Case study · Internal control & fiscal oversight

Public payroll audited in real time

An AI-based payroll audit platform — replacing occasional sampling with a continuous second line of internal control, powered by high-performance computing and generative models.

Client: State governments Solution: Analytics + MAIN

Billion-scale volume, oversight by sampling

R$ 30B Annual payroll
R$ 2,4B Monthly average
466k Active public employees
~R$ 210M Potential inconsistencies per year
Challenge

Public payroll is a chronic problem

Payroll processing error rates are estimated at 0.4% to 0.7%. At billion-scale volumes, that means hundreds of millions in annual inconsistencies that traditional auditing never catches.

Non-discretionary spending

Personnel costs are mandatory — they can't simply be cut.

External factors

Court rulings and index revisions have a constant impact.

Fiscal pressure

Variable revenue against fixed spending — an explosive combination.

Demographics

Demographic shifts put pressure on public employee pension systems.

Legislation

The complexity of state legislation, especially where it changes over time.

Data quality

An employee's career history sits in silos — which blocks the 360° view.

Approach

Five things that set Vert apart

  1. Experts in state legislation — a tailored approach, with rules organized by business experts.
  2. A continuous second line of control — rather than an occasional sampling exercise.
  3. Distributed in-memory HPC — billions of historical records evaluated with fast response times.
  4. End-to-end integration — from data acquisition to the auditor's screen.
  5. Generative AI — structuring court cases, official gazettes and personnel records.
Methodology

Techniques combined into one consolidated score

Classification models

External data

Text mining

Relationship network

Geolocation

Deep learning

Anomaly detection

Business rules

Autonomous decisions

Operational scope

Alerts in production

  1. Record integrity — are these people alive? Are there material inconsistencies? 1.7% of records show registration inconsistencies.
  2. Exclusive-dedication allowance — cross-checked against official gazettes and court cases to validate approvals.
  3. Death, termination and special allowances — automated alerts across every payroll cycle.
  4. Pay items under continuous control — excused absences, base salary, seniority bonuses and transport allowance.
  5. LLM for data extraction — 57,090 files processed and 14,489 people correlated in a single pass.
Architecture

An end-to-end platform

From the sources (official gazette, the e-SAJ court system, personnel records, mainframe and the payroll system) to the data lakehouse (Bronze · Silver · Gold), with a vector database + LLM for extraction, audit AI agents and presentation to the auditor — all with native governance, observability, orchestration and security.

Continuous auditing, not sampling

Find out how much your organization loses to inconsistencies the traditional process never sees.

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