Unit Controller Calls – June 14th and 16th eTIME moving to Kronos (Arlene Cabrera) YE Audit Readiness for FY2016 (Gregory Steele) ​DFAV / FAR Retirement DRIVE Statistics – UFS Impact Questions Unit Controller Calls – June 14th and 16th Here is what we’ll cover during our time together today: eTime moving to Kronos – Arlene Cabrera YE Audit Readiness for FY16 - Greg Steele, DIR of General Accounting DFAV / FAR Retirement – Xue DRIVE Stats – UFS Impact – Teresa Beehler Unit Controller Call June 2016

FY16 Year-End Site Audit Inventory & Unit Fund / Petty Cash Preparation Note: This Dark Blue background color slide treatment is for projection and print for EXTERNAL Audiences. It may also be used for Internal Audiences when projected on screen. (Do not print this cover for internal audience hand-outs.) June 14th & June 16th, 2016 for Unit Controller Call

OVERVIEW On August 25-26 Pricewaterhouse Coopers (PwC) and Sodexo Group Internal Audit (GIA) will conduct a combination of announced and unannounced audits. Year-end, on-site audits will include a review of: Inventory: the process for Sodexo-owned and client- owned/Sodexo managed Inventory accounts Petty Cash/Change Fund reconciliation to the total on the Balance Sheet. DMs and/or Finance team members will be on-site to support those units chosen for the on-site audits on August 25-26. The Auditor will present a business card and/or photo ID upon arrival. Please call the Audit Command Center at 1-866-372-3165 to confirm prior to start of the audit PwC will be performing additional “desk audits”, where auditors will NOT be on-site, but will perform a review of the inventory support remotely. FY16 Unit Audit Preparation – June 2016

INVENTORY – AREAS OF FOCUS Audit covers Inventory included on Sodexo balance sheet Sodexo Owned or Client Owned / Sodexo Managed Refer to Key Balance Sheet Report (BPR-013) to see if Inventory is listed Ownership is also indicated on the Contract Summary Document (CBBLR-006) Tour of facilities: Auditors will ask for a blank copy of inventory count sheets. They will tour the facility and note any damaged or spoiled inventory, organization of inventory, receiving activity, and overall organization of the inventory count. Observation aspects of audit: Auditors will observe physical inventory count performed by counter and writer on segment cut-off day. Segregation of duties note: count team members should not be involved in data entry work for inventory extensions or Inventory summary report. FY16 Unit Audit Preparation – June 2016

INVENTORY – AREAS OF FOCUS Verification and reconciliation aspects of audit: Auditors will select and recount a sample of items to check counter/writer’s work. They will reconcile inventory item prices used in the inventory extension calculation for reporting final inventory values to The Market Connection (TMC) pricing for in system vendors or the most current vendor invoices for out of system vendors. Keep separate copies of those invoices on hand & easily accessible for the auditor to review. Auditors will reconcile completed manual count sheets to the inventory extension report from TMC/UFS/Excel. They will reconcile the inventory extension reports to the UFS Summary Report (must be reviewed/signed by management). Review AF Topic 832-01 Inventory Control for further information Key Points are summarized in the Appendix on slides 13 and 14 FY16 Unit Audit Preparation – June 2016

UNIT FUND / PETTY CASH – AREAS OF FOCUS The Auditor will ask to be taken to the Cash counting room (location of Safe) and request the Manager to open the safe and pull all drawers, petty cash funds, change funds, vending change funds etc. from the safe. Ensure your Petty cash/Cash Fund is locked in the safe and in a locked room Ensure the room is organized and free of clutter Ensure the safe is not on “Day Lock” The Auditor will then count the funds and reconcile them back to the Balance Sheet totals. Note: The unit manager should be present during the entire time when this is going on. If the cashier drawers are out in the operation, the manager should show documentation of pre-shift count (cashier diary or log signed by cashier attesting to bank count). The Unit Manager should be able to explain any discrepancies if they exist and have documentation on hand for the auditors for any funds in transit (i.e. petty cash log transmitted for reimbursement, cash paid out receipts, etc.) Review AF Topic 621-01 Unit Cash Fund-Petty Cash & AF Topic 622-02 Unit Change Fund FY16 Unit Audit Preparation – June 2016

NEXT STEPS PwC will notify GIA & I2C in early August of their randomly chosen units for the announced on-site audits and desk audits. I2C will notify the Segment Internal Control Representatives who will coordinate a conference call for affected GMs, DMs, Finance and HR to review next steps. This conference call will take place in mid-August prior to the audit. PwC and GIA auditors will be given a letter of introduction and instructions to have the unit manager contact their DM and the Command Center immediately. Where to go from here… DMs should encourage all unit managers to attend one of the SME calls in August Encourage your teams to fully utilize the help resources Verify that your team has completed the appropriate on-line training courses DMs should plan to be on site on 8/25 or 8/26 (based on inventory cut-off) if one of your units are chosen FY16 Unit Audit Preparation – June 2016

Audit Support Center (screen shot) FY16 Unit Audit Preparation – June 2016

Finance Reference Library (screen shot) FY16 Unit Audit Preparation – June 2016

SUPPORT RESOURCES Year End Audit Support Center on Sodexo_Net – Review the information posted “Ask the SME” Audit Preparation Conference Calls – Please Join Conference Line: 866-291-8209, Conference Code: 462 862 0595 Dates: Every Tuesday and Thursday, starting August 2nd – 23rd Time: 3pm – 4pm EST Year-End Audit Command Center Open Tuesday, August 23rd – August 30th Is a support resource to define/defend and to answer questions prior, during, and after the on-site audits Command Center toll free number: 866-372-3165 Contact your I2C Segment Representative (see list on next page) FY16 Unit Audit Preparation – June 2016

INTERNAL CONTROL SEGMENT REPRESENTATIVES Corporate Services Linda Scherger 630-810-1144 x33076 Linda.Scherger@sodexo.com Universities Pam Spinder 800-828-7762 opt 8 x59143 Pam.Spinder@sodexo.com Schools Tanya Prichard 503-290-2048 Tanya.Prichard@sodexo.com Health Care Anne Dzialo 860-325-1219 Anne.Dzialo@sodexo.com Canada Srinivasan Sridhar 905-632-8592 x33303 Srinivasan.Sridhar@sodexo.com Government Jennifer Graesser 716-633-2222 x58898 Jennifer.Graesser@sodexo.com Integrated Internal Control Department (I2C) Scott Brooks 716-650-6940 Greg Steele 716-626-6563 Scott.Brooks@sodexo.com Greg.Steele@sodexo.com Yvonne D’Aloise 716-650-6637 Yvonne.Daloise@sodexo.com FY16 Unit Audit Preparation – June 2016

QUESTIONS FY16 Unit Audit Preparation – June 2016

APPENDIX FY16 Unit Audit Preparation – June 2016

INVENTORY – KEY POINTS FROM AF TOPIC 832-01 Physical inventory count – MUST be taken on segment cut off day: Ensure 2 employees or managers are scheduled to take count on the cut off day Thursday 8/25: Campus Dining, Corp. Services & Vending, Government, Canada Friday 8/26: School Facilities, Campus Facilities, Healthcare, Laundry Last day of each calendar month unless otherwise directed: Schools Food units and Calendar units Ensure that ALL inventory is counted in accordance to AF Topic 832-01 Inventory Control on SodexoNet. This includes items in the kitchen, storage, refrigerators and receiving areas. Reinforce Inventory training with counter and writer on proper counting methods (shelf to sheet, top to bottom, left to right) and required “Do Count”–“Don’t Count” lists by inventory location. Verify Counter and Writer sign and date manual count sheets upon completion of count (must sign first page and/or end of each section on the Market Connection inventory sheets) It’s a good practice to sign all pages Segregation of duties in the inventory process Ensure employees or management are trained and scheduled: Counter and Writer (2 employees) Data Entry person to enter final counts into inventory tool (cannot be counter/writer) Data Entry person to enter inventory extension dollar values into UFS Inventory summary report or Hub Accounting document Manager to review UFS inventory summary report and reconcile it to the final inventory extension total report. Must sign/date and keep on file. FY16 Unit Audit Preparation – June 2016

INVENTORY – KEY POINTS FROM AF TOPIC 832-01 Update inventory item prices used in the extension calculation for final inventory values. Facility units will need to update prices in the entire inventory tool (if not using TMC). Food units will need to update prices in the inventory tool used for non-TMC ordered items (i.e.. Bread, Dairy, Produce). Updates must reflect the most current vendor invoice pricing (invoices from August or most current). Period/Month End Inventory Packet Retention Guidelines Ensure Period/Month end inventory packet contains the following: Physical count sheets signed/dated by counter and writer Inventory extension reports that tie out to UFS Inventory Summary (Reports will be held electronically for TMC inventory tool users) UFS Inventory Summary report signed/dated by Unit Manager Keep Period/Month-end packet on file in unit or in archive for two (2) years per AF Topic 832-01 FY16 Unit Audit Preparation – June 2016

UNIT FUND / PETTY CASH – KEY POINTS Review current Balance Sheet Report for Petty Cash balance Unit Manager should review the Key Balance Sheet Report BPR-013 (Unit Fund balance for prior period) and then reconcile the Unit fund/Petty Cash amounts on hand in the unit to the Key Balance Sheet amount. If there is a discrepancy between the balance sheet and funds on hand, the Unit Manager must contact the banking department and their DM to document the loss/shortage or overage and ensure the proper amount is recorded on the balance sheet prior to year end. Ensure Petty Cash/Change fund is replenished to date The Unit Manager should ensure their petty cash fund is replenished prior to the year end audit. If the fund is not replenished, then the Unit Manager should ensure all documentation of funds in transit are in proper order: Cashier log/diary documenting pre-shift count of drawers Petty Cash log transmitted for reimbursement Cash paid out receipts for emergency purchased items FY16 Unit Audit Preparation – June 2016

FAR Retirement and DFAV Contest June, 2016

Financial Activity Reports (FAR) Retirement Schedule Report Name Report Description Last Weekly Publishing Date   Last Prelim and Final Publishing Date Pd End BPR009-1 Financial Activity Report 6/29/2016 10/6/2016 & 10/7/2016 BPR009-2 Financial Activity Report Internal Rollup BPR010 Financial Activity Report Overhead BPR019-1 Rapport D'Activite Financiere BPR019-2 BPR021-1 Rapport D'Activite Financiare

E=Vision Learning Center

DFAV Contest Get DFAV Savvy Contest launched on 6/13! Weekly quiz for a chance to win $50 Esteem Pass. Two winners per week. 4 weekly quizzes = 4 chances to win! Be on the lookout for communication email from FSI Reporting and Analysis mailbox.

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