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Finance at Microsoft:An Inside Look
Robert M. WeedeAssistant Corporate Controller
Finance at Microsoft: Our Vision
Elevate the role of the finance organization to be leaders in shareholder value creation for Microsoft
Expectations of FinanceNo material weaknesses or significant deficiencies at any period-end
Rapid response to remediate deficiencies
Control improvements = Process improvements = $$
Efficient implementation to minimize external audit costs
Sustainable processes
Continued commitment to internal controls by operational and financial management
Controllership PrioritiesOperational Excellence
Financial Leaders
Drive Shareholder Value
Culture of Teamwork, Respect and Growth
Deliver world-class finance and global services that maximize shareholder value while living Microsoft values
Rhythm of the Business – Another View
Other Info
Week 1 Week 2 Week 3 Week 4
GL Closed Day 4
General Ledger Closed
Controller & CFO Reviews
Drafting of SEC Report
Drafting of Earnings Release
Financial Statement Analysis
Disclosure Committee Meeting
CEO Certification
Audit Committee
10Q Filed; ER Publishe
d
Distribution of Drafts 4th Thursday
Key Challenges
Close Process
Calendar managementAccount reconciliationsSupport documentation and retention Issue managementWorkflow managementInbox managementInformation access
Reporting Process
Workflow managementSupport documentation and retentionComment resolution Version controlAuditor managementStatutory compliance Inbox managementInformation access
The Ideal Solution
Flexible
Out of the box
Simple enough to not need IT help
Online environment for distributed access
Real time – “Live”
Process-oriented, not person-specific
Ability to integrate controls
Secure
Close And Reporting Management:Current State
Single point of collaboration for all group activities
Dash board view for management
Close Management SharePoint Site
Default view – custom task list in calendar view filtered by user
Calendar Management
Workflow Management
Shared Documents
One location to contain and display common/supporting document for sharing (“One version of the truth”)
Document retention for audit trail
Status
Review
SOX Controls
Technology is embedded in the process (support attachments, evidence of completion, and review)
ResponsibilityTask
Task List
Individual Task
Comments and links as needed
Support as attachments
Helps ensure completion of all required disclosures
Supporting documents are attached to tasks to facilitate review/sign-offs/audit trail/retention
Aids both internal and external auditors in their review
Review Comment Management
One location to enter all review comments/ questions and assign as tasks for resolution
Document retention for audit trail
One Calendar
One calendar to display all close events and activities
Facilitates process flow and due dates
Integration With Outlook
Synch Outlook with SharePoint calendar
for seamless calendar view/management in Outlook
Personal Calendar
SharePoint Calendar
10Q/K Reporting SharePoint Site
Sub-site of Corporate Accounting SharePoint Separate site for added security and access control of highly
confidential financial information Master SEC documents 10-Q/10-K task w/support Documentation of review/validation and quality control procedures
Review Management Review comments/ questions are entered directly on “live” version by reviewers using Word functionality
Changes are tracked for review and acceptance
Comments are reviewed and addressed with clear trail of resolution for quality control and commenter final review
Version Control
Version history
Document library contains all versions with proper version indicator Each version shown maintains version history for ability to control
changes made to the document
Numbers Certification (Quality Assurance)
Final report is electronically certified via tie-out to relevant supporting documents in task list as indicated by tick marks and hyperlinks
Use hyperlinks to task lists (and attachments) providing audit trail
Numbers Certification Support = Excel spreadsheet
Support saved
in task list
Use of hyperlinks and tick marks
Numbers Certification
($ in millions)Balance as of July
1, 2007
Acquisitions/Purchase Accounting adjustments
Balance as of September 30, 2007
Acquisitions/Purchase Accounting adjustments
Balance as of December 30,
2007Client 77$ - 77$ -$ 77$ Server and Tools 580 70 650 5$ 655$ Microsoft Business Division 3,132 - 3,132 93$ 3,225$ Online Services Business 552 5,330 5,882 41$ 5,923$ Entertainment and Devices Division
419 (9) 410 19$ 429$
Total 4,760$ 5,391$ 10,151$ 158$ 10,309$
Support saved
in task list
Support = Excel spreadsheet
Security Management Access is fully
controlled by site administrator(s)
Different site access levels are allowed Owners – full access Members – contribute
access Visitors – view only
access Item/document level
security features available
Both internal and external auditors are given “visitor” access to have full view of work performed/shared documents
SOX Controls
Included in list as tasks to be performed as part of Close and Reporting
Easily identifiable for monitoring of completion
SOX controls incorporated into task list
Quick StatsApproximately 300 tasks contained in site
Approximately 250 users
Tie out with auditors is less than an hour per quarter
Benefits AchievedReduced consolidated close by 5 days
2009 annual filing in 29 calendar days
Quarterly filing completed simultaneously with Earnings Release
XBRL filing completed simultaneously with 10Q/10K
Streamlined auditor engagement
No significant deficiencies or material weaknesses
Reduction in e-mail pileup/enhanced productivity
Getting Started / Key Take Aways
As little or as much as you want
Ongoing refinement; SharePoint is flexible
Initially took us 3 ½ days to set up; ongoing about ½ day