Number of FTEs that perform the process group "manage internal controls" per $1 billion revenue

This measure calculates the number of full-time equivalent employees (FTEs) per $1 billion revenue that perform the process group "manage internal controls," which administers the processes put into place by the board of trustees, management, and other personnel to ensure achievement in the areas of laws, regulations, and policies compliance; operations effectiveness and efficiency; and financial reporting reliability. It is a Process Efficiency measure that helps companies optimize their "manage internal controls" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure Id:
101163
Total Sample Size:
3,247 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are FTEs.

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(Number of FTEs who perform the process "establish internal controls, policies, and procedures" + Number of FTEs who perform the process "operate controls and monitor compliance with internal controls policies and procedures" + Number of FTEs who perform the process "report on internal controls compliance") / (Total business entity revenue * 0.000000001)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

FTE - (full-time equivalent employee)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Measure Scope

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Cross Industry (7.3.0)

  • 9.8.1 - Establish internal controls, policies, and procedures (10762)
    • 9.8.1.1 - Establish board of directors and audit committee (10914)
    • 9.8.1.2 - Define and communicate code of ethics (10915)
    • 9.8.1.3 - Assign roles and responsibility for internal controls (10916)
    • 9.8.1.4 - Define business process objectives and risks (11250)
    • 9.8.1.5 - Define entity/unit risk tolerances (11251)
  • 9.8.2 - Operate controls and monitor compliance with internal controls policies and procedures (10763)
    • 9.8.2.1 - Design and implement control activities (10917)
    • 9.8.2.2 - Monitor control effectiveness (10918)
    • 9.8.2.3 - Remediate control deficiencies (10919)
    • 9.8.2.4 - Create compliance function (10920)
    • 9.8.2.5 - Operate compliance function (10921)
    • 9.8.2.6 - Implement and maintain controls-related enabling technologies and tools (10922)
  • 9.8.3 - Report on internal controls compliance (10764)
    • 9.8.3.1 - Report to external auditors (10923)
    • 9.8.3.2 - Report to regulators, share-/debt-holders, securities exchanges, etc. (10924)
    • 9.8.3.3 - Report to third parties (10925)
    • 9.8.3.4 - Report to internal management (10926)