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BSWIFT RECEIVES SAS 70, TYPE II AUDIT REPORT

A “Virtual Business Requirement” for Service and Outsourcing Providers Also Provides the Opportunity to Streamline Operations

CHICAGO, IL – April 17, 2008 -- bswift, a leading provider of HR and benefits software and services, recently announced that it has received a Statement on Auditing Standards (SAS) No. 70, Type II audit report. The SAS 70 - a widely recognized auditing statement issued by the Auditing Standards Board of the Institute of Certified Public Accountants - is used to assess the internal controls of a service organization as they pertain to the hosting and processing of their customers' data as well as its financial reporting.

“As a service provider doing business with many publicly-traded companies, it is imperative that we have a SAS 70 Type II audit report,” said Rich Gallun, Chief Executive Officer of bswift. “Given the volume of sensitive employee data that bswift processes on a daily basis, it is even more vital that we have an outside entity verify that we have a high level of security and that we really do what we say we do.”

A Requirement for Doing Business

Since the passage of the Sarbanes-Oxley Act of 2002 (“SOX”), the SAS 70 has become a virtual business requirement for service and outsourcing providers, especially those serving publicly-traded firms.

In fact, many corporations consider it a liability to use the services of an external vendor who does not have a SAS 70 Type II report and thus, are reevaluating all of their outsourcing arrangements and partnerships. For example, Bruce Besanko, CFO of $600 million Yankee Candle, was quoted in Harvard Business Review as saying that he plans to take a hard line if he cannot obtain an SAS 70 report.

“If it is a major partner that impacts our financials, we will terminate the relationship,” said Besanko.

A Motivation to Automate Benefits Administration; An Opportunity to Streamline Operations

While initially perceived by many corporate executives as a compliance annoyance, SOX has served as a stimulus to many corporate organizations to re-visit their internal processes. It has also motivated many firms to move away from manual processing for numerous functions such as benefits administration and toward the standardization and automation of tasks in order to reduce errors and tighten controls.

“Ask most auditors what they consider to be the weakest aspect of internal control, and they'll tell you, 'manual processes,'” write Stephen Wagner and Lee Ditmar of Deloitte & Touche in their article The Unexpected Benefits of Sarbanes-Oxley. “Automated controls, if properly designed and implemented, aren't susceptible to such pitfalls.”

The automation of manual processes creates the opportunity to greatly streamline operations, thereby turning the SOX compliance requirement for many companies into an impetus for greater corporate efficiency. Because of the inefficiencies inherent in many HR processes, the automation of benefits administration has become an easy target for leveraging SOX compliance and has fueled tremendous growth for bswift over the past few years.

“Completing the SAS 70 Type II audit process was not an easy task, but it has already reaped great dividends for bswift with streamlined internal processes as well as meeting the needs of our clients,” said Gallun.

About bswift

Based in Chicago, bswift offers software and services that streamline all aspects of HR, benefits and payroll administration. More than 5,250 employers utilize bswift's Web-based, state-of the-art technology to significantly reduce administrative costs and time-consuming paperwork, making life easier for HR staff and employees alike. For more information, visit www.bswift.com.

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