value to our clients by offering access to a wide range of proven business solutions and industry associations that complement the suite of products and services we offer. These alliances serve as an important link not only in enhancing our industry-leading solutions, but also in building upon the investment you make in choosing The Network. The Network actively participates as members of the following organizations: Society of Corporate Compliance and Ethics (SCCE), Open Compliance & Ethics Group (OCEG}, and the Ethics & Compliance Officer Association (ECOA}. Case Studies Please see Exhibit E. Project Team Tim Flanigan, Sales Representative {RFP Point of Contact) Tim joined The Network in January of 2014. Since joining The Network, he has been instrumental in the procurement and generation of several new business opportunities for The Network. Tim is truly passionate about providing new prospects and clients outstanding customer service, and acting as a consultant to organizations newly implementing a compliance program. These programs include Code of Conduct Refreshes/Rebrands, Policy Management, Ethics and Compliance Training & Communication programs and Incident Management, all within one natively developed Reporting & Analytics platform. Tim ensures that all prospects and clients have all-the facts to ensure that their compliance program will meet the needs and wants of the organization. Tim has been involved in sales and customer service for over a decade across several industries. Tim Is responsible for supporting new prospects and clients that strive to set the highest ethical standards, minimize risk, and monitor compliance through customized governance, risk and compliance program solutions. Crystal Roberts1 Sales Manager Crystal has been with The Network since 2008. Since joining the organization, she has been instrumental in establishing several hundred new accounts with Governance, Risk and Compliance (GRC) program solutions. She has a true dedicated passion in providing new prospects and clients with customized turnkey ethics and compliance program solutions. These solutions include Code of Conduct Refreshes/Rebrands, Policy Management, Ethics City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 25 August 13, 2014 -Confidential & Proprietary 4-77 and Compliance Training & Communication programs and Incident Management, all within one natively developed Reporting & Analytics platform. Crystal is also responsible for rapidly expanding and mentoring the inside sales and lead generation teams. She strives in assisting her representatives in their professional development and ensuring they perform to their maximum ability. Crystal has over 20 years of account management/sales experience, most of which has been in the software technology industry. She has extensive experience and knowledge providing prospects/clients with excellent customer service and customized solutions based on their unique needs. Melissa Hamlett, Senior Sales Engineer Melissa joined The Network in December 1997 as Training Manager with more than seven years of training experience. Melissa was promoted to Senior Sales Engineer in 2009 where she began working with the sales team to demonstrate how The Network's solutions can help an organization better manage their compliance related data. She also assists with implementation training for both new and existing clients. Prior to joining The Network, Melissa was employed by EDS from August 1990 to December 1997 where she started as a long distance operator. Melissa was promoted to Lead Operator, Supervisor and Trainer. Mefissa has completed the following certifications: American Society of Training and Development (ASTD); Designing Learning Certificate Program, University of Georgia (June 2007}; and Training and Human Resources Development Certification Program (May 1997). Ryan Harulll, Manager of Implementation Services, PMP Ryan joined The Network in October of 2000 as a Program Manager. During his time as a Program Manager Ryan managed several of The Network's largest clients and several large projects. Ryan was promoted to the position of Product Manager in February of 2008 where he continued to manage projects while helping The Network to enhance existing products and create new solutions to further the company's GRC strategy. In 2013 he was promoted to Manager of Implementation Services where he is responsible for the team that handles the implementation of client programs. Ryan holds a bachelor's degree in Risk Management and Insurance from The University of Georgia and is a certified Project Management Professional. Chris Mascaro, Director of Operations Chris is responsible for the day to day operations of the Contact Center including staffing, training, quality assurance, customer satisfaction, reporting and administration. Chris has more than 20 years of leadership experience in call center operations, including his role as City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 26 August 13, 2014 -Confidential & Proprietary 4-78 the founder of Good Answer, a call center outsourcing firm owned by The Coca-Cola Company. Chris has held leadership roles in contact center operations at GE, The Coca-Cola Company, Comcast and the State of Georgia. Tom Winkler, Senior Operations Manager of Contact Center Operations Tom joined the Network in June 2000 as Operations Supervisor with more than seven years of contact center leadership experience. Since being named to the Senior Operations Manager position in 2005, Tom is responsible for all aspects of the day-to-day operations of the Contact Center, which include staffing, training, scheduling, quality assurance, escalation, dissem_ination and customer satisfaction. Prior to joining The Network, Tom workett for Ballard Designs, where he was the Operations Manager in charge of the day-to- day operations of the Ballard Designs Contact Center. Additional Bio's of our Executive Management Team can be viewed on our website at: The Network Senior Leadership References Please see Attachment 5. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 27 August 13, 2014 -Confidential & Proprietary 4-79 ATTACHMENTS ATTACHMENT 1 MINIMUM QUALIFICATIONS CERTIFICATION The Network, Inc. Proposer Firm Name The Proposer must substantiate that the firm satisfies all of the Minimum Qualifications stated within this RFP, to the CITY's satisfaction, to be given further consideration. The statement must contain sufficient information as prescribed to assure the CITY of its accuracy. Failure to satisfy each of the Minimum Qualifications, based on the CITY's sole judgment, will result in the immediate rejection of the Proposal. The Proposer must complete all of the Minimum Qualification statements listed below before signing. The signature of the authorized representative of the Proposer warrants that the Proposer has met all of the Minimum Qualifications. 1) The Proposer has been in the Fraud, Waste, and Abuse Hotline Services industry in the same name or organization serving California government agencies for at least five (5) years. 21 Yes I a No 2) The Proposer1s primary consultant (ex. project manager) assigned to the CITY has a minimum of three (3) years of hotline experience with local California governmental agencies and has been employed by Proposer for at least one (1) year. ~Yes/ a No 3) The Proposer has direct responsibility for the management of the account, and all personnel responsible for the account are employees of the firm. ~Yes I a No 4) The Proposer does not have, nor potentially has, a conflict of interest with the CITY, including, but not limited to, any member of the City Council, City Staff, its advisors and contractors, its auditors, other consultants currently serving the CITY. ~ Yes I CJ No City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 28 August 13, 2014 -Confidential & Proprietary 4-80 5) The Proposer can provide verifiable references of local California government agencies. (a Yes I D No Luqy Skelton Print or Type Name Chief Financial Officer City of Rancho Palos Verdes RFP for Fraud, Waste & Abuse Hotline 29 Response from The Network, Inc. August 13, 2014 -Confidential & Proprietary 4-81 ATTACHMENT 2 COMPANY QUESTIONNAIRE The Network, Inc. Proposer Firm Name The Network, Inc. Proposer's Legal Name Corporation Type of. Business (Corporation, Partnerships, Individual, etc.) 333 Research Court, Norcross, GA 30092 Headquarters Address Same as Above Address of Office of Proposer That Would Manage the Account (if different) Tim Flanigan Proposer Contact Name 678.248. 7.270 770.441.3634 Telephone Number Fax Number Crystal Roberts Proposer Back-up Contact Name 770.810.6663 770.441.3634 Telephone Number Fax Number C>Aj ~bl.th= Signer (authori ed to bind the Proposer) Lucy Skelton -Chief Financial Officer timflanigan@tnwinc.com Email Address crvstalroberts@tnwinc.com Email Address f/'.3/JV I I Date Name and Title of Authorized Signer (Please type or print) City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 30 August 13, 2014 -Confidential & Proprietary 4-82 ATTACHMENT 3 WARRANTIES The Network, Inc. Proposer Firm Name Proposer agrees to the incorporation of the following warranties in the proposed engagement: Proposer warrants that it maintains or will obtain, at its ·expense prior to engagement, requi.red insurance policy as stated herein for negligent acts or omissions and that such coverage is applicable. Proposer warrants all information and statements in this RFP are complete and true. Any statement or claim found to be incomplete, misleading. or false will be grounds for immediate disquatification or dismissal and may be subject to legal action. Proposer warrants this proposal is genuine, and not sham or collusive, nor made in the interest or on behalf of any person not named therein; the proposer has not directly or indirectly induced or solicited any other proposer to put in a sham bid, or any other person, firm or corporation to refrain from submitting a proposal, and the Proposer has not in any manner sought by collusion to secure for themselves an advantage over any other proposer. Lucy Skelton Print or Type Name Chief Financial Officer Title City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 31 August 13, 2014 -Confidential & Proprietary 4-83 ATTACHMENT 4 FEE PROPOSAL The Network, Inc. Proposer Firm Name Subject to advance approval by the CITY, the CITY shall reimburse the selected Consultant for reasonable travel costs incurred, including airfare, transportation, lodging and meals in conjunction with attending local meetings in the performance of the engagement. Consultant shall furnish the CITY with evidence of such costs incurred along with written request for reimbursement. The selected Consultant shall be solely responsible for incidental costs, including but not limited to, printing, clerical support in delivery of services and the production of written reports. Each Proposer shall provide its Fee Proposal based upon the details of the costs for telephone reports, web-based submittals, and general inquiries at the service levels of 50/100/150 reports annually, as well as reporting capabilities and analytics. Pricing Proposal: 4 Year Engagement 1. Domestic Hotline and Web Reporting 2. Incident Management Solution for Twelve (12) users 3. Optional Hotline Educational/Awareness Materials Volume Phone Annual Fee Web Annual Fee Total Annual Fee Implementation Fee (One-Time) --··----··---·-······ ---·-··-···-·-·--··-······-···· .. ---··-~· ··-·----·-· ---------------·------·----·-•------··-···-··-·-··"•""""'··· ·----·--·-----·------------~ so $2,500 $500 $3,000 $1,000 ······--·-····-···---- 100 $4,700 $900 $5,600 $1,000 150 $6,750 . $1,200 ··--.. -----------_________ ,,,. .. ,_,._, __ ....... "·-------·1 $7,950 $1,000 City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 32 August 13, 2014 -Confidential & Proprietary 4-84 * Overages will be invoiced at $50 per Telephonic Report, $10 per Web Report and $3 per general inquiry. The annual fee is based upon anticipated call volume and not dependent upon the incidents codes reported by the City. Translations will be invoiced at $125 per translated report. Users Per User Fee Annual Total Cost Implementation Fee (One-Time) -------1------------------------r-----------1 12 $500 $6,000 $1,500 Awareness Material (Ready Made)Optlons Per Unit Cost 11x17 Speak Up Poster $4.00 Awareness Brochure w/ Perforated Wallet Card $0.60 Wallet Card (Stand Alone) $0.22 City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 33 August 13, 2014 -Confidential & Proprietary 4-85 Organization ATTACHMENT 5 QUESTIONNAIRE The Network, Inc. Proposer Firm Name Provide the address of the office that will service this account. 333 Research Court Norcro·ss, GA 3.0092 Give a brief history of your firm's involvement in the hotline services industry serving California municipalities, including the year of organization. As of July 1, 2014, for how many years has your firm provided hotline services serving California municipalities? We've been around for more than 30 years (1982) and our experience and expertise make us uniquely suited to provide innovative, integrated GRC solutions. Most people know us for our best-in-class anonymous reporting hotlines, because many of the most successful companies in the world rely on our hotlines to protect them from the financial and reputational damage a fraud or scandal can cause. However, we also have 30 years of subject matter expertise in communicating to employee bases large and small about the kind of behavior their companies need from them. We've written codes of conduct for some of the most prestigious brands in the world. Our ethics and compliance eLearning solutions are the best on the market because employees retain the information, which ultimately protects their companies. And our award-winning ethics and compliance awareness campaigns keep our clients' employees informed and ready to report illegal or unethical behavior when they see it. To deliver these industry leading solutions, we built great internally-facing software systems. In fact, the software we built for internal use is so good it has received awards from the risk management industry. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 34 August 13, 2014 -Confidential & Proprietary 4-86 That's why it made sense for us a few years back, to embark upon our vision for using technology to streamline and integrate ethics and compliance functions. We realized our skills were a great foundation for building client facing technology. Now our award-winning Integrated GRC Suite -the first natively integrated ethics & compliance suite -is changing how companies manage compliance and giving them insight into their entire, enterprise-wide ethics and compliance programs. What are your firm's consulting specialties and strengths? The Network has been an industry leader for over 30 years. We were the very first whistleblower hotline established in the United States. Over the course of 30 plus years The Network has been able to gain unique insight into challenges that have plagued the compliance industry for years. The Network has worked with numerous individuals in compliance roles across a wide range of industries to be able to gain industry specific knowledge that competitors may not have access to. Also, The Network annually produces an industry leading benchmarking report. The Networks benchmarking report contains data and analysis of compliance programs across all industries. This allows for clients and potential clients to be able to gauge their current compliance environment and address any changes or shortcomings they may have based on comparative analysis to like organizations. What differentiates your firm from your competitors? From the rigorous hiring process of interview specialist to the highly automated intake system used for thousands or critically-important, highly-sensitive programs, we continue to set the industry standard for hotline services. Exacting recruiting practices allow us to identify the most skilled candidates for our contact center, and a rigorous training program ensures a high level of expertise and professionalism beginning with the very first call. The Networks call center has a turnover rate of less than 34%, industry average above 80%. We measure both verbal and written outputs of our agents to ensure the highest quality of intake. We provide rigorous training and internal certification to all employees. Proprietary technology enables customization of the interview format to meet exact specifications and capture incidents from multiple intake sources while ensuring collection of the most comprehensive information possible. Real time integrity check system analyzes and flags any inconsistencies and potential errors to ensure every report is complete and accurate. The Network is the only organization that utilizes CAPTCHA technology with our web reporting solution to ensure that your organization is being given reports generated from real people. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 35 August 13, 2014 -Confidential & Proprietary 4-87 The Network's Incident Management system is designed to be highly configurable in order to meet each individual client's needs regardless of their specific industry or department usage. Unlike other incident management products, Incident Management from The Network provides best practice processes while allowing our client's to utilize our robust features to meet their individual processes. Some of the key features that separate our Incident Management product from other competitors are mass case reassignment, granular level permissions, robust rules engine for system automation, and advanced assignment capabilities. Incident Management is also built on an integrated GRC platform with a state-of-the-art reporting tool allowing clients to see a holistic view of their company to easily identify risks and make better business decisions. The Network's Incident Management solution is fully in~egrated with our proprietary intake processes within our GRC framework. This system ensures every incident is managed in a central location, regardless of how it is captured. What are your firm•s limitations? The Network has been an industry leader for over 30 years. The Network has no limitations in regards to the scope of services provided by the City. Clients The attached clients have agreed to be a reference; however, as a courtesy to them, we ask that you contact Tim Flanigan at (678) 248-7270 or TimFlaoigan@tnwinc.com to facilitate a call time and date. Thank you. Contact Name Elizabeth Somerindyke Phone Number 910} 433-1672 Contact Name Paul Okada City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 36 August 13, 2014 -Confidential & Proprietary 4-88 Phone Number 650) 363-4761 Contact Name Phone Number Contact Name Phone Number Contact Name Roberta Raftovlch Phone Number 202) 551-5399 Email aftovichR@SEC.GOV Standards of Conduct Disclose any relationship you have or have had with any City Council members, consultants, or CITY employees. Briefly describe your philosophy relating to the selected Consultant's relationship with Council members and Staff. The Network has acted as a consultant to the City since October 30, 2012. During this time The Network has been engaged with several members of the City staff. The Network has provided consultative meetings, product demonstrations and pricing discussions during this time. Since this bid has been released, The Network has followed bid protocol for communicating with the City. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 37 August 13, 2014 -Confidential & Proprietary 4-89 Disclose any gifts (meals, tickets, anything of value over $50, etc.) that you have given to or received from ·any City Council member, consultants, or CITY employee in the last 12 months. If 1Ves 1 , please disclose them using "Gift Disclosure Form.11 The Network has not received nor have we contributed any gifts of any kind to the City. For the past 1 O years, has the firm, its officers or principals or any affiliate ever: a. Been the focus of a non-routine inquiry or investigation or a similar inquiry or investigation from any federal, state orself-regulatory body or organization; No. b. Settled any litigation concerning breach of fiduciary responsibility or other investment related matters; or No. c. Submitted a claim to your error & omission, fiduciary liability and/or fidelity bond insurance carrier(s)? No. If 1yes 1 , please provide details and the current status of proceedings. Not applicable. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 38 August 13, 2014 -Confidential & Proprietary 4-90 No. Date (mm/dd/yy) ATTACHMENT 6 Gift Disclosure Form The Network, Inc. Proposer Firm Name Given to/ Description of Gifts 1 Received from Not applicable Value (US$) .L • Gifts could be m the form of meals, tickets, paid travel, items of value over $50, etc. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 39 August 13, 2014 -Confidential & Proprietary 4-91 No. ATTACHMENT 7 Disclosure Form - Communication with City Staff, and/or City Council The Network, Inc. Proposer Firm Name Names, Dates and Description Of Information Provided/Received . . The Network and the City has been in extensive communications regarding an ethics and compliance hotline and incident management system since October 30, 2012. These discussions have been between the appropriate sales representative, sales engineer and sales manager with The Network and various individuals with the City. The City's individuals consist of Jerry Duhovic, Rosalee Wood, Dennis McLean and Ryan Mills. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 40 August 13, 2014 -Confidential & Proprietary 4-92 Attachment 8 Detailed Scope of Services Required Answers 4. General Scope of Work Briefly summarize the scope of work as the proposer perceives or envisions it for each area proposed 4.1 Toll Free Hotline 4.1.:J. The Hotline Administrator Shall Provide a toll-free hotline number that will be unique to the City and the number will be retained by or transferred to the city after completion of termination of the contracted services Yes. The Network will provide a dedicated toll free number that will be assigned to the City. 4.J..2 Co/ls to the hotline must be answered by a live intake representative 24 hours a day, 7 days a week, and 365 days a year. The Hotline Administrator shall have sufficient staffing and technical capacity to answer multiple calls. All calls are answered live, 24/7 /365. Our contact center's relies on the Avaya PBX/Switch and supports full Automatic Call Distribution (ACDE). This switch helps us manage call volume by-offering up to 96 different skilfs, 16 priority levels and 20,000 phone lines with a capacity of receiving over 5.5 million calls per year. This system ensures optimal use of the most capable resource available for each specific call. By utilizing these skill levels, The Network can identify the most proficiency level for each individual interview specialist so they are most closely matched with particular clients. The automated system can rapidly Identify the interview specialist with the strongest skill-set who is available to handle the call. A live greeting option is available if requested. 4.1..3 The Hotline administrator shall provide representatives who are fluent In a variety of languages. The proposal shall notate which specific languages the firm is capable of supporting. The City's primary languages, as defined by the Los Angeles County Registrar/Recorder, include Chinese, English, Hindi, Japanese, Korean and Spanish. Non-English speaking callers are served utilizing The Network's bilingual interview specialists or Certified Languages, a professional 24/7-translation service. English and Spanish-speaking interview specialists are always available at The Network 24/7 /365 and Portuguese and French are available during peak City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 41 August 13, 2014 -Confidential & Proprietary 4-93 intervals. The Network uses Certified Languages International to assist our interview specialist with real-time translation in 180 different languages. 4.1.4 The Hotline Administrator shall describe the contingency process In place should call volume exceed customer service representative capacity. In the event of call spikes or increase in call activity, our quality assurance, escalation and management teams are trained and ready to take calls as needed. We also have a "back up" team made up of former call center employees who have been promoted to other departments within the company. 4.i.S Complainants shall be given the option to remain anonymous. Where this option is selected, the anonymity of hotline complainants shall be protected. Calls will not be recorded and caller Identification information will not be maintained. At the beginning of each call, the caller is asked if he or she would like to give his/her name or remain anonymous. If the caller chooses to remain anonymous, all fields for caller identity information are blocked out automatically in our system. Anonymous callers are referred to as "Declined" or "Unknown" throughout the report. The Network does not track the origin of incoming calls in any manner. While calls can be recorded, The Network does not typically do so. Recording calls undercuts the purpose of providing an anonymous way for callers to report potential misconduct and makes many callers uncomfortable -making it harder for our Interview Specialists to gather additional information from callers. 4.1.6 Complainant shall be provided with an option to provide and receive follow-up communication regarding his or her complaint. At the end of the call, the interview specialist will confirm the caller is satisfied that all the information they called to report has been conveyed. Callers who give their names will be provided a report number and asked to call back if they have information they wish to add to their report. The interview specialist will conclude the call by saying: "We appreciate your call. Since you have provided your name and contact information, your company now has the option to contact you should they have questions or require additional information. Allow me to give you a report number as a record of your call today; your report number is [XXXXX]. You will need this number if you call back to add information to this report.u City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 42 August 13, 2014 -Confidential & Proprietary 4-94 Anonymous callers will be given a report number to reference in subsequent calls and will be asked to call back two weeks from the date of their call. The interview specialist will conclude the call by saying: "We appreciate your call. Allow me to give you a report number. Do you have a pen? Your report number is [XXXXX). Please call us back on [Date] with the report number in order to see if the company has any additional questions to ask." If desired, the interview specialist can conclude the call with your customized closing statement. 4.:1..7 All telephone-based complaints shall be entered into the Hotline Administrator's electronic case management system within three (3) hours of the submission. The Network's Incident Management application is fully integrated with our proprietary intake processes within our GRC framework and incidents are available in real-time in our Incident/case Management software solution for review. 4.1.8 Allegations submitted telephonlca/ly must be appropriately routed to the designated City contact{s) by the Hotline Administrator within three (3) hours of the submission. The Network will have escalation procedures in place that have been customized to meet the City's requirements. Our standard escalation procedures include: As part of our standard procedures, we will immediately call your designated personnel if we receive an incident call that meets the following criteria: (1) threat or harm to employees, customers or operations; or (2) any significant incident projected to reoccur within 24 hours. If one of the following ten incident codes is assigned to a report, the interview specialist will automatically be prompted to ask if the incident will happen again within the next 24 hours. If the caller believes it will, then escalation will automatically be triggered. Those incident codes are: (1) Falsification of Company Records; (2} Fraud; (3) Fraudulent Insurance Claims; (4) Kickbacks; (5) Release of Proprietary Information; (6) Substance Abuse; (7} Theft of Cash; (8) Theft of Goods/Services; (9) Product Quality Concern; and {10) Workplace Violence/Threats. 4.1.9 The Proposal shall illustrate call volume costs via a tier system of 50, 100, and 150 calls annually. See Attachment 4. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 43 August 13, 2014 -Confidential & Proprietary 4-95 4.2 Internet-based Complaint Reporting System. 4.2.l Hotline Administrators must include quotations for an internet-based complaint reporting system integrated with the toll-free telephone hotline. See Attachment 4 4.2.2 Hotline Administrators shall provide an Internet-based reporting system through a secure website, customized for the Qty. Yes. In addition to calling, your employees will also be able to report anonymously through our secure, web-based self-reporting system. The format will follow the flow of The Network's highly successful telephonic interview process, but use a simplified and user-friendly interface. The reporting form will require the user to respond to certain critical questions in order to complete the report. The Network offers a variety of customization options ranging from the addition of your logo and organization's color to custom language on the welcome screen and custom categories and intake questions. 4.2.3 The website shall include a standardized web form allowing the complainant to submit allegations through the website. In addition to calling, your employees will also be able to report anonymously through our secure, web-based self-reporting system. The format will follow the flow of The Network's highly successful telephonic Interview process, but use a simplified and user-friendly interface. The reporting form will require the user to respond to certain critical questions in order to complete the report. 4.2.4 All web-based complaints shall be entered into the Hotline Administrator's electronic case management system within three (3) hours of its receipt of the complaint. Web forms are dispatched within minutes from the time of entry into our system. For those requiring translation, they are dispatched within one-two business day(s). 4.2.5 Allegations submitted via the website must be read and appropriately routed to the designated City contact(s) by the Hotline Administrator within three {3} hours of submission. Web Reports will be: • Documented in the system City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 44 August 13, 2014 -Confidential & Proprietary 4-96 • Disseminated like other incident reports • Included in monthly summary reporting • Accessible through the system's Incident Management module 4.2.6 Complainants shall be provided with the option to receive follow-up communication regarding complaints. After completing the report and before the final submission, the user is required to enter a user name and password which allows him/her to log in at a later date to respond to follow-up questions or provide additional information regarding the incident reported. The report number is also needed to complete the log-in for the follow-up and is provided at the completion of the report. Through the use of a CAPTCHA key during the submission process, The Network protects it clients from receiving false reports generated by a hacker. After submitting a report, the participant receives a confirmation number as a receipt. 4.2.7 Complainants shall be given the option to remain anonymous. Where this option is selected, the anonymity of the onllne complainants shall be protected. IP addresses will not be tracked for complaints submitted via the website. The web form asks for the office or organization involved and the location. The form then provides an opportunity for the individual making the report to provide his or her name and contact information or to indicate if they would prefer to remain anonymous. The Network will not collect any trackable data for complaints submitted via the web. 4.2.8 The proposal shall illustrate web-based submittal costs via a tier system of SO, 1.00 and 1.50 web-based submittals annually. See Attachment 4 4.2.9 The website shall be accessible to persons with disabilities, including, but not limited to, accessible elements such as alt tags, long descriptions, and/or captions for photos, graphics, scanned images, and video. Documents posted on the website should be In HTML or a text-based format [even if posted in another format such as Portable Document Format {PDF}}, in order to be read by reader software. Online forms and tables should also be accessible. All form content is in html format, making it accessible to a reader for people with disabilities. Should additional accommodations be needed, The Network is City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 45 August 13, 2014 ~Confidential & Proprietary 4-97 4.3 Staff open to discussing the incorporation of additional features that will facilitate th~ usage of ReportlineWeb for users with disabilities 4.3.1 Intake representatives shall be trained to capture sufficient Information from complainants upon which to Initiate an investigation into the complaints and to ask questions as appropriate to solicit this information. The Network's hotline system dynamically changes the interview process based on information provided during each call. The system also coaches the interview specialist, offering additional questions based on details entered. This allows our interview specialists to focus on maintaining an open line of communication, building the rapport necessary to successfully complete the 20 -25 minute interview. Not all callers are asked the same questions. Additional system-generated questions and instructions are triggered by the incident code, helping the interview specialist dig deeper into the unique aspects of a particular issue and ensuring all relevant information is captured. These additional questions can also be customized by the City. For example, in an incident related to fraud, the interview specialist might ask: "Has or is an audit planed? What is the financial impact on the company? Is there a third party accounting firm Involved? 11 These questions and instructions also help the interview specialist validate the incident code assigned to the report based on their relevance to the caller's concern. All hotline reports are automatically checked by our proprietary, technology- based Final Integrity Check process. The Network's integrity check engine will analyze incident data as it is captured and automatically flag any inconsistencies, potential errors or places where additional information is required. These real- time integrity checks ensure that each report received is complete, accurate and compliant with your custom requirements. The Network maintains an actionabillty index of 72%, the highest in the industry. 4.3.2 Intake representatives shall be trained in delivering excellent customer service and shall remain courteous and professional demeanor with complainants at all times. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 46 August 13, 2014 -Confidential & Proprietary 4-98 We have established a training program that methodically develops our contact center staff. New Interview Specialists receive a minimum of 80 hours of training to conduct interviews. • 40 hours of classroom training -to learn our processes and contact center skills. • 20 hours of call observation -trainees observe experienced Interview Specialists. • 20 hours of supervised call handling-a member of the Training and Development staff monitors calls without informing the trainee. Initial training topics include: 1. Importance of confidentiality. 2. Elements of an interview -two-way conversation used to obtain information on a specific topic or issue. 3. Role of Interviewer-to establish rapport with the caller in order to obtain information about the issue or concern the caller is reporting. 4. Interacting with anonymous callers. 5. Call control skills, voice tone, inflection, etc. 6. Listening skills, empathy. 7. Neutrality, phrasing of questions. 8. Gaining understanding, probing for details, redirecting the caller. 9. Handling a reluctant caller. 10. Incident types, explanations/definitions of each. 11. Escalation processes. Specific contact center skills such as effective call management and report writing are also covered during training. After the initial 80 hours, Interview Specialists complete an examination to determine if they can proceed to the next level of training. If they pass, they begin conducting interviews with 100% monitoring. • All reports created by a new Interview Specialist are subject to Quality Assurance review and scoring to ensure that performance meets our standards. Interview Specialists receive feedback based on this evaluation. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 47 August 13, 2014 -Confidential & Proprietary 4-99 • The level of observation and manual quality assurance is gradually decreased based on the Interview Specialist's performance on quality scores. Topical training is also provided on an ongoing, monthly basis for all Interview Specialists (newly hired and seasoned veterans) to ensure skills are maintained and advanced. 4.3.3 Intake representatives shall be trained in recognizing when a hotline or on/ine complaint Is a life-threatening emergency and shall inform the complainant to contact 93..1.. If an interview specialist recognizes a life-threatening situation, they will advise the complainant to hang up and dial 911. The Network will have escalation procedures in place that have been customized t.o meet the City requirements. Our standard escalation procedures include: As part of our standard procedures, we will immediately call your designated personnel if we receive an incident call that meets the following criteria: (1) threat or harm to employees, customers or operations; or (2) any significant incident projected to reoccur within 24 hours. If one of the following ten incident codes is assigned to a report, the interview specialist will automatically be prompted to ask if the incident will happen again within the next 24 hours. If the caller believes it will, then escalation will automatically be triggered. Those incident codes are: (1) Falsification of Company Records; (2) Fraud; (3) Fraudulent Insurance Claims; (4) Kickbacks; (5) Release of Proprietary Information; (6) Substance Abuse; (7) Theft of Cash; (8) Theft of Goods/Services; (9) Product Quality Concern; and (10) Workplace Violence/Threats. The interview specialist or our quality assurance team can also override the system and designate a report for escalation at their discretion. These reports will be checked by the escalation team prior to escalating. Once a report designated for escalation is complete, it will automatically be relayed to our dedicated escalation team for immediate notification of the designated person. The system provides the escalation team with the list of the best three emergency contacts that you provide, which contains: (1} the contacts' telephone numbers (pager, work, cell and home); (2) information as to where the contacts can be reached during business hours, holidays and weekends, and (3) the order in which the contacts should be called. The escalation team will use the following escalation process: City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 48 August 13, 2014 -Confidential & Proprietary 4-100 (1} Calls will be made to the first contact within an average of 15 minutes of the interview specialist's completion of the report by calling pager, work, cell and home numbers. (2} If the first contact cannot be reached, a message will be left and the same procedure will be followed for the two additional contacts. (3) In addition, a text alert can be sent to the designated contacts with a customized message to notify them of the incident report. (4) Once a contact is reached, a summary of the report can be read, e-mailed or faxed and the escalation of the Incident Report will be complete. (5) Escalated Incident Reports will also be disseminated via e-mail to your designated contacts through the normal dissemination process. (On the incident report, a priority level of "1" will designate a high priority report that has been escalated.) For web reports, the site will reflect the following message: "Information regarding reporting emergencies: The individual making the report will be advised to contact emergency services di.rectly should they need to report a critical situation or safety issue that may cause immediate harm or danger." 4.3.4 The Hotline Administrator shall provide a dedicated account representative as the single point of contact for any Contract and technical issues. The representative shall be a Hotline Administrator senior staff member. The City's dedicated account representative is Tim Flanigan, with support of his manager, Crystal Roberts. Tim Flanigan is the point of contact for this RFP. Contract negotiations will be handled by our Chief Financial Officer Lucy Skelton and Senior Vice President of Sales, Matt Fryar. 4.4 Integrated Case Management 4.4.1. All complaints shall be tracked in an integrated case management system. The Hotline Administrator shall provide on integrated case management system (uSystem") with the following Specifications. See below. 4.4.2 The system shall generate and deliver an electronic notification to the City of all new complaints, Including o complaint summary, within three {3} hours of a new case being created In the system. The Network's Incident Management application is fully integrated with our proprietary intake processes within our GRC framework and incidents are available in real-time in our Incident/Case Management software solution for review. This system ensures every incident is managed in a central location, City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 49 August 13, 2014 -Confidential & Proprietary 4-101 regardless of how it is captured (i.e. web, telephonic, mail, etc.). Once in the Incident Management application, any captured incident can leverage business rules that drive functionality such as notifications to individuals who need to be made aware of the incident. Incident Management also facilitates communication with reporting parties who chose to remain anonymous (via both the web and telephonic follow-up functionality). The City can decide to receive an email containing a PDF copy of the incident report and/or a link to the case in the incident/case management system. Incident reports can be sent simultaneously to different departments within the organization, based on the criteria you specify. The system will automatically flag critical incident reports for dissemination by our escalation team to notify your designated emergency 4.4.3 At a minimum, the complaint summary wlll Include the date and time the complaint was submitted, the method the complaint was reported (11/a hotline or on line), a detailed description of the nature of the complaint, and whether the complainant has selected the option for follow-up communication. Please refer to Exhibit A for sample incident report. 4.4.4 If so requested by the complainant, the complaint summary will be anonymous as to the identity of the complainant. Only the information provided during the interview process will be included on the report. If the complainant asked to remain anonymous, then no information pertaining to his/her identity will be disclosed. 4.4.5 The system shall generate and deliver an electronic notification to the City of all subsequent and follow up communication between the Hotline Administrator and the complainant within three (3) hours of said communication being entered into the system. The Network offers an effective process to communicate with callers. During the Next Step Instructions/Closing Statement, the interview specialist confirms that the caller is satisfied that all the information they called to report has been conveyed. Callers who give their names are given a report number and asked to call back if they have information they wish to add to their report. Anonymous callers are asked to call back on a specific date in the future and are given a report number to reference in subsequent calls. The City can submit questions to the anonymous caller through the incident management system. The incident management system will also display the answer to any questions posed. In addition, an updated incident report containing the questions and responses will be disseminated if desired. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 50 August 13, 2014 -Confidential & Proprietary 4-102 If the anonymous caller calls back as instructed and there are no additional questions from the organization, the interview specialist will thank the caller and notify him/her that there are no additional questions. No further callback arrangements are made in this case, although the caller is invited to call back if there Is ever any additional information to add to the report. · If any caller calls back to provide additional information, the interview specialist will document the information as an addendum to the original Incident Report. The updated Incident Report will then be disseminated to your original contact via email. 4.4.6 The system shall track Initial complaints and any subsequent follow-up contact with complainants on the same allegations. The Network's GRC suite solutions take advantage of our robust Reporting & Analytics platform to help the City link silos of information to report on risks and analyze trends at an enterprise level. Real-time access to visualized data allows our clients to track trends over time, implement improvements, make better business decisions and achieve results. • Dynamic data visualization to see reporting trend data • Detailed analysis of incident types, regions, reporting effectiveness and measurable metrics • Filtered data for departmental analysis and global analysis • Client-level customization and permission-setting structure • Corrective actions taken to prevent recurrences Key differentiators Include: Template-based reporting. The Network offers Template-based reporting, which allows you to have access to all of your client-specific data in a user- friendly format. The Network will work with each individual client to ensure that all data is being captured and structured in the right way for your specific reporting needs. By using Template-based reporting, clients now have access to all metadata, which allows clients to easily report on client-customizable fields, unique client lexicon names, drilldown links and query utilization. Flexible Dashboards. The Network's dashboards are flexible and easy to use within the system. Dashboards can be created for different users based on role, and each user has the ability to further customize the dashboard to their particular needs. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 51 August 13, 2014 -Confidential & Proprietary 4-103 lnsightView™. The web-based solution also includes lnsightView™, a multi- dimensional data visualization tool that graphically displays ethics and compliance data for easy trend analysis. The dynamic data viewer presents data in a visual and interactive format to users. Users have the ability to drill directly into transactional data from lnsightView™. Being able to see the data in a dynamic graphical representation will assist the user I being able to easily identify trends and gather valuable information about the data. 4.4.7 The system shall allow a designation of a broad case type including but not limited to fraud, waste and abuse, EEO related, or management issues. The Network's 24 standard incident codes are based on our more than 30 years of experience working with anonymous hotlines: I Accounting/ Audit Irregularities I Conflicts of Interest I Customer Relations I Discrimination I Employee Relations I Falsification of Company Records I Fraud I Fraudulent Insurance Claims I Improper Loans to Executives I Insider Trading I Kickbacks I Policy Issues I Product Quality Concern I Release of Proprietary Information I Retaliation Against Whistleblowers I Safety Issues and Sanitation I Sexual Harassment I Substance Abuse I Theft of Cash I Theft of Goods/Services I Theft of Time I Unauthorized Discounts I Wage/ Hour Issues I Workplace Violence/Threats. 4.4.8 The system shall allow the City to Input and track complaints received directly by the City into the system. Incident Management users with appropriate permission rights can enter cases directly into Incident Management system. The Network also offers a similar process where the City's management team members, who do not have access to incident management, can quickly capture walk-up reports in the system to ensure all incidents, regardless of how they are reported (i.e. note, voice mail, word-of-mouth, etc.), are documented and reviewed. The Web for Manager's application is designed to streamline compliance and uniformly document issues that are reported and resolved through internal channels, allowing your organization to capture the big picture of what is happening, regardless of source of the originating report. Web for Managers provides your managers with a means to analyze risk throughout your organization and offers a single, centralized repository for all issues to ensure consistency in the method and types of questions asked for every report documented in the company. Web for Managers can be accessed via a link on your intranet, separate internet site or a customized portal created for your program. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 52 August 13, 2014 -Confidential & Proprietary 4-104 Management reports along with Web reports are treated like telephone reports in that they are documented and disseminated through the system. These reports are included in monthly summary reports and accessible via the system's Web-based incident management and reporting portal. 4.4.9 The system shall automatically assign a unique case number to each new complaint. Case numbers shall be assigned in a systematic and serialized manner. Our standard case number offering is a nine-digit numeric value that increases by one {l). The City also has the option to have customized case numbers. This option will be set at implementation. 4.4.1.0 The system shall allow a system administrator from the City to assign specific cases to other users within the system for investigation. At a minimum, at least one user will need to be assigned those roles that pertain to that of an administrator. Roles and access rights for each user will be defined by the City. Cases can be automatically routed or assigned to as many individuals as necessary based on the City's triage strategy. The City also has the ability to restrict user roles based on case/incident types, locations and/or hierarchy. These can be further defined by using the rules engine to automate many of these processes. 4.4.1.:J. The system shall allow the assigned City investigator to input status information into the system. Investigator's with appropriate user rights and roles can input investigative notes, attach supporting documentation and set up reminders and task within the system. The activity associated with each case can be viewed in the Case Diary. The Diary offers a comprehensive audit trail that delivers a one-stop look at all activity from allegation to investigation to resolution of the case. From here, you can not only view a history of the investigation of a case, but also enter and update notes, create reminders, add tasks and attach files without ever leaving the page. The audit trail can be printed and/or exported via the print & export function. All Case Diary information, including the audit trail, is permissions- based which ensures that only the appropriate users can view the information. There are additional areas within the system that are customizable by user to assist in tracking user activity, such as the Case Queue which is used for City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 53 August 13, 2014 -Confidential & Proprietary 4-105 workload management and finding specific cases and the layout of the Case Details page to assist with ease of investigation. 4.4.12 The system shall provide the ability to set a reminder for needed actions for specific cases. Users with the right permissions can add reminders at the case level. Reminders can be triggered based on case due date or a custom date. Users can also set-up follow-up reminders to further notify the user. In addition to tasks and reminders, users can leverage the incident management notifications system to trigger additional email reminders to case. Available system automatic notifications Include user assignment, user un-assignment, case status change, and file attachment. Additionally, there are multiple options on how to add tasks to a case. Users can leverage the incident management rules engine to have tasks automatically added to a case based on various attributes such as case type, location, risk, priority, status, etc. When tasks are automatically added the case, each task can automatically be assigned to a specific .user role if needed. Users also have the ability to add ad hoc tasks to the case to assist in the investigation process. Users can assign a user to the task, a due date, and categorize the task, such as pre investigation, investigation, and post investigation. 4.4.13 The system shall allow the City to have a minimum of two (2) system administrators with full system access and rights to the City's data and the ability to add new users and assign access rights and ten (10) end users with varying levels of system access and rights. Each user on the system will require a license. Each user will have Suite, system- level and case-level permissions based on the configuration of roles and permissions as determined by the City. You determine user roles and the permissions granted within each role. These enhanced user access restrictions and case level permissions allow your administrators to provide users with only the information they need to do their jobs. 4.4.14 The system shall provide for the Indefinite storage of the City's complaint and investigative data in accordance with California record retention requirements for local governments. At a minimum, our data retention period complies with Sarbanes-Oxley requirements. Our standard retention of archive data for Incident Management customers is three years. The Network recognizes that our client's requirements City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 54 August 13, 2014 -Confidential & Proprietary 4-106 may change and we have the ability to adjust your retention period as your business needs dictate. 4.4.1.5 The system shall provide a method for the City to communicate with intake representatives regarding specific cases, including providing follow-up information and questions to be shared with the complainants by the intake representative. Users/Investigators with appropriate rights will be able to post additional questions for the reporter when they call back in for follow up. If the anonymous caller calls back as instructed, the interview specialist will ask the additional question(s} that the City has submitted and document the response(s) as an addendum to the original incident report. The updated incident report will then be disseminated to your original designated contacts via e-mail marked "Callbacks." Additionally, If the City has standard document templates that must be used in an investigation, those templates can be stored in the File Library to be used with any case. To communicate back to the incident reporter, the Follow-up library provides templates that wUI ensure that the reporter receives messages consistent with the company rules and policies. 4.4.1.6 The system shall Include the ability to reflect the status of a particular case, at a minimum allowing the case to be reflected as open, in progress, or closed. Aside from the Case Queue where users can see detailed information about the productivity and status of cases, Reporting & Analytics provides users with a multitude of tools that report on productivity of users. The City can create customized reports and dashboards that will display information such as workload by assignee, lag time for case assignment, lag time for case close, cases closed in the last 14 days, etc. All case level fields are available in reporting and are in real-time allowing users to constantly see a clear picture of the productivity of the users and state of the organization. Case Diary offers command/control area for investigators. 4.4.l7 The system shall allow for the creation and downloading of reports at minimum levels of monthly, quarterly, annually, and year-to-date program activity. These reports shall be easily sortable by a variety of field Including date, nature of the complaint, and length of time from the initial complaint intake to when the case was reflected as closed Jn the system. These reports City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 55 August 13, 2014 -Confidential & Proprietary 4-107 may be provided by the Hotline Administrator to the City electronically or run and downloaded by the City's system administrators. The Network's Reporting & Analytics platform comes pre-loaded with reports. Samples ofthese reports for use with our Incident Management solution include: • Activity by Location • Activity by Hierarchy • Case Status Count • Cases Closed in Last XX Days {days determined by user) • Workload by Assignee • Cases Due in Next XX Days (days determined by user) Our Professional Services team will work with the City upon implementation to identify additional reports that are most relevant to your organization and show you how to build them. These reports will become your "Standard Reports." There is no set number of standard reports. A central feature of the Reporting & Analytics platform is our easy-to-use reporting building functionality, so that any user can quickly create ad hoc queries and reports for any application they have rights to. The robust report builder interface allows users to easily drag-and-drop data elements, apply filters, and decide sorting order to present the data that is the most valuable for the.organization. A single report can be leveraged to create multiple dashboard widgets as well as standard reports that are exportable to MS Excel for further analysis. 4.4.JB The system shall be searchable based upon login security rights. Filtering and searching capabilities are available throughout the system. Robust filtering capabilities are available via the Case Queue; users can create and save custom filters to reference at a later date. Filter options in the Case Queue include, but are not limited to, status, priority, case type, date ranges, people assigned, location, keyword search, etc. Keyword searches are available throughout the system for all administrative sections, such as people, locations, roles, workflows, etc. At the case level, users have the ability to use keyword searches to search through notes, flies, tasks, and reminders. · 4.5 Marketing and Educational Materials 4.5.1 The Hotline Administrator shall provide the City with communication tools and other materials to promote and advertise the hotline lnduding posters, City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 56 August 13, 2014 -Confidential & Proprietary 4-108 business cards and brochures customized to the City for residents, non-resident concerned parties, and employees of the City. We offer a one-stop source for both "Ready-niade" and customized communications (print and electronic collateral) that help companies inspire, educate and engage employees. From high-impact Web pages and interactive modules to print brochures, posters, calendars and manager materials, our awareness solutions are designed to cut through the clutter, engage every employee and achieve better-and longer-term -results. We are a full-service partner, offering translation and localization services as well as production and shipping services to ensure a company's campaign message speaks to organizations audience. 4.6 Technical Support and Requirements 4.6.1 The Hotline Administrator shall provide dedicated support from the client services team for program set up, system training, and on-going system maintenance. To ensure a smooth launch and to provide exceptional performance that's on- time and on-budget, The Network delivers a seamless, automated and customized onboarding process that includes comprehensive data migration for a trouble-free start and unparalleled customer service by a team of tenured professional service representatives. We also offer a diverse array of training and support options, available both before and after implementation, to enable clients to leverage their ethics & compliance investment. The cornerstone of Professional Services is our Account Management structure, a tenured team of experts providing day-in, day-out support to our clients in their program management. Our Account Management team acts as solution facilitators, providing consulting, solution integration, ongoing application maintenance, and relationship management to optimize your GRC initiatives. Service Includes: • Hotline Program Set-up o Provisioning of domestic toll-free number o Hierarchy and location configuration o Report dissemination and escalation configuration o Script configuration o Branding and establishment of web addresses and configuration of domestic web form • Educational/ Awareness Hotline Campaign City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 57 August 13, 2014 -Confidential & Proprietary 4-109 o Speak Up Posters, Brochures with Perforated Wallet and other desired materials if required • Incident Management Implementation Support o Integration with the Hotline service for incident/case management o Best practice business recommendations o Hierarchy and location configuration o User(s), and role permissions configuration o Custom fields, business rule and work flow implementation o Historical case import o Branding application o Configuration of lexiconable drop-down values (ex. Status, case types, etc.) • Incident Management Online Training Support 4.6.2 The toll-free hotline must be accessible to persons with disabilities, Including but not limited to individuals who use Text Telephone (TTY} and the Telecommunications Relay Service (TRS). The caller, in this case, is calling the translator m service before calling us -the TTY operator dials The Network and we answer the phone -TTY announce the call as a service for the deaf and then relays what we ask by typing it -so the deaf caller can read the info on their phone/pc screen. 4.6.3 The Hotline Administrator shall ensure the network security of all City data maintained in the system. Security & Data Protection Secure, reliable data access Is of critical importance to our clients. By leveraging best in class technology along with data security best practices, The Network avoids costly systems disruptions and maintains system availability at the highest possible level. The Network is committed to maintaining and continually enhancing our security posture. We adhere to the "defense-in-depth" strategy to secure all of our systems and data. When it comes to security and testing the effectiveness of our strategy, we utilize various resources and have introduced numerous technologies and testing methods over the years as a way to validate our security controls and defenses. Our approach to technology calls for proven, scalable system architectures and resources so that we can always meet the ever-changing needs of our clients. Security City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 58 August 13, 2014 -Confidential & Proprietary 4-110 The Network employs industry-leading security and operational processes to ensure that client data is secure and programs operate smoothly 24/7 /365. As a testament to our dedication to security, The Network undergoes security penetration and web application testing. We also utilize the QualysGuard Vulnerability Management service and have included this tool into our SDLC (Software Development Life-Cycle) process. Additionally, we are registered through multiple Technical Security Notification Services. We have various controls in place to adequately manage and protect network security and data: • Intrusion Detection -All production servers and networking equipment are protected by a NIDS (Network Intrusion Detection System), both internally and externally. These systems are configured to identify issues or anomalies that may require action from our Network Operations staff. • Patch Management -The Network utilizes a tiered approach to patch management and administers patches through Microsoft's WSUS service to ensure all systems are patched and up-to-date. • Anti-Virus -The Network utilizes an enterprise-class, third-party anti- virus solution, enabling daily virus definition updates, plus real-time monitoring, disinfection, and automated notification. • Network Controls -Our infrastructure includes redundant firewalls which utilize stateful packet inspection technology. Our layered security architecture includes a DMZ for hosting our public facing servers and utilizes NAT (Network Address Translation).VLAN segmentation and Access Control Lists are also used to further segment our networks and secure them from unauthorized access. • Encryption of Data in Transit -Encryption is customized per client. We offer multiple encryption options, including TLS, PGP or SFTP. Our public- facing ASP applications use extended validation SSL certificates to encrypt data. All certificates are purchased through our managed PKI service with VeriSign. • Encryption of Data at Rest -We encrypt all client data at rest using AES 256-bit encryption technology running on our RAID6 configured SAN. The key management system is a separate system only accessible by a small number of system administrators. Our Data Centers The Network uses the "defense-in-depth" architecture when it comes to protecting customer's data. Our co-located production systems (U.S. and international) are maintained in a facility that specializes in storage and availability services by a Tier-1 provider who is recognized as a leader in City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 59 August 13, 2014 -Confidential & Proprietary 4-111 technology services and currently serves more than 25,000 customers in 70+ countries. These production data centers provide n+l redundancy for all environmental necessities, including cooling, power and network connectivity, and are protected by FM200 Fire Suppression and VESDA (Very Early Smoke Detection) systems. The Network leverages state-of-the-art blade servers, virtualization, cloud infrastructure, firewalls, and switch architecture technologies to virtualize our web, application and dissemination servers and segregate public web server traffic into partitioned de-militarized zone (DMZ) networks. These facilities are monitored 24/7 /365 and include on-site security, a strict access authorization process, video surveillance, multi-level key card protection and biometric scanning. Access to facilities is strictly controlled and limited to a small number of highly technical operations professionals. All system/environment changes are controlled through our structured change management process and all changes require management approval. Our proven, multi-layered data backup methodology utilizes various backup technologies and backup schedules to dramatically reduce recovery time in the event of a failure. Data Privacy The Network holds Safe Harbor certification and has affirmed our operational and compliance controls with the successful receipt of the Service Organization Controls Report (SOC 2). The Network complies with the requirements necessary to meet the criteria for the security, confidentiality, availability and processing integrity principles set forth in AICPA Trust Service Principles, Criteria and Illustrations for Security, Availability, Processing Integrity, Confidentiality and Privacy (AICPA, Technical Practice Aids). The Network's SOC 2 audit was performed by the independent firm of Cherry, Bekaert & Holland, L.L.P. (CB&H) and recognizes The Network's commitment to providing secure, reliable and effective operations. Business Continuity A thorough business continuity plan provides for everything from redundant systems and operating capabilities to the complete relocation of our contact center to a backup facility. The Network maintains a Documented Business Continuity/Disaster Recovery Plan which mandates recovery time and recovery point objectives specific to intake and data management services. Our Technology The Network delivers our solutions via the Software-as-a-Service (Saas} distribution model, which reduces our clients' costs while dramatically improving City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 60 August 13, 2014 -Confidential & Proprietary 4-112 their implementation timeline. This model allows us to provide high functioning solutions with seamless, automated upgrades and feature improvements that always meet or exceed client expectations. With the Saas delivery format, our clients have the freedom to access their data, track their workflows and manage their day-to-day activities from any location. Our approach simplifies administration and ensures compatibility while greatly improving collaboration between users and scalability. 4.6.4 The Hotline Administrator shall maintain adequate capacity on it network during the Contract term to meet the City's usage needs. We have real-time monitoring in place with threshold alerts (disk space, etc.) that notifies our Network Operations team when space or resources are exceeding the defined threshold. This allows us to handle the situation in advance, before the system usage gets to a critical level. We also complete an annual review of all of our hardware for capacity planning purposes. We have weekly meetings with the Director of l.T. Services to discuss any issues and future project planning. 4.7 Annual Meeting 4.7.1. The Hotline Administrator shall meet with the City, either on site or via a remote digital link, a minimum of one time annually to provide a program overview, Including trends, benchmarking against the Hotline Administrators book of business, new program or system features, and any recommendations the Hotline Administrator believes the City should consider moving forward. Tim Flanigan will be your dedicated sales representative/account manager the first year of the program. Once the program is successfully implemented and launched, at the end of the first year, your account will be transitioned to our account management team. They will conduct annual program reviews with the City. Our account management and professional services teams are committed to ensuring an unparalleled level of service. Our account management department has over 90 years of combined tenure with The Network and over 47 years of combined program management experience. Furthermore, our team has a 99.7 percent success rate of completing all requests within the committed timeframe. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 61 August 13, 2014 -Confidential & Proprietary 4-113 EXHIBITS EXHIBIT A Sample Incident Report The Network, Inc. Proposer Firm Name Ethics and Compliance Reporting · ·.::·.:·.·:·.·<::·~::":>:·::· .. :·: ... ·:··::.,:·.::-.:; .... )·G8~iii·iritonti8tiOD~\~:.: .. ~,\..-::.~ '..·: .. ~ .. :·: ' name dl!CIN!:<I. • li'lllbelyJ'Klcmw:klll~ Pa)merm "-~ CNGCXiNG SINC£2013, DAT! U.Nl<NOi'ilN ATTI£ CORP<lM.11! OFl'lCE 1121\!21111411:24:GO AM • Ol1g1MI CIR lllflOrt i!: 119BIG!l3S PdOlllly. Trana#: t Rpt Dltlt: lllif.l.(ll.2014 TlmW. f1:24'\M ~ P!Vlnl-Cifl <:alar, DECUNS).,AlpOlted11'1tll!Klft2Clf3, ASlie'I Plt4l!.Clllln~ J.aneSMITH Vtl'3I placedlrtC:l'la)IHll'wrtlllll' ~ 1t1rcml'lllereaiiament..1ndWlnanellmJll.hard'Nare am~. Nllmlal1111&~ l\Olidbe IWllllCI .Dy·mnemem ~ lfiet.WllW«~1$NTNU, 1'tilelllllwmactana~ D)'Jcm DOE. Tl'lln•:arumarihat Sldlnt 3lld DOE ile ie1a11• DOE I& SMTlfli lli1lllMll IB law. Tits II a IJllllallill" Ille campanys OC«dlct "lnlllnllll pcillq' OICI SM11'H 15 fnl! &OIH!!Cl$M 11'111'W l:IUlllS \'l!ndar am lb! las 1$ N!1311!d llo DOE Tiie caller &UlpllCI& 1llit Cllll'IJlll'IY II being l'A~ l'Orccmsmr~ ll'IW.tngnllt\IM: h3rclWal'I anllpe!\jllll!l'alL ~II'!~~-l'lllnlhd32GB,use1hmil> cnves rmm NT.NU.al $70 eactl Wl1H1 Ille same Hem can bl ptJRll3&ld llllllU!J'l'lhl am. 11JS111f cmlJll3l'I)' venoar (Ol'l'l'te Mlll'e} rar $21> eac11. SJMH refLAs to take blllli lt!lm olhB \9111!'1& ard lits J&CClllUnglllt ~ll!'IDllll.f· O!l 11114(13, lht~l!I' Cl1!1111n'Uld COE 3llll St.ITH wereretahld IM!Ca!Jlielleilil»&Uplclllfion St..!ITH'I ~page. Thi.I ~~tole illatOf .a Cftlld'&~ n &l!t.ter.ll peqJle> lnduClll] DOE and tlt.mf weR! fl iht pllCtai. '111ecalll!lr WQlid like 111llM!lillplonirm1lie WIKlllr ~P iatlll NTNil. Thi carer dlleal't blaw It tlMltH Ill recl!Mng ll'ICMlt.\115 CMICltact&} !'«In! ~eqifpmen'IDl!lngpun::Nseel Gr If W l'lll!ll rrat &ter& &lrl'p,ylEfUlf19 llllilne&li to l'lfl faft'fly. me ca11ar &Ugge&h1d rr \'ili'ldilrael!d'cfl &llDUd 111e maW!lf ter:11. b Pft)Q.lrement to EflWll! tilt canpal'fS fllld5 n plDpf!ll.)' spent a'ld Ill awld atfCCl!llld « lnllelre&t. Hori dl»I tbl call• lalaW 8boVI iM IM>llllWll?: otrier wnat aocumaNaltOB I& ava'Dlbll?: ll'l!pihllti O.!l l'acebclok page am emais or prlel!lg 'lilllJ It M,pfllfl wllltrrt lhil l!8llt U l'lllllra?: NO lrlO, W1111n: NfA 1rao. Whn: Ill'#> Bdbel)OOCfdlllek~ PaymlMa: Dll )'1111 lmOK tr~all! ~ fllf 111111o OCW' agan ll!i1i!I NO 1l'le nllft 24 llDUIS? 1rso. 'til'lel\l? 1r so. 't61M?' City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 62 August 13, 2014 -Confidential & Proprietary 4-114 H111111: .KJHN DOI!! Tiii&: W~E!R OFUTNU' IMBR'llWV <Jllllar\t.9llD:. tltVl)'(llll Wille*'l lhlll llOlllMlllll'Gllt? SIClllllllilly coaa: T•rllaly COdl: Png!Cf!!!!!l!l!Dgh ftapSd F'lltf tl8'lll Lall:Nalnl 11111 .PtlCn& fmall M!lllo!W IM !!!lo!ma1!!pn ~ lllilnaglll!lll tlalm'8d7 Cllltr 1'.¥Pi? City of Rancho Palos Verdes RFP for Fraud, Waste & Abuse Hotline 63 NO YSS HO .. , .. . . . ·.: •, ··."·".:: :. ~. ::·.\ : ...... . Response from The Network, Inc. August 13, 2014 -Confidential & Proprietary 4-115 EXHIBIT B Reporting & Analytics The Network, Inc. Proposer Firm Name Reporting & Analytics on the Integrated GRC Suite The Network's Reporting & Analytics Platform is the core of the GRC Suite. The solution uses data from· all components of the Integrated GRC Suite -CAPA/Remediation, Incident Management, Compliance, Training, and Policy Management -to help organizations link silos of information to report on risks and analyze trends at an enterprise level. • Dynamic data visualization to see reporting trend data • Detailed analysis of incident types, regions, reporting effectiveness and measurable metrics • Filtered data for departmental and global analysis • Client-level customization and permission-setting structure Enhanced Reporting Functionality: • Template-based Reporting (system-level; administered by The Network) o Starting point for Report Managers o Provides ability to customize GRC data to meet client expectations regarding column naming, custom data elements, data organization and metrics o Provide metadata (source data) to create custom reports using lexiconed (custom) lookup values • Configure Reports o Starting point for all client report generation o Drag-and-drop column selection and ordering o Easily select fields for sorting and grouping o Easily establish conditional requirements around fields (i.e. less than, greater than, equal to, etc.} o Save for client use • Reporting o Provides users an output format for standard reports o Ability to filter and group fields via an intuitive UI o Ability to save Report (with exact filters) City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 64 August 13, 2014 -Confidential & Proprietary 4-116 o Ability to export {standard formats} o Select available output options {pie chart, donut chart, bar graph, etc.) • Dashboards o User-configurable dashboard widgets o Ability to view any report as a dashboard widget • lnsightView™ Reporting o Dynamic data viewer that presents data in a visual and interactive format to users o Provides users with a tool that allows them to view data in a different format and discover trends across their data :· . .. ; Reporting t,"• ::.': ! ~·:.;: :~::;~:.·:::; i :t. >::; :' ::.':~\{': :\~: ~ :::-::; :; : ~::.:; :.::; Dashboards Reporting levels available with the Reporting Bi. Analytics Platform Enhanced Reporting & Analytics Reports Templates The Network is the only provider to offer Template-based reporting, which allows you to have access to all of your client-specific data in a user-friendly format. The Network will work with each individual client to ensure that all data is being captured and structured in the right way for your specific reporting needs. By using Template-based reporting, clients now have access to all metadata, which allows clients to easily report on client-customizable fields, unique client lexicon names, drilldown links and report utilization. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 65 August 13, 2014 ·Confidential & Proprietary 4-117 Configure Reports case Class Case Date Case Number CaseLast ~lodlfiell Date CJosec:tOale CreateaSy Date Assigned Daf$Open Oescdption 01spos111on Dua Date First Assigned User First Entry Metllod 1st Location ~ocation Name · IGroupBy ,., Clise Number !case Number . I OetalMew •! status IS!llws (Oet~IM~w ., I 1stAsslgne11 Case 'l)'pe J6asa type l£!.'.!!.JYieW _!J Case Date jCase Dale I DetalMew • I Due Date roue0 Dale I DetaiMew ., I Orao Available Columns from the left to begin your sorting order. Report Configuration is the beginning of the process for Report Users. Report Users select a Template to begin creating a report. In the configuration screen, Report Users drag-and-drop columns to display and order, then identify which columns to filter on and sort. The configuration screen gives Report Users advanced analytical capabilities such as conditional requirements on fields (greater than, less than, equal to). All Users with Manage Reporting permissions have no limitations in regards to how they want to analyze or present the data; they can perform any combination of logical conditions, metrics, sorting, and filtering. A report can be configured to leave designated information unspecified so the Report User can choose what data is the most valuable to him/her. For example, a report is created using a filter based on location without designating a specific location; the Report User would be able to run the report using any location. Multiple output options are available including pie chart, bar graph, horizontal bar graph, export option to Excel and lnsightView™. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 66 August 13, 2014 -Confidential & Proprietary 4-118 Reporting Ac!Mty b1· Hierarchy . · ~ty bJL,oiiau11n .• · •· .. · ··· · Assignee Workload Case status Counl This report wlll show !tie # or cases by ftrsl assigned hierarchy as well as detalle<l fnformaH011 about each case. • • :.~1 ~=~fu:,~~::~~:~~s~~:~8r~1 ~·S!~~~~ lp~U~~ as)V~n a.s .. • ·· .. · •.· This querywlllshowttie#ofopen cases for eacn assignee. Tiiis querywlll snow tne 11 ot cases by status as welt as basic case 1nrormation. ·. · .. q~ses~E~!AeU!~ > .· ·· 9a~~~l,)~e~tiy ·· · ' ' Cases by Risk Lisi cases by Risk < ¢.·.~~. ~s. ct. 011 ... ~.4.tn. La .. ·.~t. ?C Pll:)'ll • ··•. <Tiiis q~~ry~m sno\v ~i1 Qfthe c~eli Ci~~iiin i11e l~~t~ isays ie~cll user .·. · · ·. . '.ilet11ill'lll\~.s 111• 11111ouni ofc!ll)'I!).: :• ' · · · · · · · · ' · ·· · · · ·· · Cases Due In Next X Daya. Polley AttestaUons This query will snow all oflhe cases that are due In the nextXdays (each user decides on llow many days). List Of all Allestauons With Ce11lflcat1on Questions and Responses by Polley Case Date >= 101/01/2013 .;:i: . .. ~-_ . n2/31/~0i3 And .• · ·: • ~1acya9e • lill!t · ~ &l!l . . tdana9e Bw1 • ~ &l!l · ...•.. ~B!Jn ~ &l!l · .. <~.:&iii. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 67 August 13, 2014 -Confidential & Proprietary 4-119 Summary Numberorcases: a lff~}:f~.~~]~rlI;Pis:~gs·~.)ff'~~t.:~]sf'ICT:0?;::-_:},~nHi~¥~i~Tt_.,5i:·:rri~;t~TI-,7:.:Hi~i?~i.~-c:xrn;Virn}_-;z.ern~~i~~:~~.·~-c:l:·!F:'.m%7 ll Reopened 12013-07-18 2013-12-27 I 216 Reports are a way for Report Users to easily view data that has been previously formatted and defined. Report Users can easily view the reports within the UI or export the reports to Excel for additional analysis. Based on the values left unspecified, Report Users have the ability to filter the report based on multiple criteria. For example, you will be able to track the number of incidents during a certain period, specify which region within your organization to report on, or select which incident type to analyze. Report Users are also able to drill-through directly to transactional data. All Users with reporting permissions will have the ability to save reports (with the exact information specified) so the report can easily be referred back to at a later date. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 68 August 13, 2014 -Confidential & Proprietary 4-120 Dashboards Casas by Elllty Melhod . Cua~ by Rlsf!. . · ·; · .. i. . ! wcu iunapeclli ··Msmaa91t .• s.11. . ·.· ~T'1ird P,ll>/ . : -TIO'/ f . 3~ ·1 0 60 100 160 • ~00 . :2!50 . ~00 350 Case Status Cou.nt 600·······,··· 400 . 3GO· ·200· . 100· ·o · . ···1 . i. ···! .u •. ·· l . i ,& .. •. '! a 31S . ···•··.···.·.· .. ·····.·.·.·· ... ·· , ...... ··.·. ·. ·. · .. • ..... Cto•t4 ••. <l!m!Jn Ptogc ... ' ~Nted·1Appraval . ·• ·.:.Ne1v ... . •: ~R••~•nl<I Default dashboards with standard chart widgets are provided at Implementation. Report Users can add additional dashboard widgets, allowing each user to completely customize their own dashboard. As with Reports, Report Users can specify certain values that will make the dashboard widget customized to their needs. For example, one user could view a widget viewing only open cases, while another user could view the same widget viewing only closed cases. Being able to leave values unspecified allows you to create fewer widgets while still providing Reporting Users with data that is valuable to them. Report Users can drill through to transaction data directly from the dashboard in order to gather more detailed information. If additional analysis on the data Is needed, Report Users have the ability to export the data to Excel for further analysis as well as print a specific dashboard widget. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 69 August 13, 2014 -Confidential & Proprietary 4-121 lnsightView™ lnsightView ls a tool that presents data in a dynamic and interactive format for the Report User. lnsightView gives users an additional method to detect trends in the data. Any report with grouped data can be analyzed using lnsightView. The data is represented by images and dynamically changes as the user filters the data. For example, a Report User could use lnsightView to find trends based on region. The user would start with a report that showed all data. The user would filter the data based on a specific region. Once this filter was selected, the user would see the data dynamically change to show just the data relevant to that specific region. Users have the ability to drill directly into transactional data from lnsightView. Being able to see the data in a dynamic, graphical representation will assist the user in being able to easily identify trends and gather valuable information about the data. Preloaded Reports The Reporting & Analytics ptatform comes pre-loaded with reports. Samples of these reports for use with our Incident Management solution include: • Activity by Location • Activity by Hierarchy • Case Status Count • Cases Closed in Last XX Days (days determined by user} • Workload by Assignee • Cases Due in Next XX Days (days determined by user) Our Professional Services team will work with the City upon implementation to identify additional reports that are most relevant to your organization and show you how to build them. These reports will become your "Standard Reports.11 There is no set number of standard reports. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 70 August 13, 2014 -Confidential & Proprietary 4-122 EXHIBIT C Sample Communication Materials The Network, Inc. Proposer Firm Name We offer a one-stop source for both "Ready-made" and customized communications (print and electronic collateral) that help companies inspire, educate and engage employees. From high-impact Web pages and interactive modules to print brochures, posters, calendars and manager materials, our awareness solutions are designed to cut through the clutter, engage every employee and achieve better -and longer-term -results. We are a full-service partner, offering translation and localization services as well as production and shipping services to ensure a company's campaign message speaks to organizations audience. Some examples include: Tri-fold Brochure with Tear-Away Wallet Card City of Rancho Palos Verdes itsflltl."}311 •l\lo3it\\daX-wtt~M:b'..<ilSUn.:liik:~U P.fl~' •Ct:U.:SUirlCC1b.''Ulffl1l"il\ib)\:l'l,)'XM (0Vrt'llM\11'irp.J.(t,,CUf'Cl!llll~icc;P' 'Olg¥li1.r,..,.,;;l'mdoil'~v.YhUll •\\'\)(Jlj)\'MJft!r.n«'Cfdcmtr.,1'~~ II YIE'~tMnMm.mdar,OlrA 1~~.cl'IYal llff.ttt.wwm.a~m\l{'H~<"l:(l)!A:I tA!'c.it!ttf .. .ion.<.'Slln'J•:M'Ullld~SU'<l>GIJ ·~·rii.t.~~lt.Olgll'ul.~ JOl1~1"""4~11'1\'fNClil~ Olf(IYto.'dulirfl!.IOOa'«iN~~ ~llJ ~IO~lfl'blA'h'f11i"tgll\'1~ f<tt'Mltlh«n(lm\INA.lrtJ1biJ~11 •"""'51K.i~tlu&u,4-;i1::rl'ttli'<V.'t attrw""J~~·n.ivA~w,6ll.t 1«4lilli&))~~-~~ -A<.-.•mrJWiitl>a\"(.[$?/iMt~111tn"'4 MAKE @UIH EHf NO :,-~ ~0H9 (!} -=J Ky;>1.1~f.r.,,,,.;,i:,~r<!l.R.fOJ•~v.r:o: ..J.;'t"-ot, Lhll1Hocp;i1.))0k~~~Jlvµ. -~-M-------- Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 71 August 13, 2014 -Confidential & Proprietary 4-123 Awareness Center with Brochure Holder ------------~ --------- Aw a re n es s Center Detailed Description HEADER I BANNER: 23" x 3" As showl> only. MAl<E (~ffSIFFERENCE ~1,..,',i!), '~-: ~-----~---~----·-:::! ·,: TOPICAL POSTER: 11" lC 17'' BROCHU RI: apeakUP POSTER: 11• x 17" I ThlilU ptrmanent poster for Iha Aw.,-enaH Center. Minimal U.XI edllS are avaDable tllroughout. 8,5" TALL, 3.5" Wide 1100# 9loss 11over paptr) 3.panol with perforated Wallet Card Speak Up Posters that Reflect Your Culture City of Rancho Palos Verdes RFP for Fraud, Waste & Abuse Hotline 72 Response from The Network, Inc. August 13, 2014 -Confidential & Proprietary 4-124 11 ·, .• ·1 1 :1·~· . l:· ~:·1-' '· ·,. '.: r; ·, ·"' ·.: c· ·~:.: r 11 ~ ~:1 !::: rf : . .-f> ·.: ! .... : ~ ·'' ~W.'\'/.ICJl01llim•\".'cb.c1"Jft1/(c1111p;m~·n;im~ .:~·::;:::~:::.;··,· ::.·:;. ·:: .. '.:·.~:~ ;.; ' Speak Up. Yov\'e gof Ult ,:::owitr IO u~d OUfhl,gh !!IMdai'd!. N~•verluwot1~abrMIMfi~.ikfJlltt'~:Ktd/. danlte+pillo~.Oiso.Mfl>Ailhlfll:lln))ifOUup#MiOr ff)'ftlUJl'IJtlbt~OhDtqMOUt..t:ctobtlTheoffft ... od ........... ,,,.ww.tnwinc.com/ orga11i2atio1u1am~ ~~·tt•. l,800.2~ 1.5689 n~i101/.1GJJSHftf. EXHIBIT D MAKE 1'4-DJFFERENCE Sample Project Plan/Gantt Chart The Network, Inc. Proposer Firm Name City of Rancho Palos Verdes RFP for Fraud, Waste & Abuse Hotline 73 Response from The Network, Inc. August 13, 2014 -Confidential & Proprietary 4-125 ·,_"·. Tasll hll!SIOO& • EXMtmlli Ta:solS W#k"'At·"A.fa-%.P-d Sllll\!i& Ill'~ pl'a!I • 1!11111111 an<! Ll.l>W. Spill ,,,,111111111111111 summary E:OamDIMf411A!ae 9 PICl>"ISS l'ropCI SilnUmly tlj)F====Olil\ii Daildlll!I (> City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 74 August 13, 2014 -Confidential & Proprietary 4-126 CASE STUDY: EXHIBIT E Case Studies The Network, Inc. Proposer Firm Name Reinvigorated Program Makes Ethics & Compliance a Household Term • THE INDUSTRY · o Consumer Goods • THE CLIENT o Global consumer and commercial products marketer with more than 18,000 employees • THE SOLUTIONS o Hotline, Incident Management, Code of Conduct, and Training & Communications Prior to 2010, this $5 billion global marketer of consumer and commercial products had no formal ethics and compliance department but saw the need for a concerted effort to formalize its initiatives and communicate its programs throughout the company, from the board of directors to associate employees. The initial team set out to identify and build a new program, outsourcing a hotline service for the reporting of ethics and compliance issues, a case management service for proper and consistent investigations, and an awareness program to drive the message company-wide. The team chose to look to third-party solutions, since previous internal efforts at these initiatives had yielded poor results. Specifically, the existing internal hotline program had generated no reports (calls went into a voice mailbox and failed to address international support and adherence with data privacy laws). Also, no tools were in place to drive investigations or collect investigative data. The company's 18,000 employees were essentially unaware of the hotline program, even though it was referenced in the company's Code of Conduct. In an effort to increase awareness, the team identified the immediate need to refresh the company's Code to ensure that all employees were aware of this foundational policy and received proper training on the Code. The company engaged The Network to bring their ethics and compliance initiatives up to current standards and elevate the culture of ethics and compliance. As part of this engagement, The Network worked with the company to completely rebrand the company's ethics and compliance program and create an identity for the new department. The company's Chief Compliance Officer got behind this effort and provided full support with the understanding that the team would put several pieces in place at the same time. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 75 August 13, 2014 -Confidential & Proprietary 4-127 Over the next few months, The Network implemented a new, end-to-end compliance initiative for the company, which included a sophisticated hotline program for both domestic support as well as international support in 24 countries. The Network was also tasked with a complete rewrite of the company's Code of Conduct, which was translated into 12 languages and rolled out throughout the company via an intensive communication campaign. The company took advantage of The Network's "Code Words" elearning offerings and multiple short, 5-minute Learning Blocks -translated into 8 languages -to train its employees on the new Code. The new Code was hailed by the company's board of directors for its design, content and level of employee engagement. In 2012, The Network won an award for best-in-class business communications for the design, writing and implementation of the company's Code from an international communications association. A well-received part of the awareness campaign was a "desk-drop" piece that announced the new program and Code, which helped to establish the global program brand. A series of posters, placed in key locations throughout the company's multiple facilities, reinforced the branding. The Network worked with the company to ensure all awareness materials satisfied the company's very high corporate brand standards and that the new ethics and compliance program integrated seamlessly across all of the company's sub-brands. In addition to implementing their hotline services, rewriting the company's Code and providing engaging learning solutions and awareness pieces, The Network also Implemented its Incident Management solution, which integrated with the new hotline reporting system to track investigations. The new system dramatically reduced the overhead of the previous manual system for handling incidents and resolving issues. By working with the company to truly understand their environment and their needs, The Network was able to successfully implement a comprehensive set of ethics and compliance solutions. The company can now boast a fully functioning and effective ethics and compliance program, firmly established throughout the organization and its culture. Incident and issue reports filed through the new hotline program increased from less than five per year to more than ten per month as a result of the broad employee-focused communications efforts, which came as a surprise to company leaders when they realized how many critical issues might have been going unnoticed. Likewise, since its launch The Network's elearning solutions have been embraced by the company's workforce, who have commented that the new Code training is relevant, refreshing and an overall enjoyable experience. ### City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 76 August 13, 2014 -Confidential & Proprietary 4-128 Growing Compliance Success: Food & Beverage Retailer Expands Relationship with Both its GRC Provider and its Employees • THE INDUSTRY o Food & Beverage • THE CLIENT o Global food & beverage retailer with more than 15,000 retail outlets and 150,000 associates in more than 35 countries • THE SOLUTIONS o Hotline, International Web Forms and Policy Management For this Fortune 250 food & beverage company, an ongoing strong commitment to ethics & compliance at every level of the organization -from the store-level associates to corporate boardrooms -is seen as vital to success. The company's sophisticated and far-reaching compliance program includes a heavy focus on business ethics and education that is popularized throughout the organization, and employees are highly encouraged and engaged to participate in these initiatives. The company wanted to provide additional channels for its employees to voice their concerns or report any types of issues. The Network helped them establish online and telephonic-based programs that include customized hotline scripts and intake setup so that employees can file reports anonymously and later check back on the status. As the company continued to grow internationally, this became a large and global initiative. The Network proposed implementation of an international hotline program using AT&T and International Toll Free Service (ITFS) lines so that employees could access the system from virtually any country. The company uses the reporting capabilities of the intake system to make constant adjustments to their overall compliance programs -to date the system has met all expectations. A number of ongoing upgrades have taken place, including modifications to call scripting and escalation procedures, which have further expanded the retailer's positive image with its employees. In 2011, The Network approached the company regarding its corporate policy programs and alignment of these policy programs with other aspects of its strong compliance program, and the company agreed to beta-test The Network's Policy Management solution for a limited, function-based segment of the company's corporate operations. Based on the success of this test implementation, the company is planning to roll out The Network's Policy Management solution company-wide. The company also sought to integrate its compliance systems in order to gain even better insight into its organizational initiatives. The Network's Incident Management, a flexible, collaborative case management system, was selected by the company for its ease of integration with the existing Hotline program and the solution's strong workflow capabilities. The Incident Management solution, with the additional CAPA/Remediation module for root cause analysis and corrective action planning, is currently being implemented. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 77 August 13, 2014 -Confidential & Proprietary 4-129 The mutual success of both the company and The Network, as its GRC solution provider, confirms not only the importance, but the need for a comprehensive and engaging ethics and compliance platform. By implementing integrated GRC solutions, businesses can turn more attention to the success of the company, knowing that they have protected themselves against harmful legal attacks. Brewing a Winning Global Ethics Strategy • THE INDUSTRY o Beverages -Brewers • THE CLIENT ### o Latin American brewer and bottler, subsidiary of leading global brewer and soft drink bottler • THE SOLUTIONS o Hotline, International Web Forms, Incident Management and Training With a rich history dating back more than 85 years, this Latin American brewing company and regional soft drink bottler Is a subsidiary of one of the world's leading brewers. The company, which is the number one brewer by market share in the region, takes corporate responsibility very seriously and has worked hard to grow and maintain a culture which thrives on accountability and ethical standing. For more than five years, the company has been working with The Network to manage and administer incident reports related to workforce issues among employees at all levels and across multiple locations. As part of its parent company's initiatives to drive better business processes and operational controls and thereby increase market share, the five-person ethics committee is tasked with sustaining the company's policies on matters such as anti-bribery/anti-corruption, gifts and hospitality, conflicts of interest and political donations. By implementing telephone-based hotline services from The Network, the company is able to detect a myriad of issues, including labor and contract concerns, violations of asset management policies, harassment claims and personnel management matters. The brewer also takes in written incident reports via lockboxes, managed directly by the ethics committee using a secure third party, at each of Its locations. The Network processes 10 to 20 incident reports per quarter, but that number varies throughout the year and is higher following employee training sessions, which indicates that there could be more incidents going unreported because employees do not know how or if they should report them. Web-based reporting, also delivered by The Network, was rolled out shortly after the phone-based system came online. Affirming the value-add provided by The Network's GRC offerings, the company's corporate governance manager states, "The Ethics Hotline managed by The Network delivers high quality incident reports that are very useful to us, especially as a way to provide evidence and proof of suspected situations and to confirm those suspicions. Reports are clear, concise, and both our employees and our management trust what the hotline offers." The number of reports submitted City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 78 August 13, 2014 -Confidential & Proprietary 4-130 continued to increase after The Network completed the implementation of its web-based reporting for the brewery. Using native-speaking interview specialists and on-demand translation services, The Network answers the telephone hotline with a Spanish call greeting. Call-based reports are originally filed in English but are translated to Spanish prior to distribution to company leaders. ;., . . ·; In addition to employing The Network's telephonic hotline services, the company also uses The Network's Incident Management solution to handle issues and case investigations. The Incident Management tool allows company leaders to see a whole new level of reporting, which is essential for audit and control purposes. Prior to implementation of the tool all incidents, reports and cases were processed manually, which was time-consuming and wasteful. Incident Management has automated the entire Incident dissemination process and expedites reporting directly to the executive level. The Network was able to meet the brewer's multilingual needs at every step of the process, from the initial call greeting to web forms In Spanish. The Network's eLearning solutions have delivered employee self-paced training with an executive-level message about the importance of ethics to the company's business. ### Corrective/Preventative Action Planning Solution Keeps Retailer's Discount Program On Track • THE INDUSTRY o Consumer retail • THE CLIENT o ·Larger consumer retailer with more than 2,000 outlets and 10,000 store associates • THE SOLUTIONS o Hotline, Incident Management and CAPNRemediation A large, national retail chain empowered its associates to discount merchandise for its customers based on certain criteria. The retailer had a few policies in place to prevent unauthorized discounts; however, when an Investigations Case Manager noticed an increasing trend in the number of unauthorized discount cases reported across several store locations, the retailer knew something was wrong -and that something had to be done to protect against additional losses. The company was currently using The Network's hotline services and Incident Management solution to capture reported incidents and issues and to manage the investigation process. After consulting with The Network, the company decided to add The Network's CAPA/Remediation solution to their existing case management system. CAPA/Remediation would enable the retailer to take the actionable information gained in the incident management process and append follow-up tasks to the outcome of an investigation into the discounting issue. City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 79 August 13, 2014 -Confidential & Proprietary 4-131 Using information from the Incident Management and CAPA/Remediation systems, the Case Manager filed a request for a Corrective Action Plan (CAP) to prevent unauthorized discounts in the future. A recap of the case findings was included in the CAP request along with a recommended plan of action to address the issue of unauthorized discounts and mitigate any risks that the program might pose in the future. As a result, remediation steps were taken and new processes were implemented to reduce the chances of future compromises within the discounting program. Follow-up action included counseling for specific associates, modifications to the discount policy, retraining of all employees on the revised policy, and changes to procedures to limit discounting permissions to only those associates who had been certified on the training. Implementing The Network's CAPA/Remediation system allowed the retailer to keep their discount program in place, while correcting and protecting the company against further loss of revenue from unauthorized discounts. In addition to the immediate benefit of recording less unauthorized discounts, the retailer also now has better educated associates, updated policies that align with their Code of Conduct and operating procedures and an even higher priority on ethics and compliance ### City of Rancho Palos Verdes Response from The Network, Inc. RFP for Fraud, Waste & Abuse Hotline 80 August 13, 2014 -Confidential & ProP.rietary 4-132 "Exhibit C" 4-133 Case Manager can include, but not limited to: City Manager HR Manager City Attorney Third-Party Expert .. :. ·.· .. =.=-.=.: .. ~.~:.: :=··r=~-~---~ = =:; •• . )fi):-· No Hotline Process Yes Footnote 1 If any report requires immediate escalation, appropriate law enforcement and/or government agencies will be timely notified. 4-134 "Exhibit D" 4-135 Complaint Scenarios with Unknown Costs Scenario #1 Financial 1--~--~~~--~~~-~-~-~-~~-~~~~~~-~~~~~~~~~~~~~~----j Report Case Manager Independent Third-Party Expert Hours worked to complete investigation Bill Rate Total Cost A report is filed by a resident alleging there is a material misrepresentation of financial information reported in the City's Five-Year Financial Model and Budget. The City appoints an Independent CPA with municipal expertise to serve as the Case Manager to investigate the report. During the course of the investigation, the Case Manager identifies potential financial irregularities that might explain the accounting error and thinks some level of fraud could be involved. Although it is not known whether the irregularities have, or could impact the City's Financial statements, the Case Manager advises the Audit Committee and the City's Independent auditor of the hotline report. Since the Case Manager does not possess the required expertise in fraud examination techniques, he or she subsequently retains a Certified Fraud Examiner (CFE) to ascertain whether fraud has taken place. Both the City Manager and the City Attorney are consulted and concur with the retention of CFE to conduct an investigation and issue a report of findings. Over the next week, the CFE reviews appropriate financial records and transactions and concludes the accounting error was the result of a revenue item that was inadvertently misclassified to the wrong account. The CFE issues a confidential written report and advises the Case Manager, Audit Committee and the independent auditor of its findings. The Case Manager logs his or her findings and provides corrective action(s) to prevent this error from recurring. Once the case report has been fi ,, the case is considered closed. Independent CPA Certified Fraud Examiner Case Manager 10 $250 /Hr. Independent third-party expert 20 $200 /Hr. $6,500 4-136 Report Case Manager Hours worked to complete investigation Bill.Rate Total Cost A report is filed by an employee, alleging that a co-worker has been harassing the complainant. The Anonymous Fraud, Waste and Abuse Hotline Policy pre-assigns the Human Resource Manager to serve as the Case Manager and investigate the report. The Case Manager gathers facts and interviews witnesses during the investigation. During the interview phase, the Case Manager discovers he or she is not receiving a consistent account of what has occurred or if it constitutes harassment. The Case Manger contacts a specialized labor attorney and learns of potential legal ramifications of the report. The Case Manager, with their consent of the City Manager and the City Attorney, retains the specialized labor attorney to review documents, perform an independent interview of witnesses and provide his or her findings to the Case Manager. The investigation revealed that harassment has occurred and corrective action, including appropriate discipline, will be taken. The Case Manager files a case report, upon which, the case is considered closed. Human Resources Manager Case Manager 10 *N/A L~bqr Attwney Independent third-party expert 15 $300 /Hr. $4,500 *Bill Rate would not be applicable since the Case Manager is a City employee; however, there would be an inherent cost for time and materials to carry out their role in the investigation. 4-137