ifg finance accounting and risk solutions

FGIFGII N T E R N A T I O N A L F I N A N C I A L G R O U P

FINANCE ACCOUNTING AND RISK SOLUTIONS

Jim Hannan, National Practice Director

FGIFGI IL and WI Practice Meeting

ABOUTIFGFINANCEACCOUNTINGANDRISKSOLUTIONS

IFGexperiencedconsultantsandprovenmethodologiesprovidehighvalueconsultingsolutionsforFinance,AccountingandInternalAuditExecutives.Ourleadingedgesolutions,developedover25yearsofpracticalexperienceservingmulti-nationalpubliccompaniesareguidedby4keyprinciples:

• SIMPLICITY:Distillingcomplexproblemsintosimple,clearsolutions

• VALUE:Providinghighqualityatlowercost

• EFFECTIVE:Measurableresultsthatachieveyourobjectives

• SUSTAINABLE:Collaboration,knowledgetransferandintegrationintotheongoingbusinessprocessesleadstolongtermsustainableimprovements

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FINANCEACCOUNTINGANDRISKSOLUTIONS

IFG resolves complex and costly Finance, Accounting and Control Issues with low cost solutions tailored to your needs

FGIFGI IL and WI Practice MeetingFINANCEACCOUNTINGANDRISKSOLUTIONS

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• Turn-key Outsource and Co-Source solutions• Program Optimization and Advisory• IPO Solutions

SOX and Internal Control

• ASC 606 Revenue Recognition• ASC 842 Leasing

Accounting Advisory

• Internal Audit Transformation• Internal Audit Assistance• High Impact ERM Simplified

Internal Audit and ERM

• Reduce Total SOX Costs and Audit FeesAudit Cost Reduction

• Improve Processes and Controls; Achieve Clean Fast Close

• Better Planning and Analysis – Drive ResultsFinance

Transformation


We can simplify your SOX compliance while significantly reducing your risk and cost. Our leading methodology and tools have been constantly refined over the last 15 years. Coupled with our low cost experienced professionals, we can deliver measurable results.

Co-Source and Out-Source Solutions Program Optimization Advisory

Higher Effectiveness and Efficiency = Lower Risk and Cost

SOX AND INTERNAL CONTROL

Many companies have not only seen increases in the cost of SOX compliance, but increased complexity, last minute surprises and re-work.

Our SOX Program Optimization solution is designed to re-engineer the program from end to end, resulting in an improved control set as well as a defined, consistent, repeatable process that is lower cost, lower risk and integrated into the financial reporting process.

Our Advisory solutions bring deep expertise in SOX and internal controls to assist with any phase of SOX.

We offer a Free SOX Program Diagnostic to help identify potential areas of improvement and cost savings.

Identify the real risks

Design the Right Controls

Audit Ready Documentation

Training, Ownership and Accountability

Leverage Technology

Clear, well defined

specifications

SOX Program Diagnostic

Resolve Complex Control and

Process Issues

Advisory on All Phases of SOX

Program Roadmap and Management

Complete set of Tools and Templates

Meets all Regulatory

Requirements

Proven end to end

Methodology

Experienced, Low Cost

Resources


Internal audit functions are under increasing pressure to add value. While controls and compliance remain important, stakeholders are looking for internal audit to be proactive in identifying risk areas and providing guidance to management. They are also asking internal audit to do it faster and better while leveraging technology. Our transformation solution will help you drive the value your stakeholders demand.

Internal Audit Transformation Internal Audit Assistance High Impact ERM

High Impact, Low Cost Solutions

INTERNAL AUDIT AND ERM SOLUTIONS

We can assist with any of your internal audit needs, from risk assessment and planning to conducting audits in specialized or complex areas where the existing team may lack the experience. We can supplement internal resources during times of peak demand.

An effective ERM processes is simple and integrated into the routine decision making management processes. Our ERM solution quickly gains consensus on risks and how to manage them, and then integrates risk management into the organization’s ongoing processes.

Understand Stakeholders and Develop Value Metrics

Communicate and Build

Relationships

Assess Risk -Identify Hot

Button Ares and Plan

Recruit and Develop Talent

Leverage Technology Data Analytics

Risk Assessment and Audit Planning

Specialized or Complex Audits

Experienced, Low Cost

ResourcesInterim CAE

Rapid Risk Assessment

Establish Ownership

Link to Business Strategy,

Planning and Decision Making

Report and Reassess


Companies that go public are faced with the challenge of maintaining the nimble, entrepreneurial culture that made it successful while establishing the necessary structure and control necessary to meet the regulatory and stakeholder demands and avoid costly restatements or material weaknesses.

Our SOX Preparedness solutions focuses on achieving the right balance with a lean but effective control structure, ready to go documentation and experienced, low cost resources.

Sox Preparedness IPO Readiness Evaluation

IPO SOLUTIONS

If you are thinking of going public, we can help assess the current state of your organization and provide a road map to achieve IPO readiness.

We evaluate the processes and controls, skills and capabilities of the people, information systems, policies, documentation and corporate governance in place, and provide a practical step by step plan to give you confidence that the company is ready to go public.

Turn-key SOX Solutions

"Right Size" for Start-Up

CompaniesJOBS Act Specialists

Proven End to End

Methodology

Experienced, Low Cost Solutions

Meets Regulatory and

Audit Requirements

Processes and Controls

Skills and Capabilities

Policies and Procedures

Information Systems

Corporate Governance Documentation


Many CFOs have seen total audit costs increase over the last 5 years and believe the total cost of audit is too high. If one adds up the costs of SOX compliance, independent audit fees and finance resources expended in SOX and audit processes, its a big number. Frustrating as this may be, leading organization have begun to bend the curve by improving internal controls, preparingfor audits and managing the process.

Our comprehensive solution can bring not only significant reductions in your total cost, but also lower the overall risk profile and help you sleep at night.

Internal Controls and Sox Audit Preparedness Manage the Process

Simplify, Organize and Manage the Process

LOWER AUDIT COSTS

Risk and Control

Optimization

Eliminate Re-work and

RedundanciesAudit Ready

Documentation

Training, Ownership and Accountability

Leverage Technology

Clear, well defined

specifications

Audit Ready Documentation

Balance Sheet Review

Technical Research and

Accounting Policies

Clean Close Process

Clarify and Reduce Risks

No Late Surprises

Identify and Resolve

Problem AreasProject

Management


ASC 606, the new standard for revenue recognition is effective beginning next year (2018) for public companies, and 2019 for non-pubic companies. Yet, many companies find they are behind in the implementation of this new standard, which could have a significant and pervasive impact on not only revenue accounting, but also IT systems, business processes, and customer contracting, not to mention taxes, compensation and internal controls.

Why is this? Assessing the impact and implementing ASC 606 has proven to be more time consuming than time and resource strapped accounting leaders anticipated.

Building on many years of experience in assisting clients with all aspects of revenue recognition, from getting the accounting right to building effective, well-controlled and sustainable business processes, we have developed significant expertise with ASC 606 and offer cost-effective solutions to handle any aspect of the implementation.

PHASE I: Assessment PHASE II: Implementation

Assistance with any and all phases

ASC 606 REVENUE RECOGNITION IMPLEMENTATION

Scope the Project and

Gather Information

Identify the Revenue Streams

Select Contracts and Review

Determine Accounting

Under ASC 606

Assess Impact to Current Accounting

Prepare Technical Memos

Assess Impact on IT, Business and Controls

Develop Cross-Functional

Team

Develop Implementation

Roadmap

Implement Solution

Project Management

Monitor Progress, Resolve

Roadblocks


Does the period-end close take longer than you would like but? Does the accounting team spend time sorting through spreadsheets, making adjusting, correcting and re-classifying entries? Do your auditors find too many errors? And is your finance organization unable to provide the business analysis needed to identify profit or cost savings opportunities, underperforming products or market sectors?

Many Finance and Accounting Leaders would answer yes to many or all of the above. We find that the finance and accounting processes at many organizations are stuck in the outdated approach of trying to fix all the problems at the back-end. It’s as if a car builder dumped a bunch of parts onto the assembly line and then told the assembly workers to figure it out; pieces won’t fit together or will be missing and the end result might be a car that runs but not very well.

Our approach is to build lean, efficient, error-free and predictable processes to enable a finance function that increases the value of the organization based on the premise that it costs less to build quality in.

Improve Processes and Controls; Achieve Clean Fast Close

Better Planning and Analysis –Drive Results

Higher Quality, Faster and at Lower Cost

FINANCE TRANSFORMATION

Fix problems at the source

Eliminate re-work and

Unnecessary Steps

Optimize Use of Technology

Prioritize and Organize work

flowIdentify and Fix Problem Areas

Strengthen Controls

Understand Stakeholder's

NeedsFinance Analytics

Identify Profit and Cost Savings

Opportunities

Provide Useful, Timely

Information

Drive Results Using

ForecastingEffective Cost Management

FGIFGI IL and WI Practice MeetingNATIONAL PRACTICE DIRECTOR

• SOX implementations and optimization, including year-one, IPOs and improving existing programs.

• Leading-edge internal audit co-source and outsource for leading global companies,• Finance transformation,• Revenue recognition including ASC 606 assessment and implementation • Process and control improvement,• Accounting Advisory

Jim is also well known in the industry for thought leadership and innovation and is a regular speaker at conferences. Recent speaking engagements include Financial Executives International (FEI) and Institute of Internal Auditors (IIA).

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Jim Hannan is the National Practice Director for IFG’s Finance, Accounting and Risk Solutions practice. He has overall responsibility for developing and executing our methodologies as well as directing the overall practice. Jim has over 25 years of experience, including Big 4 external audit, controllership and risk consulting managing director. Some highlights of Jim’s experience include:

FGI

125 S. Wacker DriveSuite 300

Chicago, IL 60606

Jim [email protected]: 1-312-241-1630Mobile: 1-312-563-0560

ifg finance accounting and risk solutions

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