1. FY16 Controller Call Series
February, 2016
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2. Annual Inflation Price Adjustments (Danielle Leach, OA)
Supplier Governance (Carol Smith, FSI)
AP Interactive Dashboard Demo in E=nterprise Analysis (Xue Atherton, FSI)
Questions
Agenda
Unit Controller Call Series

3. Inflation Price Adjustments
Feb, 12th 2016
Intro – Who am I? Why Am I talking today?, What will I cover?

4. What is Inflation Price Adjustments (IPA)?
Responsibilities
Contract Language
Working Together

5. What Is Inflation Price Adjustments?
Inflation Price Adjustment (IPA) is an adjustment to our financial terms based on normal inflationary pressures on prices. It may be calculated according to:
An Economic Index, such as Consumer Price Index, All Urban Areas (CPI- U), CPI - Food Away From Home, Producer’s Price Index (PPI), Employment Cost Index (ECI),
CPI-U is no longer the preferred index. All new contracts must have PPI or CPI – food way from home.
A flat rate (e.g. 3%),
Actual costs,
Be strictly based upon negotiations between Sodexo and our Client (‘based upon mutual agreement’)
If you are negotiating a new contract/amendment make sure the most recent boiler plate language is being used. Work with your Finance Team to decide before going to your client.
Boiler plate language – CD&M

6. Responsibility At A Glance
Operations & Finance
Review Notifications for upcoming increases; communicate as necessary with cost centers
Communicate with the client in advance
Tell O/A about any changes (upcoming amendments, anticipated waivers, etc.)
Implement billing changes after receiving new rates from O/A (field billing)
Negotiate terms of increases that are ‘by mutual agreement’ and get proper documentation for it
Operations Accounting (O/A)
Track the units with this language, track waivers and overrides
Provide reporting and statistics quarterly to Finance
Calculate Financial changes and impacts (no retail)
Calculate Retro billings
Implement billing changes (Buffalo Billings)
Notify Field Billed cost centers of New Rates
Provide support to the field side of the process
Provide Notifications to DM level (or higher, depending on Division) of pending and past due increases

7. Notification
Each Period, Operations Accounting sends out a notification file listing upcoming inflation increases
This Excel file contains the dates increases are scheduled to happen, the rate type (if applicable), whether mutual agreement or the like is required, and so on.
For DMs/RVPs: When you receive file share it with you team, so they can be begin to prepare to discuss the increase with the client.
For GMs/Controllers: Ask your DM/RVP to alert you if your client(s) are on the notification file.
Coming soon – alternatives to notification

8. Navigate Annual Increases
When the terms of the contract allow for an increase annually, we all need to strive to implement the increase each year.
The IPA team will implement systemically unless other factors are involved in the process:
For cost centers with wage language, we will use the Merit increase details from Human Resources.
For cost centers requiring mutual agreement, we’re looking for an amendment or document of agreement.
If an increase should not be done an approved waiver is required.
CD&M’s involvement is to help increase awareness and compliance to our contract terms. We need to strive for Annual increases.

9. Understanding Where the IPA Data Comes From
Contract Language – spells out inflation index to use
Human Resources– Merit data
Economic Data File – On SodexoNet from Treasury, based on data from BLS
- Search “Economic Data File”
Spreadsheet with most common inflation index tables
Bureau of Labor and Statistics (BLS)– – for less common Indexes
O/A has historical records of these in case we need to look back on them. The Economic Data file also contains historical CPI data

10. Contract Language Example 1
2.4 Contract Price Adjustment. Commencing December 3, 2014, and annually thereafter, the Contract Price (excluding the component for Sodexo employee wages) shall be increased by at least the percentage increase in the Producer’s Price Index (PPI) for the prior twelve (12) month period. The adjustment for Sodexo employee wages shall be based on actual Sodexo performance rating increases.
The Breakdown:
No Mutual Agreement Language – will be done upon due date
HR provides the merit increase data
To determine Wage and Non-Wage Components of Contract Price, we refer to the contract to see if a breakdown of the contract price is provided
If provided, we use the breakdown given in the contract
If not provided, we determine the breakdown based on actual expenses from the last 12 periods
For Example, if wages are 60% of total expenses, the contract price is assumed to be 60% wage, 40% non-wage
Calculate Monthly/Period/Biweekly billing and update templates or send to field

11. Contract Language Example 2
Inflation Adjustment. The General Support Services Allowance and Management Fee shall be increased by the percentage increase in the Consumer Price Index averaged for the prior twelve (12) month period or four percent (4%) whichever is greater.
The Breakdown:
No Mutual Agreement Language – will be done upon due date
Economic Data File
Since CPI is less than 4%, then 4% is used
This increases the fee by 4%. For Example, the GSSA at the unit is $1,000 per week. The new GSSA calculation is $1,000*.04 = $40, $1, $40 = $1,040 per week
<<Walk through this example using the Economic Data File>>

12. Contract Language Example 3
B. The Charge for benefits pursuant to Section 4.3.B.2 of this Exhibit shall increase by a percentage equal to the percent of change in the Employment Cost Index-Benefits, Private Industry, All Workers for the previous quarter.
The Breakdown:
No Mutual Agreement Language – will be done upon due date
Economic Data File
This Increases our Fixed management benefit percentage by ECI. Example: FMB of 34%, ECI is 2.37%, then .34*.0237 = , = 34.81%
– Let’s look for the ECI table this time
<<Walk through this example using the Economic Data File>>

13. Contract Language Example 4
4.7 Inflation Adjustments. Commencing July 1, 2010, and annually thereafter… The Management Fee shall be increased by an amount to be mutually agreed upon in writing by the parties.
The Breakdown:
“mutually agreed upon in writing by the parties.” requires a signed/counter-signed document by authorized signatories of both companies.
An from the client is not an acceptable document
Increase will be implemented by the O/A Client Quality Control team when dually signed document is received.
In this case copy the IPA team mail box as well

14. Hospitals & Senior Living
Waiver Approval
Segment Approval Levels:
Regional VP
VP of Finance
Hospitals & Senior Living
SVP of Operations
Universities
Division President
Market CFO
Corporate Services
Waivers not typically used
Schools
SVP of Finance
Canada

15. Working Together
Working together is vital to reducing client exposure and implementing a timely and accurate inflation increase.
Field billing can be complex, and a breakdown of certain charges maybe needed to process the inflation increase.
Timely communication on waivers
IPA will reach out to contact at billing location to increase rates in UFS. If this is not done, it will cause UFS billing compliance issues, balance sheet issues, or cause audit flags since billings are not being create per the most recent contract terms.
Check in with your DMs/RVPS (ask for the notification file) or send request to IPA team to be added to distribution list.
Many GMs and Unit Controllers are caught unaware when inflation changes are made.
Controllers know the field billing the best. We need you help with make sure any updates are accurate.
The last thing anyone wants s client exposure. If an increase gets processed and then has to be removed it causes retro billing and I’m sure more questions from the client.

16. Questions? In Outlook: Noram BSC CPI bsccpi.noram@sodexo.com
Contact the IPA Team
In Outlook: Noram BSC CPI
Ask questions – We’re here to help!
Use the group box for the fastest turnaround
Call the BSC at , option 8 (Operations Accounting), 8 digit unit number, option 3
Questions?

17. Unified Invoice Processing System (UIPS) At-A-Glance
Why UIPS is Important
Go-Live
Jan 18
Avoid invoice frustrations and delays
Save time
Save money from processing paper invoices
UIPS Benefits
We utilize many non compliant suppliers preventing us from optimizing our supply chain.
We spend approx. $1M annually processing manual invoices.
Our manual invoice processes are inefficient.
Take action to review TMC and/or e-Pay invoices daily
Be on the lookout for information requests from Accounts Payable related to e-Pay and TMC invoice corrections and rejections and assist with resolving any open items.
Review the UFS Launch Site and TMC Homepage for updates
If contacted, complete the Supplier Governance Survey within 10 business days
Move your unit’s purchasing to a compliant supplier
What You Need to Do
What You Should Know
UIPS is an invoice routing system
We will continue to use existing invoice reconciliation systems (TMC & e-Pay)
We will continue following our existing process of enabling suppliers on a monthly basis
There will be new standardized processes for: Setting up new suppliers & Issue resolution
Supplier Governance will support UIPS by transitioning from non compliant to compliant suppliers and enabling electronic invoicing
List of all electronic suppliers
UIPS Vendor Request
Invoice Status Lookup Tool
Missing Electronic Invoice Investigation Form
My Supplier Locator Tool
Actionable Reports by Market Page
Supplier Governance FAQs
Tools/Resources on Sodexo Net > UIPS
Highlights to be noted:
UIPS is an invoice routing system and units will continue to utilize TMC and ePay for invoice reconciliations and approval
We will now have a centralized invoice error correction team made up of representatives from AP, IT, and Supply Mgmt Master Data Mgmt team
UIPS went live on Monday, January 18th
Client Procurement Services Call Center (CPS): (866)
Electronic Supplier Invoicing Team:
Accounts Payable Support Center
Supplier Governance Team:
Contact Us

18. Supplier Governance Project Update & Next Steps for 2016
February 2016

19. Supplier Governance Survey Update
Where are we in the SG Survey Process
NorAm unit survey response: 91% complete
Follow up will now focus on suppliers: Suppliers with 0% responses will be moved into deactivation process
Where We Are
Units using suppliers with 0% survey response will be notified
If you need to continue using those suppliers, a survey must be completed
Who is Involved
Units that have requested continued usage of a supplier and have NOT submitted the required documentation, will be notified and expected to comply in a timely manner
What is Needed
Submitting non-compliant suppliers for deactivation
Process of preparing first round continued use requests for Supplier Governance Committee
Next Steps
Proprietary and Confidential

20. Unit Controller Call: AP Interactive Dashboard Demo
February 2016

21. Share the purpose of Brio migration to new system and timeline
Objectives
Share the purpose of Brio migration to new system and timeline
Outline plans for communications and training
Demo the new AP interactive dashboard
Discuss your role

22. The Big Picture Reporting Strategy Benefits
Change
Management
Chart of Accounts
Rationalization
Standardization
Master Data
Governance
PC/CC
Close Process
Same Day Edits
SCAS multiple times a day
Scanner Sweeper
HFM Mapping & Reporting
Reporting Rationalization
Static Reporting
Dynamic Functionality
Dynamic Utilization
Reporting Standardization
KPIs/KRIs
Business Review Process
Consistent Package
Better match of information needs
Increased speed-to-Market of quality information
Increased accuracy
Increased time for analysis
Improved comparability of business performance
Advancement of strategic objectives
Less dependence on AMRs
Benefits

23. Moving from Static Reports to Interactive Dashboard
Seamless integration to E=Vision
Dynamic and user friendly
Easy access to multiple line of site data
Replaced 16 unique AP reports.
Example:
APR022D – accounts payable daily invoice register direct unit x 30 days x 18,000 direct units = 540,000 reports in a month

24. Other Benefits of the AP Dashboard
Nightly refresh
Three years history plus current year
More advanced technology
Support a nightly update of the Accounts Payable data in the Enterprise Data Warehouse. You will now have access to any new AP data posted during the previous day.
Ender users have three years of history plus current year.
Focused on the conversion of current end-of-life reporting environments (Brio portal) to a more advanced and interactive reporting environments including E=Vision and E=nterprise Analysis (Oracle Business Intelligence Enterprise Edition).

25. End-User Testimonial
“I LOVE this application. So much information without clicking through Brio and I have history with just a drop down instead of a download cart.  This also should take the place of BIQ for AP, especially once I learn the search.”

26. Timeline and Communication – AP Dashboard
AP dashboard is scheduled to go live 2/25/2016
List of static reports that will be phased out
UAT
AP dashboard live
Release virtual training
Provide time slots for live demo/ Q&A sessions
Additional guide in AP dashboard in E=nterprise Analysis
Publish retirement plan each report with its last published date in the Brio portal
Final communication 4/1
Last report publish 4/6
Live Q&A

27. Training - AP dashboard
Release virtual training on day of go-live (you’ll have access to both Brio and new dashboard for a short period of time)
2. FAQ’s and AP dashboard guide available in the AP dashboard
3. Live Q&As in Month of March

28. AP Dashboard Demo
Live Demo in QA

29. Share this upcoming change and the benefits with your fellow operators
Your Role
Share this upcoming change and the benefits with your fellow operators
Take the upcoming training and encourage GMs to do so as well

30. Questions

31. UFS Application – Controller Corner
Be sure to access the UFS launch site – scroll down to the lower right corner to access “Controller Call Corner.”
Presentations are loaded to this site for distribution. 31

32. Annual Inflation Price Adjustments bsccpi.noram@sodexo.com
Questions?
Annual Inflation Price Adjustments
Call the BSC at , option 8 (Operations Accounting), 8 digit unit number, option 3
UIPS
Supplier Governance:
General Inquiries:
E=nterprise Analysis
Thank you for your participation, your time, and for your support of this very important call series.
Resources for the topics covered on today’s call are listed here.
Copy of today’s deck can be obtained by ing UFS Administrator mailbox 32