Spending Request Example V4

Enterprise Technology Finance

CapEx & OpEx Spending Requests

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When is a Spending Request Required?

Any CapEx or OpEx Spending for:

Any Purchases over $10,000 (or for all Laptops or PC’s even if under $10,000)

Maintenance Renewals

Consulting / Statement of Work

Human Resources (i.e. FTE, Staff Aug, Contractor)

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Scope of Project Changes

Requested Amount of Original Project Increases by more than 15%

Keep Good Records – Justification will be Required as to Why the Change

When is an Addendum Required?

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What are the Approval Limits

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Requests Under $100,000 – Approved by SLT

Requests $100,000 to $500,000 – Approved by SLT and CIO

Requests Above $500,000 – Approved by SLT, CIO, and Corporate

Requests for Human Resource Requests for All Amounts - Approved by SLT and CIO


How to Submit a Request to ET Finance

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*ET_Finance_Request


PO IssuedCreate Input Corporate Entities Review Consolidate

Terminology

New Process Path for ET Finance Requests - Start to Finish

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Framework – Color Scheme

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Gold indicates the task responsibility belongs to Requestor

Blue indicates the task responsibility belongs to ET Finance

Red indicates the task responsibility belongs to the Senior Leadership Team and CIO

Green indicates the task responsibility belongs to Corporate Finance


Requests Below $100,000

Request Approval Process – Four Types

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Requests $100,000 to $500,000

Create ReviewSLT / CIOApproval

InputCorporate

EntitiesConsolidate PO Issued

Requests Over $500,000


Corporate Approval

InputCorporate


Create ReviewInput PO IssuedSLT

ApprovalCorporate

Entities

New Human Resources – All $ Amounts


Input Consolidate

Create


CorporateApproval

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The Request Owner will need to:

Learn and understand all elements of Request process

Review and chart proper path of Request

Contact their respective ET Finance Lead

To place the Request request on tracking file and scorecard

Start to CREATE the Request form and supporting documentation

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Work with various individuals or groups with direct inter-dependencies relating to the Request components to gather, record, calculate, validate INPUT data for the Request such as:

Partners

Finance

Vendors

Business Units, when applicable

Strategic Sourcing

Collaboration efforts are VERY CRITICAL while completing the Request

The more up front effort made to complete the details or dependencies, the greater chance for timely approval – avoiding no reworks


CorporateApproval

InputCorporate


Input

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Engage CORPORATE ENTITIES such as:

Legal Group – Contract Validation; any issues relating to legality

Strategic Sourcing / Procurement Group – Price validation & Supplier Selection

Category Sourcing Councils

Corporate Treasury

Facilities – Space requirements for purchases

Enterprise Risk & Resilience – Security / Risk Concerns

Enterprise Architecture Governance Council – Required for a capital investment in IT infrastructure in new technology not currently listed as an approved standard


CorporateApproval

InputCorporate


Corporate Entities


ET Finance will need to:

Receive the Request from the Request Owner. Finance will REVIEW the Request and dive deep into the financial components of the Request to ensure consistency and accuracy of corporate financial governance

Ensure Strategic Sourcing is engaged when applicable

Request Owner and ET Finance will perform a final review of the details of the Request


CorporateApproval

InputCorporate


Review

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Next Steps for ET Finance is:

Requests below $100K will need proper approval from the SLT member during this step in the process. Any required IO numbers will only be issues after the SLT approval is complete

Requests over $100K will continue on to the consolidate step


ET Finance will:

Finalize the financial review of the Request

Take all the documents and information up to this point and CONSOLIDATE into one Request document adding to the weekly package for SLT & CIO to review

Make appropriate updates tracking file and scorecard

Complete Weekly on Friday Request package forwards to SLT and CIO for approval the following Friday


CorporateApproval

InputCorporate

EntitiesConsolidate IO Issued

Consolidate


The SLT will do the following:

For any Requests below $100K, ET Finance will work with the SLT to review and evaluate the Request and obtain SLT APPROVAL

Once Request is approved by leadership team the ET Finance can issue PO to start the project

Create ReviewSLT

ApprovalCorporateApproval

InputCorporate


SLT Approval


The SLT and CIO will perform the following:

All Request Package for Requests Above $100K are sent on Friday to STL and CIO

It’s important to ensure that the Request has ALL required approvals from ET, BU requestors, SLT, and Corporate Functions prior to submission to SLT/CIO

SLT and CIO will have the weekend and following business week to review, question, and evaluate the Request and supporting addendums

During the Weekly Friday SLT Meeting, the SLT and CIO will discuss the submitted Requests. During this time formal SLT/CIO Approval is obtained from CIO and leadership team

If the request is for New Head Count, then ET Finance would issue an PO Number and distribute to the Request Owner


CorporateApproval

InputCorporate


SLT /CIO Approval


Corporate steps are as follows:

All Requests over $500K are sent for CORPORATE APPROVAL

The Corporate step requires three weeks or 15 business days for proper approvals per CCC company policy

It’s important to ensure that the Request has ALL required approvals from ET Finance, BU, SLT, and CIO prior to being submitted to Corporate

Corporate may choose to not honor the 15 day SLA if the Request is incomplete or inaccurate

When the Corporate Management Team has approved the Request, notification will be sent to the ET Finance


CorporateApproval

InputCorporate


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Corporate


PO (Purchase Order) ISSUED steps are as follows:

ET Finance will issue the PO once the Request has been fully approved

ET Finance completes all the approval paperwork and provides the “Go Ahead” by issuing an PO Number

ET Finance then sends the PO number to the Request Owner

PO number is sent to corporate for Entry into the SAP Order to Cash system


CorporateApproval

InputCorporate


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PO Issued


Strategic Sourcing• Strategic Sourcing is an organized and collaborative approach to leveraging targeted spend

across the enterprise with select suppliers that are best suited to create knowledge and value in the customer-supplier interface.

CCC’s 6 Step Strategic

Sourcing Process

Strategic Sourcing Process

Conduct RFP

Develop Sourcing Strategy

Analyze Responses

/Select Sources

Opportunity Assessment

Approve Selected Sources

Award & Implementation


Time is determined by Requestor

Create, Input, Other Corporate Entities Timeline:

The amount of time taken in this phase is determined solely by the Requestor. The Service Level Agreement clock (or Approval Time Estimates) starts after completion of these steps.


CorporateApproval

InputCorporate


Timeline


Time Expectations or SLA’s

These SLA’s are considered as maximum time estimates for tracking and should not be considered as contractual deadline dates.

Because of the many variables causing scheduling challenges outside the control of ET Finance (i.e. holidays, year-end budget deadlines, errors, omissions or changes to Request’s, and changes within our IT environment), it may be difficult to adhere to any type of strict timing regulations.


CorporateApproval

InputCorporate


Timeline


5 Days

Review Timeline: When the ET Finance receives the PROPERLY completed Form on or before MONDAY, ET Finance has FIVE business days to complete the review process

Consolidate Timeline: The ET Finance has FIVE business days to correlate, organize and combine all Request information into one master document before being sent for formal SLT reviews and approvals

SLT / CIO Approval Timeline: The SLT/CIO receives the Request on a Friday afternoon and will use the weekend and entire next week for review, Q&A and analysis. This step will take FIVE business days before final decisions will be made during the Friday Approval Meeting.


CorporateApproval

InputCorporate


5 Days5 Days

Timeline


Corporate Approval Timeline: (Only for Request Over $500K ) If approved, corporate will receive the Request on the following Monday then take up to FIFTEEN business days for Corporate internal procedures.

Corporate may not honor the 15 day SLA if the Request is incomplete or inaccurate. Please contact Corporate early on in the process to ensure the financial information is correct before being presented for approvals.

I/O Issued Timeline: Once ET Finance has been notified of Request Approval by Corporate, ET Finance will issue the Purchase Order (PO) number. This final step will take up to FIVE business days.


CorporateApproval

InputCorporate


15 Days

5 Days

Timeline


Determined by the Request Owner

Determined bythe Request Owner

Determined bythe Request Owner

Determined bythe Request

Owner

SLA Timeline is 15 Business Days

Total Timeline: Is considered an Estimate based on BAU activities without any holiday interference during the SLA term. SLA’s are subject to change for $5M or more enterprise-wide and complex requests.



Timeline – Total (By Type)



Input Consolidate


CorporateApproval

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ReviewSLT / CIOApproval

Create InputCorporate


ReviewSLT

ApprovalCreate Input

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PO Issued


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SharePoint Accesshttps://portal.CCC.net/ETFinance/Requestapprovalprocess/Wiki/Home.aspx


https://portal.ccc.net/ETFinance/Requestapprovalprocess/Wiki Pages/Home.aspx

https://portal.ccc.net/ETFinance/Requestapprovalprocess/Wiki Pages/Home.aspx

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General Information: ET Finance Info: Business Unit Info: Charge Back Info:

Request Number In Budget (Y/N); Amount Impact Monthly CB to BU 2011

I/O Number Forecast (Y/N); Amount Capital Cost Monthly CB to BU 2012

BU Making Request Year 1, 2, 3, 4, & 5 Impact Incremental Cost Monthly CB to BU 2013

Name of Commitment Total Impact Labor Hours

Description of Commitment Capital Cost Labor Cost

Date Approved Incremental Cost Opp Cost, other than labor

Labor Hours

Labor Cost

Opp Cost, other than labor

Request Form Review

Overall information included with fully completed Request

Items in Red will be included by ET Finance prior to/after approvals


Details on all topics in this presentation can be found in the Request Approval Process User Manual located on the SharePoint site.

Thank you for your time.

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Spending Request Example V4