UNKNOWNS Defusing Time Bombs in RecordtoReport Erica Edgar

UNKNOWNS Defusing Time Bombs in Record-to-Report Erica Edgar, Director of Disclosure Management Solutions, Trintech Ken Fritz, Executive VP Product Lifecycle, Trintech A Solution

NONCOMPLIANCE SIMPLY ISN’T AN OPTION FOR TODAY’S CFO 90% of CFOs say the most important aspect of their job is the review and creation of the quarterly and annual filing (10 Q / 10 K) This all-important report card determines: • Budget • Bonuses • Stock Price • Tenure A Solution RISK How do I: • MANAGE it? • MITIGATE it? • QUANTIFY it? EFFECTIVENESS AM I DOING THE RIGHT THINGS? EFFICIENCY AM I DOING THE RIGHT THINGS PROPERLY?

RIPPED FROM THE HEADLINES $26 Billion in market cap LOST in 8 minutes • DRAFT version of quarterly earnings filed to EDGAR 3 hours early • PRINTER: “Human error to blame” • CUSTOMER: Stock trading halted on NASDAQ – New product launch coverage was drowned out by snafu Could THIS … happen to ME? A Solution

TICK-TOCK, TICK-TOCK … • Ask Yourself: – What time bombs are ticking in your R 2 R process? – Could this have been foreseen? – Could this have been prevented? • Points of failure are YOUR responsibility … not your printer’s The $26 Billion Dollar Question: Do you think this company believed such a simple, disastrous error was possible? A Solution

SO WHAT HAPPENED? Outsourcing without a STRATEGY can MULTIPLY failure points Addressing the PROCESS before fixing the PROBLEM can backfire Noncompliance is ultimately YOUR RESPONSIBILITY, not your printer’s • • • Firewall Customer Compilation High Volume Reconciliation Financial Close Disclosure XBRL Certification Mind the GAPS! A Workflow Solution Printer

WHAT GOOD LOOKS LIKE CLOSE technological gaps in the process Bring your printer into the fold and ELIMINATE most failure points Take CONTROL of your process and your DATA • • • Firewall In-Source: - PLATFORM - PROCESS - REVIEW / APPROVAL Compilation High Volume Reconciliation Customer XBRL CADENCY TM Financial Close Solution CADENCY TM Disclosure Certification A Out-Source: - XBRL - DISCLOSURE - WORKFLOW Printer

TM CADENCY REINVENT RECORD-TO-REPORT A Solution

CADENCY TM • Automates the entire Record-to-Report process: o … with a single product o. . . which establishes a repeatable “Rhythm of Finance” o … by orchestrating stakeholders, activities and processes o … and offers enterprise-wide transparency and control o … in order to reduce overall financial risk CADENCY Transforms and Shortens R 2 R, enabling “controlled agility” in the Office of Finance A Solution

CADENCY A Solution

REAL TIME TRANSPARENCY ACROSS THE ENTIRE R 2 R CYCLE Cadency’s Console gives financial stakeholders across the organization: ü Real-time transparency into the current status of all R 2 R processes and workflow checkpoints ü Ability to orchestrate all stakeholders ü Streamlining of all process activities ü Ability to easily communicate and collaborate across the Office of Finance globally ü Ability to measure and manage risk A Solution profile in real time

CADENCY BALANCE SHEET DRILL-DOWN Balance Sheet Overview: ü Provides transparency for all activities managed by the Cadency suite in the context of a Balance Sheet ü Role-based access – Transparency user ü Activity status filtered by: Entity and day-ofclose (or date) A Solution

CADENCY CLOSE MANAGES ALL CLOSE RELATED FUNCTIONS • Providing transparency for all “Close Task” related activities • • • Journal Entry Reconciliations Disclosures Compliance Analytical Technical • Activity & Issue status filtered by: • Individual roles or assigned permissions • Entity and day-of-close (or date) A Solution

CADENCY CERTIFICATION MANAGES ALL GENERAL LEDGER RECONCILIATION PROCESSES Cadency Certification: • Provides transparency for all reconciliation-related activities • Activity & Issue status filtered by Entity and day-of-close • Activity & Issue status filtered by: • Individual roles / assigned permissions • Entity and day-of-close (or date) A Solution

CADENCY COMPLIANCE MANAGES ALL COMPLIANCE PROCESSES Cadency Compliance: • Provides transparency for all Compliance-related activities • Activity & Issue status filtered by: • Compliance Initiative • Action Plan type • Individual roles or assigned permissions A Solution • Entity and day-of-close (or date)

CADENCY COMPLETION MANAGES ALL FINANCIAL DISCLOSURE PROCESSES Cadency Completion: • Provides transparency for all disclosure-related activities • Activity status filtered by: • Binder, Document & Current Stage • Individual roles / assigned permissions • Entity and day-of-close (or date) A Solution

R 2 R GOVERNANCE & CONTROL Cadency governs all R 2 R process through: ü Policies and Procedures Management ü Exceptions Management ü Change Control ü Business administrator system controls ü Workflow enforced segregation of duties and dynamic routing ü Integrated quality assurance testing and A Solution audit trial

CADENCY JOURNAL ENTRY MANAGES ADJUSTMENTS & CORRECTIONS IN REAL TIME Gain the certainty that comes from visibility into, control over, and validation of the real-time status of both standard and non-standard journal entries, from preparation to approval to posting. ü Fully integrated workflow solution for preparers and approvers ü Management oversight and control of manual journal entry process ü Identify errors, manage exceptions, eliminate “approve after posts, ” and reduce processing time and risk; make your entries stand on their own ü Avoid pitfalls resulting from disparate systems, missing/inadequate supporting documentation, improper management approval, and lack of transparency into the A impact of late adjustments Solution

QUESTIONS? Comments? A Solution

CADENCY Demonstration A Solution

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