1. 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

2. 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

3. OVERVIEW
On August 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
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 support remotely.
FY16 Unit Audit Preparation – June 2016

4. 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

5. 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 Inventory Control for further information
Key Points are summarized in the Appendix on slides 13 and 14
FY16 Unit Audit Preparation – June 2016

6. 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
FY16 Unit Audit Preparation – June 2016

7. 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

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

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

10. 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: , Conference Code:
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:
Contact your I2C Segment Representative (see list on next page)
FY16 Unit Audit Preparation – June 2016

11. INTERNAL CONTROL SEGMENT REPRESENTATIVES
Corporate Services
Linda Scherger x33076
Universities
Pam Spinder opt 8 x59143
Schools
Tanya Prichard
Health Care
Anne Dzialo
Canada
Srinivasan Sridhar x33303
Government
Jennifer Graesser x58898
Integrated Internal Control Department (I2C)
Scott Brooks Greg Steele
Yvonne D’Aloise
FY16 Unit Audit Preparation – June 2016

12. QUESTIONS
FY16 Unit Audit Preparation – June 2016

13. APPENDIX
FY16 Unit Audit Preparation – June 2016

14. 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 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

15. 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

16. 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

17. FAR Retirement and DFAV Contest
June, 2016

18. 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

19. E=Vision Learning Center

20. 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 from FSI Reporting and Analysis mailbox.

21. Questions?