1. FY18 Controller Call Series
The presentation will begin momentarily
Welcome to the FY18 Controller Call Series.
this call series –
*created by unit controllers and supported by Finance to review topics and inform the Controller Network about timely topics that impact the controller role.
August 2018

2. Safety Moment (Carla Adams) Q4 Collections (Brad Hamman)
Accounts Payable (Steve Dabrowski)
Deadlines
Accrual Process
Year-end PwC Inventory / Cash Audits (Greg Steele)
Questions
Unit Controller Call August 2018

3. Safety Moment
Carla Adams

4. May 2015

5. Make school bus transportation safer for everyone by following these practices:
When backing out of a driveway or leaving a garage, watch out for children walking or bicycling to school.
When driving in neighborhoods with school zones, watch out for young people who may be thinking about getting to school, but may not be thinking of getting there safely.
Slow down. Watch for children walking in the street, especially if there are no sidewalks in neighborhood.
Watch for children playing and congregating near bus stops.
Be alert. Children arriving late for the bus may dart into the street without looking for traffic.
Learn and obey the school bus laws in your State, as well as the "flashing signal light system" that school bus drivers use to alert motorists.

6. Credit & Collections August 2018
Q4 Collections (Brad Hamman, Dir, FSS Credit & Collections)
Confidential and proprietary to Sodexo. Do not share or post without proper consent.

7. Credit & Collections AT-A-GLANCE
Why focus on Collections?
Monitoring and collecting AR helps to improve the Quality of Life for our operators by identifying and resolving issues timely – plus it just makes good business sense You work too hard to do it for nothing! You earned it, go get it.
Timely AR collections demonstrates responsible oversight for Cash Flow from all levels of management – and is a key measure of Sodexo’s financial effectiveness and success Improve cash flow = Improve Days Sales Outstanding (DSO)
Credit & Collections is part of SIMPLIFY – a campaign that highlights initiatives that improve your Quality of Life at work.
Bill it and Bank It By Q4 Close!
8/31/2018
New Standard for
Managing Receivables
Training and Resources
We want to hear from you!
Review your Open Accounts Receivable at the AR Dashboard
Document AR action plans in E=Business Review
Review Collection Tips and FAQs
Visit the Collection Tips page on Sodexo Net (keyword: Collection Tips)
New Credit and Collections team

8. COLLECT IT! ALERT: Q4 Deadline for AR Collections
AR Payments Must Be Deposited in the Lockbox by 10:30AM (ET) Friday on August 31st
Review your Open Accounts Receivable on the AR Dashboard
Review the Collection Tips
PRIORITIZE your collection efforts from largest to smallest invoice.
FOLLOW matrix below:
REMINDER: Any full or partial payment will tremendously help our cash flow.
If you have Questions Please Contact:
Accounts Receivable Lockbox & Electronic Payment Contact at Financial Shared Services(FSS) Opt. 2, Opt. 2
Tues/Weds, August 28th and 29th
AR Payments over $2,500
Overnight checks to the Pittsburgh, PA lockbox
Sodexo Inc. & Affiliates
Attn:
500 Ross St
Pittsburgh PA
Thursday, August 30th
Overnight checks to the Pittsburgh, PA lockbox; UPS: Select Next Day Air Early delivery
Thursday, August 30Th thru Friday August 31 by Noon EST
AR Payments over $100,000
Call BSC AR at Option 2, Option 2
** Corporate AR and Treasury will attempt to make alternative arrangements for large AR Payments on a best efforts basis.

9. SHARE - WE WANT TO HEAR FROM YOU
Technical issues: Help Desk and follow the prompts to E=Vision dashboard
Functional Issues: Help Desk and follow the prompts to E=Vision dashboard or contact the  E=Vision Reporting team at:
Billing and posting Questions: Please send an to: or call Option 2, Option 2.
Credit and Collections team new

10. Questions?
FY 18 P11 DSO & AR

11. Late Payables

12. Fiscal Year End Highlights
Friday, Aug 31
August 25 – 31, Pd 12 Wk 5
Last Day of Period 12
ONE-DAY Inventory Reporting Window
All Units MUST take a full physical inventory in accordance with AF Topic (found on SodexoNet) and enter results in UFS
Monday, Sept 3
Transmission deadline for week ending 8/31 (BD+1) 11:45PM ET
Tuesday, Sept 4
SAP Processing of August activity (BD+2).
AP auto-accrual of electronic invoices open in TMC/e-Pay starts at 12pm ET
Wednesday, Sept 5
August Financial Close Day 1 – Review Prelim Reports (BD+3)
Thursday, Sept 6
August Financial Close Day 2 – Analyze Financial Results (BD+4)
Friday, Sept 7
Final August statements and client invoices available (BD+5)

13. Take Action to Eliminate Late Payables
Paper invoices (non e-Pay/TMC)
Enter in UFS and transmit daily within the period the goods/services are received.
If invoices are not received timely:
Contact your vendors and request that they or fax outstanding invoices OR
Ask your vendors if they offer an online option for retrieving invoices.
Electronic invoices (e-Pay/TMC)
Reconcile and approve daily within the period the goods/services are received.
If invoices do not appear in e-Pay or TMC timely:
Contact your vendors to determine if the invoice has been sent.
Submit a Missing Invoice Investigation Form (on SodexoNet) – these invoices will be automatically accrued if AP’s investigation has not been completed by period end.
Accrue for open invoices not available by the end of the fiscal period. This includes electronic invoices for which a missing invoice investigation form has not been submitted.

14. Accounts Payable YE Processing Deadlines
Vendor Invoices
Electronic invoices can be approved in TMC or e-Pay through 12:00pm ET on Tuesday, September 4 (BD+2). They will post based on the invoice date as follows:
August invoice dates (or prior) will post to August 31.
September invoice dates will post to the invoice approval date.
Paper invoices can be transmitted in UFS through 12:00pm ET on Tuesday, September 4 (BD+2). They will be posted to the week ending date that is open in UFS.
Concur – Expense Reports and P-Card
Submit all outstanding purchase card transactions on an expense report by August 28.
Accrual (P-card only) includes un-submitted transactions, transactions waiting for approval, and transactions on approved expense reports which have not been released by the Expense Report team.

15. Vendor Invoice Accrual – Standard Close Adjustment Form
Go to the Forms Center on SodexoNet.
Select S under the Alphabetical filter. Apply the filter, then go to page 6.
Download the Standard Close Adjustment Form.
Update the Cover Page tab, then select and complete the Late Payable tab.
the completed form to the applicable Client Services mailbox. The Cover Page tab and Instructions tab have more information if needed.
Important: The $2,500 JE threshold does NOT apply for fiscal year-end.

16. Late Payables Resources
SodexoNet:
Accounts Payable Support Center
Search “AP Support Center”
or call:
opt 1, then 2
Accruals – OA Client Services
Reporting & Analysis:
E=vision
Enterprise Analysis: AP Dashboard
Invoice Register
Invoice Status

17. FY18 Year-End Site Audit Inventory & Unit Fund / Petty Cash Preparation

18. OVERVIEW
On Friday, August 31st Pricewaterhouse Coopers (PwC) 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 31st.
The Auditor will present a business card and/or photo ID upon arrival. Please call the Audit Command Center at 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 documentation remotely.
FY18 Unit Audit Preparation

19. INVENTORY – AREAS OF FOCUS
Audit covers Inventory included on Sodexo balance sheet
Sodexo Owned or Client Owned / Sodexo Managed
Refer to E=Vision on the NorAm Financials tab, in the “NorAm Key Metrics Inventory” box to see if you have a “Total Inventory” balance
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.
Segregation of duties note: count team members should not be involved in data entry work for inventory extensions or Inventory summary report.
FY18 Unit Audit Preparation

20. 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. (After August 31st as the inventory extensions are sent to the auditors)
They will reconcile the inventory extension reports to the UFS Summary Report (must be reviewed/signed by management). (After August 31st as the inventory extensions are sent to the auditors)
Review AF Topic Inventory Control for further information
Key Points are summarized in the Appendix on slides 16 and 17
FY18 Unit Audit Preparation

21. INVENTORY – AREAS OF FOCUS
Invoice Cutoff Testing – To ensure invoices are being recorded in the proper period/fiscal year, PwC will be requesting:
Last 5 invoices for FY 2018
First 5 invoices for FY 2019
Lower of Cost or Market Testing – To ensure the unit is charging a higher price for items then what the unit paid for them (testing 2 items):
PwC will ask for the price the unit paid for a specific item – if using TMC, show price of item in TMC, if not using TMC need to show them the most current invoice
PwC will need a receipt of that item being purchased
FY18 Unit Audit Preparation

22. SIMPLIFY MONTHLY INVENTORY PAGE
Home > Tools & Resources > Tools & Applications > Monthly Inventory
Inventory Success Checklist / Packet Cover Sheet – checklist to ensure you have the required documents. It is located on the “Monthly Inventory” page, outlined in red above.
FY18 Unit Audit Preparation

23. 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 Unit Cash Fund-Petty Cash & AF Topic Unit Change Fund (also see Key Points in the Appendix on slide 18)
FY18 Unit Audit Preparation

24. NEXT STEPS
PwC has notified Sodexo of the cost centers for the announced on-site audits. Those sites should have been notified by their Segment Representatives. There will also be unannounced on-site audits.
Segment Internal Control Representatives will coordinate a conference call for affected GMs, DMs, Finance. This conference call will take place prior to the audit.
PwC 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 (August 7th, 21st, 28th)
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 8/31 if one of your units are chosen
FY18 Unit Audit Preparation

25. Audit Support Center (screen shot)
FY18 Unit Audit Preparation

26. SUPPORT RESOURCES
Year End Audit Support Center on SodexoNet – Review the information posted
“Ask the SME” Audit Preparation Conference Calls – Please Join
Skype Information on SodexoNET, on the Year-end Audit Command Center page
Dates: Tuesday, August 7th 10:00am – 10:30am EST
Tuesday, August 21st 3:00pm – 3:30pm EST
Tuesday, August 28th 10:00am – 10:30am EST
Year-End Audit Command Center
Open Wednesday, August 29th – Tuesday, September 4th
Is a support resource to define/defend and to answer questions prior, during, and after the on-site audits
Command Center toll free number:
Contact your I2C Segment Representative (see list on next page)
FY18 Unit Audit Preparation

27. INTERNAL CONTROL SEGMENT REPRESENTATIVES
Corporate Services / Sports & Leisure / Airline Lounges
Debbie Marin
Universities &
Schools
Pam Spinder
Hospitals
Misty Naumann
Seniors
Janice Sanford
Canada
Srinivasan Sridhar x33345
Government
Teresa Poole x 28217
Katie Hixon (area only)
FY18 Unit Audit Preparation

28. INTERNAL CONTROL / AP / BANKING CONTACTS
Integrated Internal Control Department (I2C)
Greg Steele Chad Mayerhofer
Yvonne D’Aloise
Accounts Payable:
Inventory
Mark Dobosz Shirley Murray
Banking:
Unit Fund / Petty Cash
Jim Doran Chris Kowalski
FY18 Unit Audit Preparation

29. QUESTIONS
FY18 Unit Audit Preparation

30. APPENDIX
FY18 Unit Audit Preparation

31. INVENTORY – KEY POINTS FROM AF TOPIC 832-01
Physical inventory count – MUST be taken on Friday, August 31st:
Ensure 2 employees or managers are scheduled to take count on this date
Ensure that ALL inventory is counted in accordance to AF Topic 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.
FY18 Unit Audit Preparation

32. 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
UFS successful transmission printout
Keep Period/Month-end packet on file in unit or in archive for two (2) years per AF Topic
832-01
FY18 Unit Audit Preparation

33. 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
FY18 Unit Audit Preparation