The Hudson Headwaters 340B team has completed the SOC 1 certification as of January 2021. SOC, or System and Organization Controls, is a suite of reports from the American Institute of Certified Public Accountants’ that CPA firms issue in connection with system-level controls at a service organization.
There are two main types of SOC:
- SOC 1 – Report on controls over financial reporting
- SOC 2 – Report on controls over information systems relevant to security, availability, processing integrity, and confidentiality or privacy
The SOC 1 report describes how customers are best served as system and team goals are achieved. The report is completed by an independent Certified Public Accountant (CPA) delivering an unbiased opinion on the equality of the HH340B systems and design of the organizational controls. As a Third Party Administrator (TPA), auditor, and 340B service provider, the initiative to complete the SOC 1 assessment was imperative to build confidence and assurance in the workflows and organizational controls that are currently in place.
Hudson Headwaters 340B completed a critical risk assessment of company workflows and procedures to ensure that related control objectives were achieved on the specified date (12/31/2020). The HH340B team intends to build on this progress and test the controls over a six month or greater reporting period in the SOC 1 – Type 2 Assessment. The second assessment will be a more thorough investigation of our design and processes, making the endeavor significantly more rigorous for our team to perform. Jared Macey, Operations Manager, says, “The overall benefit to all of our hard work to date and what is to come, is the detailed results that we can provide to our customers.”
The Hudson Headwaters 340B team understands that being a good partner requires a level of trust and confidence in the shared systems we utilize for our client’s program management and review. Obtaining this initial certification, and our continued involvement in future assessments prove a willingness to optimize our processing with industry standard input.
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