z Forms of Retirement Plans A. What is a Defined Benefit (DB) - - PowerPoint PPT Presentation

Forms of Retirement Plans

• A. What is a “Defined Benefit” (DB) Retirement Plan?
• A form of retirement plan where retirement benefits can

be determined ahead of time and is based upon a known

• formula. Social Security, Military Pensions and the ASRS

are examples of Defined Benefit retirement plans.

• B. What is a “Defined Contribution” (DC) Retirement

Plan?

• A form of retirement plan where the retirement benefits

are not known ahead of time and are based upon contributions made, investment returns realized, and expenses paid. 401(k)s and IRAs are examples of Defined Contribution retirement plans.

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z

Virtual Attendees - Make a note of all letters

How Automation Can Take the Robot Out of the Human

October 2019

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Learning Objectives

• Define the value of automation and current landscape
• Understand the types of automation
• Define Robotic Process Automation (RPA)
• How RPA technology will liberate, empower and challenge
• Identifying, rationalizing, and prioritizing ideal RPA candidates
• Review sample RPA use cases
• Leveraging automation to improve compliance
• Lessons learned and best practices

Grant Thornton International Ltd (GTIL) and the member firms are not a worldwide partnership. Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. Please see GT.com for further details.

Grant Thornton Member Firms Worldwide U.S. Member Firm

Revenue (USD) $5 billion $1.80 billion Personnel with Partners & SSC* 50,000 8,339 Partners 3,377 615 Offices 704 offices 58

Statistics as of:

• Sept. 30, 2017
• Jul. 31, 2018

*Total personnel includes professionals in Grant Thornton's Shared Services Center (SSC) which is based out of Bangalore,

• India. The SSC is a joint venture with the Grant Thornton U.S. member firm, therefore these professionals are included in

U.S. employee data.

Founded in 1924, Grant Thornton LLP is one of the world’s leading providers of audit, tax and advisory services to both public and private sector. Grant Thornton has 7,500 employees in 57 offices in the United States. Grant Thornton employs almost 100 people in Arizona.

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Grant Thornton LLP

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Introductions

Chad Kirkpatrick Senior Manager T 602 474 4979 E chad.kirkpatrick@us.gt.com Duc Duong Managing Director T 703 637 2902 E duc.duong@us.gt.com

Reality of Automation

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What is Automation?

Most people think Automation is this… In reality, it is this…

Automating Business Processes

Description

• Automating the financial file load and reconciliation.
• A state’s financial system contained daily transaction files that are needed by another agency’s

accounting system Challenge

• Due to security procedures, the data cannot be automatically imported
• Three (3) employees spend a good portion of each day copying, inputting and reconciling the

financial files Solution

• Using Robotic Process Automation technology (RPA), we showed how a “bot” would login to the

systems, input all data, and then verify data accuracy.

• The bot work will take minutes, compared to the many hours for three people to do this.

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Automation – Accounts Payable

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Manual Steps Automated Steps

Future State

Receive Invoice Vendor in System? Update Vendor Master Information Post New Vendor to SAP Code Invoice G/L and Cost Center Scan/Index (OCR) Autopost to SAP Resolve Issue (if required) Process Payment

Yes No

Current State

Receive Invoice Vendor in System? Update Vendor Master Information Post New Vendor to SAP Code Invoice G/L and Cost Center Scan/Index (OCR) Autopost to SAP Resolve Issue (if required) Process Payment

Yes No

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Demo – Accounts Payable

Roll mouse over black area and click button to start automation demo

State of Automation

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Today's business leaders are looking to reduce risk and enhance efficiencies that allow them to focus more time

• n creating value for the business

Risk Coverage What if you could be assured that your processes are executed perfectly every time? Time Spent What would your staff accomplish with a task shift from the manual and repetitive? Cost Is there something your company would rather spend that money on? ROI How much value would your team create if they were free to focus on solving complex challenges?

Opportunity areas for automation activities

The Core of the Problem

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• In the 2019 CIO Survey developed

by Grant Thornton and the TBM Council, CIOs see the value automation software can deliver when deployed correctly

• According to a new study by Grand

View Research, Inc., global RPA market size is expected to reach $3.97 billion by 2025

• Consulting service was valued at

$179.8 million in 2018 and is estimated to witness a healthy growth in near future

• Implementation services is

anticipated to register the highest growth of 33.5% over the forecast period An overwhelming majority of our survey respondents have already begun deploying automation software, or are considering or planning to do so in the next 2-3 years

Market Demand For Automation

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Time savings

Processes that require several days of manual labor can be completed in minutes

Optimized staff Cost savings

Tasks are completed based on pre-defined rules using intelligent automation that can reduce or eliminate manual error Staff can focus on tasks that require human reasoning and strategy Reduce cost of manual labor, human error, and slow processing times

Accuracy Compliance Superior customer service Employee satisfaction Improve data quality

Rules-based processing enables adherence to compliance and regulatory requirements By allowing robotics to handle volume and basic queries, staff can focus on resolving complex issues quickly Employees welcome new technologies that lighten their workload and allow them to perform more interesting work Automation connects disparate systems and creates structured process flows, enabling better understanding of company data

Business Value of Automation

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New and Emerging Technologies

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Low Code Application Platforms

The application of software development tools that replace custom coding with graphical user interfaces and configurations to generate code and streamline software development

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Data Analytics and Visualization

The presentation of data in a pictorial or graphical format to enable decision makers to see analytics presented visually, so they can grasp difficult concepts or identify new patterns

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Robotic Process Automation

The application of technology, governed by business logic and structured inputs, employed to automate business processes

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Intelligent Character Recognition

The use of Machine Learning (ML) to enhance optical character recognition (OCR) in digital files, images, etc.

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Predictive Analytics and Machine Learning

The application of machine learning, predictive modelling, and data mining to leverage data to estimate, or ‘predict’, future outcomes

Natural Language Processing

The use of Artificial Intelligence (AI) to help computers understand, interpret and manipulate human language to respond to queries (e.g. Chat Bots, Alexa, etc.)

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The Spectrum of Intelligent Automation

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Business Goals

Automation of algorithmic processes to reduce cost and enhance speed, accuracy, availability and auditability Automation of repetitive, algorithmic processes to reduce cost and enhance speed, accuracy, availability and auditability, primarily in IT Automation of non-standard, heuristic processes typically requiring human

• intervention. Where RPA ends, Cognitive

begins.

Functional Targets

Any process (F&A, HR, Ops, IT, etc.) involving structured digital data and business rules IT processes involving structured digital data and business rules, such as in dev/ops, service desk and end user computing Processes that require voice interaction, image recognition, fuzzy logic and/or involve semi and unstructured data

Value Proposition

• Automate any process without changing

the process or the systems – GUI Level

• No change to systems – no data level (API)

required

• Business rules-driven
• Enterprise-ready - security, controls,

auditability, analytics, scalability and reporting

• Low cost to deploy/run
• Typical Pilot = 4-6 weeks
• Automate IT “commodity” processes
• Business rules plus learning algorithms;

actions based on trends/patterns

• Medium cost to deploy/run
• Typical Pilot = 3-6 months
• Structure, semi-structured, unstructured

data

• Automate human interaction
• Analyze “big data” trends/patterns
• Enterprise-ready - security, controls,

auditability, analytics, scalability and reporting

• Higher cost to deploy/run
• Typical Pilot = 3-18 months

Requirements

• Structured digital data – as found in most

applications and systems

• Business rules – clear, mature, objective
• Structured digital data and data sets for

autonomic trending and pattern analysis

• Business rules – clear, mature, objective
• Large data inputs required
• ETL process needed
• Business rules – clear, mature, objective or

subjective

Aligning the Solution to the Business

What is Robotics Process Automation (RPA)?

RPA is computer coded software that executes repetitive processes, using the same steps, business rules and systems that a person uses. Complete RPA solutions require: 1. Identification, ideation, and rationalization (effort, efficiency, ROI, etc.) of ideal use cases 2. Documentation of current state process and application of BPR to improve the process using RPA 3. Design, development, and testing of bots that are scalable and reusable 4. Implementation of a RPA solution architecture that can manage multiple bots running concurrently without conflict Skills Required

• Business Process Modeling/Customer Experience Design
• Experience with development and systems logic
• Coding (e.g. HTML, JavaScript, .NET, PHP code, etc.)
• Systems testing experience (i.e. Unit, Systems, Regression,

etc.) RPA Candidate Considerations

• The process is stable (no changes), highly repetitive – otherwise,

transform process first

• The data is stable and contained, no integrations or interfaces

required

• Structured digital data – as found in most applications and

systems

• Business rules – clear, mature

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Traditional Development vs. RPA

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• Clarity on why you are implementing RPA
• Clear business case w/ ROI
• Select the right process for RPA
• Review and understand the business

process

• Account for exceptions to the process
• Understand auditing, security and

compliance needs

• Select the right RPA software
• Enable adequate visibility to the RPA

process

• Ongoing stakeholder communication

RPA Benefits and Drivers Success Criteria(s)

• FTE hour reduction
• Productivity increase
• Turnaround time reduction
• Opex reduction
• Error-free data processing
• Leads to labor upskilling
• 24/7 availability
• Audit trail
• Quick implementation

cycles

• Low cost of acquisition
• Ubiquitous and

unobtrusive technology

• Quick ROI realization

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RPA Considerations

Ideal Use Cases for Automation

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"The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency."

• Bill Gates

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Ideal RPA Use Cases

Identifying key characteristics of business and user processes is critical in selecting the right candidates for automation using RPA

Average RPA Potential - % of manual processes that can be automated using RPA General Ledger Accounting

• Automated GL transaction feeds
• Manual journal entry processing
• GL reconciliation and analysis
• GL Reporting
• Period End Close

Intercompany Accounting

• Manual data entry activities
• Reconciliations

Reporting

• Download data/format in Excel/auto distribute
• Record report receipt
• Auto report follow ups

Tax

• Sales and Use Tax Reconciliation
• Sales and Use Tax Forms
• Tax Master Data Annual Monitoring/Renewal

Processing

Record to Report

• Avg. RPA Potential: 50% - 65%

Order Management

• Quote Generation
• Customer Profitability Analysis
• Order Entry Errors
• Customer Service Frequent Responses

Credit Management

• Customer segmentation
• Customer credit management
• Payment Trend v. Credit Monitoring

Customer Billing

• Unbilled management and Billing Triggers
• Bill calculation and verification
• Customized billings
• Credit memo processing

Cash Applications

• Cash posting
• AR reconciliation
• Unallocated and unapplied cash
• Short payments

Order to Cash

• Avg. RPA Potential: 50% - 70%

Invoice Processing

• Receipt/processing and electronic inputs
• Verification and approval actions, escalations and

monitoring

• Account downloads from ledger to AP system for

reconciliations

• Invoice Match – Exceptions
• Check preparation, handling activities

Discrepancy Resolution

• Identification of discrepancies (i.e., price/quantity

differences, short pay, missing or invalid PO nos.)

• Follow-up aged discrepant items
• Error corrections as received either from systems,

audit or sites Supplier Management

• Supplier Master Data Management
• Item Master / Content Management
• Payment execution

Procure to Pay

• Avg. RPA Potential: 40% - 70%

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Typical Automation Candidates by Function

Infra Operations

• 24/7 incident management
• Server, network, storage routine maintenance

and support

• Routine DevOps tasks and activities
• IT security “eyes on glass” monitoring
• IT security admin / access management

Desktop Support

• 24/7 request management
• Problem ID, diagnosis and resolution
• Management reporting on utilization, trouble

tickets and service requests. Database Administration

• 24/7 incident management
• New deployments
• Fulfillment of minor standard requests

Applications

• Automated testing
• Problem identification, diagnosis, resolution and

management reporting

• Routine DevOps tasks and activities

Information Technology

• Avg. RPA Potential: 50% - 90%

Demand Management

• Monitor forecast v. actual demand
• Promotion / price analysis and alerts
• Web data grab/analysis analytics identify new

markets and customers Raw Materials Management

• Track and follow up incoming materials
• Identify order v. received discrepancies
• Error corrections as received either from systems,

audit or sites

• Information provision (weather, pest)

Carrier Management

• Carrier Master Management
• Customer / geography / rate compliance
• Tender / tracking alerts
• Late/delayed pickup and delivery alerts

Returns

• RMA processing, alerts and reporting

Supply Chain

• Avg. RPA Potential: 35% - 70%

Patient Access

• Collect/analyze/report performance data and

move data to/from systems

• Interact with payer web sites / conduct

authorization / post to billing system

• Scan accounts for missing authorization numbers

/ obtain from payers for specific criteria

• Verify name / address information
• Identify prior visit bad debt information

Charge Management

• Post charges / identify missing charges as

appropriate Business Office

• Automate keying of EOB information from

insurance carriers

• Automate write off of accounts that meet specific

criteria

• Collect/analyze report performance data and

move data to/from systems

• Address denials that meet specific criteria
• Interact with payer web sites / identify account

status / document status in billing system

Revenue Cycle

• Avg. RPA Potential: 30% - 70%

Average RPA Potential - % of manual processes that can be automated using RPA

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Typical Automation Candidates by Function

Sample Use Case: Employee Salary Verification

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Sample Use Case: Working Fund Cash Management

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Rationalizing and Prioritizing Use Cases

Building out your RPA roadmap is a balancing act based on impact and feasibility

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Automation and Compliance

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What does a shift from risk mitigation to value protection look like?

Before Adjustments Control:

• Control sampled at 25 per

quarter, catching potential issues every three months

• Excessive time spent testing – 12

hours per year, or 4 hours per control per quarter.

Automated control monitoring using advance analytics – efficient value protection Sample based control testing - basic risk management

Partial Assurance With Manual Assessment 4 hours per control Value Protection With Automatic Monitoring <10 minutes per control

After Adjustments to Control (user access control):

• Control tested at 100%, in real

time

• Testing performed in seconds
• Client responds to user

access problems in real time

Pass / Fail Control 1 Pass Control 2 Pass Control 3 Pass Control 4 Fail Control 5 Pass

Time savings of 75%+ per control

Value Protection Efficiency

Changing the Nature of Risk Management

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Large technology provider in Redmond Washington

Challenge The Company's Operations Finance organization operates a significant number of SOX and operational controls that require continuous monitoring. The business is limited in its ability to effectively manage the risk associated with these controls because the control testing is performed manually. Manual testing is expensive and limited by sampling that is not statistically significant, low or infrequent test frequency, and the potential for human error. Solution Prioritized controls for test automation using stakeholder input, scoring framework and minimum baseline control requirements and automated the following:

• Data gathering through direct data integration mechanisms

including database connections and event-driven file copying, including full archival of original source data. (Microsoft Flow, Azure Data Factory, Azure Storage)

• Data preparation and staging via low-code routines and

simple data manipulation techniques. (Azure SQL Stored Procedures, Azure Machine Learning Studio)

• Control test steps (e.g. matching, comparisons).

(Azure Machine Learning Studio, Azure Databricks)

• Result Output including reports and dashboards and

alerting mechanisms. (Power BI, Microsoft Flow) Outcome The Company's Operations Finance organization is realizing the following benefits from the automation of the first wave of sixteen (16) control tests:

• Identification and resolution of process-related deficiencies that were previously unidentified due to sample-based

testing

• Ability to identify trends and patterns from control test performance reporting over time
• Increased test frequency and near more real-time identification and resolution of exceptions
• Reduction in future FY manual test resources

italics denotes technologies leveraged

Case Study #1: Control Test Automation

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Fortune 500 Manufacturing Client

Challenge Our client had all of the general ledger data necessary to perform a comprehensive risk assessment but was spending large amounts of time preparing the data in Excel, leaving a very limited amount of time left to perform testing. The lack of time allocated to testing was resulting in an inability to assess risks across the entire general ledger and effectively manage risk. Solution

• Streamline data exploration, preparation, and validation and

then identify trends, risks and potential misstatements across the entire general ledger through automation:

• Data preparation: Automated workflows built in Alteryx run a

series of data cleansing and validation routines on the data to quickly prepare it for testing. (Alteryx)

• Risk Assessment: Risk scores are calculated for each

transaction based on a series of analytic tests identifying trends & characteristics. (SQL stored procedures)

• Result Output: Dynamic dashboards with visualizations and

filtering enables user friendly data exploration of general ledger data and risk scoring results in one place. (Power BI)

Alteryx workflows reduce general ledger data preparation to approximately 1 – 2 hours Visualizations increase ability to identify anomalous transactions

Outcome Our client is now able to focus their audits on the identified high risk transactions after realizing the following benefits from the automation of the data preparation and testing:

• Reduced time spent on overall data preparation and increased time spent on understanding and managing

risk

• Increased accuracy and integrity of data – automated cleansing largely reduces the change of a cleansing

misstep or error

• Increased transparency into the preparation process
• Ability to assess risks across the entire general ledger and increased time to understand the results
• Ability to identify trends and patterns from risk reporting over time

italics denotes technologies leveraged

Case Study #2: Risk Assessment Automation

Lessons Learned

• Aligning all internal stakeholders (IT,

Operations, HR, etc.) around goals of the initiative and ensuring participation and buy-in is critical to success

• Developing a comprehensive

communication strategy from initiation through implementation will result in positive expectations and will improve morale

• Creating and sustaining momentum is directly

attributable to robust business case development and demonstrating realized saving through ROI tracking

• Creating a Automation (RPA) Center of Excellence

will address the key components of ongoing success: managing the bots, resourcing and training, moving up the complexity curve and integrating new software (e.g. A.I. / machine learning /analytics)

Stakeholder Alignment Case & Benefit Realization Center of Excellence Change Management

• Creating a structure to incorporate learnings

from past implementations to continuously raise the bar on implementation performance will yield significant dividends

Continuous Improvement

• Utilizing use cases of documented

processes is a prerequisite to facilitate the implementation as both the Straight Through Processing and Exception scenarios need to be well understood

Process Selection

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Sharing Lessons Learned

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Project Management Automation process Governance Organization and roles Support Model Automation Capability Organize and Operate Measuring Automation and KPIs

WHAT is needed to operate Automation capability HOW to organize Automation capability globally HOW to operate Automation capability on a daily basis HOW to measure Automation impact and global adoption and incentivize implementations

Key Considerations: A. Strategic objectives, expected pace and scale of deployment B. “Ownership” of the capability – the role of the Business and IT C. Balance between enterprise, governance, and coordination D. Ability to share capabilities and resources across the enterprise E. Existing capabilities and organizations focused on improvement and

• ptimization (e.g. Continuous Improvement)

Automation Governance

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Holistic Approach to RPA Supporting Solutions

Use Case Management

• Business Processes Modeling
• Candidate Use Case Ideation
• RPA Roadmap Planning
• Monitoring and Tracking of

ROI

Security & Controls

Compliance Strategy Use Case Mgmt Employee Adaption Education & Outreach Security & Controls

• RPA Risk & Control Matrix
• Security Policy and Guidance on RPA
• Coaching on RPA Key Control Activities
• Pro-Active Testing of RPA Using Key

Controls Strategy

• Customer Experience

Strategy for RPA

• Customer Journey Mapping
• Strategic Modernization

Planning Compliance

• Compliance Strategy Using RPA to

Improve Accuracy and Compliance with Laws and Regulations

• Governance and Policy Planning

for RPA Education & Outreach

• Change Management Planning
• Workforce Training and Reskilling
• Communications Management

Planning Employee Adaption

• Workforce Assessment and

Optimization

• Structured People and Process

Initiatives

RPA Success Requires a Full Spectrum of Enabling Services

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Questions?