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.
I am CS, w/ Financial Shared Services (FSS), coordinator of the CN call series, and your host for today.
To anyone new to Network - *Welcome to this call series.
To invite others from your team to the network, send me an to add to the DL, or simply forward invites for topics that impact team roles.
July 2018

2. Safety Moment (Jill Helms) Q4 Collections (Brad Hamman)
External Brand Reporting (Nick Lewandowski)
Accounts Payable (Steve Dabrowski)
Late Payables
Inventory
Record Retention
Year-end PwC Inventory / Cash Audits (Chad Mayerhofer, Yvonne Daloise)
Questions
Today’s call is the first of two Unit Controller Calls for the month of July. The content of both calls is the same.
Please use the chat, or conversation, function at the lower left of the Skype screen, to ask questions as we proceed through the agenda.
We will pause for your questions between each topic and also at the end of the presentation.
Unit Controller Call July 2018

3. Safety Moment: Hurricane Season

4. Hurricane Preparedness – Safety Tips
Always have these on hand for an emergency:
Plenty of water
High-energy foods such as peanut butter, unsalted nuts, health-food bars and trail mix for 3 days
Canned or powered milk and other canned foods
Flashlight and batteries
Cash
Manual can opener
Sheet pans and heavy-bottomed pan that
can be placed on a grill (fuel and cooking
utensils)
Matches in sealable plastic bags
Paper towels, plates and plastic utensils
Safety Moment

5. When a Hurricane Approaches
When hurricane watches are issued, follow these tips:
Gas up all vehicles
Follow all evacuation orders
If you are not ordered to evacuate and have a generator, make sure you have ample gas supply and that it is in working order
Make arrangements for pets to be boarded in safe locations or prepare pet supplies
Secure hurricane shutters and put plywood over windows
Tie down everything outside that cannot be taken inside
Anything outside that can be stored, put in a locked shed, garage or other secure location
Cover pools, outdoor vehicles and other items with securely fastened tarps to minimize damage
Prepare a safe location in an interior, ground floor room with few or no windows to wait out the storm if your area is not ordered to evacuate
Always stay indoors during the storm, especially during the “eye” of the storm
Hurricane by American Red Cross is a hurricane tracker app available for iPhone and Android. Use it to monitor conditions in your area throughout the storm, get tips to prepare your family and home, find help and let others know you are safe. ‎
Safety Moment

6. Credit & Collections July 2018
Confidential and proprietary to Sodexo. Do not share or post without proper consent.

7. What is OnGuard?
OnGuard is a cloud based Credit and Collections management software solution currently used by Sodexo in other countries.
OnGuard is expected to be expanded for use as the primary collection software globally in the 2 years.

8. Q4 Collection Plan FY 18 Q3 DSO & AR Collect It (& Bill It) eBulletin
June
July
August
Week 3 6/18
Week 4
6/25
Week 1 7/2
Week 2 7/9
Week 3 7/16
Week 4 7/23
Week 1 8/1
Week 2 8/6
Week 3 8/13
Week 4 8/20
Week 5 8/27
eBulletin
eBulletin
eBulletin
Collect It (& Bill It)
Ramesh
Ramesh
Segment Leader
Segment Leader
Unit Controller calls
SIMPLIFY – Y/E $$
SIMPLIFY – Y/E $$
University – Client Advances
FSS AR to lead the Action Plan with Management Accounting , Operations and FSS C&C – Bill It & Collect It!
Utilize OnGuard
FSS C&C using OnGuard to: ) initiate collection 2) track payment commitments and 3) follow up with critical Clients.
Initiate collections of Large Invoices
FSS C&C will use OnGuard to identify large invoices and initiate collections (& tracking).

9. 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

10. Plan Do Check Act Collections Process Plan Do Act Check
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

11. 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

12. 3
Q&A
Julie

13. National Brands Overview Presented by Brands Accounting
This Photo by Unknown Author is licensed under CC BY-ND

14. Agenda Who and What is Brands Accounting? The Reporting Process
The Agreements
Terminations
Summary
Q&A

15. Who is Brands Accounting?
Brand Accounting is a function of the Client Accounting Dept. located in the Buffalo Financial Services Center
Brands Accountant: Nicholas Lewandowski, Specialist
Contact Number: (716)
Brands Group Mailbox:
Brands Management:
Emily Haskell
Don Wood & Susi Epps
Kathleen Pianka
Jennifer Schmalz
You can call me using my direct line, if you get voic , please leave a message with your contact information, cost center number, and nature of the call.
Or you can using the New Group Mailbox, this mailbox was setup to improve communication for Brands related matters and provide additional support/coverage from Client Accounting .
June Just, my wonderful boss oversees the activities related to Brand Accounting.

16. Introduction to Brands Accounting
What is a Brand?
How many Brands are there?
What are the top 3 Brands?
The segments that use Brands the most are Education, Hospitals, B&I, and Government
Brand Website
Brand Information
What is a Brand? A brand is a restaurant / eatery that Sodexo operates, as part of a licensee agreement, very similar to a Franchise / Franchisee agreement
External Brands = 70
Internal Brands = 14
Top 3 Brands:
Starbucks
Chick Fil-A
Einsteins & Noah’s

17. Always use the Brand general ledger accounts setup for each BRAND!
Reporting Brand Sales
Always use the Brand general ledger accounts setup for each BRAND!
The specific brand sales accounts are setup to calculate Royalties automatically and remit payment.
Always report sales under the correct cost center
Perform transfer journal entries (TJE) as needed
It is extremely important to use the Brand General Ledger accounts to report sales activity for each Brands. For Brand Sales – Its all about the Royalties!
Accurate Sales = Accurate royalties
Many of the large Brands (SBUX, Subway, Chick Fil A) have specific sales account numbers setup.
For smaller Brands, ex. Godfathers, Coffee Bean & Tea, and Fresh City, a generic account number could be used. In this case, Brands Accounting could work with your Unit to ensure that a specific sub-unit is reflected with these sales.
Prepare transfers from one cost center to another cost center weekly, specifically the following Monday. When month-end includes a stub-week, please ensure that Brand sales are transferred and included in BD+1 transmission deadline.

18. Brands Agreements New Cost Center: Tracking and Monitoring:
Brand Signed Agreement on File
License Fee
Royalty Set-up
Provide G.L accounts to report activity
Brands Accounting should receive proper Unit #
Tracking and Monitoring:
Report activity Daily
Compare sales reported by Brand to UFS
Check DFAV for expense account that states Royalty activity
Important Note: If your Unit has Client Commissions, you must verify that anything which needs to be Commissionable is added to Commission set-up.
It is important that a Brand Signed Agreement is received by Brands Accounting
Brands Accounting will notify Units of correct sales account numbers to use
**Once brands agreement is signed, we still need to pay license fee, even if it is ahead of opening date
License fees - Typically Brands Accounting enters license fee into Fixed Assets and requires DM approval. Finance approval if its 10k or more.
We recommend that each Braded concept must have a specific sub-unit
If you need to request a new sub-unit (guide them to PACCC tool)***If no access, contact DM.
If there is a replacement brand, please make sure to use a new sub-unit
Ex: Subway is closing and Sub-Connection will be replacing it
Royalty set-up - This will be done by brands Accounting
Once royalty is set up:
Begin reporting Brand activity daily in UFS each day.
At the end of the week, complete the Brand sales report required by the Brand
When doing this, a couple things to check:
Compare the Brand sales report to the Brand sales entered in UFS. These amounts must match.
Check DFAV for your Units royalty expense. .
If you do not see this expense, please notify our department to set up Brand royalties.
Important Note: If your Unit has Client Commissions, you must verify that anything which needs to be Commissionable is added to Commission set-up.

19. Brand Termination
Notify Brands Accounting & Brands Management when a brands agreement is going to be terminated.
Termination letters need to be sent to the Brand immediately.
There is a risk Sodexo will be liable to pay royalties on estimated Sales if an official termination letter is not received by Brand

20. Common Issues & Improvement Suggestions
Reporting variances between Brand & Cost Center
Providing the proper training regarding reporting
Estimated sales from Brands
Use temporary closing dates
Stub Week vs. Regular Week
Reporting to Unit vs Brand
Variances noticed
I send a monthly sales file to each Brand to support the royalty payments. This monthly report needs to match the weekly sales report that each unit sends to Brand.
Discrepancies between the two sales amount cause issues with applying the payment and generate questions from the
Brand.
Once sales are entered into UFS for week, please use those exact sales figures to report to Brand
Training Issue: There maybe separate staff employees reporting activity to Brand and entering sales into UFS.
Please reinforce the process at Unit to record & transmitting brand sales which match the amount of sales reported to the Brand.
“Think Daily”
If a sales transfer or adjustment is needed for month end close, prior to close, please reach out to Brands Accounting
For Subway and Starbucks units, please work with Brand coordinator to ensure sales are sent to Brand timely. Many Brands will estimate sales when they don’t see actual sales. The sales estimates always create discrepancies.
Note: this is where termination letter is important
Always report temporary closing dates to Brands Accounting and Brand. You can enter temporary closing dates in PACTOOL portal.
Food Court – the brand and copy brands
If temporary or permanent closing dates are not sent to Brand, the Brand will estimate sales, as they are under the assumption Brand is still operating at Unit.
Stub week vs regular week
Please ensure your unit is reporting sales for actual stub week, i.e 2/25-2/28 & 3/1-3/2.
We noticed some Units only report activity to Brands for a full week Ex. 2/25-3/2. this should be broken into two stub weeks.
Include copy of FY18 and FY19 Calendar
Refer to SodexoNet to download the monthly fiscal calendars:

21. Summary
Contacts
Proper reporting
Agreements
Terminations
Temporary Closings

22. Any Questions?

23. Late Payables
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.)

24. Late Payables Impact: Tracking and Monitoring: Misstated Financials
Vendor credit holds
Service shut-offs
Increased risk of duplicate payments
Tracking and Monitoring:
Invoice Status Lookup Portal (external only)
AP Dashboard Vendor/Invoice Search Tab (internal only)
Create a purchase log to track from purchase date to payment date.
Hello, my name is Steve Dabrowski and I’m with the Accounts Payable department. Thank you for this opportunity to discuss some year-end items with you. I’m going to start with information regarding late payables. This is not new information or a new process but a continued effort to minimize the impact of late payables on our financials and daily activities. Unfortunately, over the past two years the year over year trend of late payables has been unfavorable so please make late payables reduction a top priority if you are not already.
Late Payables Impact:
Misstated Financials – When referring to a late payable the focal point is the financial impact. Because the invoice was not submitted in the period the goods or services were received our financials are not accurate for the current period and therefore misstated. We average over $20M in late payables on an annual basis and average about $12M in accruals. So we have $8M of opportunity to further reduce late payables, through timely payment and accruals.
The remaining impacts listed stress the past due element where we did not pay the vendor within the agreed upon payment terms. Vendor credit holds and Service shut-offs create business interruption which sometimes affects all units using a vendor because they may place the entire Sodexo account on hold if the past due balance grows large enough. And Duplicate payments often occur when a persistent vendor has contacted both the unit and AP about an invoice or has sent multiple copies to the unit.
Tracking and Monitoring:
Invoice Status is available to vendors on the Vendor Invoice Status portal where they can confirm if an invoice was submitted for payment. For electronic invoices additional statuses are available indicating where the invoice is in the process – Point vendors here and ask them to follow up with you on open invoices.
Enterprise Analysis & E=Vision – AP Dashboard offers reporting that can assist with tracking invoices that have been approved for payment both electronically and manually entered. E=vision offers late payables metrics and trend information that is helpful to identify challenges and areas of improvement. A tracking tool that includes action planning to improve late payables is also available.
Another effective option is to create a Purchase to Pay tracking log. This provides assurance that all goods and services ordered, were received, and processed for payment. Be sure to include such things as routine maintenance and subscriptions as these often get forgotten. This tracking helps to organize your AP activities and gives you quick visibility to outstanding invoices at the end of the period. Your tracking log could also be quickly converted into an accrual request at month-end.
Let’s move on to the actions needed to eliminate late payables.

25. 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.
Here are the basic steps for timely submission of vendor invoices.
For electronic invoices, please utilize the Missing Invoice Investigation Form. This form can be used to document and track invoices that are missing from TMC or e-Pay.
For e-Pay, our recommendation is to wait at least 5 business days after the delivery date before submitting an investigation form.
For TMC, the TMC home page on SodexoNet includes a section called Supplier Information. Here you can find a complete list of approved TMC suppliers, as well as an “estimated invoice receipt timeline in TMC”. This timeline is helpful in determining how many days to wait before a missing invoice investigation form should be submitted. If you are still uncertain, follow the same guidelines as suggested for e-Pay - 5 business days after the delivery date.
To get status on a missing invoice investigation form, please send an to AP EDI Administrator.
If AP is unable to complete their investigation by the end of the period, AP will accrue for the invoice. The Missing Invoice Form now includes a field for GL account. The GL account entered when completing the form is the account that will be used for the accrual. AP sends a communication at the end of each month informing cost centers with open missing invoices that an accrual will be posted.
Following these steps are an important part of ensuring that our financials are accurate. Not receiving an invoice is not justification for leaving an invoice unprocessed. Please follow up with the vendor for the invoice or accrue as needed.

26. 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.
All vendor invoices received must be processed by your final transmission. If an invoice is received after the final transmission, the standard Close Adjustment form should be submitted to Client Services team so the invoice can be accrued. Remember for year-end the $2500 JE Threshold Does Not Apply. Considering the year ends on a Friday, you have the weekend to finalize your final transmission.
Each period outstanding purchase card transactions are accrued to miscellaneous expense. The accrual posts in the last week of the period and includes un-submitted transactions, transactions waiting for approval, and transactions on approved expense reports which have not been released by the Expense Report team. This accrual reverses in the first week of the new period. To ensure your costs are recorded accurately for the end of FY18, submit any outstanding purchase card transactions on an expense report by 8/28/18.
Include all open transactions on one report. There is a $1.51 fee charged by Concur for each report submitted. Managing how your P-Card transactions are submitted on expense reports will keep these costs down. For example: If you are spending less than $500 per month, it is recommended to submit one expense report per period. If you are spending more the $500 per month, it is recommended to submit a report weekly.
Please refer to AF Topic Sodexo Purchase Card or contact with any questions.

27. Late Payables Resources
SodexoNet:
Accounts Payable Support Center
Search “AP Support Center”
or call:
opt 1, then 2
Accruals – Operations Accounting
Reporting & Analysis:
E=vision
Enterprise Analysis: AP Dashboard
Invoice Register
Invoice Status
On this slide are some resources that are currently available on SodexoNet, including the contact information for the AP dept and the AP Support Center. Don’t forget to save it as one of your quick links! On the Support Center page, you can find links to all of your AP needs. These links are also available on the UFS and TMC landing pages.
For TMC/e-Pay invoices, please use the AP EDI Administrator group mailbox. For paper invoices, please use the A/P Unit Processing group mailbox.
Historically, late payables are the most prevalent in Period 1 of a new fiscal year. This is due to the fact that many purchases are made in preparation for the new year, but they go unprocessed. Please keep the information that we covered readily available for your reference, so that we can lessen the impact of late payables on our financials this year.

28. FY18 Year-End Inventory Tips
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.)

29. INVENTORY BEST PRACTICES (GENERAL)
All Inventories must be taken on the last day of the month (Fri, Aug 31)
First recorded Inventory for FY19 is Friday, September 7. Can be a full bottoms-up inventory or if no action taken, Aug 31 balances will carry-forward in UFS/SAP
GM Should ensure that a copy of AF Topic , “INVENTORY CONTROL” is available at each site. Policy is available on SODEXONET
Any items that should not be included in the Unit’s inventory totals should be clearly labeled as “DO NOT INVENTORY” by the Unit GM
GM must ensure proper Segregation of Duties between the counters and recorders of the inventory and of data entry person
Pricing of Inventory items must reflect most current “Market Connection” prices or most current manual invoice prices if non-TMC products
All inventory sheets must be signed by the counter and recorder of the inventory. GM is responsible to produce all signed sheets if requested
UFS Inventory entries must equal “Inventory Extension Report” totals
GM/DM should verify Inventory totals in e-Vision and perform trend reviews to prior month, quarter, and year results to ensure reasonableness and accuracy
FY18 Unit Audit Preparation

30. INVENTORY – WHAT TO COUNT (Tips)
Physical inventory count – MUST be taken on Friday, August 31st:
SUPPLIES: Unopened containers of supplies such as Cups, Napkins, Trash Bags, Cleaning Products
DRY STORAGE: Individually wrapped muffins, Individual bottles or Cans of soda or water, Unopened canned goods, unopened case of fruit, Open Bulk Cereal (estimate % full), bags of coffee, sealed beverage
FREEZER STORAGE: Unopened box of Frozen Chicken, Steak, or Pork products (Proteins), Sealed bag of Hot Dogs/Hamburgers/Sausages, Sealed bag of frozen vegetables,
COLD STORAGE: Full case of Lettuce, Sealed packages of deli meats or cheeses, unopened containers of dairy products, entire packages of meats that are defrosting or marinating
Opened liquor bottles are to be inventoried by tenths (10th) of a bottle.
Pay careful attention to the Unit Of Measure of each item that you are counting to ensure that it is consistent with your Inventory Control Sheet.
FY18 Unit Audit Preparation

31. INVENTORY – WHAT NOT TO COUNT (Tips)
SUPPLIES: Stacks of unwrapped Cups, Napkins, Trash Bags, Cleaning Products; open case of pizza boxes; cleaning products in use
DRY STORAGE: Opened loaves of bread, Opened trays of muffins, Opened packs of coffee or hot chocolate, Opened canned goods, Open bag bulk chips or cookies, Partial case of whole fruit
FREEZER STORAGE: Opened box of Frozen Chicken, Steak, or Pork products (Proteins), Open boxes of frozen rolls (Not individually wrapped), Partial bag of Hot Dogs/Hamburgers/Sausages, Opened bag of frozen vegetables,
COLD STORAGE: Partial packages of Lettuce, Opened packages of deli meats or cheeses, Partial containers of dairy products and condiments, Opened packages of meats in the freezer, Cut fruit or fruit on display in Cafe
Deposits on bottles or Cans
GM to separately locate and label items to not include in inventory if possible
FY18 Unit Audit Preparation

32. Record Retention
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.)

33. Record Retention – Missing Docs
Scan and Print and Mail: OR

34. Record Retention – Closed Units
Closed Unit Guidelines
1. Refer to the Retention of Records Policy CP-134
2. Documents must be boxed in storage boxes (Office Depot Part# )
Do NOT use copy paper boxes, banana boxes, liquor boxes, etc. The storage facility will re-box and charge back all labor for these boxes to your unit
3. Boxes must be marked with Unit Number, Unit Name and a brief description of the contents (EX: Cash Receipts January thru May 2015)
4. Do not send any paper work that has previously been sent to the FSC (EX: Unit Transmittals, Cash Management, etc)
5. Tape down lids on all boxes prior to shipment
6. Fill out the 1e690 Form and to:
7. Contact Aaron McFarland or Chris Lepovich prior to shipping any boxes
8. Please do NOT send the following items such as:
Unit Transmittals (These should have been previously mailed into Records Retention)
Cash Mgmt (These should have been previously mailed into Records Retention)
Financial Reports (Ex: printed from COLD)

35. FY18 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.)

36. 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

37. 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

38. 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

39. 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

40. INVENTORY – CHECKLIST
Inventory Packet Cover Sheet – helpful document to ensure you have everything…click link for file:
..\Inventory Packet Cover Sheet_tcm pdf
FY18 Unit Audit Preparation

41. 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

42. NEXT STEPS
PwC will notify Sodexo of the cost centers for the announced on-site audits in a couple weeks. Those sites will be 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

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

44. Monthly Inventory – Simplify (screen shot)
FY18 Unit Audit Preparation

45. 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

46. 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

47. 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
FY18 Unit Audit Preparation

48. QUESTIONS
FY18 Unit Audit Preparation