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Participant material 4.

3: Preparing to meet with clients

Case study information and project issues

Throughout this module you will be working with a case study that will allow you to practice working in teams and solve real life examples of challenges you will encounter on the job. This document gives you information about the client and the work you are doing on this engagement: Memo from your Manager ttachments:

!roject scopes "ompany background #eadership information $ther useful information

Memo from your Manager:

To: Ad isory !enior %e are currently working on two projects with ma&ing "hemicals ' "(. ) was scheduled to meet the "lient !rogram *ponsor 'appointed by the "+$ of "( to provide an update on key issues we are proposing to include in a report to the "+$. ) now need to work on a proposal for a ,lobal !riority ccount- so am asking for your help. " er iew of tas#s .ou are expected to complete four tasks: A $ %e iew the findings generated &y each of the two project teams. /rom the review- you should plan for a meeting with either "0s /inancial *tatement "lose !rocess '/*"!( !roject *ponsor or the 1! of 1endors and !rocurement. ' $ Meet with the (!CP Project !ponsor and )P of )endors and Procurement. .ou are meeting them with the goal of determining the top issues to include in a discussion with the "lient !rogram *ponsor. To achieve this you will need to have a broad2based discussion with the client to validate the issues. C $ *etermine #ey issues for discussion with the Client Program !ponsor. 3eflect on your results to determine the top issues to discuss with the !roject *ponsorremembering that they have very little time. "onsider the "lient !rogram *ponsor0s priorities when determining what to include.

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* $ Meet with AC+s Client Program !ponsor to agree the issues. gree the top priority issues. ) cannot imagine you will have any problems. *ee the attachment below for background information and an article ) found online that you may find interesting. :ind regardsManager PS: I will be meeting the Client Service Partner in two weeks and I am looking for potential information to take to him. Let me know your thoughts.

Attachments: Company background

" is a global chemicals manufacturer- producing industrial chemicals for the automotive industry- for the petroleum industry and for use in household products. "0s corporate strategy is to increase profitable growth by creating bolder- business2led innovations- building capability in developing markets , and being more efficient and effective throughout its operation by consolidating its processes globally- removing cost and reducing exposure to risk.

Mar#et performance
;uring the summer of the prior year 67<<- " revealed that it had overstated net income for the year ended 94 ;ecember 67<< by =7m. " stated at the time this was largely due to incorrectly recording supplier transactions- and in particular to errors in supplier payments and rebates in its automotive division. The incident severely impacted market confidence in the company0s supply chain process and in their wider internal control framework. )n light of recent market turmoil- the investors and market analysts are concerned about the reliability of profits in the automotive industry and remain skeptical that the management team will be able to get a handle on costs >uick enough. The share price has remained volatile since.

"&jecti es and strategies

" has announced plans to increase operating profit by ?@ in 67<<- and also to address ongoing market concerns regarding its internal control environment. "ritical factors to achieving these objectives are sustainable rationali&ation of costs across the enterprise-

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while at the same time managing financial and operational risk more effectively. :ey strategies include: Anderstanding the company0s exposure to risk across the enterprise Transforming the global supply chain functions with the dual aims of increasing efficiency and reducing risk ;elivering timely and reliable financial information both internally and externally ;elivering new )T systems to support the above 3ationali&ing head count

To implement the above strategies- the company has undertaken several initiatives. ;ue to the importance of these the "+$ has appointed the "/$- "hristianB"hristine 3ooney as the program sponsor to oversee the changes. ,ote: "hristianB"hristine 3ooney is the manager of 3obertB3oberta :ane- /*"! !roject *ponsor and *amB*amantha Carbour- 1! of 1endors and !rocurement. These are the individuals you previously interviewed. To support them- they have engaged +rnst D .oung to perform the following projects: review of their *upplier and "ontract Management process across the divisions to support ongoing efforts by management to manage or mitigate significant risks n /*"! process improvement project

IT systems
The company uses a number of software solutions across the group- including a wide variety of off2the2shelf general ledger and accounting packages. There is also widespread use of end user computing solutions such as customi&ed spreadsheets and databasesmost using Microsoft software. !latforms used to host "0s applications are typically servers supplied by "ompa>- )EM and ;ell- with operating systems that include %indows FT- AF)< and $*B877. +ach division utili&es a different suite of applications to support the supply chain- and it is these regional variations that contributed to the financial irregularities reported by the company in 67<<. )n an attempt to introduce consistency across the regional )T environments- " has recently entered into a contract with a global data center provider to support and maintain the company0s )T infrastructure and telecommunications in a number of regional data centers. There are approximately 69-777 users within the company who have permanent access to "0s systems via a workstation or laptop.

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(inance systems
Through mergers and other business combinations- the financial systems in use are made up of a number of older legacy systems that have never been fully integrated. This lack of integration has led to a number of the issues faced by the company today. The company is currently reviewing its )T systems.

/our years ago " ac>uired +G Cousehold )nc. because they were a dominant provider of household chemicals. Most of the post2merger integration was completed successfully within 4H months with the exception of a consolidated finance function. The Cousehold finance team of I? people remains H77 miles away from the rest of the group.

Interesting news: ,ews article: online news: www..wynew.com

li Mehta- president and "+$ of "- the global chemicals manufacturer- today announced that " would be embarking on a supply chain transformation program with the objective of improving the efficiency and effectiveness of the company0s global supply chain. world class supply chain function will result in significant commercial benefits- and will demonstrate to the market that " has a best2in2class control framework in place- Mehta said. Mohammed sif- ")$ "- added that- )n line with "0s strategy to transform the supply chain function- we will focus on automating processes and implementing an integrated global )T solution to support this.

Project scopes
#ast year- we were engaged by " to perform a risk assessment. $ur main findings were in four areas: *trategic 3isk 'not using approved group supplier( /inancial and reporting risk related to suppliers 'failure to account correctly( $perational risk 'loss of money( "ompliance risk 'failure to comply with law(

This led to our engagement for two projects that are currently in progress: (inancial !tatement Close Process /(!CP0 Project

Map current state )dentify key areas of improvement ;evelop future state design

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*et out benefits of the program *cope effort to convert from current to future state Cighlight key program risks )dentify other potential improvements in the overall finance function
!upplier and Contract Management %e iew

3eview control procedures 3eport on areas where the company0s controls may not be ade>uately mitigating
risks Management has also re>uested that we give particular focus to two specific areas: 3aw materials suppliers )T services

These projects have identified significant opportunities for improvement of the /*"! as well as areas of risk exposure in "0s approach to managing suppliers and contracts.

Project issues
$ur work so far has revealed:

4. )ntercompany transactions are not balanced throughout the month and have to be balanced manually at month2 and year2end. 3econciliation is time2consuming. 6. )/3* adjustments are completed by accounting staff at head>uarters rather than at the business unit level. 9. ccounting staff at head>uarters are spending a lot of time calculating interest on company loans. ccounting staff at head>uarters are currently responsible for variance explanations for business units.


?. 3ecurring entries are currently processed manually at the end of the month. =. There is no owner of the ccounting !olicies and !rocedures manual. I. The payroll department is responsible for gaining pre2approval for overtime of all accounting staff and for tracking vacation and sick time.

!upplier and Contract Management %e iew

4. There is no single register of contractsJ procurement managers maintain their own files.
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6. There are concerns over the robustness of the recent selection process regarding the outsourcing of )T data center facilities to a global data center. 9. The contract with the global packaging and distribution company 'used by the household products division( was backdated by several months- suggesting it was not renewed on time. 8. $ne supplier- Fickel and ;ime- has reported that they can see information relating to another supplier when they access the inventory management system. ?. *upplier performance is not being monitored against service level agreements. =. There is no environmental and social responsibility reporting framework for the suppliers to work toward. I. "oncerns have been raised about the company0s ability to track software license entitlements against actual usage. H. The automotive division does not have a formally defined process for awarding a new contract.

Leadership team information

,ame "hristianB"hristine 3ooney 3obertB3oberta :ane *amB*amantha Carbour Mohammed sif li Mehta Title "hief /inancial $fficer '"lient !rogram *ponsor( /inancial "ontroller '/*"! !roject *ponsor( 1! of 1endors and !rocurement "hief )nformation $fficer "hief +xecutive $fficer

'iographical information
To assist you in preparing for your meetings- here is the background information about the leadership team.

Christian1Christine %ooney $ Client Program !ponsor /appointed &y the C2"0

"hristianB"hristine is a charismatic person who enjoys sociali&ing with key clients over a long lunch. *amB*amantha0s much imitated phrase is- The "ustomer is :ing- and that

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means that the most important asset we have is our reputation and relationship with our customer. %e must never tire of servingK "hristianB"hristine has been known to intervene directly in resolving a client issue over >uality of product or service level. CeBshe has a positive attitude about himselfBherself and the company and is not afraid to get involved when heBshe feels it is necessary. CeBshe conducts most of hisBher business out of the office and rarely keeps notes.

%o&ert1%o&erta 3ane $ (!CP Project !ponsor

3obertB3oberta :ane joined the company as the /inancial "ontroller and is the /*"! !roject *ponsor. CeBshe has a cheerful personality- a reputation of being easy to work withand a positive outlook. CeBshe has no problems bringing enthusiasm to everything heBshe does. CeBshe has recently joined the company. 3obertB3oberta has worked successfully with consultants in the past and recogni&es the value of doing a good job.

!am1!amantha 4ar&our $ )P of )endors and Procurement

*amB*amantha is a hands2on accountant who knows everything there is to know about the 1endors and !rocurement within ". *amB*amantha worked hisBher way through college and fought hisBher way up the finance function ladder. CeBshe is >uiet and thoughtful. *amB*amantha has a reputation for working late and making things happen. CisBher staff respects hisBher immense knowledge and expertise and hisBher open and honest viewpoint. CeBshe makes objective decisions based on the facts of the situation.

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