1. FY16 Controller Call Series
August, 2016
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2. Unit Controller Calls – August 9 & 11th
YE Late Payable Accruals (15 minutes – Steve Dabrowski)
Transversal Finance (40 minutes – Wendy Cano)
Close
Consolidate
Report
Questions
Unit Controller Calls – August 9 & 11th
This call is the second of two Unit Controller Calls for the month of August. The content of both calls is the same. This call is meant to inform the Controller Network about timely topics that impact the controller role. I am CS, coordinator of the UCN call series. Welcome to anyone who is new to this series. Thank you to everyone who has been forwarding….. Now have the ability to develop DL with all in-unit finance roles – new format for FY17
After our call today the presentation materials will be added to the Controller Corner section of the UFS landing / launch page. Our UFS page is new last period. We will continue to use the UFS landing page to communicate out news, alerts, and UFS touchpoints. Scroll to the bottom right corner of the page for Controller call materials from this and all previous months this FY
Unit Controller Call August 2016

3. YE Late Payables Accruals
Steve Dabrowski, Accounts Payable

4. Top Reasons for Late Payments
Invoice received late or not received from vendor
Invoice misplaced/skipped in error
Employee turnover at the unit
Discrepancy between client and Sodexo of who was responsible for payment
Dispute with vendor on invoice
New unit start up
Goods received / Services completed late in month

5. Late Payables Impact Impact: Tracking and Monitoring:
Misstated Financials
Vendor credit holds
Service shut-offs
Increased risk of duplicate payments
Challenges with Billing the Client
Tracking and Monitoring:
Invoice Status Searches Available
Enterprise Portal – Invoice Status Lookup
AP Dashboard – Vendor Invoice Status Search
E=Vision Financial Dashboard – Accounts Payable
Create a purchase log to track from purchase date to payment date.

6. Take Action to Eliminate Late Payables
Paper invoices (non e-Pay/TMC)
Enter in UFS and transmit in the week/period the invoices are dated and 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 in e-Pay/TMC within the week/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 submitted/loaded.
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 final transmission deadline (August 11:45pm ET). This includes electronic invoices for which a missing invoice investigation form has not been submitted.

7. Late Payables Resources
SodexoNet:
Accounts Payable Support Center
Missing Invoice Investigation Form
Search “Eliminate Late Payables”
Invoice Status Lookup Portal
Forms Center – Standard Close Adjustment Form
AP Dashboard via E=nterprise Analysis:
Invoice Register
Vendor Invoice Status
or call:
opt 1, then 2
Accrual Requests – Operations Accounting

8. Questions?

9. Transversal Finance Organization Unit Controller Transversal Update
August 9 & 11, 2016

10. Objectives
Meeting Objectives
Build your understanding of what to expect with upcoming Close process improvements
Answer outstanding questions on the changes and implementation plan

11. Drivers behind Improving Close, Consolidate, & Report
The goal of improving the Close process is to make Close less of an event and ultimately prepare the organization for a smooth transition to a Monthly Calendar Close
Improvement Objectives 1 2 3
North America is the only region not on monthly close
Distribute effort over the period
Build more real time financials
Move to a monthly calendar close by end of FY17
Manual JEs are recorded annually
72,000
58%
of manual JEs are booked during Close
of manual JE lines are less than $10
31 %
of manual JE lines are less than $1,000
83 %
of service tickets are logged at Close
63 %

12. Opportunities to Improve Close, Consolidate, & Report
Project Initiatives H 1 2
26 initiatives aimed at improving the close process were identified and prioritized based on effort and impact
13 initiatives were selected to begin implementation within the next year
3 initiatives were prioritized as “Do Now”:
Daily and Timely UFS Transmissions
Frequent Review of Unit Financials
Materiality Thresholds 10 3 11 12 4 5
Next 1-3 Months 6 7 17 18 8 9 19 20 14
Next 4-13 Months 15 16
Impact M 23 24 21 22
To Be Addressed Later 13 26 25 L H M L
Effort to Implement
Legend:
Legend:
1-3
1-3
Do Now
Do Now
4-13
4-13
Short term
Short term
14-26
16-25
Out of Scope
Out of Scope
Today’s focus is on the 3 “Do Now” initiatives set to rollout in September 2016

13. How the “Do Now” Initiatives Work Together
CCR design is focused on taking the first steps forward to prepare for a Monthly Calendar Close
Initiative #1
Daily UFS transmissions
Operators
Real time data is put in
Catch and fix mistakes earlier reducing the impact of…
Initiative #2
Frequent review of Unit financials
Initiative #3
Materiality Thresholds
More timely reporting is shared back
Updated financial reporting in E=Vision
Finance
All three initiatives help make Close less of an event by reducing peak effort during Close

14. Initiative #1: Which modules to submit daily in UFS?
Submitting daily prepares us for the end of week ending dates in the move to a monthly close
Submit Monthly
Submit Weekly
Submit Daily
If module available in your Segment
Inventory1
Resident Vending
Cash (no change from today)
Warehouse Vending
Billing (Invoices): Contractual2 X
Linen Master
Billing (Invoices): Non-Contractual X
OSI Statistics
Billing Memo3 X
Petty Cash
Accounts Payable: Manual Invoices X
Accounts Payable: UIPS Invoices X
Transfers X X
Change in Recommended Submission Frequency
Not changing the process for UFS transmissions, just changing the frequency of the process
1Poilcy for submitting Inventory is monthly but there may be exceptions
2If bill is prepared
3In Corporate Services and Healthcare

15. Initiative #2: Which items to review in financials?
Units will be expected to review financials more frequently throughout the month
Daily Financial Activity View (DFAV)
AP Register
AR Dashboard
Where?
E=Vision
E=nterprise Analysis
When?
Weekly
Daily
Why?
Identify required adjustments prior to period end
Identify paid invoices that require further attention
Provide input for capitalization
Identify outstanding invoices
What to review?
Re-classes
Labor expense re-classes between cost centers within the Client
Postings from other systems: PCAs, labor expense, depreciation, expense reports, JEs
Paid vendor invoices
Capitalization
Audit and Collections
Review financials more frequently to catch errors earlier and better manage the business

16. Initiative #3: How will materiality thresholds work?
Units should no longer expect to receive accruals for manual JE requests under $2,500
Materiality Threshold
$2,500
JE Total Level by Event (Debits Only)
0.05% Annualized % of $’s booked below threshold1
~22.8M
Annualized impacts of $’s booked below threshold1
Threshold Process
Start Period End
Miss a UFS cutoff
Manual JE request
Inform Requestor of Policy
Book in following period
Below $2,500 threshold?
Exception? No
End
Yes No
Yes
Book
Book
Exceptions will be exclusively:
Contract ending or part of client fiscal year end
System error (first time only)
Account reconciliations
Statutory requirements
Actuals
Statistical entries
End
End
BSC
JE Requestor
If following initiatives #1 and #2 errors should be caught prior to period end
1 Projected based on FY16 Q2. Source: Manual JE Posted SAP extract files for FY16 P4, P5, and P6

17. Testing in Progress What is being tested?:
By moving from weekly to daily UFS transmissions it will be critical to test the following scenarios to ensure the daily transmissions are functioning as desired
What is being tested?:
Accurate date logic and period postings
No data overwrites
Transmitted UFS data reconciles to balances in SAP and EDW
Data is correctly displayed on reports
Feedback will be collected from UFS testers to identify any issues before launch

18. All 3 “Do Now” initiatives will rollout September 5, 2016
Next Steps
Support will be provided starting in August to introduce and support Units, Finance, and the Shared Services Center in the new process changes
Implementation Support
Mid-August
Late August
Early September
October
Introduce and define initiative/s
Provide additional detail to prepare for change
Remind of launch and new expectations
Reinforce new behavior
Transversal mailbox to collect questions
Ongoing governance updates to remind about expectations
Articles and FAQs on SodexoNet
WebEx calls describing changes
Job Aids and Process Flows for support on-the-job
All 3 “Do Now” initiatives will rollout September 5, 2016

19. Frequently Asked Questions
Can I transmit invoices at multiple points in a given week?
Will inventory and payroll still hit E=Vision on Wednesdays?
Other questions?
Before we start an open Q&A - I thought I’d call out a couple of questions that are probably on your mind right now…

20. Appendix

21. The Journey to the Future Close, Consolidate, & Report
The journey to achieve an improved Close, Consolidate, & Report (CCR) process will occur in ongoing steps over the year ahead
Key Goals Through Implementation of Initiatives
Enhance Governance and Accountability
“Do Now” Initiatives
Eliminate Non Value-Add Processes
Distribute Effort over the Period
Winter 2016
Ongoing
Fall
2016
Late Winter 2016
Reduce Manual & Disparate Processes
Talking points: to provide more specifics on what is submitted daily ( and what key metrics can see in financial reporting
Incorporate Right Levels of Financial “Precision”
The “Do Now” initiatives start the journey of making Close less of an event

22. Questions?

23. UFS Application – UFS Landing Page
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. 23

24. 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. 24

25. Resources Questions? Unit Controller Network Call Materials
UFS Launch site
YE Late Payables
opt 1, then 2
Accrual Requests – Operations Accounting
Transversal Finance
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 visiting the Controller Corner on the UFS launch site 25