Yard management will become critical under provisions of the Sarbannes-Oxley Act, the first deadline scheduled Nov. 15

, according to Joe Radican, president of Virtual Yard Management based in Sheffield Village, Ohio.
Officially called the Public Company Accounting Reform and Investor Protection Act of 2002, Sarbanes-Oxley requires CEOs and CFOs to certify company financial statements quarterly and annually. They have to personally sign off on audits, and false declaration can bring severe repercussions – even jail time.
“Many companies don’t realize just how critical the operational side of the supply chain is in this new Sarbanes-Oxley environment. It’s not just about the bean counters on the financial side or the IT staff -- it begins in supply chain management,” Radican said in a press release.
Radican said companies need to know what is being transported, what is in the loading dock, and what’s sitting in the freight yard – in order to be able to track it, document it and ensure it is accounted for accurately and correctly.
“For example, a firm can have manufactured goods placed in a trailer that is sitting in the yard, and it may be considered as ‘inventory’ on the books, when in fact, it should not be,” Radican explained.
“If I were a public company CEO faced with increased personal responsibility to attest to the accuracy of financial records – I would want to know exactly what is in the yard and how it is being reported. Ignorance is not bliss – and it is not an acceptable defense. The right tools for compliance and control can give company officers peace of mind.”
According to Radican, beyond public companies, Sarbanes-Oxley may leave an increasing ripple effect on the state level that may affect privately held companies, including trucking firms. “States may begin to increase state regulation on CPAs and on those businesses that report financial information to regulatory agencies.”
Virtual Yard Management provides an integrated tracking and management program, empowers companies to maintain control and visibility of product and assets – regardless of their physical location.
For more information, visit www.ktcompanies.com.