Cleveland Information Technology

Funding for biomedical projects, like jobs, is tough to find in a down economy, but the federal government is an often untapped resource. In FY08 and FY09, Congress directed over $150 million dollars for medical research on various topics from prevention of combat-induced injuries to physiological health to cancer. In FY10, Congress has earmarked millions of dollars for various research topics, with breast cancer ($300 million) and prostate cancer ($160 million) as the highest funded. When applying for a federal grant, consider the following key tips from your job-searching days:

• Understand your project and the grant that you're applying for. Focus on grants in research categories your project fits into. Before submitting your white paper, read the grant's specific requirements. Your success depends on how closely your project matches the grant's specific requirements.

• Write a targeted white paper.  Your white paper should illustrate how your project specifically satisfies the needs of the grant. Also, it's not the top federal experts in your field of science that is reading your submission - it's their staff, so excessive use of scientific language is not necessary.

• Be persistent. Currently grants may not fit your project, but consistently search for new grant announcements, because federal grant initiatives change from year to year and may eventually be requesting your company's specific technology or product. 

If you'd like help identifying grants that fit your project or learn more about applying for grants, please leave a comment or contact our Biotech Group at (440) 449-6800.

Advisor Insights

For the past several months, our Real Estate and Construction Group has been authoring a monthly column in Builders Exchange Magazine that offers advice to real estate and construction professionals.

So far this year, the following topics have been covered:

• The Benefits of Subprime Bonding  
• Selecting and Implementing Financial Software  
• The Value of a Niche Marketing Plan 
• Lessons Learned From the Construction Industry  
• Cancellation of Debt Income 
• Preventing Financial Fraud 
   

• Health insurers and group health plan sponsors are now prohibited from imposing pre-existing condition limitations on individuals who have not yet attained age 19 and from denying coverage to such individuals based on the existence of a preexisting condition. All such limitations and coverage denials, regardless of age, begin in 2014.
• Health insurers and group health plan sponsors are prohibited from imposing lifetime dollar limits on essential health benefits, and are required to sharply increase annual dollar limits on essential health benefits. Such annual limits will be eliminated starting in 2014.
• Coverage rescissions (except in the case of fraud or intentional misrepresentation) are prohibited.
• Plan-covered and insured individuals are given greater control over choosing a primary care physician and greater access to emergency services and related care.

To read more about these new rules, see this Executive alert from Baker Hostetler.

Go Directly From a 401(k) to a Roth  

Do you want to transfer your 401(k) plan assets to a Roth IRA? Under a recent tax law change, you can make the move in one fell swoop. Previously, it took two separate steps. In addition, another tax law provision taking effect this year may encourage this direct approach.

Click here to read more.

Should You Give to a Donor-advised Fund?

Wealthy entrepreneurs with charitable intentions may choose to set up a private foundation. But a more convenient alternative is gaining in popularity: the donor-advised fund.

This technique may be especially appropriate if you need to devote more time to business activities in the current economic environment. The fund does most of the hard work for you and requires less personal attention than a private foundation. In some cases, you might even convert an existing private foundation into a donor-advised fund.

Click here to read more.

New Law Revamps Student Loan Program

The new Health Care and Education Reconciliation Act of 2010—recently signed in conjunction with the monumental new health care law—includes dramatic reforms in the federal student loan program. This new legislation could affect families of all stripes for years to come.

Click here for a brief summary of four points you should know about.

Aurum Capital Markets Summary 

Please click here for a summary from Aurum Wealth Management Group on the performance of the major market indices through the end of May as well as a recap of the significant events influencing the markets.

CPAs are increasingly being asked to solve the information technology problems of their clients and prospective clients, according to a new survey by the American Institute of CPAs.

This year, the AICPA’s Top Technology Initiatives Survey asked AICPA members to rank a list of questions heard most often from audit committees, chief financial officers and chief information officers. With a renewed focus on IT-related issues, the survey makes it clear that CPAs need to understand information technology in order to collaborate effectively with clients.

Here are the top 10 most frequently asked questions accountants are hearing, how well do they line up with your concerns?

1. Are we ensuring that our data and technology resources are protected against hacking, viruses or other compromises? This includes from outside the company as well as someone within the company.
2. Are we considering or implementing organizational security precautions even though we haven’t had a data breach or loss? Why wait for a disaster to put in the prevention precautions – we should all be learning from the BP Gulf of Mexico crisis.
3. Are our current internal controls and IT governance policies and procedures effective? Just having policies and procedures in place isn’t enough.  Are they updated regularly and do they meet the changes that the business has put in place?
4. Are we receiving the most relevant and current information from our reporting functions (business intelligence, dashboards, etc.) or are there areas for improvement?  Companies rely on their systems to help run the business – are these systems being utilized to their fullest potential?
5. Have we implemented sound, appropriate privacy policies and procedures in place within the organization and for our customers?  You just have to go to http://www.privacyrights.org/ar/ChronDataBreaches.htm to see a list of privacy breaches and you will get a sense of how important this is.
6. Are we appropriately considering the IT risks associated with the organization in the initial planning of any audit or attest engagement?  The AICPA is focusing on this more and, for certain types of Attestation engagements, it is even necessary to do a Risk assessment.  When was the last time the organization did a risk assessment?  Have we done anything with the risks identified in the first assessment?
7. Are we capturing the appropriate control objectives during the initial planning of any audit or attest engagement to address the IT risks associated with the organization? 
8. Should we refresh our core and financial accounting software to leverage technology efficiencies every few years?   Are we getting the most out of our current ERP system?
9. Can our data remain safe if we utilize cloud computing or Software-as-a-Service?   More and more companies are looking at this – not only the question about data security but also the total cost of ownership is a big question.
10. . Can we deliver on our service and product promises to our customers if we utilize cloud computing services?

There are many incentive programs available through various state and Federal agencies to assist businesses in a variety of different ways to expand and grow. One program available through the Ohio Department of Development’s Technology and Innovation Division is an investment tax credit for early stage companies. 

Through this program, qualified investors who invest in qualified technology-based companies receive a credit towards Ohio taxes for 25% of the amount they invest. Certain entities apply for an increased credit of 30%. 

If an investor invests the maximum amount permitted by this credit at the individual level the credit obtained as a result of the investment will offset approximately $1 million of Ohio taxable income. This is a unique opportunity to invest in Ohio’s future as well as reap excellent tax benefits.

The TITC is one of many incentive opportunities available through the Ohio Department of Development and Third Frontier Program. The program was renewed by voters on May 4, 2010 and extended through 2016 with the issue of a $700 million bond program.   

To learn more about incentive opportunities available to you, your company and your industry please contact Skoda Minotti’s Bio-Tech and Technology Industry Group at 440-449-6800. 

Welcome to the first edition of the Skoda Minotti IT E-Newsletter. At Skoda Minotti, we strive to be a resource for our clients and contacts. With that in mind, this monthly newsletter is our attempt to keep you up-to-date on what is going on in the the tech-world around us.

Each month, we will highlight a few important articles that we think you should read. Also, we'll give you a case study, or a client success story, from some of the work we've done.

If you have any questions or suggestions, please feel free to contact us.

Sincerely,
Robert Brenis, CGEIT, CISA, MCP, PMP

Brenis is a principal in Skoda Minotti's Business Applications Consulting and Technology Services Group. Reach him at rbrenis@skodaminotti.com or 440-449-6800.

FRx Discontinued; Paves Way for Microsoft's New Business Intelligence Program

Microsoft currently offers three Corporate Performance Management (CPM) programs: FRx, Forecaster and Enterprise Reporting, which aid businesses in the areas of financial reporting, planning/budgeting/forecasting, and consolidation. Starting in May 2010, the capabilities of these three CPM programs will gradually be combined into one program, Microsoft Dynamics Management Reporter, as part of an integration process that will take place over the next four years.

Click here to read more.

Popular "Scareware" Presents Virus Threat to Internet Users

A deceptive virus has been found in increasing frequency in the technology world. The scam, found in commonly visited Web sites such as the New York Times and WhitePages.com, is portrayed as an antivirus scanning program and has taken the popular names of "scareware" or "malvertising."

The virus initially appears in the form of a pop-up, resembling a typical windows message or error. The message will allude to the fact that your computer may be infected with viruses, and will give you the option to "click here to remove them." If and when you choose to click on the ad, it will appear to install an antivirus program on your computer and proceed to "scan" your system for infection. Following the scan, a message will appear claiming that there have been viruses, spyware and/or threats found within your system. Finally, the program will prompt you to purchase the "full version" of the scanning program to remove the threats.

Click here to read more.

How to Shield Your Network from Clever Hackers

You've got antivirus software and firewalls guarding your computers and routers. You religiously download security updates. You've done everything you can think of to stay secure. But your network is still at risk.

Visit the Microsoft Small Business Center to read more.

Microsoft Announces Dynamics GP Three Users for $1 Promotion

Microsoft has recently announced its "Three Users for $1" promotion, allowing all new Dynamics GP customers to purchase their first three user licenses to its Advanced Management (AM) or Business Essential (BE) programs for only $1 each. The offer will be good through the end of the business day on June 25, 2010.

Click here to read more.

• Completed a system risk assessment resulting in a recommendation to install new hardware and implement a new business system.
• Developed a detailed work plan with the vendor ensuring all major issues were addressed.
• Acted as project manager during the entire software implementation process
• Managed and installed all of their new hardware (21 workstations, two servers, various network components)

• Accurate and timely financial information
• A scaleable system that could grow with the company
• A new billing and route management system that improved critical processes

A smooth go-live process that culminated just over one month after on-site work began

• All needed data from the old system was cleaned up and converted to the new system
• All users were trained on new software
• Liberty can now independently manage all of its day-today operations using the new software

To read other Case Studies from the Skoda Minotti Technology Services Group, please click here. 

Join Us as We Introduce Microsoft Office 2010

Come and see how the new Microsoft Office 2010 can help you break through the barriers that are slowing your people down. Join Skoda Minotti for this exciting preview event.

Place:  Microsoft building
Date:  June 2, 2010
Time:  8 a.m. - 9:30 a.m.
Cost:  FREE
 

Event Schedule:
8:00 - Breakfast and Networking
8:30 - Office 2010 Presentation
9:00 - Improving Outlook Efficiency
9:15 - Q & A
9:30 - Closing Comments
 

Some of the topics we'll be discussing include:

• An in-depth look at the new features commonly used Office programs, including Word, Excel and Outlook
• Live demonstrations of several new features and benefits
• A Command Reference Guide for those users who will be making the upgrade from Office 2003 to Office 2010

Space is limited, so reserve your seat today. Click here to register online.

Skoda Minotti employee aids in development of IT audit and assurance program

As an expert reviewer within the Information Systems Audit and Control Association, Skoda Minotti employee Robert Brenis has had a hand in the development of a new resource for the information technology world – the IT Continuity Planning Audit/Assurance Program.

ISACA has just released this document to act as a valuable resource for IT audit and assurance professionals.

To read more about the document, click here.

Advisor Insights

Skoda Minotti is conducting our 3rd annual survey of the Northeast Ohio real estate and construction industries. Every participant who completes the questionnaire will receive a free copy of the survey results and analysis and have a chance to win a $50 gift card to Dick's Sporting Goods.

The goal of the survey is to provide professionals in the real estate and construction industries in Northeast Ohio with the invaluable insight into their industries.

As an added bonus, one out of every 20 survey participants will be randomly selected to receive a $50 gift card to Dick's Sporting Goods. Note that only the first 100 survey participants will be eligible for the gift cards, so act quickly.

Click here to complete the real estate or the construction survey.

Please feel free to contact Bob Goricki at bgoricki@skodaminotti.com or 440-449-6800 with any questions related to the survey.

Lower Your Worker's Comp Premiums with the BWC's new Drug-Free Safety Program

The new Ohio BWC Drug-Free Safety Program (DFSP) will be available for all Ohio employers, including previous participants, beginning July 1, 2010. The DFSP is easier to understand and implement, and provides a long-term discount for an unlimited number of years of participation.

There are two levels in the DFSP; eligible employers may elect to join either level of the program:

BASIC LEVEL: Participating non-group-rated employers receive a 4-percent discount by meeting all program requirements. These include completion of a safety review, accident reporting, accident analysis training for supervisors, employee education, supervisor skill-building training, alcohol and drug testing, and a written DFSP policy.

ADVANCED LEVEL: Participating non-group-rated employers receive a 7-percent discount by meeting all of the Basic Level requirements, as well as conducting 15-percent random drug testing annually, and completing a safety action plan. Advanced level participants must also provide a second chance after employee’s first positive test with BWC to specify exceptions.

For more information on how you can sign up for this program, please contact me at rgingerich@skodaminotti.com  or 440-449-6800.

How to Raise Cash for a Business

It "takes money to make money," but some of the conventional sources of cash have dried up for small-business owners. But that does not mean you should give up. If you lack the necessary funds to start a business or you need more money to expand your current operation, there are still several possible ways to raise the cash.

Click here to read more. 

Sweep Away "Nanny Tax" Concern

If you employ a household worker, such as someone to watch young children, you may be liable for the so-called "nanny tax." However, you can sidestep any dire tax consequences if you pay close attention to the rules.

Click here to read more.

Protecting Your Business from Embezzlement

It seems that every other day the newspapers feature a story where a longtime employee has embezzled money from his or her employer. You may sadly shake your head and blithely continue to go about your business. After all, this cannot happen to you ... can it?

Click here to read more.

Aurum Capital Markets Summary

Please click here for a summary from Aurum Wealth Management Group on the performance of the major market indices through the end of March as well as a recap of the significant events influencing the markets.

Not-For-Profit Seminar - June 8th

Skoda Minotti is pleased to announce that we will once again be hosting a not-for-profit seminar featuring nationally recognized not-for-profit expert Dick Larkin of BDO Seidman.

Dick will be presenting a not-for-profit industry update that will contain valuable insights for anyone involved in the not-for-profit industry. In addition to Dick's presentation, two Skoda Minotti professionals will also be presenting on Form 990 as well as an information technology primer for not-for-profit entities.

Seminar Details

• Location: Hilton Garden Inn, 700 Beta Drive, Cleveland, OH
• Date: June 8th
• Time: 8:00 - 11:30am
• Cost: $25
• Registration: Click here - http://www.eventbrite.com/event/674362035 

If you have any questions on the seminar, please contact Bob Goricki at bgoricki@skodaminotti.com or 440-449-6800 with any questions.
 

We would like to make you aware of a new tax credit that could significantly benefit your business.

As you know, on March 23rd, President Obama signed into law the Patient Protection and Affordable Care Act. As part of this Act, new Internal Revenue Code Section 48D was created. Section 48D provides an incentive that may offer you a significant benefit.

Overview of Benefit

• The Act establishes a new investment tax credit for certain expenditures related to “Qualifying Therapeutic Discovery Projects” (QTDPs) made in 2009 and 2010.
  
• Section 48D provides a tax credit equal to 50 percent of the “qualified investment” of an “eligible taxpayer.”
  
• In an interesting variation from other tax credits, companies that cannot currently use tax credits may apply for a cash grant for the same amount as the credit.

What is a “Qualified Investment”?

The amount of the credit depends on a business’s investment in a “Qualifying Therapeutic Discovery Project (“QTDP”).

The government defined QTDP Objectives are:

• The development a product, process, or technology to further the delivery or administration of therapeutics;
• The diagnosis of diseases or conditions, or determination of molecular factors related to diseases or conditions, by developing molecular diagnostics to guide therapeutic decisions; or
• The treatment or prevention diseases or conditions by:
  • Conducting pre-clinical activities, clinical trials, and clinical studies; or
  • Carrying out research protocols, for the purpose of securing approval fo a product government guidelines.

In order to qualify for the grant/credit, certification by the Treasury Department is required; therefore, the ability to qualify for the credit requires careful consideration and presentation.

In deciding which projects to certify, Treasury must find that the projects show “reasonable potential” to:

• Result in new therapies to treat areas of unmet medical need, or prevent, detect, or treat chronic or acute diseases or conditions;
• Reduce long-term health care costs in the United States; or
• Significantly advance the goal of curing cancer within 30 years.

As part of their determination, Treasury also will consider which projects have the greatest potential to:

• Create and sustain, directly or indirectly, high-quality, high-paying jobs in the United States; and
• Advance United States competitiveness in the fields of life, biological, and medical sciences.

Treasury is required to take action to approve or deny applications within 30 days of their submission.

Who is eligible?

• A taxpayer that employs 250 employees or less in all its related businesses at the time it submits an application is eligible, but complex rules determine related businesses.
  
• Eligible taxpayers include C corporations as well as pass-through entities like S corporations, LLCs, and partnerships.
  
• Most not-for-profit entities are not eligible for grants.

Application Process

The application guidelines are required to be published no later than May 21, 2010, within 60 days of the Act’s signing, and could be published even sooner.

No one knows what the application will look like just yet, but due to the complex rules, the application will likely be complicated, particularly since a considerable amount of information will be required related to the QTDP merits and the likelihood of job creation. We believe the application could be as complex as any government grant request.

Only $1 billion is available for expenditures in 2009 and 2010. If past history, like the credits for Advanced Energy Projects are any indication, the funds could be depleted quickly, so time is of the essence.

As the available funds (only $1 billion) may go quickly, we encourage you to contact Skoda Minotti as soon as you have identified that you may be eligible for a credit or grant. As we have been researching and studying this opportunity since its announcement, we are most qualified to help you position yourself by gathering and organizing the information that will be needed to demonstrate your qualification for the grant/credit. It is advisable to be prepared to fill out the application and prepare the grant request as quickly as possible once guidance is released in order to put yourself in the best position to receive funding.

If you have any questions about moving forward with a Section 48D application, feel free to contact Jim Sacher at Skoda Minotti at 440-449-6800.

You've heard about it on the radio; you've read about it in various newspapers.  The Issue 1 bond renewal, which funds the Ohio Third Frontier (OTF) program, will be on the state-wide ballot on May 4.  Some facts and figures since OTF's inception in 2002:

• 570 new companies created
• Over 300 projects state-wide
• 48,000 direct and indirect jobs created; goal of 96,000 jobs over the OTF period
• Estimated $6.6 billion in economic impact
• $2.4 billion in wages and benefits to Ohioans
• Over 65% increase in private equity investment in Ohio due to OTF
• Since 2000, the number of bioscience jobs has increased by almost 18%

Issue 1 is not a new tax, but rather an extension of a bond issue initially approved in 2005 for $500 million.  OTF funds are highly competitive, and are available throughout the state.  Large, notable beneficiaries of the funds include the Cleveland Clinic Foundation and Case Western Reserve University in Cleveland, the University of Akron, CincyTech and Children's Hospital Medical Center in Cincinnati, the University of Dayton and GE Aviation in Dayton, and the Regional Growth Partnership in Toledo.

OTF supports research, entrepreneurship, private investment, and jobs by focusing on technology and innovation.  Some of the programs OTF funds include:  Advanced Energy, Entrepreneurial Signature Program, and Biomedical Research and Commercialization.

Despite the economic impact, there are numerous barriers to passage: 

• The stigma of "stimulus", and bigger government hand-outs
• The long-term payback of such endeavors
• The need for funds throughout the state for transportation and infrastructure

Microsoft currently offers three Corporate Performance Management (CPM) programs: FRx, Forecaster and Enterprise Reporting, which aid businesses in the areas of financial reporting, planning/budgeting/forecasting, and consolidation. Starting in May 2010, the capabilities of these CPM programs will gradually be combined into one program, Microsoft Dynamics Management Reporter, as part of an integration process that will take place over the next four years.

May 2010 marks the first step of the integration, as Microsoft will stop selling FRx, Microsoft's current financial reporting program, and will replace it with Management Reporter. Both Microsoft and non-Microsoft users of FRx will be asked to purchase Management Reporter in order to access the full range of financial reports and the support that comes with it, or risk continuing the use of their current program without future Microsoft support.

This initial step provides the foundation for future Performance Management functionality. Users of Microsoft Forecaster and Microsoft Enterprise Reporting should expect a similar transition in two and four years, respectively, until Performance Management houses all capabilities of the CPM programs for all Microsoft users.

Companies wanting to transition their data from the FRx program to Management Reporter can find step-by-step instructions on Microsoft's Tips and Tricks.

For more information on the Microsoft Management Reporter program, please contact our Technology Services Group at 440-449-6800.
 

This month's issue of Valuation & Litigation Advisory Insights includes the following articles:

• IP Valuation Using the Relief From Royalty Method
• Valuation Critical Under New M&A Rules
• Putting a Price on Technology

Click here to read this article.

Valuation Critical Under New M&A Rules  

Sweeping changes to the accounting rules for mergers and acquisitions (M&A) will start affecting many companies that are closing deals this year. FASB SFAS No. 141(R), Business Combinations, was issued in late 2007, but it applies to deals closing on or after the first day of the first annual reporting period beginning after Dec. 15, 2008. This article explains how many of the changes prescribed in this 358-page document increase the importance of having accurate valuations.      

Click here to read this article.

Putting a Price on Technology

Valuing technology-related intellectual property (IP) can be an enormous challenge for lawyers and valuation experts. It considers the degree of legal protection associated with technology IP as well as the economic benefits a company is expected to derive from that protection. Typically, valuation experts analyze the various economic benefits associated with a technology IP asset separately, and will use different approaches depending on whether  a patent is associated with developed technology, in-process research and development, or future technology. There are a variety of contexts in which the need to value technology IP can arise.

Click here to read this article.

Prior issues are available at our E-Newsletter Archive. If you would like to subscribe to this free monthly e-newsletter, send an email to info@skodaminotti.com.

If you have any questions about any of these articles, post a comment below or please contact our Valuation & Litigation Advisory Services Group at 440-449-6800.

Internet Explorer users with the Windows XP operating system need to practice caution around web sites that prompt them to press the F1 key (the key for Help) due to a new vulnerability that has been discovered in Internet Explorer. The vulnerability would allow a hacker to highjack your PC if you press F1 when prompted on a malicious web site.

Microsoft issued a security advisory on Monday. According to the advisory, “Microsoft is investigating new public reports of a vulnerability in VBScript that is exposed on supported versions of Microsoft Windows 2000, Windows XP, and Windows Server 2003 through the use of Internet Explorer. Our investigation has shown that the vulnerability cannot be exploited on Windows 7, Windows Server 2008 R2, Windows Vista, or Windows Server 2008. The main impact of the vulnerability is remote code execution.”

According to this article from Computerworld, Microsoft acknowledged that Internet Explorer 6, 7 and 8 users are all at risk.

The article also states that Microsoft has not set a timeline for the fix. The next scheduled security patch from Microsoft is due to be released on March 9.

Until that time, it is highly recommended that Windows XP users do not press the F1 key while using Internet Explorer.

Are you finding it difficult to keep your systems up to date with vital fixes like the one described above? Skoda Minotti’s maintainIT is a comprehensive managed solution that ensures your computer network is being proactively maintained, including installation of Microsoft Updates, by our IT professionals.  For more information on maintainIT or the rest of our Information Technology Services, contact one of our IT service professionals at 440-605-7280.

This issue of Construction Connections includes the following articles:

• 2010 Construction Outlook
• Ten Steps to Safety
• Lost Productivity Damages
• Surety Market Update

The construction market ended 2009 in as bad a shape as it has been in for almost two decades, with non-residential construction plummeting and housing construction at record post-World War II lows. For the overall economy, however, the year ended with a host of indications that recession was morphing into recovery.

Some of the boldest pronouncements came from the National Association of Business Economists (NABE).  NABE conducted its annual meeting in October in St. Louis, and made headlines by declaring that the Great Recession was over. On the heels of their annual meeting NABE published its 2010 outlook. The forecast contained a number of major points:

• Gross domestic product will grow at a 3.2% rate for all of 2010 (this is an upward adjustment from NABE's earlier forecast).
• The jobless recovery will turn to a recovery adding jobs in the first quarter of 2010. NABE's economist panel predicted a decline in unemployment to 9.6% by fourth quarter 2010.
• Household spending will remain sluggish but the housing will gain momentum. Experts forecast a 38% jump in housing starts and an 8% increase in residential investment in 2010 due to low prices and low interest rates.
• Business investment will be the main engine of growth in 2010
• Corporate profits will climb 12.4% in 2010
• The dollar will remain weak. Short-term interest rates will remain below one percent and inflation will not be a problem in 2010.

Click here for more of this article.

Ten Steps to Safety
By Joseph Ventura, Safety Controls Technologies

The construction industry has struggled for many years with the answer to the question, "Can Management Prevent Accidents or Are Workers Responsible for Their Own Actions?" In the litigious society that we live, it has become more important to find someone "at fault" for an accident than it is to find out how we can prevent it from ever happening again.  Consider this:

• 20% of the nation's workplace fatalities occur in the construction industry
• The construction industry has the highest number of occupational injuries - 10% of all industries
• The cost of accidents accounts for approximately 6.5% of all construction dollars spent
• Construction companies with an effective written safety program have 36% lower accident rates, on average
• Maintaining a good safety record for at least two or three years can reduce a company's workers' comp and general liability insurance (GLI) premiums by as much as 40%

Most successful companies subscribe to the theme that "all accidents can be prevented." They institute training and qualification programs, safe performance incentives, and culture change; yet we still see construction accidents that result in lost time, and occasionally death, which is extremely costly in the shortsighted measure of money and, in real terms, impact to the worker's family.

Click here for more of this article.

Constructing a Claim for Lost Productivity Damages
(as seen in our Valuation & Litigation Advisory Insights e-newsletter)

Quantifying the cost of lost productivity when a construction project is disrupted through no fault of the contractor is a difficult challenge. An unanticipated disruption of the project typically causes the contractor to work less efficiently, which can lead to additional labor, equipment and material costs. This article explains that appraisers can use several methods when quantifying lost productivity damages, depending on the particular job's facts and circumstances and also notes that lawyers and damages experts need to work together closely to establish lost productivity and measure it appropriately.

Click here to read this article.

Surety Market Update

In early fall 2009 the National Association of Surety Bond Producers (NASBP) held it national seminar in Washington DC and, as you might imagine, the mood was less than cheery.

The association released its mid-year and 2009 projected results, which showed a 28.9% loss ratio, more than double the loss ratio for 2008. Beyond the negative results, the prevailing feeling that losses will continue to mount throughout the coming year influenced the mood. After five straight years of significant profits the surety industry is bracing for a difficult year in 2010; and it's making the kinds of adjustments that usually accompany a recessionary cycle.

Click here for more of this article.

Prior issues are available at our E-Newsletter Archive. If you would like to subscribe to this free quarterly e-newsletter, send an email to info@skodaminotti.com.

If you have any questions about any of these articles, post a comment below or please contact our Real Estate & Construction Group at 440-449-6800.

Tips 6-10 in our Windows 7 tips series are below. See yesterday’s post for tips 1-5.

Tip 6: Managing Your Windows

•Windows 7 simplifies document and program management by allowing you to “dock” a window or manipulate its size with one mouse maneuver or a simple keystroke.

•To dock your window on one half of the screen, drag it to the left or right and it will change its size to fit that half of the screen.

- To manipulate the vertical size of a window, drag the window to the top to maximize it, or double-click the window’s top or bottom border to maximize it vertically while keeping the same width.

Tip 7: Help the Help Desk Help You

• Solving problems unique to a machine can be an arduous task for both the end-user and the help desk.

• Windows 7 introduces the Problem Steps Recorder, a screen-capture tool that allows the end-user to record the problems they’re having step-by-step.

• The program is accessible from the Control Panel under “Record steps to reproduce a problem” or run psr.exe from Explorer.

• Hit “record” the add in comments as needed. A HTML-based file is converted to a .ZIP folder, which is easily passed on to the help desk.

Tip 8: Sticky Notes Avoid Sticky Situations

• Instead of using paper, use Windows 7 Sticky Notes. Enjoy the variety of seven fun Sticky Note colors by right-clicking the note.

• Need another sticky note reminder? Click the + sign in the top left corner of the existing note to create a new one. To access Sticky Notes, run StikyNot.exe or click Start → All Programs → Accessories → Sticky Notes.

Tip 9: Keep your Data Secure

• BitLocker protection on removable drives is known as BitLocker To Go. When a BitLocker-protected removable drive is unlocked on a computer running Windows 7, the drive is automatically recognized and the user is either prompted for credentials to unlock the drive or the drive is unlocked automatically if configured to do so.

Tip 10: Shake It Up

• Remember the Etch-a-Sketch where you would shake it to make things disappear?
Windows 7 uses the same shake concept to help you manage your windows.

• Windows 7 Aero®Shake allows you to clear the inactive windows from your desktop by “shaking” over the window you’re working. Hover your mouse over the title bar of your active window, left-click and shake from side to side, and all your inactive windows will disappear.

• To bring them back, repeat the procedure and shake everything back into view.

For more information about how we can help your organization transition to Windows 7, please contact Tim Heikkila of our Information Technology Services Group at 440-449-6800.

Microsoft released its 7^th version of the Windows Desktop operating system back on October 22^nd.  Although it is the 7^th version of Windows this number is a little deceiving because there have actually been 25 versions released.  Starting with Windows 1.0 then 2.0, Microsoft release three versions in 3 (3.0, 3.11 & NT).  The first version was released in 1985 but that is enough of the history lesson.

Many of us in the technology industry held our breath to see how Windows 7 would perform in the business environment.  My first response would be “so far, so good”.  Unlike some of the previous bombs like Vista and ME, Microsoft did their homework and created a much more stable operating system that performs quick and user friendly.  I wanted to share my top 10 new feature with Windows 7. 

Tip 1-5 are listed below, click here for Tips 6-10.  

Tip 1: Change the Scenery

•Windows 7 allows you to personalize your desktop background with a new shuffle feature for your desktop.

•You can program your desktop background to shuffle through your favorite images and get a change of scenery as often as you like.

•To enable the shuffle feature, right click on your Desktop and select “Personalize,” then “Desktop Background.” Choose the folder where your favorite images or photos are stored and select as many as you like. Make sure you check the “Shuffle” box, and choose how often you’d like your images to shuffle.

Tip 2: Stay One Click Away From the Programs You Use Most

•You can pin the programs you use most on your taskbar so that you can access them with one click.

•Hover your cursor over the favorite program and drag it to the taskbar, or

•Right click on it and choose “ pin to taskbar”.

•Your program will then be pinned to the taskbar. To open the program, just click on the icon on your taskbar. You can unpin any program at any time.

Tip 3: Keep What You Want Within Easy Reach

•Jump Lists in Windows 7 will help you keep your desktop free of clutter and find files quickly. They’re automatically populated based on how often and how recently you do things, so you’ll spend less time looking for your favorite song or the document you worked on yesterday.

•There’s a Jump List for each program on your Start menu and taskbar.

•With one click you can:

•See frequently and recently viewed Web sites on the Jump List for Internet  Explorer ® 8.

•Drag and drop a file from the Jump List into Outlook ® as an attachment.

•See options to play a recent song or a playlist on the Jump List for Windows Media ® Player.

Tip 4: Aero Peek Your Desktop

• A versatile tool introduced with Windows 7 is the Windows® Aero® feature, “Aero Peek”.

• Click the rectangle in the lower right hand corner of the task bar for quick access to your desktop.

• The keyboard shortcut (Windows key) + Spacebar performs the same function.

Tip 5: Notify Me, My Way

•Windows 7 helps solve more problems, and, solve them on your schedule.

•The Action Center is a new, integrated Control Panel experience that provides a central place to go for tasks and notifications associated with keeping your computer running smoothly.
•You’ll see fewer notifications on your desktop because the Action Center consolidates alerts from ten existing Windows features.

•When Windows 7 needs your attention, you’ll see a new icon in the notification area.

•To find out more, click the icon to see a menu that offers options for directly addressing the issue, or you can go to the Action Center for more details.

•In addition, you can choose which notifications you’re interested in hearing about.

•From the Control Panel go to System Security Action Center and click the “Change Action Center settings” link on the left to choose which alerts to receive.

Click here for tips 6-10. For more information about how we can help your organization transition to Windows 7, please contact Tim Heikkila of our Information Technology Services Group at 440-449-6800.

One of the most dangerous aspects of using wireless networks is exposing yourself to what is known as a “man-in-the middle” attack. It is something you’ll want to consider before you send personal information over a free wireless network at a local coffee shop.

It basically works like this: Two parties communicate with each other over a network. A third party, unknown to the other two, intercepts a message, reads it, redirects it to someone else, or changes the content. If successful, all communications between the two parties flow through the attacker's computer without the knowledge of the users themselves.

There are several precautions you can implement to protect yourself from this type of attack.

• Use a Virtual Private Network (VPN)

• Limit transactions over wireless networks
• Keep connection times short

• Check for the secure connection icon
   

Click here for more details on each of these precautions.

For more information on Skoda Minotti Information Technology Services, contact Tim Heikkila at 440-449-6800 or visit our web site.

In the latest issue of The Boma Magazine (July/August 2009), an article by Stephanie J. Oppenheimer, APR, takes a closer look at green leases (Green Leases: A Study in Symbiosis, p.30).

The most effective green campaigns emphasize two main points: going green will save money and will be a team effort with shared responsibilities and consequences. An increasing number of commercial real estate owners and tenants are looking to green their leases in ways that will reduce costs and provide flexibility and fairness. Green leases are a contractual obligation between a landlord and tenant that emphasizes the conservation of energy and resources to provide a mutual benefit. Dual-incentive green leases allocate capital updates that affect the operating expenses of the facility. Adding a building’s energy performance into the leasing process adds both transparency and accountability to the agreement.

Being green often depends more on operations than on construction, and the lease can help everyone understand the tenant and landlord responsibilities. When attempting to green a building or lease, it is important to know what is going on in your tenant’s business and what works for them as well as to recognize that greening a lease may soon be unavoidable as some businesses turn to using only energy efficient facilities. The cost of retrofitting a building is continuing to drop with improved technology and an emphasis on making green the norm. Additional green products are being offered to reduce the cost of utilities and are becoming more readily available from vendors. When a green lease is done correctly, it is mutually beneficial to both parties.

For more information, please contact Skoda Minotti’s Real Estate and Construction Group at 440-449-6800.

When you read something that says you should secure your network, most business people assume their IT people are taking care of this.  How can you be sure? Answer – you trust them.  Great, but what if they aren’t staying current with technology and are using old techniques…

You may trust them, and they may be doing what they know how to do, but you still have vulnerabilities. In a recent article in InformationWeek magazine – Greg Shipley, Tyler Allison, and Tom Wabiszczewicz write about five essential lessons they learned from real-world problems.

These lessons are:

1.      Get serious about web security.  Make sure the applications that are running on the web are secure.  Just because you have a firewall and antivirus software does not mean that someone can’t attack your web site.  If you have a web site that requires a user ID and password, how difficult (or easy) is it for someone to get access to your environment through this?  SQL injection, brute force, etc.

2.      Add Secondary Controls.  Internal firewalls, encryption, database monitoring software.  Again your internal person may tell you that yes, they are encrypting data on the database, but where is the encryption key?  If the key is on the same server as the data, what is the point in encrypting?

3.      Know your limits.  The ability of attackers is increasing at a faster rate than the ability to stop these attackers.  Even if you have up-to-date antivirus, this will not stop a custom malware.  Enable logs to provide a better view of where attackers went and to what level your environment was breached.  Just remember that they are always trying to find ways into your system and you need to be thinking about ways to keep them out.

4.      Trust but Verify.  Review any third-party system that you own or are about to implement.  Remember to change a default password when deploying anything new.

5.      Plan for incidents.  A security breach can turn into much more than the loss of some data.  Litigations can happen, and if you have rebuilt systems, wiped drives, purged sections of databases etc., finding where the problem occurred and how to prevent it in the future can be that much more difficult.

For more information on Skoda Minotti Business Applications Consulting Services, contact us at 440-449-6800.

Security technology company, McAfee, Inc released its list of most dangerous celebrity search terms. Topping the list this year was Jessica Biel. According to McAfee, searches for Biel have a one in five chance of landing on a malicious web site.

Coming in second place for most dangerous search term this year was Beyonce, followed by Jennifer Aniston, Tom Brady and Jessica Simpson. Brad Pitt topped last year’s list.  

Looking for a way to protect your network from dangerous searches? filterIT is our software solution that provides you with precise control over the infinite variety of Internet content that enters your network. filterIT protects you from dangerous searches:

• URL Keyword Search: New or dynamically changing URLs pass through a rapid keyword search for on-the-fly analysis
• Search Engine SafeSearch Enforcement: Enforces safesearch on all major search engines

For more information on filterIT, please contact Tim Heikkila at 440-449-6800.

Topics: Cleveland Information Technology

If you are like many mobile phone users, you have been subject to annoying spam messages sent to your phone. Looking for an easy way to get rid of these messages?

This article provides a handy guide for AT&T, Sprint, T-Mobile and Verizon users who would like to block spam messages on their phones.

While the problem is not extremely widespread in the US just yet, many international users receive multiple mobile spam messages each day. Follow the directions in the article to stop your mobile spam problems before they really get out of control.

For more information on Skoda Minotti Information Technology Services, contact Tim Heikkila at 440-449-6800 or visit our web site at:

http://www.skodaminotti.com/Services/Informationtechnology/.

Topics: Cleveland Telephone System, Cleveland Information Technology