1. FY19 Controller Call Series
The presentation will begin momentarily
Welcome to the FY19 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 2019

2. Safety Moment (Corinne Szabo) Credit & Collections (Brad Hamman)
PwC Year-End Site Audits (Yvonne Daloise, Chad Mayerhofer, Greg Steele)
Late Payables / AP Record Retention (Steve Dabrowski)
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.
As employees of Sodexo, no matter what level, you are expected to personally demonstrate your commitment to improving our health and safety culture. Our goal is zero accidents. A Safety Moment during every meeting will demonstrate the importance of the health and safety culture at Sodexo.
Unit Controller Call July 2019

3. Safety Moment – Quick Share
Lanyard injuries
The wearing of identity and security lanyards is a common requirement. Lanyards are an important security device which help to identify authorized employees and visitors.
Be aware of some safety risks associated…..
Common use at Sodexo site, regardless of your role.
Be aware of safety risks associated…………… especially when worn during travel in vehicles fitted with safety airbags!!!

4. Safety Moment – Quick Share
Public authorities have issued warnings about serious accidents (non-Sodexo) where the wearing of identity lanyards around the drivers’ necks has caused serious injury when airbags have been activated in an accident.
WHAT DO WE NEED TO DO?
Raise awareness of the risk of injury from wearing lanyards when traveling in vehicles fitted with airbags.
Take a precautionary approach and remove lanyards when traveling in vehicles
In the UK, one driver was involved in a minor car accident and was wearing their company lanyard and pass. The car airbag was deployed on impact and the force of the airbag caused the lanyard and pass to be pushed into the drivers chest, causing a lung to collapse and hospital treatment required.
In another accident, a hospital worker attached keys to her lanyard for medicine cabinets, lockers, etc. Unfortunately, she also had a crash that triggered the airbag. The force of the airbag caused the keys to perforate her bowel. She was in the hospital for over 6 weeks.
Year-To-Date Sodexo colleagues have been involved in 40 vehicle accidents

5. Use TOOLS & RESOURCES on SodexoNet to access this “QUICK SHARE” and many others

6. Credit & Collections July 2019 Brad Hamman, FSS Credit & Collections
Confidential and proprietary to Sodexo. Do not share or post without proper consent.

7. 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)
Bill it and Bank It By Q4 Close!
8/30/2019
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

8. Best Practices
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
Make sure any unapplied credits/payments get posted
Any incorrect invoices need to be cancelled and rebilled promptly
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 

9. ELECTRONIC (ACH) PAYMENTS
ALERT:
Quarter 4 Deadline for AR Collections for Electronic Payments (ACH)
ACH payments clear via the Federal Reserve Clearinghouse in 1 to 2 business days, they are not guaranteed to clear overnight.
DETERMINE WITH CLIENT FINANCE / AP WHETHER THEIR BANK ACH IS 1 or 2 DAY PROCESSING
Important Dates
Action Information
If ACH is 2 day processing, it must be processed by them by August 28th, with a value date of August 30th by 3pm ET
2 Day ACH:
Wednesday August 28th
If ACH is 1 day processing, it must be processed by them by August 29th with a value date of August 30th by 3pm ET
1 Day ACH:
Thursday August 29th
Sodexo AR and Treasury will attempt to make alternative arrangements for Payments $100K and greater. Call the BSC AR Department at option 2, option 2 or the Credit and Collections Department at:
Friday August 30th

10. Must Be Deposited in the Lockbox by Noon (EST) Friday August 30th
US CHECKS COLLECT IT!
ALERT:
Quarter 4 Deadline for AR Collections for CHECK payments sent to Lockbox
Must Be Deposited in the Lockbox by Noon (EST) Friday August 30th
Lock Box address:
Sodexo Inc & Affiliates
Attn:
500 Ross St
Pittsburgh, PA
Telephone (412)
Total Check Amounts
Important Dates
Action to Take
Total Checks greater than $2,500
Friday August 23 - Tuesday August 27
Overnight checks to the Lockbox address above with 2 day delivery
Wednesday August 28 and Thursday August 29
Overnight checks to the Lockbox with Next Day Air EARLY AM Delivery
Total Checks greater than $100,000
Thursday August 29 and Friday August 30 before 12:00 PM EST
Call the BSC AR Department at option 2, option 2 or the Credit and Collections Department at:

11. CANADA Checks COLLECT IT!
ALERT: Q4 Deadline for AR Collections
AR Payments Must Be Deposited in the Lockbox by 10:30AM (ET) Friday, August 30th .
If you have Questions Please Contact:
Accounts Receivable Lockbox & Electronic Payment Contact at Financial Shared Services (FSS) Opt. 2, Opt. 2
Treasury Contact Paul Brock, Sodexo Corporate Treasury Department,
Weds, August 28th
AR Payments over $2,500
Overnight checks to the Don Mills, ON lockbox
BMO Wholesale Remittance Processing Services
4 Prince Andrew Place (Loading Dock 4)
Don Mills, Ontario M3C 2H4
Attn: T57840C – Sodexo Canada Ltd.
Thursday, August 29th
Overnight checks to the Don Mills, ON lockbox for AM delivery
Friday, August 30th by Noon, ET
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.

12. 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:

13. Questions?

14. FY19 PwC Year-End Site Audit Inventory On-site & Desk Audits
Yvonne Daloise, FSS Integrated Internal Control

15. OVERVIEW
On Friday, August 30th or Saturday, August 31st Pricewaterhouse Coopers (PwC) will conduct a combination of announced and unannounced audits.
Year-end Inventory audits will include the process for Sodexo-owned and client-owned/Sodexo managed Inventory accounts:
On-site Audits: PwC Auditor will be physically at the unit to conduct the inventory audit.
Desk Audits: PwC will not be at the unit. These audits will include a review of the inventory documentation remotely.
Since August 31st falls on a Saturday this year, only units that are closed for business on Saturday are allowed to take their physical inventory count on Friday, August 30th after operations close for the day.
We recommend DMs and/or Finance team members to be on-site to support those units chosen for the on-site audits when possible.
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.
FY19 Unit Audit Preparation

16. 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.
FY19 Unit Audit Preparation

17. 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 17 and 18
FY19 Unit Audit Preparation

18. 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 2019
First 5 invoices for FY 2020
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
FY19 Unit Audit Preparation

19. INVENTORY AUDIT – Best Practices
Make sure that the inventory is taken after your last meal is served to ensure matching of Sales with COGS & Inventory
M-F Units: take inventory Friday after last meal served
7 day Units: Either Saturday after last meal or Sunday (with BSC apprvl)
Ensure that all inventory sheets are signed by both the counter and the recorder (must be different for Segregation controls).
Call the command center immediately if your Unit is supposed to be audited by PwC, but the Auditor hasn’t shown up at the designated time
Have a copy of the Inventory Policy and 10 Golden rules available on-site for easy and quick reference
Ensure that items not to be counted are clearly identified and segregated
Ensure pricing of inventory is consistent with TMC costs
FY19 Unit Audit Preparation

20. INVENTORY AUDIT – Best Practices (Continued)
Review inventory results against prior financial results by using data and KPI’s identified in e-Vision:
Examine trends of COGS % to Revenue
Review DoH calculation and inventory value trends
Review trend results with site Management to understand fluctuations and reasons
Obsolete, spoiled, and damaged inventory should be clearly identified and separated from inventory
GM to ensure that inventory count sheets are properly costed and values are accurately recorded on UFS
FY19 Unit Audit Preparation

21. INVENTORY MANAGEMENT PAGE - SODEXONET
Home > Tools & Resources > Guidelines and Standards > Operations > Accounting, Finance and Insurance > Inventory Management
FY19 Unit Audit Preparation

22. INVENTORY MANAGEMENT PAGE - SODEXONET
Record Retention Packet – checklist to ensure you have the required documents. It is located on the “Inventory Management” Page, at the very bottom. Outlined in red below.
On-site & Desk Audits – Units will provide all of these “Required Documents” from PD12 FY2019 to PwC.
FY19 Unit Audit Preparation

23. NEXT STEPS
PwC has notified Sodexo of the cost centers for the announced on-site audits. Those sites should have been notified by their Segment Representatives. There will also be unannounced on-site audits.
Segment Internal Control Representatives will notify the units and coordinate a conference call for affected GMs, DMs, Finance if needed. 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 8th, 20th, 27th)
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 during the audit if one of your units are chosen
FY19 Unit Audit Preparation

24. AUDIT SUPPORT CENTER - SODEXONET
FY19 Unit Audit Preparation

25. 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: Thursday, August 8th 10:00am – 10:30am EST
Tuesday, August 20th 3:00pm – 3:30pm EST
Tuesday, August 27th 10:00am – 10:30am EST
Year-End Audit Command Center
Open Wednesday, August 28th – Tuesday, September 3rd
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)
FY19 Unit Audit Preparation

26. INTERNAL CONTROL SEGMENT REPRESENTATIVES
Corporate Services / Sports & Leisure / Airline Lounges
Debbie Marin
Universities &
Schools
Pam Spinder
Hospitals
Misty Naumann
Seniors
Janice Sanford
Canada
TBD
Government
Teresa Poole x 28217
Katie Hixon (area only)
FY19 Unit Audit Preparation

27. INTERNAL CONTROL / AP CONTACTS
Integrated Internal Control Department (I2C)
Greg Steele Bob Borrelli
Chad Mayerhofer Yvonne D’Aloise
Accounts Payable:
Inventory
Mark Dobosz Shirley Murray
Please call the Command Center if you are unsure about anything inventory related or regarding any part of the audit.
FY19 Unit Audit Preparation

28. QUESTIONS
FY19 Unit Audit Preparation

29. APPENDIX
FY19 Unit Audit Preparation

30. INVENTORY – KEY POINTS FROM AF TOPIC 832-01
Physical inventory count – MUST be taken on Saturday, August 31st, unless your unit is closed for business on Saturday. If closed on Saturdays, the inventory count can be taken after operations close on Friday, August 30th.
Ensure 2 employees or managers are scheduled to take count on this date
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.
FY19 Unit Audit Preparation

31. 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 Record Retention Packet 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
UFS successful transmission printout
Keep Period/Month-end packet on file in unit or in archive for two (2) years per AF Topic
832-01
FY19 Unit Audit Preparation

32. Late Payables
Steve Dabrowski, FSS Accounts Payable, Invoice Processing

33. 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.

34. 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.

35. Accounts Payable YE Processing Deadlines
Vendor Invoices
Electronic invoices can be approved in TMC or e-Pay through 12:00pm ET on Tuesday, September 3 (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 3 (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 27.
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.

36. Vendor Invoice Accrual – Standard Close Adjustment Form
Go to the Forms Center on SodexoNet.
Select S under the Alphabetical filter. Apply the filter, then go to page 6.
Download the Standard Close Adjustment Form.
Update the Cover Page tab, then select and complete the Late Payable tab.
the completed form to the applicable Client Services mailbox. The Cover Page tab and Instructions tab have more information if needed.
Important: The $2,500 JE threshold does NOT apply for fiscal year-end.

37. Late Payables Resources
SodexoNet:
Accounts Payable Support Center
Search “AP Support Center”
or call:
opt 1, then 2
Accruals –
Reporting & Analysis:
E=vision
Enterprise Analysis: AP Dashboard
Invoice Register
Invoice Status

38. 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.)

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

40. Questions?