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
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Oracle EPM Cloud Align Enterprise
Data
Outperform with
Intelligence

Operations

Connect all
Planning
Completely Agile Reinvent
HR Finance IT

Analytics & Sales Marketing

Reporting
Close with
Confidence

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 Align Enterprise
COMPREHENSIVE FINANCIAL CLOSE
Data
Outperform with
Intelligence FINANCIAL CONSOLIDATION

CLOSE PROCESS ORCHESTRATION

Operations
RECONCILIATIONS & COMPLIANCE
Connect all
Planning TAX PROVISION & REPORTING
HR Finance IT
TRANSFER PRICING
Reinvent
Analytics & Sales Marketing INTELLIGENT PROCESS AUTOMATION
Reporting
NARRATIVE REPORTING & DISCLOSURES
Close with
Confidence
ORACLE
EPM CLOUD:
Completely Agile
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Best In Class Reconciliation Solution

Reconciliation Compliance

Manage Entire Reconciliation Process Account Reconciliation Cloud
• Balance Sheet Corp
• B/S and P&L Variance Analysis
• Consolidation & other balance checks
• GAAP / STAT / IFRS / other

Ensure Compliance Requirements

Transaction Matching Transaction Reconciliation

Automate High Volume, Labor Matching Compliance
Intensive, Complex Reconciliations

Transactions across one, two, or more
data sources

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Managing Reconciliations
Before ARCS… After Implementing ARCS…

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Performing Reconciliations
Before ARCS… After Implementing ARCS…

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Oracle Account Reconciliation Cloud Service (ARCS)

Partnership.
Performance.
Value.

Oracle Open World | October, 2018

  Barrick Introduction

Agenda  Legacy State

 Project Objectives and Implementation

Scope

 Project Approach

 Planning and Preparation

 Benefits Realized

 Continuous Improvement Goals

 Project Team Structure

 Barrick Gold Corp.
Donlin Gold (50%)

Hemlo
Golden
Sunlight
Turquoise Ridge (75%)
Barrick Nevada
Goldrush/Fourmile
2017 Annual Report
 Revenue: $8.4B
Jabal Sayid (50%)
 Gold Mined: 5.3M oz
 Copper Mined: 413M lbs. Pueblo Viejo (60%)
 10,000+ Employee’s

Tier 1* and emerging Tier 1 Acacia (63.9%)

Porgera (47.5%) Lagunas Norte
Strategic and Non-core Assets
Copper Assets Lumwana
Greenfields Projects
Zaldívar (50%)
Norte Abierto (50%)
KCGM (50%) Pascua-Lama Veladero (50%)
Alturas

* Tier 1 assets are defined as large, long-life and low-cost (500K ozs, >10 years, better half of cost curve)
Legacy State
 Each country had a different process of tracking reconciliation each month
 All balance sheet checklists were in different formats
Inconsistent manual
tracking  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

 Multiple reconciliation templates

 Lack of standardization globally reconciling the same natural account
 Not all reconciliations stored in a Barrick public location
Inconsistent processes
 Different reconciliation due dates by country
 Different materiality thresholds by country
 Inconsistent deadlines on resolving reconciling items

 Some countries only reconciled accounts related to SOX/Compliance controls

Audit findings  Material reconciling items not reported to Corporate
 Reconciling items aged up to 10 years
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 non-
critical 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
Implementation Scope
 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
 Implement global close checklist structure using Close
Manager in Financial Consolidation Cloud Service
(FCCS) with Smart View capability
Project Approach
The implementation roadmap was broken in smaller phases with interim checkpoints and aligned with the
organization’s priorities

Phases Q3 ‘17 Q4 ‘17 Q1 ‘18 Q2 ‘18 Q3 ‘18

Major Activities

Phase 1  Integrate Source Systems to ARCS (GL,

Sub Ledger, AR, AP, FA, Inventory)
Balance Sheet accounts in 15
weeks  Build ARCS (Auto Reconciliation, Profiles,
ARCS Reports)

 Transaction Matching
Phase 2 13  Intercompany
Other ARCS capabilities weeks  Good Received not Invoiced
 Credit Data Matching

Phase 3  Implement Financial Close Task Manager

10
FCM and integrate other  Integrate other GL’s
weeks
general ledgers  Oracle Copper and Pronto
Planning and Preparation

 Developed risk rating by materiality and complexity of accounts

Revise corporate policy and standards  Clearly defined due dates for assigned risk ratings
for accounts and intercompany  Defined auto reconciliation parameters
reconciliations  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

 Leveraged contractor to research pending issues in Balance Sheet and clear all
Balance Sheet cleansing possible reconciling items. This ensured the clarity and cleanliness of data
migrated to ARCS

 Satellite sites mapped to primary Chart of Accounts

GCOA consistency
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
1 Day Close (Future State goal)
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

Established minimum thresholds at
natural account level

Implemented auto certification
functionality
New global intercompany
reconciliation process

Enforced intercompany policies

Built new reports and global
variance explanation processes

Enabled auto-reconciliation for all
variances below $50k
Efficiency

14,000+ to 6,000+ Reconciliations
by consolidating

47% Automation

Data imports fully automated

Workflows

Structured Deadlines

Visibility and Transparency
Continuous Improvement Goals
 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
Increase automation  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
Project Team Structure
Business Sponsor
Julie Robertson

STEERING COMMITTEE
Julie Robertson Diana Salomon
Abdul Samad Steve Krause
Jeff Davidson

Hackett Team IMT Project Manager Finance BU Lead

Project Manager - Marc Atos Sabina Siluvai Corrine Gawryl

Technology Champions Functional Champions Project Support

Cloud Solutions Lead - Sandeep Singh
Integration SME - Sanjay Pasricha
Integration SME - Craig Phillips
Integration SME - Amrita Roy
Integration SME - Malango Kachingwe
Mariam Beltre (DR)
Claudio Noboa (Peru)
Marcos Giordano (Argentina)
Jorge Montecinos (Chile)
Alex Kimario (Saudi Arabia)
Alessandra Sanchez
Temwani Mvula (Zambia)
Nick Morobitto (GSS)
Alisha Obermeyer (GSS)
Edward Uribe (GSS)
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
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