SAS 70 Certification

For the third consecutive year, GlobeOp has successfully completed a SAS 70 Type II certification of its middle, back office and fund administration services through an independent examination of its global network and processes. The examination was conducted by one of the world’s leading Big 4 public accounting firms.

The independent examination evaluated the design of GlobeOp’s specified controls and the operating effectiveness of those controls for the full-year period from October 1, 2008 to September 30th, 2009. In addition to controls specified in GlobeOp’s prior SAS 70 Type II examinations, we further increased the scope this year, adding bank loans operations, client financial reporting, enhanced OTC narratives with testing, and the inclusion of company-wide controls over corporate governance. The examination covered our offices on three continents including New York City, NY, Harrison, NY and Hartford, CT in the US; London, England, George Town, Cayman Islands; Dublin, Ireland; and Mumbai, India.

The examination scope defined by GlobeOp includes specific core IT and operational controls which clients find the most valuable. GlobeOp believes the scope of its examination is among the most extensive in its sector, and intends to every year expand the scope as it continues to develop its IT infrastructure, processes and controls. Included in the scope of the examination this year were GlobeOp's specified controls that support its transaction processing, position reconciliation, cash receipts and disbursements, investment valuation, month-end process, new fund set-up and investor relations operations procedures.

The examination also included specified IT controls in relation to logical and physical security, data transmission, change and problem management, and system back-up and recovery processes. The certification program began four years ago. It is a significant undertaking involving the commitment of considerable financial and human resources to ongoing annual examinations. The SAS 70 type II certification process provides GlobeOp, its clients and their auditors with an independent assessment of the design and consistent operation of GlobeOp’s control environment. It can also provide GlobeOp clients with a competitive edge by supporting investor due diligence and a fund’s own operational risk management and corporate governance objectives. This is increasingly important as investors, fund managers and regulators intensify their focus on independent, transparent and robust operational and outsourcing procedures.

Statement on Auditing Standards (SAS) No. 70, Service Organizations, is a widely recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA). An examination performed in accordance with SAS No. 70 ("SAS 70 Audit") is widely recognized, because it represents that a service organization has been through an in-depth examination of their control objectives and control activities. In today's global economy, service organizations or service providers must demonstrate that they have adequate controls and safeguards when they host or process data belonging to their clients.

In a Type I report, an opinion is expressed on (1) whether the service organization's description of its controls presents fairly, in all material respects, the relevant aspects of the service organization's controls that had been placed in operation as of a specific date, and (2) whether the controls were suitably designed to achieve specified control objectives. In a Type II report, an opinion is expressed on the same items noted in a Type I report and (3) whether the controls that were tested were operating with sufficient effectiveness to provide reasonable, but not absolute, assurance that the control objectives were achieved during the period specified.

For further information, contact CRM@globeop.com