1. FY19 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.
January 2019

2. Safety Moment (Jill Helms)
Client Penalties (Gerard Cuomo)
Collections – Best Practices (Brad Hamman, Kendra Mailhot)
SoGo Cash Card (Debbie Anderson)
Questions

3. Safety Moment: Distracted Driving

4. Safety Moment: Distracted Driving
DID YOU KNOW
Behind the wheel, nothing is more important than focus. A laser focus on what’s ahead, around and behind your vehicle.
Stay aware of road and weather conditions, traffic, pedestrians, your speed and your need to be in complete control of your vehicle.
Do not take a call, make a call, text, apply makeup, eat, let your eyes or mind wander to other people in your car, or do anything other than focus on your driving.
If any of the above things must be done, pull safely off the road and out of the traffic flow to do them.
Every day people are killed and injured simply because a driver is distracted.

5. Safety Moment: Distracted Driving
WHAT IS DISTRACTED DRIVING?
Distracted driving is any activity that could divert a person's attention away from the primary task of driving. All distractions endanger driver, passenger, and bystander safety.
These types of distractions include:
Texting
Using a cell phone or smartphone
Eating and drinking
Talking to passengers
Grooming
Reading, including maps
Using a navigation system
Watching a video
Adjusting a radio, CD player, or MP3 player

6. Key Facts and Statistics
2.35 million people in the US are injured or disabled by car crashes every year. More than 330,000 of these crashes that cause severe injury are caused by texting and driving.
Five seconds is the average time your eyes are off the road while texting. When traveling at 55mph, that's enough time to cover the length of a football field blindfolded.
At any given daylight moment across America, approximately 660,000 drivers are using cell phones or manipulating electronic devices while driving, a number that has held steady since 2010.
Over half of people surveyed admit they respond to a text message once or more every time they drive.
As of June 2017, 47 states and the District of Columbia had banned texting while driving.
In Alaska, texting and driving can result in a whopping
$10,000 fine!
#ITCANWAIT

7. Client Penalties Policy Update
January 22, 2019
Gerard Cuomo, Corporate Controller

8. Client Penalties – Conceptual Illustration
Sodexo Provides goods and services to its clients. In exchange for these goods and services, Sodexo receives consideration (cash).
Sodexo obtains inputs from Vendors, employees and others in order to produce the goods and services.
Revenue
Cost
Goods and Services
Inputs
Client
Sodexo
Vendors
Labor
Cash
Cash
Cash
When Sodexo delivers consideration to the client, there is a presumption that this exchange is a reduction of the sales price of the goods and services.
This presumption is only overcome if Sodexo receives a discrete benefit for the exchanged consideration (e.g., the client is providing an input).
Client Penalties are instances where Sodexo delivers consideration to the client where Sodexo receives no distinct benefit.

9. Based on Service or Service Delivery
Definitions
Client Penalties: Amounts payable to clients when, in accordance with contractual terms, non-contractual agreement or constructive agreement that establishes specifications, targets and/or thresholds for the services to be provided, our performance of the services fails to achieve those specifications, targets and/or threshold during the period of measurement.
Key Components 1:
Payable to the Client 2:
Based on Service or Service Delivery
Non-contractual agreement: An agreement established in a form other than a commercial contract e.g., a side letter, verbal or non-contract written agreement.
Constructive Agreement: An agreement established by Sodexo's past practice.

10. General Examples For illustration purposes. List not all inclusive
Client Satisfaction
Our contract requires that we survey customers on their opinions of our service quality. If the average survey results fall below an average score of 80, Sodexo must pay the client $25,000.
Service Response Time
Client representatives submit service requests which Sodexo then logs into its work order management system. The time the work order is submitted and closed is tracked. If the average work order time to closure exceeds 2 hours, Sodexo must pay the client $10,000 per hour the average exceeds the 2 hour threshold.
Labor Fill Rate
Sodexo charges the client a fixed price for its services. Sodexo is required to maintain a certain level of full time equivalent headcount (FTE) in order to ensure a certain level of service quality and availability. If the level of FTE dips below a threshold, Sodexo must pay $25,000 per FTE below the threshold.
Fee Guarantee
Sodexo earns a management fee on a facilities management contract. If the total costs of the contract exceed $1,000,000, Sodexo must pay the client 10% of the excess over $1,000,000.

11. Accounting Policy
Client penalties are recognized as a reduction to revenue (a contra-revenue), not an expense.
Client penalties should be recognized when incurred i.e., when it is probable and estimable that the penalty will be payable.
Past practice has been inconsistent. Client penalties were occasionally recognized as expense.
In other words… If current performance indicates that Sodexo will trigger a penalty once that penalty is officially measured (e.g., at the end of a calendar year) and Sodexo can make a reasonable estimate of the value of the penalty, the penalty should be recognized in the current period. It is not necessary for the penalty to be ‘officially’ levied.
Client penalties are recorded to Account:
– Rev Contra – Penalties
RFM0000 (HFM Account for entities not on SAP)

12. Questions?

13. Finance Shared Services
Credit & Collections
Best Practices / Q2 Close
Brad Hamman –FSS Director of Credit/Collections
Guest Speaker
Kendra Mailhot – Unit Controller at Lowell General
1/22/2019

14. Collections Process Plan Do Check Act Plan Do Act Check
Segment Operations and Finance are primarily responsible for collections and contact with client. The FSS Credit & Collections team’s primary role is too assist, train, or coordinate efforts and when needed interact directly with the client as either a fresh voice or a firm hand.
Plan
Evaluate Your Open Accounts Receivable at the AR Dashboard
Prioritize Collection Efforts from Largest to Smallest
Determine Root Causes
Identify Potential Solutions Do
Strategize with team members
Determine roles
Develop and implement action plan
Plan Do
Check
Act
Act
Identify Red flags…see something, say something
Timely follow-up is key
Reach out for help if needed
Check
Measure progress
Ensure payment was received as committed (timely follow up is critical)
Identify lessons learned

15. Best Practices Follow the Collections Cycle – Plan, Do, Check, Act
Keep good relationships with the client and their AP department
Be professional but don’t be afraid to ask questions of the client
Hand deliver accurate invoices and review face to face to ensure all questions are answered
Review your Open AR daily/weekly
Timely follow-up is key
Be aware of Period and Quarter close deadlines (i.e. Collect It)
Don’t be afraid to ask for help
Catering – require a 50% advance deposit (AF Topic Prepayments) and collect balance due at the time of service 

16. COLLECT IT! Method of Payment - Checks
ALERT: Q2 Deadline for AR Collections
AR Payments Must Be Deposited in the Lockbox by Noon (EST) Thursday on Feb 28th
Method of Payment - Checks
Mon/Tues, February 25th and 26th
AR Payments over $2,500
Overnight checks to the Pittsburgh, PA lockbox
Sodexo Inc. & Affiliates
Attn:
500 Ross St
Pittsburgh PA
Weds, February 27th
Overnight checks to the Pittsburgh, PA lockbox; UPS: Select Next Day Air Early delivery
Weds, February 27Th thru Thurs, February 28th 12:00 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.

17. ALERT: Q1 Deadline for AR Collections
COLLECT IT!
ALERT: Q1 Deadline for AR Collections
AR Payments Must Be Deposited in the Lockbox by Noon (EST) Thursday on Feb 28th
Method of Payment – Electronic payment (ACH) 
ACH clear via the Federal Reserve clearinghouse in 1 to 2 business days.
They are not guaranteed to clear overnight.
Tues, February 26th
Determine with client AP whether their bank ACH is 1 or 2 day processing. If 2 day, it must be processed with a value date of Feb 28th by 3 PM EST
Weds, February 27th
If 1 day, it must be processed with a value date of Feb 28th by 3 PM EST
Thurs, February 28th 12:00 EST
** Corporate AR and Treasury will attempt to make alternative arrangements for large AR Payments on a best efforts basis Call BSC AR at Option 2, Option 2

18. 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.
Collections support and advice: Please send an to the Credit and Collections team:

19. Questions?

20. Not just a payment solution
Debbie Anderson, FSS STORED VALUE PROGRAMS
Not just a payment solution

21. What is SoGo Cash Card? Single Card… Multiple Solutions
Replaces paper gift certificates
Sodexo branded gift/spending card
24/7 consumer help desk
Reconciliation supported through Buffalo Accounting & Control – no deferred income logs
Single solution for multiple POS
Reduces cashless transaction fees
Branded consumer web interface

22. Why SoGo? Guest Benefits Sodexo Benefits SoGo Cash Card
Never worry about having cash for on-site purchases
Less risk vs credit card
Manage & protect their balances at SoGoCashCard.com
Variety of automated funding options
24/7 help desk support
No fees, ever
Reduce credit card fees
Quicker checkout
Provides flexible, interoperable cashless solution
Reduces overall cashless transaction fees
Reduces GM administration time, SoGo provides deferred balance sheet
Drive check average
Drive traffic, incremental sales growth, margins, satisfaction
SoGo Cash Card
Guest Benefits
Sodexo Benefits
Client Benefits
Added value & convenience for client employees
Encourages users to stay on site
Perfect for visiting customers & off site employees attending meetings
Provides a turnkey option for on-the-spot employee recognition
Rewards & recognition

23. SoGo collateral –SodexoNet, Print Mgmt, Meyers

24. 80,00 registered card holders
SoGo Fiscal Update
554 active locations
80,00 registered card holders
$13M redemptions
$7M website loads
$3M client funded loads
22%

25. SoGo Swipe Fees vs Credit Card Fees

26. SoGo Cash Card Team Supporting our guests Revenue Acct
SoGo Guest Support
SoGo
24/7 help desk
Check balances by phone
sogocashcard.USA
@Sodexo.com
SoGo Team of Experts
Revenue Acct
Supporting our guests
Help desk languages – English, Spanish & French
FAQ’s on SoGoCashCard.com
Refunds made easy
Live agents 24/7
allows guest to direct connect
AM Ex Fees

27. SoGo Powered By Industry Leaders
The SoGo Cash Card is powered by Bank of America Merchant Services
Bank of America Merchant Services is a global leader¹ in payments, eCommerce and security solutions. It helps clients of all sizes effectively manage and grow their businesses by enabling them to deliver a great commerce experience for their customers. The company processes more than 15.2 billion transactions at approximately 660,000 merchant locations1 throughout the United States, Canada and Europe.
Also powers well-known programs such as the Starbucks Card, McDonald’s Arch Card, and Burger King’s Pay it Your Way Card
On-line payment transactions are processed seamlessly by Payeezy, an industry leader and industry certified solution for secure web based payments.
1 Per The Nilson Report, March 2017,  Issue 1105

28. 2019 Stored Value Goals
Reduce volume of Freedom Pay locations to save clients $$$$
Eliminate use of paper gift certificates
Expand SoGo volume to reduce program costs
Contact

29. Questions?

30. Open AR Report Quick Guide for E=Vision and E=nterprise Analysis
January 2019

31. Slide 3 – Quick Guide for E=Vision Report
Instructions for Generating Open AR Report in E=Vision and E=nterprise Analysis
Slide 3 – Quick Guide for E=Vision Report
Slide 4 – Quick Guide for E=nterprise Analysis AR Dashboard
Report
Both Reports stem from the same data source – choice of which report to use is a matter of preference on report output view
E=Vision Report – takes additional clicks to access the report but once generated, exports to a quick clean format
E=nterprise Analysis AR Dashboard Report – less clicks to access report, generates more data that can then be customized

32. From E=Vision Noram Financials Page
Click on the AR Metric tile (may already be expanded
2) Click on the Daily AR Analytics link at the top right of the AR Metric tile
5) Click on the “Total” line to bring up the invoice level detail below
6) Click on the pdf symbol to export the Open AR
3) Click on any bar in the top graph to Drill to details for that time period
4) From the detail screen change filters as needed and click run

33. From E=Vision home Page:
Click on E=nterprise Analysis and Choose the AR Dashboard
4) Choose time period in page filters or leave as current period default
5) Choose Report Open Accounts Receivable Status by Customer and Click Apply
2) Click on the AR Aging Tab
3) Complete the Dashboard Filters and Click Apply
6) Scroll to bottom of report to print or export
7) Follow instructions in AR Dashboard guide to customize the report

34. Questions
Contact Information
SoGo Cash Cards
Client Penalties
Credit and Collections
Billing and posting Questions
or call Option 2, Option 2.
Collections support and advice
UFS Help Desk (UFS technical support):
(888) options 1, 2, 1
UFS Administrator (general UFS questions):