How to Successfully Integrate with ERP and Expense Management Systems

Treasury and Trade Solutions Citi Commercial Cards Innovation, Efficiency, Simplicity. 2015 Commercial Cards Conference May 18-20, 2015 How to Successfully Integrate with ERP and Expense Management Systems Successful Integration 1

Table of Contents 1. Session Overview 2. AIG 3. State of Colorado 4. Closing Remarks and Q&A Innovation, Efficiency, Simplicity. 1

Session Overview

ERP and Expense Management Systems: Successful Integration ERP System Integrate Commercial Card Data Automate Manual Processes File Integration Expense Management System Global Expansion Learn how AIG and State of Colorado have successfully integrated the Commercial Card Program with Expense Management and ERP Systems 2

Today s Presenters Brooke Dunn is the State Commercial Card Program Manager for Colorado s State Purchasing Office. As the Program Manager for CCARDColorado, Brooke works with the Program Administrators at all 78 participating entities providing guidance and best practices for their individual programs. The CCARDColorado program offers Purchasing Cards, Travel Cards and OneCards giving participating entities the option to choose the card program(s) that best meet their business needs. Brooke also worked for the Office of Information Technology Services where she was a Purchasing cardholder and a Travel cardholder, responsible for purchasing supplies and making travel arrangements for over 100 staff. In addition to Brooke s experience with Commercial Cards, she has also experience as a Purchasing Agent developing, conducting, evaluating and awarding solicitations. Joe Pascotto is a Director in AIG s Global Sourcing and Procurement Services group, and is the Global Lead for Card Administration and Expense Reimbursements. He has been with AIG for 24 years, spending the last 15 in this role as it has evolved. He is responsible for the overall strategy and management of AIG s card programs, including its T&E card program with Citibank. Additionally, he manages AIG s expense reimbursement tool deployed to nearly 70 countries, which includes support and training of the end users and final audit review of expense submissions via a shared services team, ensuring accuracy and compliance to policy. 3

AIG Successful Integration with ERP and Expense Management Systems

Expense Management and ERP Integration Corporate Credit Card Citi card issued to AIG Travelers Resources located in-country to administer program 1 resource on my team in each region to provide level 2 support / escalation / back-up (on T&E solution as well) Automated T&E Application Deployed tool locally, regionally if possible Integrate with local General Ledger and Payroll to facilitate payments Standardized policy globally, but adhere to local laws and tax requirements Integrated with global and regional helpdesks Provided metric-based reporting on spend trends and policy compliance Expense Reporting Processing (Shared Services) Expense reporting auditing housed within shared services Leverage standardized process to facilitate compliance to AIG T&E Policy ERP Systems: 43 Separate Integrations feeding 7 AP systems. 27 countries ultimately where there is no direct feed into AP (reporting is provided from the expense reimbursement tool) Currently accounts for 95% of budgeted T&E Spend through its Expense Management Tool (Completion of Japan will bring AIG to 99%) T&E Tool will be implemented in 70 countries by the end of Q2 2015 AIG has card programs in 61 countries today 4 Global Sourcing and Procurement Services

T&E Global Footprint 69 Countries Deployed (America s 16, EMEA 40, APAC 13) 1 Country In-Process (America s 0, EMEA 1, APAC 0) 5 Global Sourcing and Procurement Services

ERP Integration Automated Integration (43 Countries) Manual Integration (27 Countries) 6 Global Sourcing and Procurement Services

Process Flow 6 Expense Management Tool Expense Report Credit Card Transactions 5 Accounts Payable Finance System 11 Vendors (Employees) Dept. Manager Approval Load processes 4 3 Credit Card Payments Out of Pocket Expenses 7 Expense Processor Audit Approved Reports 9 Interface Control 10 2 8 Reports 1 HR System 7 Global Sourcing and Procurement Services

State of Colorado Successful Integration with ERP and Expense Management Systems

CCARDColorado Purchase Card & Travel Care with Rebate On July 1, 2014, the State of Colorado implemented a new ERP system for all State agencies Previous system (COFRS) Main frame system that was over 20 years old Used COBOL programming Green screen / Dot matrix technology Every State agency and Participating Entity had their own customized mapper file from Citibank New system (CORE) Web-based system Streamlined Commercial Card process by moving from a highly customized mapper to a standard file for all State agencies (32 agencies total) Other Participating Entities that do not fall under the purview of the State continue receiving separate files from Citi

CCARDColorado Purchase Card, Travel Card and One Card Decisions to be made regarding the integration between Citibank and CORE: Procedures to standardize processes statewide Allocate in Citibank or CORE? Choosing appropriate file(s) for necessary information Frequency of mapper files What process would have the least impact on our end users? Payment to Citibank

Business Process Reengineering: CCARDColorado Purchase Card, Travel Card and One Card All agencies would reallocate in Citi and receive info into CORE via mapper file Reallocation prior to payment to Citi vs. post payment in financial system Standardization of accounting practices Consolidation of mapper files: One consolidated file from Citi for all agencies Moved from a custom file to an industry standard file

Change in Chart of Account elements: Addition of Commodity based purchasing CCARDColorado Purchase Card, Travel Card and One Card Ability to use encumbrance liquidation functionality All participating agencies required to complete new default accounting string codes for each account Expanded to a 150 character coding string

End User Communication and Training: CCARDColorado Purchase Card, Travel Card and One Card Core group of PAs, Controllers and Procurement directors helped shape decisions for both Business Process Reengineering and Commercial Card integration Frequent communication to all stakeholders in months prior to conversion, as well as post conversion Trainings held on: o o o o Future state of new Financial system and impacts Creating default accounting codes spreadsheets Navigation and reconciliation of the payment document in the new ERP Follow up workshops to aid in trouble shooting

Closing Remarks and Q&A

Closing Remarks and Q&A Integration Benefits Greater Control and Compliance with Policies Improved Compliance with Buying Policies and Procedures Increased Data Management and Control Availability of Detailed Data for Spend Analysis to Make Decisions Decreased Manual Entry of Data Thank you!! 8

Innovation, Efficiency, Simplicity. 2015 Commercial Cards Conference May 18-20, 2015 IR S C ir c u la r 230 D is c lo s u r e : C itig r o u p In c. a n d its a ffilia te s do n o t p r o v id e ta x or le g a l a d v ic e. A n y d is c u s s io n of ta x m a tte r s in th e s e m a te r ia ls (i) is n o t in te n d e d or w r itte n to be u s e d, a n d c a n n o t be u s e d or r e lie d u p o n, by y o u fo r th e p u r p o s e of a v o id in g a n y ta x p e n a ltie s a n d (ii) m a y h a v e b e e n w r itte n in c o n n e c tio n w ith th e " p r o m o tio n or m a r k e tin g " of a n y tr a n s a c tio n c o n te m p la te d h e r e b y (" T r a n s a c tio n " ). A ccordingly, you should seek advice based on your particular circum stances from an independent tax advisor. A n y te rm s s e t fo rth h e re in a re in te n d e d fo r d is c u s s io n p u rp o s e s o n ly a n d a re s u b je c t to th e fin a l te rm s as s e t fo rth in s e p a ra te d e fin itiv e w ritte n a g re e m e n ts. T h is p re s e n ta tio n is n o t a c o m m itm e n t or firm o ffe r and d o e s n o t obligate us to e nter into such a com m itm ent, n or a re w e acting as a fiduciary to you. B y accep ting this p re sen ta tion, subject to ap plicable law o r regula tion, yo u a gree to keep con fiden tial the in fo rm ation con tained he rein and the existence of and proposed term s for any T ransaction. We a re re q u ire d to o b ta in, v e rify a n d re c o rd c e rta in in fo rm a tio n th a t id e n tifie s e a c h e n tity th a t e n te rs in to a fo rm a l b u s in e s s re la tio n s h ip w ith us. We w ill a s k fo r y o u r c o m p le te n a m e, s tre e t a d d re s s, a n d ta x p a y e r ID n u m b e r. W e m ay also request corporate form ation docum ents, or other form s of identification, to verify inform ation provided. [TRADEMARK SIGNOFF: add the appropriate signoff for the relevant legal vehicle] 2015 Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world. 2015 Citibank, N.A. London. Authorised and regulated by the Office of the Comptroller of the Currency (USA) and authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world 9