cw2012 tocco tony final 8921

Document Sample
cw2012 tocco tony final 8921 Powered By Docstoc
					 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
    •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

                   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

                 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.

                 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

                 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
                                   •   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

                 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

                  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

                   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
                                      •   Industry assessments
                                      •   Code of conduct employee survey
                                      •   Employee engagement survey




Shared By: