Move Account Reconciliations to the Cloud

Transcription

1 Move Account Reconciliations to the Cloud Corrine E Gawryl Sr. Manager, Finance Systems Barrick Gold Corporation Marc Atos Director, EEA Financial Close and Reporting The Hackett Group Tim Gaumont Director, Product Management Oracle Copyright 2018, Oracle and/or its affiliates. All rights reserved.

2 Oracle EPM Cloud Outperform with Intelligence Align Enterprise Data Operations Completely Agile Reinvent Analytics & Reporting HR Sales Finance Marketing IT Connect all Planning Close with Confidence Copyright 2018, Oracle and/or its affiliates. All rights reserved.

3 Outperform with Intelligence Reinvent Analytics & Reporting HR Sales Align Enterprise Data Operations Finance Marketing IT Close with Confidence Connect all Planning COMPREHENSIVE FINANCIAL CLOSE FINANCIAL CONSOLIDATION CLOSE PROCESS ORCHESTRATION RECONCILIATIONS & COMPLIANCE TAX PROVISION & REPORTING TRANSFER PRICING INTELLIGENT PROCESS AUTOMATION NARRATIVE REPORTING & DISCLOSURES ORACLE EPM CLOUD: Completely Agile Copyright 2018, Oracle and/or its affiliates. All rights reserved.

4 Best In Class Reconciliation Solution Reconciliation Compliance Manage Entire Reconciliation Process Balance Sheet B/S and P&L Variance Analysis Consolidation & other balance checks GAAP / STAT / IFRS / other Ensure Compliance Requirements Transaction Matching Automate High Volume, Labor Intensive, Complex Reconciliations Transactions across one, two, or more data sources Account Reconciliation Cloud Transaction Matching Corp Reconciliation Compliance Copyright 2018, Oracle and/or its affiliates. All rights reserved.

5 Managing Reconciliations Before ARCS After Implementing ARCS Copyright 2018, Oracle and/or its affiliates. All rights reserved.

6 Performing Reconciliations Before ARCS After Implementing ARCS Copyright 2018, Oracle and/or its affiliates. All rights reserved.

7 Oracle Account Reconciliation Cloud Service (ARCS) Partnership. Performance. Value. Oracle Open World October, 2018

8 Barrick Introduction Agenda Legacy State Project Objectives and Implementation Scope Project Approach Planning and Preparation Benefits Realized Continuous Improvement Goals Project Team Structure

9 Barrick Gold Corp. Donlin Gold (50%) 2017 Annual Report Revenue: $8.4B Gold Mined: 5.3M oz Copper Mined: 413M lbs. 10,000+ Employee s Turquoise Ridge (75%) Golden Sunlight Hemlo Barrick Nevada Goldrush/Fourmile Pueblo Viejo (60%) Jabal Sayid (50%) KCGM (50%) Porgera (47.5%) Tier 1* and emerging Tier 1 Strategic and Non-core Assets Copper Assets Greenfields Projects Zaldívar (50%) Norte Abierto (50%) Pascua-Lama Alturas Lagunas Norte Veladero (50%) Acacia (63.9%) Lumwana * Tier 1 assets are defined as large, long-life and low-cost (500K ozs, >10 years, better half of cost curve)

10 Legacy State Inconsistent manual tracking Each country had a different process of tracking reconciliation each month All balance sheet checklists were in different formats Assignee and Reviewer did not sign-off on manual tracking checklists timely Some countries used macro s and these were breaking down and missing accounts that had balances to be reconciled Inconsistent processes Multiple reconciliation templates Lack of standardization globally reconciling the same natural account Not all reconciliations stored in a Barrick public location Different reconciliation due dates by country Different materiality thresholds by country Inconsistent deadlines on resolving reconciling items Audit findings Some countries only reconciled accounts related to SOX/Compliance controls Material reconciling items not reported to Corporate Reconciling items aged up to 10 years

11 Project Objectives and Implementation Scope Project Objectives Implement and configure ARCS to Barrick s new Account Reconciliation and Inter-Company Policy and Standard Reduce processing time of reconciling critical and noncritical balance sheet accounts to achieve the one day close target Standardization and automation of process to improve quality and efficiency of account reconciliation Configure processes with rule-based thresholds for automated certification and risk assessments & Facilitate control process Workflow support for the reconciliation process, monitoring & tracking Profile audit workflow to ensure integrity of system Reduce resources required to perform reconciliation Balance Sheets reconciliations for: 361 Oracle Entities 3 ERP Systems (Oracle-One EBS, Oracle-Copper EBS and Pronto) 14,000+ Reconciliation 9 Countries English and Spanish Language Reconcile all Balance Sheet Accounts in ARCS with automated data loads from the General Ledger and sub-ledgers; AP, AR, FA, and Inventory ARCS system settings, profiles, attributes and reporting Data Management related locations, mapping and automation from source (EPM Automate) Auto Reconciliation rules Implementation Scope Implement global close checklist structure using Close Manager in Financial Consolidation Cloud Service (FCCS) with Smart View capability

12 Project Approach The implementation roadmap was broken in smaller phases with interim checkpoints and aligned with the organization s priorities Phase 1 Phases Balance Sheet accounts in ARCS Q3 17 Q4 17 Q1 18 Q2 18 Q weeks Major Activities Integrate Source Systems to ARCS (GL, Sub Ledger, AR, AP, FA, Inventory) Build ARCS (Auto Reconciliation, Profiles, Reports) Phase 2 Other ARCS capabilities 13 weeks Transaction Matching Intercompany Good Received not Invoiced Credit Data Matching Phase 3 FCM and integrate other general ledgers 10 weeks Implement Financial Close Task Manager Integrate other GL s Oracle Copper and Pronto

13 Planning and Preparation Revise corporate policy and standards for accounts and intercompany reconciliations Developed risk rating by materiality and complexity of accounts Clearly defined due dates for assigned risk ratings Defined auto reconciliation parameters Defined thresholds by account and preliminary rules Clearly articulate the change management processes Data alignment to new policy Assigned risk and threshold ratings at natural account level Future state workshop Defined future state landscape through workshops with Hackett Group Balance Sheet cleansing Leveraged contractor to research pending issues in Balance Sheet and clear all possible reconciling items. This ensured the clarity and cleanliness of data migrated to ARCS GCOA consistency Satellite sites mapped to primary Chart of Accounts

14 Benefits Realized Auto reconciliation templates Balance Compare: Sub ledger to GL reconciliations; AP, AR, FA, Inventory and Intercompany Account Analysis: All other accounts Standardized and optimized processes globally New global intercompany reconciliation process Enforced intercompany policies Built new reports and global variance explanation processes Enabled auto-reconciliation for all variances below $50k Task Manager Standardized global Checklist providing oversight to ensure all critical tasks are completed in Close Manager prior to Corporate consolidation Progressive automation through Close Manager as Cloud Services get implemented 1 Day Close (Future State goal) Established minimum thresholds at natural account level Implemented auto certification functionality Efficiency 14,000+ to 6,000+ Reconciliations by consolidating 47% Automation Data imports fully automated Workflows Structured Deadlines Visibility and Transparency

15 Continuous Improvement Goals Increase automation Achieve 70% increase in efficiency through streamlined data feeds and template structures, currently 47% Automate posting of journal entries directly to EBS after reconciliation Include reconciliations against 3rd Party software Treat systems such as Solium, Concur, Reval (Treasury System) as sub-ledgers and automate reconciliations Automate bank support for reconciliations through Robotic Process Automation (RPA) (Oracle Cash Management Auto Bank Reconciliation implemented) Improve dashboards Develop streamlined process for monthly reporting of KPI s utilizing ARCS BI reporting tool Improve processes Complete account reconciliations in Close Manager using a single process flow

16 Project Team Structure Business Sponsor Julie Robertson STEERING COMMITTEE Julie Robertson Abdul Samad Jeff Davidson Diana Salomon Steve Krause Hackett Team Project Manager - Marc Atos IMT Project Manager Sabina Siluvai Finance BU Lead Corrine Gawryl Technology Champions Cloud Solutions Lead - Sandeep Singh Integration SME - Sanjay Pasricha Integration SME - Craig Phillips Integration SME - Amrita Roy Integration SME - Malango Kachingwe Functional Champions Mariam Beltre (DR) Claudio Noboa (Peru) Marcos Giordano (Argentina) Jorge Montecinos (Chile) Alex Kimario (Saudi Arabia) Temwani Mvula (Zambia) Nick Morobitto (GSS) Alisha Obermeyer (GSS) Edward Uribe (GSS) Project Support Alessandra Sanchez

17 Post-Mortem Lessons Learned Effective Communication Throughout Finance and Accounting Prioritize Data Integrity Align Team Members and Required Skillset Rationalize Competing Priorities Schedule Site Visits Develop Financial Roadmap Post Implementation Measure Success with Key Performance Indicators

18 Copyright 2017, Oracle and/or its affiliates. All rights reserved.

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