3. Case study - Removing duplication from processing

Client situation

The client managed a portfolio of properties, with each property incurring certain expenses. The client required invoices recorded locally on a spreadsheet for local reporting and then to be mailed centrally and then processed into the general ledger. Payment would either occur centrally or locally, for no apparent reason either way.

Background

The organization had grown substantially adding twelve properties to its portfolio in eighteen months, with no changes to finance processes or technology.

Challenges facing the client

The client had to work through the following challenges:

• Poor internal controls
• No information on expenses until the invoices arrived
• No accruals and cut off poor with respect to processing
• Increasing size, meant sophistication controls and efficiency in processing required
• The central finance function was over staffed but needed more to deal with the manual processes in place
• Auditors were raising increasing concerns about the lack of effective internal controls
   

Key Outcomes

• Redesigned processes and included appropriate internal controls
• Extended the existing technology with additional licenses and online processing modules
• Got the properties administration staff to enter invoices direct, eliminate the spreadsheets and extract the reports they required (Self help)
• Developed an ongoing training program and specialists
• All payments made centrally
   

Result

• Client was able to add additional properties without additional finance staff
• Improved information at a local and central level
• Improved internal controls and purchase order authorization