NFP Industry Trends Kim James 1 Leadership Impact Study 3 - - PDF document
2019 Not-for-Profit Symposium See whiteboards for wifi login information NFP Industry Trends Kim James 1 Leadership Impact Study 3 Fundraising & Marketing Leveraging data New digital tools Peer-to-peer fundraising
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2019 Not-for-Profit Symposium
See whiteboards for wifi login information
Kim James
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Leadership Impact Study
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Fundraising & Marketing
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Up-and-Coming Tech Tools
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Giving Trends and Donor Relations
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Leadership Strategies
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Board Development
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Resources
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A Nonprofit’s Guide to Sustainability Through the Lens of a Turnaround Professional Schneider Do Schneider Downs wns No Not-f t-for-Pr Prof
it Symposium
August 29, 20 st 29, 2019
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Overview
Schneider eider Downs M s Meridian I dian Introduction
Co Common N mmon Not-for-Pr Profi
t Mistak akes: es:
Using Using Fin Financi ncial A Anal alysi ysis to Pr Prevent an ent and Co d Combat mbat Co Common Mist mmon Mistak akes: es:
Q&A Q&A
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Schneider Downs Meridian
Schneider Downs Meridian was created to provide clients with award-winning consulting services in the areas of management consulting, corporate restructuring and debt financing. Additionally, our experience includes having served in the capacity of Court-appointed Receiver, Examiner and Trustee. Our clients range from closely-held businesses to large publicly- traded corporations across the country, but typically are middle- market businesses with sales between $10 million and $500
not-for-profits, manufacturing, construction, distribution and service. The foundation of our success is a constant attention to detail, a focused approach to solving the problems of our clients, a commitment to results, and the ability to pull from our depth of
enviable reputation for our thoroughness, financial expertise, negotiating skills, presentation expertise, and the ability to quickly assess and address the obstacles impeding our client's success.
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Monitor Action Planning Implementation Sustain and Review Strategic Analysis
IMPROVEMENT PROCESS KEY SERVICE OFFERINGS
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Financial Mistakes
Budgets ets are t too aggress essive b both in revenue a e and expenses es Nonprofits are typically too optimistic when budgeting for revenue and donations. At the same time, they set an expense budget to match those revenues. Confusing p using profit its fo s for p positive c cash f flow
If an organization is break-even but has $1 million of debt payments due, its cash flow will be a loss of $1 million, despite the statement of activities showing no loss.
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Financial Mistakes
Im Impro proper debt debt structur ructure Nonprofits, out of desperation, will start using their line of credit to finance long-term assets. Similarly, nonprofits will carry too much debt, affecting their cash flow and ability to operate. Bui Building ng t too
big an and/o d/or raisi raising t g too
little Organizations raise too little money, forcing them to incur debt to complete projects. Now, in addition to the additional costs of maintaining the new asset, they also have to service the related debt.
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Strategic Mistakes
Focusi sing ng on
mission at the e at the expens nse of all
else else
Not-for-profits need to find a balance between the mission and remaining financially viable. An
employees if it does not exist. Think about mission and value to the community over long periods of time, rather than at any particular moment.
Misal Misallocati tion of
resources
Are your assets being deployed in the most efficient manner? Is your building too big? Are your offices too expensive? Are you investing in programs with little value, both financially and in the community?
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Strategic Mistakes
Misu sunde nderstandi anding ng y your ma market
Not-for-profits, as with any enterprise, needs to fully understand the market they compete in and/or serve. Scen Scenario 1 1
Maki Making dec decisi sions base s based on
assumptions, s, n not fac facts
Introducing a new location or program? What analyses have been performed to back that strategic decision? Scen Scenario 2 2
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Using Financial Analysis to Combat Common Mistakes
viability, stability and profitability of an
financial conversations (e.g., EBITDA – Earnings Before Interest, Tax, Depreciation and Amortization)
benchmarks (financial covenants – minimum net assets and fixed charge coverage ratios are examples)
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categories:
Coverage Ratio)
Evaluating Financial Performance
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Financial Ratios
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990 filings)
factors impacting all firms
Type of Financial Analysis
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PROFITABILITY AND AND C CASH SH F FLOW ($000 ($000s) 2016 2016 A. 1.Revenue $77,405 2.Operating Expense 65,615 3.Operating Surplus/(Loss) $11,790 4. 4.Oper erating R Rati tio (2. (2. / / 1. 1.) 84. 84.8% B. 1.Net Assets and Liabilities $62,419 2.Change in net assets 7,036 3. 3.Return onSurplus and Cash Flow
Key Concepts of Surplus and Cash Flow
Capital
* EBITDA stands for earnings before interest, (income) taxes, depreciation and amortization. For a nonprofit, income taxes would not be relevant and would not need to be a consideration
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EBITD EBITDA* Total debt ser tal debt servic ice** e**
* For a nonprofit, taxes are not a factor and would not be a consideration ** Required debt payments, interest expense, and capital lease payments
Cash Flow Ratios
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EBIT* + EBIT* + Fix Fixed d charges arges** Fix Fixed c d charges + arges + Int Interes rest e expens pense * For a nonprofit, taxes are not a factor and would not be a consideration ** Usually required debt payment and lease payments
Profitability Ratios
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cash availability
Liquidity Ratios
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Liquidity – How quickly will cash turn?
Key Concepts of a Liquidity Analysis:
liabilities, projects future cash inflows over cash outflows
collect invoices from customers and pay invoices to vendors (turnover)
Liq Liquidity ( ($000 $000s) 2016 2016 1.Unrestricted Cash & Investments $6,845 2.Accounts Receivable 6,217 3.Other Net Current Assets 16,584 4.Total Current Assets $29,646 5.Accounts Payable 16,582 6.Other Current Liabilities 13,208 7.Total Current Liabilities $29,790 8. 8.Wo Working Cap Capital ( (4. - . - 7.) .) $( $(144 144) 9. 9.Cur Current Rati Ratio (4. / 7.) . / 7.) 1.00 .00 10. 10.A/R Day R Days o
Revenu nues ( ( (2. . / / 1.) 1.)* 360 360) 28.9 28.9 11. 11.A/P Day Days of O Oth O h Oper Exp ( ( (5. / 4.) . / 4.) * * 360) 360) 91.0 91.0
Liquidity analysis excludes debt, other restricted and long-term cash requirements
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Current Current Asse Assets ts Current Liabil Current Liabiliti ities
Cash, Cash Cash, Cash Eq Equiv uivalents lents, and and Accounts R ccounts Recei ceivabl able Current Liabil Current Liabiliti ities
Liquidity Ratios (Unrestricted)
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Operat Operatin ing Cash g Cash Flo Flow Current Liabil Current Liabiliti ities
Unre Unrestri rict cted cash and cash and cash e cash equi uivalents nts Daily cash re Daily cash requirements irements
Liquidity Ratios - Short Term
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Debt Structure/Leverage
Key Concepts of Leverage Analysis
* Unrestricted Net Assets
De Debt S bt Structure ($000 $000s) 2016 2016 1.Long Term Debt Due After 1 Year $18,329 2.Unrestricted Net Assets 46,814 3.Debt Plus Unrestricted Net Assets (1. + 2.) $65,143 4. 4.De Debt to bt to De Debt P bt Plus us U UNA* Rati Ratio ( (1. / . / 3.) 3.) 0.28 .28 5.Total Liabilities $67,076 6.Total l Liab abilit ities ies / U UNA* ( (5. / / 2 2.) 1.4
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Long- Long-Term erm Deb Debt Lo Long-t ng-ter erm D m Debt + bt + Net Net Assets Assets
Debt bt ( (Tot
al Liabilit ilities) ies) Tota tal U Unrestri ricted ed Net Assets Net Assets
Debt Structure Ratios
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comparing to peers (earned income ratio)
comparing over time (benefit cost ratio)
Performance Ratios
RELIANCE RATIO Single largest type of Revenue Total Revenue RELIANCE ON GOVERNMENT RATIO Grants & Contract Revenue from Gov't Agencies Total Revenue EARNED INCOME RATIO Total Earned Revenue Total Revenue SELF SUFFICIENCY RATIO Total Earned Revenue Total Expenses PERSONNEL COST RATIO Total Personnel Expense Total Expenses BENEFIT COST RATIO Taxes, Insurance & Other Benefit Expense Total Salary & Wage Expense GEN, ADMIN & FUNDRAISING COST RATIO General & Admin + Fundraising Expense Total Expenses FUNDRAISING EFFICIENCY Total contributed revenue (Support) Total fundraising expenses COST PER UNIT OF SERVICE Total Program Expenses (single program) Total Units of Service Provided CUNA (PROFITABILITY) RATIO Change in Unrestricted Net Assets Total Unrestricted Revenue (Including releases from restrictions)
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financial statements
weighed and taken into consideration
recognized
Financial Statement Analysis - Limitations
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term success
key performance indicators and ratios
Key Takeaways
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Schneider Downs Meridian
Please contact us with any questions you may have regarding this presentation or client needs. Michael T. Von Lehman, CTP Director Phone: (412) 697-5248 Email: mvonlehman@schneiderdowns.com William R. Frederick Senior Associate Phone: (412) 697-5845 Email: wfrederick@schneiderdowns.com
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In 2019, both Michael Von Lehman and William Frederick were honored by the Turnaround Management Association’s Turnaround of the Year for a not-for-profit. The prestigious award was the result of their work with Life’sWork of Western PA.
Eugene J Logan, Tax Shareholder elogan@schneiderdowns.com
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Agenda
1. Overview of Tax Reform 2. Alternative Investments 3. Other Tax Developments 4. Other Hot Topics
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Agenda
1. 1. Ov Over ervie view of
Tax R x Reform rm
– Taxati tion
Transp spor
tati tion
Fringe ge B Benefits ts – Si Silo-ing
Unre rela lated d Busine ness In ss Income come – Ne Net t Operat Operating Loss Limit ing Loss Limitatio tions – Excise cise Tax on C x on Covered red E Empl ployees P Paid id in in Excess cess of
$1 mill million – Tax R x Reform rm Im Impac pact on Charitab
Giving
2. Alternative Investments 3. Other Tax Developments 4. Other Hot Topics
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Overview of Tax Reform
xation of Qualified T ied Transpor ansportation F tation Fringe inge Benef Benefits its
Excess of $1 million
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Reasoning Behind the Tax
amount for which a deduction is not allowable . . .
12/31/17
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What is a Qualified Transportation Fringe Benefit?
– Commuter highway vehicles – Transit pass – Qualified parking
– In-kind (employer hands out mass transit pass) – Bona fide cash reimbursement (employee turns in receipt) – Compensation reduction agreement (similar to health FSA)
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IRS Notice 2018-99
– Taxpayer pays a third party for employee parking spots – Taxpayer owns or leases all or a portion of a parking facility
– Office lease that does not apportion the lease cost to parking – Multi-tenant facilities where all tenants share equal access to parking
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IRS Notice 2018-99: Payments to Third Parties
parties up to 2019 pre-tax cap of $265 (2018 cap
compensation to the employee and NOT treated as UBTI
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Payments to Third Parties - Example
– 28 Employees – Tax Year 10/31/2018 – Cost of Parking - $280 per employee for each month – Tax Impact
– Estimated Income of $89,400, Tax of $18,700
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IRS Notice 2018-99: Expenses of Owned or Leased Parking Facilities
– Four step process deemed reasonable – Using the value is not a reasonable method – Method must allocate expenses to reserved employee spots;
– Parking Facility – Parking Expenses – General Public
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IRS Notice 2018-99: Expenses of Owned or Leased Parking Facilities
Four Step Method Provided in Notice
spots
remaining spots
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Expenses of Owned or Leased Parking Facilities - Example
employees
normal business day during normal business hours
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Expenses of Owned or Leased Parking Facilities - Example
(Public use on these spots, no tax)
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Expenses of Owned or Leased Parking Facilities - Example
1/1/18 - 9/30/18
9/1/18
– Only had reserved spots in calculation – Based on cost of lots – taxable parking costs $6,800 – Total taxable expenditures (parking & buses) - $221,800 – Tax of $46,578
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Form 990-T Reporting
million will be paid in tax for 2018
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Repealing IRC § 512(a)(7)
– Ways and Means Committee Chairman Rich Neal (D-MA) added to bill
– Announced on February 28th – Bipartisan Support
(H.R. 1223)
– D-SC James Clyburn (Mid-February)
– R-Texas K. Michael Conway (January)
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Overview of Tax Reform
xation of Qualified T ied Transpor ansportation F tation Fringe inge Benef Benefits its
Excess of $1 million
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Silo-ing of Silo-ing of Unre Unrelat lated Busine d Business Income ss Income
for separate trades or business
– i.e. deductions of one unrelated trade or business cannot offset income for another unrelated trade or business for the same taxable year (“silo- ing”)
– First Guidance Related to EO Provisions – No Bright-Line Test for Trade or Business
– Investment in Partnership with UBTI
– De Minimis test (less than 2% ownership) – Control test (less than 20% ownership and no control)
– Transition rule for partnership acquired before August 21, 2018
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Overview of Tax Reform
xation of Qualified T ied Transpor ansportation F tation Fringe inge Benef Benefits its
Excess of $1 million
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Changes to NOL Rules
Carryback
– Protection for QTF tax
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Overview of Tax Reform
xation of Qualified T ied Transpor ansportation F tation Fringe inge Benef Benefits its
Excess of $1 million
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Excise Tax on Compensation of Covered Employees
million for remuneration or excess parachute payments
– Calculation is based on payments made in the calendar year ending with or within the taxable year – Common-law employers liable for tax – Payments to related entity for services rendered are included
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Overview of Tax Reform
xation of Qualified T ied Transpor ansportation F tation Fringe inge Benef Benefits its
Excess of $1 million
Universities’ Net Investment Income
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TCJA Impact on Charitable Giving: The Bad
– Doubling of standard deduction ($12,000 to $24,000 for MFJ) – Elimination of many itemized deductions (home equity, 2% deductions, moving expenses) – Cap on state and local tax deductions
– Temporarily Doubles Estate and Gift Exemption ($22.4M for married couples) – Will greatly decrease the taxable estates – Impact on lifetime giving
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TCJA Impact on Charitable Giving: The Good
PATH Act
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TCJA – Charitable Giving: The Impact
– Surprise, surprise!
– Expected drop of 10% to 35% – Do taxpayers realize yet? – Economy/mission
– Bunching of deductions
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TCJA – Charitable Giving: The Report
– Record giving for 2018 – Giving from individuals declined 1.1% (or 3.4% adjusted for inflation) – Giving from foundations was up 7.3% – Giving from corporations was up 5.4% (impact
– Bequest giving was flat
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TCJA – Charitable Giving: The Report
– Giving to Education and religion decreased a by 1.3% and 1.5% respectively – Giving to human services, health organizations and arts/culture was flat – Giving to international affairs, environmental and animal organizations increased significantly
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Agenda
1. Overview of Tax Reform 2. Alternative Investments 3. Other Tax Developments 4. Other Hot Topics
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Alternative Investments
Area o
Risk & & Exposure fo for T Tax
Corporation
Partnerships
Accounts (FBAR)
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Alternative Investments
Documen Documents Used Used by Tax
Where T Where Tax R x Repor ports
States
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Agenda
1. Overview of Tax Reform 2. Alternative Investments 3. Other Tax Developments 4. Other Hot Topics
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Other Development - Wayfair
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Other Development - Wayfair
Month Registrants Sales/Use Tax Remitted Nov 2018 442 $ 5,900,000 Dec 2018 621 $ 8,300,000 Jan 2019 1,145 $12,100,000 Feb 2019 1,075 $ 6,400,000 3,283 $32,700,000
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Other Developments – DAF Notice
insight on the IRS’s view on DAF issues
– Issue #1 – Tickets, dinners and other benefits
– Issue #2 – The Pledge
– Issue #3 – Public Support Treatment on grants from a DAF
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Other Developments – Rev Proc 2018-38
Information identifying donors
challenging this rule change
litigation on Federal Schedule B, could go to Supreme Court
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Current Developments – Legislative Watch
Nonprofit Hospitals
Easements
Deduction
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Agenda
1. Overview of Tax Reform 2. Alternative Investments 3. Other Tax Developments 4. Other Hot Topics
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Other Hot Topics
– States getting more aggressive/sophisticated – Fundraisers are requiring (organization should inquire back – Penalties/fees are usually nominal
– Purely Public Charities – Renewals every 5 years – State is actually looking at renewals and questioning/denying exemption
Interest Policies
– Enforcing and monitoring?
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Other Hot Topics
– IRS has won many big cases on issues with Acknowledgement letters – Also applies to donations of property – Partnerships can be required to receive – Additional information on quid pro quo helpful after tax reform
– Online working opportunities – States very aggressive – Issue with over registering
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Other Hot Topics
– Foundation contributions and required distributions on the rise – Staffing and experience are difficult to maintain
– 6 or more months wait on applications
– Form 1023EX, IRS is finding a balance
– EO to increase staff by 170 – 30% of EO staff to retire in next 3-4 years – Data driven examinations and communications – Referrals or claims still about 50% of all audit activity
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TAX HUMOR
Accounting Standards Update
Nick Lombardo Jenn Closser
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Agenda
Customers
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NFP Financial Reporting Model Overview
Net Asset Classification Liquidity and Availability of Resources Expense Presentation Investment Return Statement of Cash Flows
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Revenue Recognition
with Customers (ASC 606)
the Accounting Guidance for Contributions Received and Contributions Made
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Revenue Recognition
Is the transfer of resources one in which commensurate value is exchanged? YES NO Exchange
relevant GAAP (e.g., ASC 606). Non‐exchange
contribution accounting model.
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Revenue Recognition
Indicative of Exchange Indicative of non‐exchange
Expressed intent by both parties is to exchange goods or services that are of commensurate value. Recipient solicits assets from the resource provider without the intent of exchanging goods or services
Both parties agree on the amount of assets transferred in exchange for goods and services that are of commensurate value. Resource provider has full discretion in determining the amount of the transferred assets. Contractual provisions provide for the assessment
transferred if the recipient fails to perform. Penalties assessed for failure to comply with the terms of the agreement are limited to the delivery
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ASU 2014-09: Revenue from Contracts with Customers
December 15, 2017
December 15, 2018
Effective Date
(restate the face) or; retrospective with cumulative effect (modified retrospective) (disclose prior year impact in notes)
Transition Type
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ASU 2014-09: Revenue from Contracts with Customers
Step 1 ‐ Identify contracts with a customer Step 2 ‐ Identify the performance
the contracts Step 3 ‐ Determine the transaction price Step 4 ‐ Allocate the transaction price to the separate performance
Step 5 ‐ Recognize revenue when the entity satisfies each performance
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Revenue Recognition
Is the transfer of resources one in which commensurate value is exchanged? YES NO Exchange
relevant GAAP (e.g., ASC 606). Non‐exchange
contribution accounting model.
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ASU 2018-08: Contributions
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ASU 2018-08: Contributions
NFP conduit bond
business entities All other entities Resource recipients
Annual periods beginning after June 15, 2018, including interim periods Annual periods beginning after December 15, 2018, and interim periods beginning after December 15, 2019
Resource providers
Annual periods beginning after December 15, 2018, including interim periods Annual periods beginning after December 15, 2019, and interim periods beginning after December 15, 2020
EFFECTIVE DATES
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ASU 2018-08: Contributions
Does the contribution contain a barrier and a right of return (or release from obligation) YES NO Conditional contribution. Recognize revenue (or expense) when condition is met. Unconditional contribution. Recognize revenue (or expense).
Condition met
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ASU 2018-08: Contributions
– If recipient does not overcome barrier, donor or grantor is released from obligation
BARRIERS TO ENTITLEMENT
Measurable performance related or other barrier
Limited Discretion
Stipulations must relate to the purpose of the grant
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ASU 2018-08: Contributions
Are donor imposed restrictions present (e.g., purpose
YES NO Recipient reports revenue as an increase in net assets with donor restrictions. Recipient reports revenue as an increase in net assets without donor restrictions.
Restriction met
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ASU 2018-08: Contributions
Restriction
Limitation on the activity to be performed; the specified activity is narrower in scope than the mission of the company.
Condition
Limitation on how the activity is conducted, or measurable barrier contingent on future performance or event. Related to the purpose of the agreement.
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Decision Tree
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ASU 2016-02: Leases
December 15, 2018
December 15, 2019
Effective Date
presented OR year of adoption, with certain practical expedients; early adoption is permitted
Transition Type
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Scope and Definition of a Lease
identified assets except:
– Leases of inventory, assets under construction, intangible assets and biological assets, including timber – Leases to explore for or use minerals, oil, natural gas, and similar non-regenerative resources (including the intangible right to explore for those resources and the rights to use the land)
right to control the use of identified property, plant or equipment (an identified asset) for a period of time in exchange for consideration.
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Scope and Definition of a Lease
asset if:
– The right to obtain substantially all of the economic benefits from use of the identified asset. – The right to direct the use of the identified asset.
identified asset for only a portion of the term of the contract, the contract contains a lease for that portion
identified asset if the supplier has the substantive right to substitute the asset throughout the period of use
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Lessee Presentation
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ROU asse U asset Lea ease Liabil Liabilit ity
separately or together with other assets
separately or together with other liabilities
the line item where they are presented and the amount of lease ROU assets
the line item where they are presented and the amount of lease liabilities
prohibited from being presented in the same line item as operating lease ROU assets
prohibited from being presented in the same line item as operating lease liabilities
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Questions
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Game Show!!
Kahoot.com (or app) Enter PIN! Nickname Ready to play!
PANEL DISCUSSION: ALL THINGS HUMAN CAPITAL
Grace Schmitt Grace Schmitt, Grace HR Partners St Steve V e Vota taw, Furniture Bank of Central Ohio Danielle Willis Danielle Willis, National Church Residences Moderator: Roy Roy L Lydic, Schneider Downs
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Schneider Downs Not For Profit Symposium Columbus, OH August 29, 2019
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MEET YOUR PRESENTER
Daniel Desko
(MBA, CISA, CISSP, CTPRP)
Shareholder Cybersecurity & IT Risk Advisory
Background
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Team
– Organization-wide Cyber Strategy and Consulting – Digital Forensics and Incident Response – Penetration Testing/Red Teaming/Purple Teaming – Mimecast/Carbon Black Partner
ABOUT SD CYBERSECURITY
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AGENDA
– Credential Abuse – Social Engineering – Administrator Privileges – Ineffective Antivirus – Physical Security Controls
– Incident Response Team / Plan – Cyber Insurance – Logging – Security Products – Incident Simulation
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Commonly Observed Password Issues
Credential Abuse
Passwords
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Password Spraying
Passwords
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Password Spraying
Passwords
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Password Cracking Analysis
Passwords
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–12 or More Characters / 3 out of 4 Complexity –Restrict Common Passwords –Restrict Months / Seasons / Sports Teams –Restrict Company-specific Terms –Expire Less Frequently
General Password Issues
Mitigation
Passwords
–Failed Login Attempts (Volume / Origin)
–Application (DUO, Google Authenticator, etc.) –SMS –Physical Token (Yubikey)
Single-Factor Authentication
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Most data breaches involve some form of social engineering
Susceptibility to Phishing
Phishing
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Credential Harvesting
Phishing
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Payload Execution
Phishing
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Mitigation
Phishing
– Block Similar Domains, New Domains, Known Bad Domains – Block Keywords – Block Certain Attachments (.EXE / .BAT / .VBS)
– Algorithmic Spam Filter (Impersonations, Context, Domain Reputation) – Rewrite Links – Sandbox Attachments
– Frequent Internal Simulations
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Overly Permissive Admin Rights
Administrative Permissions
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Overly Permissive Admin Rights
Obtaining local admin rights is a huge advantage for a hacker Many organizations are not restricting local admin rights due to technical and/or cultural challenges
Administrative Permissions
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Ineffective Antivirus
– Default exclusions (certain files types, certain folders, etc.) can be exploited by attackers
– Can be evaded by basic obfuscation techniques
– Some antivirus products can be easily disabled by terminating services on the endpoint
Antivirus
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Mitigation
Anti-Virus
– Ensure that your antivirus product has behavioral analysis and memory scanning capabilities – Only looking for bad file signatures is not effective
– Ensure that your antivirus product is configured to utilize its full potential
– Review configuration
– Confirm desired capabilities
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Physical Access Control Gaps
Physical Security
Commonly identified issues:
Why hack a system when you can just walk up to it, sit down and access it?
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Physical Access Control Gaps
Physical Security
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Hacker Hardware (Physical)
Physical Security
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Pretexting
Physical Security
“We damaged a fiber
need to look at your data center to make sure your network performance wasn’t affected.”
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No IR Team / Plan
IR TEAM
IR PLAN
counsel of the breach
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No Cyber Insurance
Nearly every firm that experienced a breach that had not purchased cyber insurance regrets that decision.
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Log Collection
We often find ourselves flying blind after a breach because logging was never enabled for key systems and accounts,
logs to save space.
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Log Monitoring
logs well before a compromise occurs.
they did with their access.
the breach unfolded.
needed to prevent a reoccurrence.
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Security Products
VENDOR PARTNERSHIPS / RECOMMENDATIONS
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Incident Simulation
response.
used to overcome security countermeasures. These drills take tabletop exercises to a new level and really put a company’s defenses to the test.
Address
65 E State Street, Suite 2000 Columbus, OH 43215
Phone & Email
(412) 697‐5285 contactsd@schneiderdowns.com
Website
schneiderdowns.com
Q & A
ddesko@schneiderdowns.com
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An Introduction to Robotic Process Automation Columbus, OH August 29, 2019
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MEET YOUR PRESENTER
Patrick Armknecht
(CPA, CITP)
Shareholder Technology Advisors
Background
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What is RPA
Robotic Process Automation (RPA)
solutions for a fully automatic handling of business processes with high‐volume repetition.
deterministic, high‐volume tasks efficiently, quickly and consistently.
subjective judgment, deliver low‐ frequency tasks, and manage change and improvement. RPA is integrated within an existing IT infrastructure
Can work across multiple technology platforms.
RPA simulates an employee
Like an employee, has access to systems to perform workable tasks.
RPA is software
The software is trained based on functional specifications and can be adjusted at any time.
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Benefits of RPA
Cost Efficiency Can cost less than existing or
Productivity Robots work around- the-clock and at a faster speed then traditional methods Employee Satisfaction Allow employees to spend more time on value-added tasks and business strategy and analysis Reliability Reduction in errors and mistakes if configured properly Scalability Can handle business growth without adding to the labor pool (digital workers
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RPA Limitations and Considerations
RPA cannot deal with non-routine processes Changes to the environment require bot maintenance RPA cannot make inefficient processes efficient
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When to Use RPA
Data is digital Processes are rule- based and stable Manual intervention is minimal The RPA provides cost savings Tasks are manually intensive
significant volume User Interface is consistent
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Investment/Cost
Annual licensing of bot technology
Infrastructure costs
Additional application licenses
Bot development and maintenance (in-house or outsourced)
improving bot performance
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Level of Effort
Bot development
anywhere between 2 to 8 weeks per bot
On-going Effort
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Best Practices for Implementing RPA
The greatest return on investment will be realized by businesses committed to the automation process!
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Demo 1: Bank Reconciliation
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Demo 2: HR Compliance
Address
65 E State Street, Suite 2000 Columbus, OH 43215
Phone & Email
Main Line: (614) 621‐4060 contactsd@schneiderdowns.com
Website
schneiderdowns.com
Q & A
parmknecht@schneiderdowns.com
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Thanks for attending!
Don’t forget to fill out your evaluation form.