Mervin Winston, Ltd. - Case Studies

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Mervin Winston, Ltd.
CPA's and Business Consultants
3033 Campus Drive Suite W115
Plymouth, MN 55441
Phone: 763-557-6030
Fax: 763-557-9030
E-mail: info@mwinstonltd.com

Case Study - Internal Control Systems Assessment

	Client Industry:	Native American Tribal Business

	Client Issue:	Need for internal control systems assessment

	Background:	Tribal leaders and administrators of Native American Tribal business with annual revenues well over $100 million did not have a clear understanding of the overall business operation as well as the adequacy of the internal controls. Furthermore, they wanted increased assurance that the financial results were accurate.

	The Mervin Winston Ltd., Solution:	Analyzed current and historical financial statements to gain an understanding of the elements and components of the business, the cost structure, the relationships between revenues and expenses and the revenue and expense trends. Toured the business with senior managers to gain an overview and determined senior managers' perception as to the adequacy of the internal controls. Became familiar with the internal control systems and processes through review of available documentation and discussions with operating managers and personnel, and with internal and external auditors. Designed and executed tests of the internal control systems using management and financial audit procedures. Documented and reported results of the internal control review.

	The Results:	Tribal and corporate documentation modified to significantly strengthen internal control systems. Financial and administrative control processes substantially modified to improve internal control systems. Net income improved by more than 100%. Eliminated a number of behaviors that were causing expense trends to rise more rapidly than revenues. Reined in out-of-control capital expenditure process. Worked with Tribal leaders to significantly strengthen the operating and capital budget process.