1. 2014 Consider Solutions All rights reserved. Solutions for World Class Finance Confidence in Financial Control with ACL Exception Analytics for the CFO 18th February 2014

2. Solutions for World Class Finance Welcome Todays Speakers: 2 2014 Consider Solutions All rights reserved Robin Ashby Practice Leader, Financial Control & Assurance Consider Dan French CEO Consider 3. Solutions for World Class Finance solutions for world class finance Business Streams Financial Control & Compliance Risk Assurance Finance Process Optimization Technology Enablement INFOR Approva SAP Oracle ACL 3 2014 Consider Solutions All rights reserved 4. Solutions for World Class Finance Clients 4 2014 Consider Solutions All rights reserved 5. Solutions for World Class Finance World Class Finance Business Results Cost of Finance Cash flow Risk Management We are all on the road to World Class Finance 2014 Consider Solutions All rights reserved5 6. Solutions for World Class Finance Todays Discussion Introductions & Objectives Visibility over Financial Processes & Controls Lenses of Insight High Impact Analytics with ACL Entry Points for Deeper Insight Q&A 2014 Consider Solutions All rights reserved6 7. Solutions for World Class Finance Survey Question - 1 How would you characterize your data analytics maturity as an organization? 1. No current capability Investigating 2. Early efforts Exploring & Learning 3. Some ad-hoc business wins Value Proven 4. Developing techniques, best practices & organizational capability 5. Mature & sustained organizational capability 7 2014 Consider Solutions All rights reserved 8. Solutions for World Class Finance Financial Control, Assurance & Insight . . . 2014 Consider Solutions All rights reserved8 9. Solutions for World Class Finance What we know, what we think we know and what we need to know Analytics provide insight beyond stratifying, summarizing and reporting data. A tool to leverage change in the business process. A safeguard against misappropriation of assets. Improve the quality of questions asked by management. Isnt this just Business Intelligence? 9 2014 Consider Solutions All rights reserved 10. Solutions for World Class Finance 3 Lenses for Visibility Process & Control ICFR SOX Data Governance Control Self Assessment Risk Assurance Fraud Error FCPA Finance Process Optimization Eliminating Waste Driving Simplification & Standardization Optimizing Cash Flow 10 2014 Consider Solutions All rights reserved 11. Solutions for World Class Finance Survey Question - 2 What is your primary business objective for data analytics? 1. Improving Audit process 2. Improving financial control & management 3. Cash recovery duplicate payments, credits etc. 4. Improving business process insight 5. Business performance improvement 11 2014 Consider Solutions All rights reserved 12. Solutions for World Class Finance Best Practice in Managing ACL Analytics Analytic Objectives the roadmap Business Process Maturity what do you really look at today? Start Small Well built, small analytics convince the skeptic and build credibility Define Success the signs on your roadmap Sustainable Incorporating analytics in the business process. Reporting who, what, when, how, and why 12 2014 Consider Solutions All rights reserved 13. Solutions for World Class Finance Biggest Wins with Analytics Data Quality Duplicate vendors, customers, invoices Incomplete data Risk Access reviews Expense management User provisioning Operational efficiency Revenue recovery Working capital analysis (cash conversion cycle) Inventory movement 13 2014 Consider Solutions All rights reserved 14. Solutions for World Class Finance Example Best Practice Analytics with ACL Order to Cash Customer deduction and payments and A/R subledger analysis. Master Data Review One time vendors, employee-vendor relationships, VAT ID validity, customers with No Credit Limit, Orders over the Credit Limit, Average time to Pay versus the Customer Terms, Inactive Customers, and Customers with No Address. 14 2014 Consider Solutions All rights reserved 15. Solutions for World Class Finance Example Best Practices with ACL Disbursements Summary of payments by vendor, duplicate payments, average days to pay per vendor, payments entered into the system before the invoice document date, payments with no description, and more. User Provisioning Terminations, new users, changes. FCPA Vendor, customer, employee data review 15 2014 Consider Solutions All rights reserved 16. Solutions for World Class Finance Starting from scratch: What to expect Dedicated Analytics team? Specific knowledge of the source data? Expertise with analytic software? (Not Excel) Business Process Owner buy in? Report Consumption who and how often? Process for accepting new requests? Which Analytics to start with? 2014 Consider Solutions All rights reserved16 17. Solutions for World Class Finance Example - Manual Journal Entries BSEG + BKPF sorted on highest dollar amount Combine Header and Detail Record Exclude auto postings Verify local authorization and review process 2014 Consider Solutions All rights reserved17 18. Solutions for World Class Finance Example - Current valid usersexcept 2014 Consider Solutions All rights reserved18 19. Solutions for World Class Finance ..7 terminated employees These accounts had write access to the payroll system, although AD accounts had been disabled, substantial risk remained 2014 Consider Solutions All rights reserved19 20. Solutions for World Class Finance So What? Are you performing the Top 15 Analytics? 1. Top ten expense categories 2. AP Expenses multiples of $10, $100 3. Inactive vendors (within 18 months) 4. Duplicate Vendors (match on address, tax ID, name, vendor #) 5. Employees as Vendors 6. Vendor Payment method non electronic 7. Banned Vendors from OFAC list 2014 Consider Solutions All rights reserved20 21. Solutions for World Class Finance Top 15 Analytics (Cont.) 8. Vendors with excessive invoices for the year 9. Duplicate payments same vendor, amount, invoice #, different date 8. Journal Entries by unusual or generic user names 9. Stratify Inventory movement types 10. Benford analysis of PO amounts 11. User Access terminated vs. current system users 12. CIP with credit balances 13. Employees paid beyond termination date 2014 Consider Solutions All rights reserved21 22. Solutions for World Class Finance Survey Question - 3 What is your highest priority/return business process for data analytics? 1. Expense Cycle Purchase to Pay 2. Revenue Cycle Order to Cash 3. Record to Report GL & General Accounting 4. Anti-Bribery & Corruption 5. Other 22 2014 Consider Solutions All rights reserved 23. Solutions for World Class Finance But its not just about tools . . . . Education Governance Management Process Stakeholder buy-in Ensuring Commitment Roadmap for Analytics 23 2014 Consider Solutions All rights reserved 24. Solutions for World Class Finance Analytics Roadmap Identify existing analytics, script and develop existing data into new data expectations. Include focused process analytics to key business drivers PTP, OTC, FCPA, Revenue Recovery, etc. Knowledge and skill transfer/training, augmentation. Establish an analytics roadmap with base, or next level analytics required by process, group, region, or enterprise. Implement a best practices scalable framework to provide flexible and repeatable data analytics. 2014 Consider Solutions All rights reserved24 25. Solutions for World Class Finance Hits & Myths 1. Analytics are too complicated Analytics are built block by block Start small, understand the discrete processes Share results 2. We can do this internally with our current team It requires time, knowledge and perspective Day jobs trump analytics until they are real Driving acceptance 3. What is the business case for analytics? Process maturity Show me the results Sustainability and cost 2014 Consider Solutions All rights reserved25 26. Solutions for World Class Finance Things to Consider . . . Where are you in your analytics capability today? How well are you doing against your peers? How strong is your business case? What should your next steps be? These are not rhetorical questions ! 26 2014 Consider Solutions All rights reserved 27. Solutions for World Class Finance Review Introductions & Objectives Visibility over Financial Processes & Controls Lenses of Insight High Impact Analytics with ACL Entry Points for Deeper Insight Q&A 2014 Consider Solutions All rights reserved27 28. Solutions for World Class Finance The pessimist complains about the wind. The optimist expects it to change. The leader adjusts the sails.28 29. Solutions for World Class Finance 29 2014 Consider Solutions All rights reserved Any Questions? Enjoy the journey! dfrench@consider.biz Blogerati can visit . . . www.consider.biz/thinking/ @consider_ations #worldclassfinance 30. 2014 Consider Solutions All rights reserved. Solutions for World Class Finance Confidence in Financial Control with ACL Exception Analytics for the CFO 18th February 2014