Remediation of Internal Audit Findings across Process Areas
Procure to Pay Process Review
Finance Consultancy Services
KPI Digital Boardroom - Measure, Track and Report
CFO Office Services
ISAE 3402 Certified Review
RACM Development and ICFR Review
Advance and Invoice Management Application
Employees KYC Validation
KRI and Risk Dashboard
Travel Claim - Review
Business Process Wise Test of Control Review
Project Capitalization – USD 398 million
ERP Implementation and Migration from Legacy Software
Desktop Procedure Review
Contract Management and Dashboard Reporting
Implementation of Risk Management Framework
Project Management Office
Review of Policies and Procedures
Customer:
A Mining Company in the African continent.
Business Requirement :
Identification of the existing policies and procedures being maintained by the entities across the following departments / process areas: Finance, Human Resources, Procurement, Inventory, Logistics, Scrap, Plant / Refinery, Mining, Engineering, TSD, CSR, IR & PR, Sales and Marketing, Information Technology. Creation of repository of documents in a single platform (Sharepoint), Ensuring standardization of documents.
Identified Process Challenges:
Multiple documents lying with various stakeholders. Absence of Single point of storage of documents. Practice of manual sign offs being followed. SOP / Policies not in line with the current practices followed.
Approach and Solution Design :
Identification of SPOC’s for various processes defined above, Identification of Policies and Procedures existing with the entity, Classification of documents as relevant / irrelevant, Creation of a repository of documents function wise, Identification of relevant Business Blue print documents (SAP), User interviews to assess the documents and understand existing process, Documentation of the procedures / policies in standard formats pre agreed with the entity, Discuss and finalize the documents with respective user departments, Upload of documents and enabling e-sign offs by users in sharepoint.
Business Benefit and Result :
Existence and visibility of the SBU wise policies and procedures in one platform. Comprehensive listing of policies and procedures SBU wise with the approval matrix. SOP documents uploaded in SharePoint. Policy documents uploaded in SharePoint.
Fixed Asset Verification - ZAR 2,945.45 million
Customer:
A Mining Company in the African continent.
Business Requirement :
The Entity has designed a Policy for its mine of verifying the Fixed Assets once in 3 years by an external third party in order to ensure the following: Completeness of the Fixed Asset Register (FAR), Existence of Fixed Assets across its Mine Plant and Offices, Establishing Accountability and Ownership, Tagging of Assets. The said engagement was planned for a period of 3 months by the entity.
Identified Process Challenges:
Ownership for the assets not established, No Granular Asset Class and Asset Description noticed in the FAR, FAR not being comprehensive, Definition of Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) not being clearly followed, Multiple Data Points at an individual department level, Asset Componentization not conducted as per IAS 16 (Property Plant and Equipment), Assets not being tagged on a logical basis Treatment of Insurance Spares not in line with the definitions as per IFRS, Issues identified in Physical Verification (Excess , Short , Duplicate Line items in FAR, Assets under Scrap / Not in Use, Inadequate Asset description) .
Approach and Solution Design :
Identification of Ownership of the Assets– Performing face-to-face user discussion to showcase the existing FAR and understanding the assets applicable to the respective HOD’s, Perform Physical Verification of Assets based on the SPOC’s (Single Point of Contact) identified, Finalize the Assets listing derived from FAR, Obtain confirmation from the respective HOD’s and SPOC’s identified, Perform Physical Verification of the Assets based on the listing finalized at each department level, Ensure the assets are tagged using a logical tag code by obtaining a consensus from the Management Personnel, Draft SOP for the Entity for Fixed Asset Capitalization, Issue the Fixed Asset Verification Report signed by the Engagement team and the Client.
Business Benefit and Result :
The Engagement team had provided with two reports namely a Fixed Asset Verification Report and a SOP for the Fixed Asset Capitalization and Verification indicating the following: A) Fixed Asset Verification Report: Cleansed FAR, New Assets identified during verification, Assets Identified as Short, Assets Identified as Excess, Duplicate Entries noted in FAR, Assets stated as Scrap / Not in Use, Assets Description to be changed. B) Drafted SOP for the Entity for the Fixed Asset Capitalization and treatment of special cases: A SOP was drafted for the Entity covering aspects like Treatment of Insurance Spares , Categorization of Capex and treatment for Opex , Establishing Criteria for Asset componentization in line with IAS 16, Depreciation and related aspects.
Remediation of Internal Audit Findings across Process Areas
Customer:
A Mining Company in the African continent.
Business Requirement :
Understand the existing Entity scoring mechanism on the following fronts: Process Audit Findings MIS Grading Grading on Physical Verification of Inventory Enable remediation mechanism for the audit findings Enable a more robust control framework
Identified Process Challenges:
The observations identified had been classified into 3 namely: Not Implemented Partially Implemented Implemented post remediation strategy Absence of a designated Internal Audit Department to address the issues identified on timely basis
Approach and Solution Design :
Determination of RCA for observations identified. Preparation of Robust Process wise CAT (Corrective Action Tracker) documents for observations identified with a remediation strategy. Onsite field work support with operating items to improve the underlying control framework
Business Benefit and Result:
Improved the Entity wide scoring. Developed process SOP’s wherever applicable for future guidance and working mechanism. Converted majority of observations from Not implement / Partially Implement to Implemented / Partially Implemented respectively. Process Wise CAT documents across department for way forward activities.
Procure to Pay Process Review
Customer:
A Mining Company in the African continent.
Business Requirement :
Review and examine the Procure to Pay environment of the Entity, Identify potential fraud vulnerabilities through an effective analysis, internal audit and evaluation process, Recommend Control design enhancements in SAP framework, Recommend relevant and commensurate inclusions of automated controls in SAP.
Identified Process Challenges:
Process gaps and control design challenges were noticed in the following areas of P2P environment of the entity: Vendor Empanelment, Master Data Maintenance, Quote to Award – Sourcing Process, Purchase Orders and contracts, Receipt Certifications – Quantity and Quality, Supplier Invoicing and Payment Processing .
Approach and Solution Design :
A step by step approach was adopted for the various process challenges observed and the following were delivered to the stakeholders involved in the respective processes: End to End Internal Audit report indicating the root cause of the issue, Impact, Possible recommendations for way forward, High Level Executive Summary, Modifications to DOA, KPI Linked Reporting dashboards, Possible SOD conflicts, Vulnerability Assessment.
Business Benefit and Result :
Procurement Value Optimization, Operational Efficiency and Process Excellence, Process Dashboards by recommending necessary parameters, A detailed Procurement manual adopting the current and best practices across industries.
Finance Consultancy Services
Customer:
A Mining Company in the African continent.
Business Requirement :
Assistance to the Finance Function of the Entity. Performance of operational activities enabling the smooth delivery of MIS Reports and other management related responsibilities. Strengthening internal control system, audits, procedure. Financial modelling of data and comparing with actuals to ascertain the gaps and analyze them. Working towards automation of inventory valuation and other SAP modules and support related thereto. Implementation and maintenance of robust forecast financial model. Part of the Mine Closure activity and assessing the financial impacts.
Identified Process Challenges:
Having a team skilled across multiple technologies. Missing or incomplete documentation on the legacy applications. Stability of the testing environment. Frequently varying scope, requirements, and timelines. No SME for contract management standardization, multiple contract formats and no single order flow. ‘Printer Connectivity’ to validate the print layout of manifest / Contract details.
Approach and Solution Design :
Deployed adequate resources on site to identify the current business challenges and prepare a road map for future course of action. Ensure there is interactions with the respective process owners in order to enable the KT process. Understanding the existing processes, design & control frameworks and suggesting process improvement aspects. Understanding and strengthening the existing internal control system, audits, procedure.
Business Benefit and Result :
Availability of a dedicated team on performance of the day to day operational and compliance aspects. Ensuring the management reporting and monthly internal reporting are adhered within the defined timelines. Ensuring there is adequate KT from previous employees and enabling a smooth transition.
KPI Digital Boardroom - Measure, Track and Report
Customer:
A Mining Company in the African continent [South Africa and Namibia].
Business Requirement :
Management was looking to enable automated reporting of Key Performance, Safety and Compliance indicators across their Group, consisting 1 Corporate and 3 SBU's. They also wanted to Collect and Consolidate historically reported KPI's to enable enhanced insights. The Final deliverable was to develop a Comprehensive System. To Collect data from Departments/Application data sources every month Get the signoff by Department and Business Heads confirm their review and acceptance of data including calculation by the System Report the KPI results through a Digital Interactive Dashboard for the Consumption of Relevant stakeholders. Train Department HOD's and users for enabling them to update/approve for periodical reporting.
Identified Process Challenges:
Obtaining historical data from various departments within each SBU's / Corporate across the group. Reporting of KPI's were different across months within the same SBU's. Also, KPI's between SBU's were not consistent/standard. KPI's reported across the entity did not have a defined logic to confirm, if all SBU's have used the same input parameters for computation of KPI's.
Approach and Solution Design :
Understanding of the current MIS information and systems in place Preparation of an integrated MIS Dashboard in excel for future use by various SBU's which shall be onboarded to the Power BI platform accordingly. Collation of historical information for the MIS dashboard across various departments of SBU’s. Build the dashboards based on iterations of discussions with users and adopting best practices across industries. Ensuring uniformity in reporting, computation and consistency of information reported. Capturing the source of information for reporting parameters for future references.
Business Benefit and Result :
All KPI data including the Historical information is available in a single source Integrated reporting structure with the authorized users to access and consume their Input data and resultant KPI's. Comprehensive Dashboard assets published to SharePoint to enable appropriate access restrictions. The Integrity of data available for Management is ensured through an automated sign off process
CFO Office Services
Customer:
A Leading Manufacturer of Coffee Products across the Globe.
Business Requirement :
Provide a CFO office and manage the entire function of CFO in the organization. Conducting Finance Operations efficiently and effectively. Managing the assets of the organization by minimizing risks and getting the books right. Handling the company’s overall direction. Strategic Business Analyst. Cash and Working Capital Management. Cost Containment and Expense Management.
Identified Process Challenges:
Difficulty in Keeping Internal Controls Lean and Balanced. Unable to Generate more insights from less data. Less role of finance function across the organization. Difficulty in Producing accurate and timely financial reports.
Approach and Solution Design :
Process area wise risk register was developed, and Gaps were identified across the locations and best practices were recommended to be put in place. Identified the flow of data across software and interfaces and developed a framework of reporting MIS to Top and Middle Management. Expanded the influence of finance function by enabling periodical process review with operations team. Reviewed the information systems and processes and enabled financial transaction process optimization.
Business Benefit and Result :
Integrated Performance Management. Financial Closure and reporting optimization. Balanced and Lean Internal Control Environment
ISAE 3402 Certified Review
Customer:
A Technology Operations Support Services Company.
Business Requirement :
One of the Telecom outsourcer was looking to get ISAE 3402 certified with respect to both basic compliance and implementation and the entire road path of 6 months this included both control testing and document validation. They had to comply with key 68 process areas and have to align documentation in major 15 categories for which SOC control templates were not available.
Identified Process Challenges:
Having a team skilled across multiple technologies. Missing or incomplete documentation on the legacy applications. Multiple templates tools and absence of basic hygiene on policies and procedures. Frequently varying scope, requirements, and timelines. No SME for Policy and procedure structure for SOC1 and SOC 2 reviews. No proper evidence captured across key areas. Tech configuration of firewall, maintaining security across remote and onsite options.
Approach and Solution Design :
SAE 3402 content management design that has structure of workflow, process policy, procedure and document capturing was provided. Assigned 2 qualified auditors for review across Security program, policy and procedure . Provided interim and final gap report across generic and specific areas to comply with . Data clean up, Data structuring OCR enablement to PDF conversion for documenting the key terms and conditions . Data clean up, Data structuring and enablement of metrics for ISAE requirements compliance. SOC 1 review and gap analysis completed and structure and directory of process areas fixed in SharePoint. Ranking based on ISAE 3402 adherence done across key clients.
Business Benefit and Result :
Compliance to ISAE 3402 SOC specifications. Timely closure of requirements. Automation of policy and content management up to transaction level. One-time onboarding and contract management through the system enabled for $800 million worth contracts.
RACM Development and ICFR Review
Customer:
A Leading Manufacturer of Coffee Products across the Globe.
Business Requirement :
Build an entity level Risk and Control Matrix (RACM) for the organization and testing of the Internal Control Framework for the financial year. Develop Risk and Control Matrix across business operations and processes, ‘As Is’ Business Process Documentation, Identify Risks and Map Risks to Business Processes, Develop Control Design Documentation and Evaluation, Identify Operating effectiveness evaluation, Reporting of deficiencies and recommend ‘Should be’ Business Processes.
Identified Process Challenges:
Understanding of the various data sources in the organization, Unique scenario of handling inventory and fixed assets at customer location, Difficulty in tracking of Spares across the layers of operations, Difficulty in tracking of after sales services and replacement of machines, No periodic review of master data, Multiple quotations not obtained prior to raising of PO / procurement of materials / services, Non-renewal of expired agreements with the customers.
Approach and Solution Design :
Conducted Business Process Understanding activity and identified the flow of data across software and interfaces, Review of stock in hand & asset at customer locations to be done periodically to ensure excess / short materials & assets as compared to our registers, Periodic review, user confirmation & verification of spare parts available at technical centers / Branch needs to be in place, Visit needs to be categorized in software and billing of the same needs to be monitored by Service and finance department. Replacement of machines needs to be approved by Sales, Service, and finance department and same needs to be captured in Software, Key data fields to made mandatory at time of creation / updation of masters. Masters to be reviewed on a quarterly basis for correctness and completeness, All procurements should be backed by valid multiple quotes for requisite materials. If not, justification note should be in place, Agreement tracker with alerts to be maintained to keep track of agreements nearing expiry and actioned upon.
Business Benefit and Result :
Orderly and efficient conduct of business, including adherence to company’s policies and safeguarding of its assets, Helps in the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.
Advance and Invoice Management Application
Customer:
A leading Indian FMCG entity with a global presence in 26+ countries.
Business Requirement :
The client had been manually collecting all Invoices from Vendors and processing them for payment after accounting them into SAP. During the COVID-19 crisis, they were unable to collect Invoices manually. Even if scanned invoices were received in an email, it would require much time to classify and forward it to the respective business to approve and then account them within SAP. Management also felt that this could increase the risk of Invoices not tracked, and this was critical for timely closure of books for the Financial Year. We were asked to present the Finance and Business management with a solution to enable managing the issue within two weeks.
Identified Process Challenges:
Limited timeline to Design, develop and implement the application. There was no predefined rule set that is followed for each Invoice type. Hence the option to choose the approver and reviewer will be with the end-user. If sufficient approver has not to be routed, then the Finance team required an opportunity to send back and obtain necessary approvals from specific people. Option to hold, reject and reroute the rejected Invoice had to be provided, and this increased the complexity. A better way for the end-user to view and develop the application was required as the user had to process and update information for 100 Invoices per day. Training all users during lockdown to get used to the application was a challenge.
Approach and Solution Design :
Within two days, we obtained an understanding of the complete process, confirmed the requirements, and proposed a comprehensive solution with an Interactive Proof of Concept. The proposed solution was developed and implemented within a week after being tested for Stress, Security and UI / UX. The complete solution was implemented and deployed in a Cloud environment within two weeks. The solution enhanced the processing capabilities by seamlessly routing the Invoices for multiple custom workflows and captured necessary data to enable reconciliation to the SAP application. Necessary check and balances, including Possible duplicate invoice alerts, Mandatory data capturing and detailed audit log enabled the business to use the Invoice with confidence. To UI was designed by our Design team to be User agnostic had simple options to navigate even if it has to be routed at an average of 5-6 user per Invoice. To ensure that all users were trained, an instruction video explaining each component within the screen was prepared for each role type.
Business Benefit and Result :
Now all the invoices are processed directly using the tool thereby effectively reducing the time to process an Invoice by 30% ~ 50% over a period of three months. This enabled the client to continue using the application and request significant enhancements, including integration to SAP, making it a one-stop solution for Vendor Invoicing.
Employees KYC Validation
Customer:
IT Developer for a leading ridesharing application.
Business Requirement :
To perform critical employee details validations across regions.
Identified Process Challenges:
Number of locations and employees to be covered in limited duration of time. Coordination with multiple Auditee SPOCs in each location / city. Coordination with multiple Auditor SPOCs in each location / city
Approach and Solution Design :
We covered the activity with KYC verification of its entire contingent of off-roll employees deployed across the country. Initiated remediation activity for mismatch of information between the employee master and documents furnished.
Business Benefit and Result :
A total of 2458 employees spread across the country were verified. For the purpose of verification at the top 15 cities, we had set up the verification camps at the local OLA offices, wherein the employees and their documents were validated by a local auditor. For the remaining tier 2 and tier 3 cities comprising of approx. 240 employees, the validation was carried out via VC by the Bengaluru audit team. The verification process involved the employees identifying themselves through their unique reference id issued by the respective vendor and furnishing his / her original offer letter, Aadhar card and PAN card (alternate address proof in the absence of Aadhar card). Basis the above, a predefined checklist was filled up by the auditor, marking whether all the above were available or not. Photocopies of the mentioned originals were obtained and pinned with the checklist for archival and records.
KRI and Risk Dashboard
Customer:
Investment Management company with its headquarters in the USA and has a multinational presence.
Business Requirement :
Entity manages investment with a value of USD 2 Billion across 66+ countries. All critical financial information to assess the performance and Risk of their investees were collected and maintained manually. Their current practice was to present reports using PowerPoint and Excel for their Investment Committee. Any questions raised on What-if scenarios and detailed drilled information in the meetings were difficult to explain using excel data files. A solution to automate assessing the Completeness and Accuracy of data collected from Investees and then automatically link it to Final dashboard reports was placed before the Management.
Identified Process Challenges:
Information for each Investee was collected in Manual excel sheets and hence had issues on Completeness, Accuracy and non-availability of data within excel files. From the start point of data collection till reporting of KRI's and Classification of Investees, each Investment Manager had to spend nearly a week of their time, and sometime this could be in the higher side of 1.5 - 2 weeks. The Risk Management team monitoring all funds had to communicate and collect information from the Investment manager on an Adhoc basis, and this can result in a delay to take necessary decisions for an identified risk. During the current COVID-19 crisis, the team realised the need for an automated solution.
Approach and Solution Design :
We supported the client in standardizing the Spreadsheets from various Investees into a single record source. We designed a Logical engine for validating the data received for various aspects including completeness, Accuracy, Integrity, Spike in values, missing data, etc. The exceptions noted in the analysis were provided in a "Data Validation" dashboard and made accessible for respective Investment managers. All validated data was then used as a basis to assess various Key Risk Indicators monitored by the entity. The Manual Risk levels were then determined by the entity at different levels of Sector, Currency, Industry, etc. which were linked to Investee specific risks, and an Overall Investee Classification was assigned. Using all the above information, a Comprehensive KRI and Risk Dashboard was designed and deployed providing information as and when a Validated data was updated.
Business Benefit and Result :
Average time from collection of data from Investee to reporting to Investment Managers was reduced to a week. The benefits of the solution have also helped in timely decisions through alerts.The Dashboards had the following benefits: Consolidating the KRI's / Risk Classification for each Investee and present it automatically for various levels of consolidation.Trend analysis and What-if scenarios that were made available for Key criteria's enabled the Investment managers to plan and also respond to queries during critical meetings. Dynamic targets were defined to allow for better assessment instead of traditional benchmarks/target set for a Quarter / Year.
Travel Claim Review
Customer:
A Major conglomerate in India.
Business Requirement :
Review the employee travel claims and determine it’s authenticity.
Identified Process Challenges:
Absence of data required for analysis, Data entering entire year's travel details manually
Approach and Solution Design :
The Engagement team had identified the solutions for each of the challenges presented by performing the following: Determining frauds, if any, by employees in hotel/lodging bills by claiming excess amounts as reimbursements than actually incurred.
Business Benefit and Result :
Post data entering all travel claim details of all employees for the audit period (primarily the details of lodging), analytics was performed to identify anomalies, All doubtful hotels were called on recorded lines, to enquire about the tariffs to identify significant variance in amount as claimed by the employee, Further, an audit team member visited the hotel and stayed one night to collect documentary evidence of the tariff, Based on the report submitted, stern actions were taken by the management on unethical employees.
Review of Procure to Pay Process - Digitization
Customer:
A major Tobacco manufacturer in India.
Business Requirement :
Review the Procure to Pay process in all their Manufacturing units. Review their ERP with respect to Procure to Pay. Review their Standard Operating Procedures with respect to Procure to Pay. Report the deviations and suggest improvements.
Identified Process Challenges:
Understanding of the various phases of the Procurement lifecycle. Difference rate for same Materials / services across the Vendors. Inaccurate Data in Masters leading to Duplicate Payments. Lack of Documentations. Ineffective utilization of ERP functionalities.
Approach and Solution Design :
Conducted a bottom-top approach of process understanding across user profiles and modelled the entire flow of procurement lifecycle. Performed detailed analysis on rate card variance for the same materials / services with different rates and modelled the same for cost optimization Key data fields to made mandatory at time of creation / updation of masters and recommended validations for each field. System of digital archival by way of Transactional flow wise documentation trail suggested for development. Business process wise ERP functionality provisions were mapped and identified unutilized functionalities to enable in future.
Business Benefit and Result :
Delivered a comprehensive risk registers along with the mitigation strategies for Procure to Pay. Identified the inaccuracies in the Master data and ensured sanitization of the Masters. Implemented an effective Purchase plan resulting in reduced Purchase and Transportation costs. Automated the Delegation of Authority Matrix in ERP resulting in effective monitoring of Procurement Designed a comprehensive Procurement MIS which helps the organization make effective decisions.
Business Process Wise Test of Control Review
Customer:
A Small finance bank with a distribution network of over 270 banking outlets.
Business Requirement :
To build an entity level Risk and Control Matrix (RACM) for the organization and testing of the Internal Control Framework for the financial year. Develop Risk and Control Matrix across business operations and processes. ‘As Is’ Business Process Documentation. Identify Risks and Map Risks to Business Processes. Develop Control Design Documentation and Evaluation. Identify Operating effectiveness evaluation. Reporting of deficiencies and recommend ‘Should be’ Business Processes.
Identified Process Challenges:
Roles and responsibilities not clearly defined, Excessive SPOC dependency, Frequent revision in process & No documented process notes.
Approach and Solution Design :
The Engagement team had identified the solutions for each of the challenges presented by performing the following: Study the process and develop comprehensive risk register defining the roles and responsibilities, Testing the controls for comprehensiveness and operating effectiveness and defining segregation of duty controls, Documentation of the procedures / policies in standard formats pre agreed with the entity & creation of a repository of documents function wise.
Business Benefit and Result :
Detailed risk registers for each process area was developed basis process walkthroughs with the client encompassing the potential risks in each process, capturing the existing controls, highlighting the gaps in the existing control, recommendations for plugging the gaps, and designing detailed control and transaction testing procedures, Carried out exhaustive control and transaction testing and published results to the management.
Implementation of Risk Management Framework
Customer:
An Engineering, Procurement and Construction major.
Business Requirement :
Review the Risk Management Framework, Understand their Business Process with respect to Project Planning, Project Implementation, Design the Policies and Procedures, Implementation of Controls in their Organization.
Identified Process Challenges:
Understanding of the various phases of the Project lifecycle, Lack of Relevant Data, Involvement of Manual Processes / Manual Data, Absence of Policies and Procedures .
Approach and Solution Design :
The Engagement team had identified the solutions for each of the challenges presented by performing the following: Conduct Top-Down approach of process understanding across user profiles and modelled the entire flow of project lifecycle, Identified the flow of data across sources - software and interfaces and mapped the same to business processes, Business process wise ERP functionality provisions were mapped and identified unutilized functionalities to enable in future and key critical areas were recommended for pointed product solutions, Documentation of the procedures / policies in standard formats pre agreed with the entity & creation of a repository of documents function wise.
Business Benefit and Result :
Delivered a comprehensive Policy and Procedure document for each of their Business Processes, Prepared a standard formats for each Business Processes and implemented automation in to the critical Business Processes, Periodically reviewed the compliance with the designed policies and procedures and assist the Management in mitigating the risks in Business Processes, The above resulted in reduced cost of operations and better compliance with respect to relevant laws applicable for the organization.
Project Management Office
Customer:
A Major FMCG Giant.
Business Requirement :
The conglomerate company which has an Integrated food unit as part of their FMCG Division undertook a project of constructing an automated warehouse for its final produce with automated storage and retrieval enablement. We were engaged by the entity to perform the support functions and ensure the compliances to their Project finance frameworks in place. The support functions include the following: Ensuring controls and documentation of Procurement Process. Pre-audit of payments. Ensuring controls and documentation over Scrap Disposal. Bill Passing and periodic vendor Balance confirmation. Periodical Physical verification of assets. Identification of Assets and its components including parent – Child relationship. Compilation of Fixed Assets Register. Periodical Dashboards and Insights on the above.
Identified Process Challenges:
Understanding of the existing compliance Frameworks at the entity level, Review of LSTK projects and its agreement to identify the scope of work and deliverables to identify the assets Acceptance and GRN for the materials upon receipt, Certification of Invoices at the project site, Timely confirmation of Balances and Guarantees to be on live at all times, Identification of Direct cost and Indirect Cost (Enablers) for the Project, Identification of the Capitalization Trigger Points, Componentization of Assets in line with the principles of IFRS, Physical verification and tagging of assets.
Approach and Solution Design :
Understand the existing framework in place and identifying the relevant clauses or areas to which the compliances to be ensured, Detailed review of the Turnkey contracts and BOQ entered by the Entity and identified the possible assets emanating from the contract by having discussions with the user and identified the direct costs, indirect costs and apportion able costs, Follow-up the Project technical team to inspect and provide the certificate of acceptance & further with Receipts function for timely GRN basis the certificate of acceptance, Implementation of Bill certification checklist in line with the framework and SOPs to ensure the compliances and developed tracker for bills passed, kept aside for rectification and issue for payments, Regular follow-up with the vendors on obtaining the confirmation of balances from the vendors Implementation of tracker for the bank guarantees, determination of cut-off date to ensure the timely follow-up for renewal, Determined the accounting treatment and ensured capitalization is as per the principles of IFRS for certain specific scenarios mentioned as under: Insurance Spares, Borrowing Costs, Pre-Operative Expenses, Pre-Operative Revenue, Exploration and Feasibility Costs, Established the parent child relationship for the assets identified and ensured the assets are considered for componentization, Performed physical verification of assets and obtained user sign offs to ensure ownership for the assets is established.
Business Benefit and Result :
Compliance to ISAE 3402 SOC specifications. Timely closure of requirements. Automation of policy and content management up to transaction level. One-time onboarding and contract management through the system enabled for $800 million worth contracts.
Project Capitalization – USD 398 million
Customer:
A Mining Company in the African continent.
Business Requirement :
Review the Procure to Pay process in all their Manufacturing units. Review their ERP with respect to Procure to Pay. Review their Standard Operating Procedures with respect to Procure to Pay. Report the deviations and suggest improvements.
Identified Process Challenges:
Understanding of the various phases of the Project lifecycle, Identifying the various standards applicable as per IFRS for the Entity, Identifying the assets emanating from the contract in line with BOQ, Identification of Direct cost and Indirect Cost (Enablers) for the Project, Determining the Ownership of the assets for the various contracts, Identification of the Capitalization Trigger Points, Componentization of Assets in line with the principles of IFRS, Physical verification and tagging of assets, Determining the Depreciation Key and Useful life of assets before configuring in SAP.
Approach and Solution Design :
Identified the Project lifecycle and various standards applicable at each stage in line with the principles of IFRS, Identified the Capitalization trigger points for the project for each phase being Mining Assets , Non-Mining Assets based on the technical achievements, Reviewed the Contracts and BOQ entered by the Entity and identified the possible assets emanating from the contract by having discussions with the user. The Project Capitalization was performed in a Phased Manner as under: Mining Assets, Non-Mining Assets once being identified as put to use, Non-Mining Assets being the Concentrator Plant by considering the enabling costs Determined the accounting treatment and ensured capitalization is as per the principles of IFRS for certain specific scenarios mentioned as under: Insurance Spares, Borrowing Costs, Pre-Operative Expenses, Pre-Operative Revenue, Exploration and Feasibility Costs.
Established the parent child relationship for the assets identified and ensured the assets are considered for componentization, Performed physical verification of assets and obtained user sign offs to ensure ownership for the assets is established.
Business Benefit and Result :
Compliance to ISAE 3402 SOC specifications. Timely closure of requirements. Automation of policy and content management up to transaction level. One-time onboarding and contract management through the system enabled for $800 million worth contracts.
ERP Implementation and Migration from Legacy Software
Customer:
A Healthcare Company in India.
Business Requirement :
The Company being in the Pharmaceutical Sector were into multiple business software and have decided to move into RAMCO ERP for their entire business operations including Finance and HR process. Act as Lead Functional Consultant Role from Requirement gathering to production deployment, Perform data validations and validate design document mapping to organizational requirements to before signing off, Conduct end-to-end User acceptance testing (UAT) across modules including negative scenarios, Establish Go-Live in production environment by performing parallel run with legacy software, Migration of transactions from Legacy software to new environment, End-to-End Post implementation support function across modules.
Identified Process Challenges:
Understanding of the various data sources in the organization, Unique industry specific regulatory requirements for Pharmaceutical Sector, Identifying user roles and conflicts definitions across multiple legacy software, Understanding Multiple business models within the same operations, Unique material allocation requirement as necessary for Pharmaceutical companies, Unable to identify original document for return transactions to enable flow of transaction within the ERP ,Middle of the year Go-Live date.
Approach and Solution Design :
Conducted Business Process Understanding activity and identified the flow of data across software and modelled the same in new environment, Gathered user domain knowledge and Performed research on identifying the compliance framework for the industry and mapped the compliance requirement to solution design document, Identified user role conflicts and developed a governance framework for segregation of duty controls, Developed multiple attributes and aligned unique points of different business models to single user interface, Defined allocation based on first expiry by capturing the batch-wise manufacturing and expiry details along with shelf life to enable business requirements, Developed customized additional table capturing the return details at item-lot level to pick the same while performing sales returns transaction, Closed the financials in the middle of the year and uploaded the opening balance basis the same and enabled Go-Live in the middle of the financial year.
Business Benefit and Result :
One Stop ERP across business operations and processes. Governance Risk Control Framework Definition. Automated Control Procedure definition across modules and interfaces.
Desktop Procedure Review
Customer:
A Company is engaged in the business of manufacturing earth moving equipment, backhoe loader, engines, gensets etc.
Business Requirement :
To support entity in reviewing the Internal Robust Desk Procedure Documents as part of the knowledge transfer protocols required for one of the major projects of the Company which includes:. Extending support with respect to reviewing the desk procedure documents across processes / functions of the Company, its affiliates , Assist the Business in deriving robust Desk procedure documents as part of the knowledge transfer protocols and timelines.
Identified Process Challenges:
Issues in Knowledge Transfer with respect to understanding of the desk procedure, Lack of Comprehensive coverage of processes/functions of the entity during the transfer, Deficiencies in the documentation of the processes explained, Application related issues arising from access restrictions and lack of hands on training, Inadequate training on Internal Controls inducted within each process/function.
Approach and Solution Design :
The Engagement Team had adopted a logical sequencing of activities for the challenges faced right from identifying the root cause of the challenges being Training Methodologies, User Interactions, Documentation Review, User Access Testing and comprehensive coverage of process as under. The activities performed to address the Challenges faced are as under: Performing user discussions to showcase the current process and thereby ensuring comprehensive coverage of the processes during the training sessions, Attendance in the knowledge transfer sessions to help understand the process and identification of flow of transactions, Review of the Handover documentation and ensuring accuracy and completeness, Identification of Control Gaps/Process Gaps, Providing inputs to enable Optimal Utilization of Application systems, Addressing issues in the applications systems by performing User Access Testing, Incorporation of Controls and training on performance of the internal controls.
Business Benefit and Result :
Conclusive Knowledge Transfer enabling better understanding of the desk procedure, Comprehensive coverage of processes/functions of the entity during the transfer, Granular level review ensuring implementation of detailed documentation, Addressing Application related issues by performing access verifications and enabling hands on training, Detailed training on Internal Controls for each process/function.
Contract Management and Dashboard Reporting
Customer:
A Leading Construction Company
Business Requirement :
Company wanted to implement Vendor partner portal that includes contract management along with dashboards and metrics that enables senior leadership across contract management phases across lifecycle. Conducting Finance Operations efficiently and effectively. In the new business model, the applications must handle a 36-hour out ordering process where in OCR had to be implemented to read the contract terms and track and report deviation and enable risks as applicable from the perspective of data.
Identified Process Challenges:
Having a team skilled across multiple technologies. Missing or incomplete documentation on the legacy applications. Stability of the testing environment. Frequently varying scope, requirements, and timelines. No SME for contract management standardization, multiple contract formats and no single order flow. ‘Printer Connectivity’ to validate the print layout of manifest / Contract details.
Approach and Solution Design :
Contract management was taken as a separate project with SME and Technical Team. Standardization of terms and conditions across PO and Work Order . Structure for Contract type, Documentation, Baseline of Services. Data clean up, Data structuring OCR enablement to PDF conversion for documenting the key terms and conditions . Contract management Status dashboard, Risk Dashboard, Vendor performance scoring and risk scoring set up in the system through technical wireframes Set up of OCR for existing manual contracts of in progress and completed ones between the last 2 years documented and integrated with the system. Ranking based on contract adherence done across key jobs.
Business Benefit and Result :
Right-sized testing team to fit the changing scope. Timely rollout to onboard more than 15000 contracts parallelly. Automation of End-To-End sunny day and non-happy path scenarios. One-time onboarding and contract management through the system enabled for $800 million worth contracts.
Review and examine the Procure to Pay environment of the Entity, Identify potential fraud vulnerabilities through an effective analysis, internal audit and evaluation process, Recommend Control design enhancements in SAP framework, Recommend relevant and commensurate inclusions of automated controls in SAP.
Identified Process Challenges :
Process gaps and control design challenges were noticed in the following areas of P2P environment of the entity:
Vendor Empanelment, Master Data Maintenance, Quote to Award – Sourcing Process, Purchase Orders and contracts, Receipt Certifications – Quantity and Quality, Supplier Invoicing and Payment Processing .
Approach and Solution Design :
A step by step approach was adopted for the various process challenges observed and the following were delivered to the stakeholders involved in the respective processes:
End to End Internal Audit report indicating the root cause of the issue, Impact, Possible recommendations for way forward, High Level Executive Summary, Modifications to DOA, KPI Linked Reporting dashboards, Possible SOD conflicts, Vulnerability Assessment.
Business Benefit and Result :
Procurement Value Optimization, Operational Efficiency and Process Excellence, Process Dashboards by recommending necessary parameters, A detailed Procurement manual adopting the current and best practices across industries.
CFO Office Services
Customer :
A Leading Manufacturer of Coffee Products across the Globe.
Business Requirement :
The key objectives of this engagement would be to provide a CFO office and manage the entire function of CFO in the organization.
Conducting Finance Operations efficiently and effectively.
Managing the assets of the organization by minimizing risks and getting the books right.
Handling the company’s overall direction.
Strategic Business Analyst.
Cash and Working Capital Management.
Cost Containment and Expense Management.
Identified Process Challenges :
Difficulty in Keeping Internal Controls Lean and Balanced.
Unable to Generate more insights from less data.
Less role of finance function across the organization.
Difficulty in Producing accurate and timely financial reports.
Approach and Solution Design :
Process area wise risk register was developed, and Gaps were identified across the locations and best practices were recommended to be put in place.
Identified the flow of data across software and interfaces and developed a framework of reporting MIS to Top and Middle Management.
Expanded the influence of finance function by enabling periodical process review with operations team.
Reviewed the information systems and processes and enabled financial transaction process optimization.
Business Benefit and Result :
Integrated Performance Management.
Financial Closure and reporting optimization.
Balanced and Lean Internal Control Environment.
RACM Development and ICFR Review
Customer :
A Leading Manufacturer of Coffee Products across the Globe.
Business Requirement :
The key objectives of this engagement would be to build an entity level Risk and Control Matrix (RACM) for the organization and testing of the Internal Control Framework for the financial year.
Develop Risk and Control Matrix across business operations and processes, ‘As Is’ Business Process Documentation, Identify Risks and Map Risks to Business Processes, Develop Control Design Documentation and Evaluation, Identify Operating effectiveness evaluation, Reporting of deficiencies and recommend ‘Should be’ Business Processes.
Identified Process Challenges :
Understanding of the various data sources in the organization, Unique scenario of handling inventory and fixed assets at customer location, Difficulty in tracking of Spares across the layers of operations, Difficulty in tracking of after sales services and replacement of machines, No periodic review of master data, Multiple quotations not obtained prior to raising of PO / procurement of materials / services, Non-renewal of expired agreements with the customers.
Approach and Solution Design :
Conducted Business Process Understanding activity and identified the flow of data across software and interfaces, Review of stock in hand & asset at customer locations to be done periodically to ensure excess / short materials & assets as compared to our registers, Periodic review, user confirmation & verification of spare parts available at technical centers / Branch needs to be in place, Visit needs to be categorized in software and billing of the same needs to be monitored by Service and finance department. Replacement of machines needs to be approved by Sales, Service, and finance department and same needs to be captured in Software, Key data fields to made mandatory at time of creation / up-dation of masters. Masters to be reviewed on a quarterly basis for correctness and completeness, All procurements should be backed by valid multiple quotes for requisite materials. If not, justification note should be in place, Agreement tracker with alerts to be maintained to keep track of agreements nearing expiry and actioned upon.
Business Benefit and Result :
Orderly and efficient conduct of business, including adherence to company’s policies and safeguarding of its assets, Helps in the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.
