【正文】 tion167。 All subsystems electronically posted to the GL by start of Day 1 in the month end cycle167。 Transactions posted on a realtime basis (whereever possible)167。 Ability to close books on overnight basis through full automation167。 Long processing times for data167。 Poor systems reliability167。 Poor system interfaces to the GL167。 Requirement to load data from local GLs to consolidation GL167。 Poor security over GL maintenance4 Month end close What is Fast close?For a reporting environment to be effective there needs to be delivery of timely and relevant information. The longer the delay between operational transactions and report production, the less relevant the report will be from an information and decision making perspective. Consequently, month end close procedures are critical in the delivery of effective management reporting.Fast Close is an approach to deliver quicker management and financial reporting by improving month end close processes and enhancing the quality and relevance of the information provided.The first quartile benchmark for the production and distribution of management reports is 5 working days post month end. This can be achieved by:167。 ensuring a focus is maintained on providing key decision makers with relevant information and setting materiality levels from a Group perspective167。 ensuring all possible activities and postings are performed in advance of the month end close (eg. interpany reconciliations)167。 applying standard processes across the organisation and automating these as much as possibleIn doing so the timeliness of reporting improves, reducing the resources tied up in the month end cycle. To be processA high level process map for “l(fā)eading practice” month end close is outlined below. Month end leading practice checklistThe following section provides a leading practice checklist for the month end close process.Major TopicsLeading practice characteristicsIndicative issues / problemsGeneral principles167。 The key customers of management reporting are decision makers within the organisation 167。 Criteria which define relevance and materiality levels in the month end close process should reflect the needs of these key decision makers (ie the Board and Division management, not Business Unit or cost centre managers)167。 To work properly requires accurate and plete information to be provided from underlying data sources (GL, operational systems, payroll, etc). Data capture needs to be correct first time, every time.167。 Process must be consistently repeatable167。 Feeds from operational systems must be consistently available when required167。 Month end reports are produced WD+15167。 The Business has no performance measures until well into the month end cycle167。 Same data feeds hold back the process each and every month167。 Timing of month end reports varies significantly from month to monthStructure167。 Single data stream and chart of accounts for statutory amp。 management reporting167。 Rationalised legal entity structure167。 Common chart of accounts167。 Consolidation performed in one location across the organisation167。 Associates/ JVs accounted for in arrears or by estimate, unless material167。 Different reporting for management and legal entities resulting in reconciliation issues167。 Complex legal/management/tax structure167。 Substantial number of material associates / JV paniesPeople167。 Clear accountability for the month end process167。 Clear munication and clarity for roles and responsibilities in delivering the month end process167。 Senior support in adherence to defined policies (ie. CFO support and backing on rejecting immaterial/ late adjustments required by Division MD)167。 Division has visibility and “control” of results prior to Group review. Adjustments made are fully transparent to minimise manipulation.167。 Understanding and acceptance of principles of materiality and timeliness167。 Effective holiday cover167。 Lack of clarity in roles and responsibilities167。 Exceptions requested are accepted, with the exception being the rule167。 Divisions are made accountable to Group for their results with insufficient time to review and adjust them (if necessary)167。 Divisions are able to manipulate their results, with little to no visibility by Group167。 Key individuals insist on accounting for “accuracy” regardless of cost/ delay167。 Poor holiday planningProcess: Working Days up to 1167。 Identification and posting of accounts receivable and accounts payable accruals167。 Interpany balances available prior to month end. Automated reconciliation with mismatches reported on exception basis. Mismatches resolved prior month end167。 Payroll posted167。 Key review schedules available to the Business for review (eg. gross margins, staff costs)167。 Automatic validation checks on data submissions167。 Posting delayed until into the month end close167。 Significant time and effort spent reconciling interpany balances (value destruction exercise)167。 High volumes of interpany rechargesProcess: Working Day “0”167。 GL close (AP/ AR/ cashbook, fixed assets)167。 Automatic postings to GL167。 Automatic validation checks on data submissions167。 Closing the books requires manual intervention and is subject to errors/ delays167。 Books left open topmost late invoices etcProcess: Working Day 1167。 Post standard/ recurring journals167。 Issue flash results and cost centre reports167。 Numerous demands for immaterial adjustments and accruals, delaying the month end cycleProcess: Working Day 2167。 Division/ subsidiary review of results167。 Identification and posting of material adjustments. Adjustments require full explanation and are visible to Group167。 Numerous demands for immaterial adjustments and accruals, delaying the month end cycle167。 Results manipulation by DivisionsProcess: Working Day 3167。 Automated Group consolidation167。 Review of Group results167。 Identification and posting of material adjustmen