cw2012 tocco tony final 8921

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					 Mapping Effective Compliance
to the U.S. Sentencing Guidelines


    Anthony M. Tocco CCEP, CFE, CIA
         Chief Compliance Officer
                DTE Energy
         Mapping Effective Compliance to the U.S.
                 Sentencing Guidelines
DTE Energy Overview

• One of the nation’s largest diversified energy companies
• Headquartered in Detroit, Michigan
• Detroit Edison, an electric utility serving 2.1 million customers in Southeastern Michigan
• MichCon, a natural gas utility serving 1.2 million customers in Michigan.
• Also includes non-utility energy businesses
      operating in 26 states
      power and industrial projects
      coal marketing and transportation
      gas storage and pipelines
      unconventional gas production
      energy trading
        Mapping Effective Compliance to the U.S.
                Sentencing Guidelines
Compliance program strategy:

•Proactive and preventative for mitigating legal and regulatory risk

• Based on the Federal Sentencing Guidelines recommended elements


•Key processes:
    •Risk Assessment
    •Training and Communication
    •Investigations
    •Auditing and Monitoring
                  Federal Sentencing Guideline
                           Element 1
Guideline                          DTE Energy

The organization shall establish   •   Code of conduct
   standards and procedures to     •   Core values
   prevent and detect criminal     •   Corporate and departmental
   conduct.                            policies
                                   •   Standard work instructions
                                   •   Internal controls
                                   •   Committee charters
                                   •   Job descriptions




                                                       4
                   Federal Sentencing Guideline
                            Element 2
Guideline                                  DTE Energy

The organization’s governing               •   Board of directors
   authority shall be knowledgeable             –   Audit Committee
   and exercise reasonable                      –   Public Responsibility Committee
   oversight.                              •   CEO
                                           •   General counsel

Specific individual(s) within high level   •   Chief compliance officer
   personnel shall be assigned             •   Assistant to the chairman
   overall responsibility.

                                           •   Compliance & ethics personnel
Specific individual(s) shall be
                                           •   Compliance liaisons
   delegated day-to-day operational
   responsibility.                         •   Process owners


                                                                     5
                 Federal Sentencing Guideline
                          Element 3
Guideline                              DTE Energy

The organization shall use             •   Pre-employment background
   reasonable steps not to employ          check
   those who have engaged in illegal   •   Personnel risk assessments
   activities or other conduct
   inconsistent with an effective
   compliance and ethics program.




                                                          6
                 Federal Sentencing Guideline
                          Element 4
Guideline                            DTE Energy

The organization shall communicate   •   Company intranet
   periodically its standards and    •   Compliance office website
   procedures through training and   •   Leader/staff meetings
   other effective means of
   distributing information.         •   Board meetings
                                     •   Ethics training
                                     •   Law/regulation specific training
                                     •   Quarterly newsletter
                                     •   Promotional programs
                                     •   Posters and trinkets




                                                          7
                 Federal Sentencing Guideline
                          Element 5
Guideline                          DTE Energy
The organization shall take        •   Compliance office
   reasonable steps to:            •   Ethics and employee Issues office
    – Monitor and audit the        •   Business unit self-audits
       compliance and ethics       •   Internal/external audits
       program
                                   •   Employee surveys
    – Periodically evaluate the    •   Benchmarking
      effectiveness                •   Independent reviews

                                   •   Ethics in Action Helpline (365/24/7)
    – Have and publicize an
                                        – Internal/external websites
      employee reporting system,
                                   •   Assistant to the chairman
      allowing for anonymity and
      confidentiality              •   Audit committee




                                                          8
                 Federal Sentencing Guideline
                          Element 6
Guideline                            DTE Energy

The organization shall promote the   •   Incorporated into performance
   program consistently throughout       management model
   the organization through          •   Employee recognition
   incentives and discipline.        •   Positive discipline program




                                                         9
                  Federal Sentencing Guideline
                           Element 7
Guideline                              DTE Energy

The organization shall take            •   Internal/external investigations
   reasonable steps to respond         •   Internal/external audits or
   appropriately and prevent further       assessments
   occurrences.                        •   Policy modification
                                       •   Internal control enhancements
                                       •   Communication
                                       •   Training




                                                             10
                   Federal Sentencing Guideline
                      Supplemental Element
Guideline                             DTE Energy

The organization shall periodically   •   Compliance risk assessment
   assess the risk.                   •   Fraud risk assessment
                                      •   Internal control risk assessment
                                      •   Enterprise risk management
                                      •   Business/functional unit
                                          assessments
                                      •   Industry assessments
                                      •   Code of conduct employee survey
                                      •   Employee engagement survey




                                                          11
      Summary




INTEGRATION is key




                 12

				
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