0. Finance at Microsoft: An Inside Look
Robert M. Weede
Assistant Corporate Controller

1. Finance at Microsoft

2. Finance at Microsoft: Our Vision
Elevate the role of the finance organization to be leaders in shareholder value creation for Microsoft

3. Expectations of Finance
No 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

4. Controllership Priorities
Operational Excellence
Financial Leaders
Drive Shareholder Value
Culture of Teamwork, Respect and Growth
Delivering on these priorities with the following strategies
Deliver world-class finance and global services that maximize shareholder value while living Microsoft values

5. Our Quarterly Close Process and How We Leverage Technology

6. Rhythm of the Business – Another View
Week 1
Week 2
Week 3
Week 4
10Q Filed; ER Published
General Ledger Closed
Financial Statement Analysis
Controller & CFO Reviews
Drafting of SEC Report
Drafting of Earnings Release
Disclosure Committee Meeting
CEO Certification
Audit Committee
GL Closed Day 4
Distribution of Drafts
4th Thursday
Other Info

7. Key Challenges Close Process Calendar management
Account reconciliations
Support documentation and retention
Issue management
Workflow management
Inbox management
Information access
Reporting Process
Workflow management
Support documentation and retention
Comment resolution
Version control
Auditor management
Statutory compliance
Inbox management
Information access

8. Close And Reporting Management: Old World
File share system. The problems with this are:
1. Efficiency/Productivity: Depending on size and complexity of the organization and the process, there could be hundreds of folders.
* You must know exactly what file you are looking for and what folder it is stored in.
* Not easily able to see what’s been completed, what hasn’t.
* Not easily able to manage ownership and signoff’s. If you are able to do so, not visibly.
2. Access – Access with file shares is difficult to manage. Requires IT support in terms of managing access at the item or folder level.

9. 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

10. Close And Reporting Management: Current State
Single point of collaboration for all group activities
Dash board view for management

11. Close Management SharePoint Site
Default view – custom task list in calendar view filtered by user
Calendar Management
Workflow Management

12. Shared Documents
One location to contain and display common/supporting document for sharing (“One version of the truth”)
Document retention for audit trail

13. Task List Task Responsibility Status Review SOX Controls
Technology is embedded in the process (support attachments, evidence of completion, and review)

14. 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
Comments and links as needed
Support as attachments

15. Review Comment Management
One location to enter all review comments/ questions and assign as tasks for resolution
Document retention for audit trail

16. One Calendar One calendar to display all close events and activities
Facilitates process flow and due dates

17. Integration With Outlook
Personal Calendar
SharePoint Calendar
Synch Outlook with SharePoint calendar for seamless calendar view/management in Outlook

18. 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

19. 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

20. 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

21. 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

22. Numbers Certification
Support = Excel spreadsheet
Use of hyperlinks and tick marks
Support saved in task list

23. Numbers Certification
Support saved in task list
Support = Excel spreadsheet

24. 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

25. SOX Controls SOX controls incorporated into task list
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

26. Quick Stats Approximately 300 tasks contained in site
Approximately 250 users
Tie out with auditors is less than an hour per quarter

27. Benefits Achieved Reduced 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 pileup/enhanced productivity

28. 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

29. Other Uses of SharePoint within Finance

30. FinWeb

31. Earnings Release Support

32. Controller Workspace

33. © 2010 Microsoft Corporation. All rights reserved.
4/15/2017 7:48 PM
© 2010 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.