SIFAX Finance Target Operating Model - 17032020 PDF

www.pwc.
com/ng
Sifax Group
Finance Target Operating Model- Draft
March 2020
This draft Finance Target Operating Model has
been prepared for and only for SIFAX Group
Limited and for no other purpose. We do not
accept or assume any liability or duty of care for
any other purpose or to any other person to whom
this document is shown or into whose hands it
may come save where expressly agreed by our
prior consent in writing.
Next This report is based on information provided by

StepsSifax Group Plc. This information has not been
independently verified by us and we therefore do
not provide any assurance as to its completeness
5
or accuracy.
Caveat
Finance Target Operating Model Draft March 2020

PwC 2
1 Introduction
2 Current State Operating Model
3 Finance Target Operating Model
3.1 Option 1- Centralised Structure
3.2 Option 2- Finance Business Partner

Next
Steps
3.3 Option 3- Decentralisation
5 Key Performance Indicators
3.4
Content 4 Implementation Map
5 Next Steps

PwC 3
1
Introduction
Introduction
Sifax Group is one of Africa’s fastest growing conglomerates with interests in the Maritime, Aviation, Haulage & Logistics, Oil
& Gas, Hospitality and Financial Services sectors.
Sifax Group was incorporated in 1988 with focus on logistics and port operations. Since then, the company has diversified
into different sectors and is one of Nigeria’s fastest growing conglomerates.
Industry
Aviation Logistics Hospitality Oil and Gas Financial Services Haulage
Subsidiaries
TBC Out of scope

PwC 5
Introduction
Sifax Group of Companies engaged PwC to assess and design a Finance Target Operating Model (F-TOM) that will aid
management in achieving its growth strategy across its different businesses
Project Scope Key Considerations Benefits
As part of its growth plans, the management of Our finance operating model design will cut
Sifax have engaged PwC to assess and • Improve service delivery to both internal and
across these four components within finance external customers, and provide strategic
redesign its current finance operating model.
The deliverables on this engagement include value to management through structured
the following: finance activities and responsibilities
Phase Deliverable Organisation

• Improve contribution to the business growth
objectives by operating as a strategic partner
Assess • Finance diagnostic report with business units and providing key
phase*** strategic insights to management
Design • Finance Target operating Finance
Phase model Target • Strengthen key functional capability through
Process People
• Implementation roadmaps Operating more effective deployment of staff
Model
• Finance and Accounting
policy and procedures • Ensures compliance with internal policies and
manual procedures, financial and tax reporting
• Training on the new deadlines
finance policies and Technology
procedures • Save time on scorekeeping and transaction
processing through system enhancement
***This report only includes the finance target
and free up time for business partnering
operating model and implementation roadmap.
Finance Target Operating Model (Draft) March 2020

PwC 6
2
Current State
Operating Model
Current State- Finance Structure (1/3)
The finance function is led by the Head of Finance with direct reporting lines to Senior Managers, Deputy Managers and
Managers across the subsidiaries
(x) Number of staff

Head of Finance
Senior Manager, Finance

(Haulage-Ijora)
Manager, Manager, Manager, Manager,

Treasury Finance (Shipping) Finance (Burma Road) Finance (Reporting)
Deputy Manager, Deputy Manager, Deputy Manager,

Payroll Credit control Tax
Assistant Manager, Assistant Manager

Assistant Manager, Trinity Payable
Payroll and Other
Offdock
payments (2)

PwC 8
All staff from Assistant Manager cadre and above are either responsible for managing a function within finance across the
group or managing a specific subsidiaries finance activities
(x) Number of staff Head of Finance
Senior Manager,
Finance (Haulage-Ijora)
Manager, Manager, Manager, Manager,

Treasury Finance (Shipping) Finance (Burma Road) Finance (Reporting)
Deputy Manager,
Deputy Manager
Treasury
Assistant Manager, Cash Asst Manager,

Haulage (2)
Account Officer,
Account Officer (3)
Cash
Cashier at all
Cashier
subsidiaries (7)

PwC 9
All staff from Assistant Manager cadre and above are either responsible for managing a function within finance across the
group or managing a specific subsidiaries finance activities
(x) Number of staff

Head of Finance
Deputy Manager, Deputy Manager, Deputy Manager,

Payroll Credit Control Tax
Assistant Manager, Payroll Assistant Manager, Assistant

Assistant
Manager,
Manager,
and other payments (2) Payable (2) Offdock
Offdock
Trinity
Trinity
Account officer (2) Credit Control Officer Finance

Finance
ClerkClerk
(5)

PwC 10
Current State- Finance Structure
The finance department is currently centralized with most functions being performed from the head office
(x) Number of locations
Location Offdock (3) Joint Operation
Head Office (1) Ports & Cargo (1) Shipping (1) Logistics (2)
(1)
Function
Budgeting and Forecasting Done Done Done Done Done Not Done
Billing Done Done Done Done Done Done
Payments Done < 50,000 < 50,000 < 50,000 Done Not Done
Payroll processing Done Not Done Not Done Not Done Not Done Not Done
Fixed Asset Management Done Not Done Not Done Not Done Not Done Not Done
Tax Management Done Not Done Not Done Not Done Not Done Not Done
Inventory Management Done Done Not Done Not Done Done Not Done
Treasury Management Done Not Done Not Done Not Done Done Not Done

PwC 11
Current State- Finance Structure
The finance department is currently centralized with most functions being performed from the head office
(x) Number of locations
Location Head Office (1) Ports & Cargo (1) Offdock (3) Shipping (1) Logistics (2) Mid Maritime (1)
Function
Management reporting Done Not Done Not Done Not Done Not Done Not Done
Financial Reporting Done Not Done Not Done Not Done Not Done Not Done
Credit Control Done Not Done Not Done Not Done Done Not Done
Internal Audit Done Not Done Not Done Not Done Not Done Not Done
Compliance Done Not Done Not Done Not Done Not Done Not Done

PwC 12
Current State- Implication of Current Structure
The current finance operating model limits staff accountability and that of the relevant business units heads. Some issues
include:
Structure
S/N Issues Implication
1 The finance function does not have a documented finance vision and The purpose and direction of finance function may not be clear, therefore it
strategy may be unable to effectively support Sifax’s growth strategy
2 There is no evidence of a formal framework for measuring performance It may be difficult to measure and monitor the value, gaps and improvement
and efficiency of the finance function areas required for finance to support Sifax’s grow
3 The roles and responsibilities within finance are not clearly defined This may lead to duplication of tasks, reduction in efficiency, increased
likelihood of errors in posting and reporting.
People
1 There is no clear career path for staff within the finance function This can increase staff turnover because staff do not see a clear growth path
within the organisation
2 There was no evidence of a formal training programme for finance staff. Continuous training serves to equip finance staff with up-to-date skills required
Most training are done on the job to meet expected performance levels
3 There was no evidence of formal staff appraisals and feedback This can be de motivating for staff and could result in high staff turnover and
loss of key staff

PwC 13
include:
Process
1 Finance and accounting policies and procedures are not documented This may lead to inefficiencies and inconsistency in the end-to-end finance
process
2 There was no evidence of an adequate formal delegation of authority and This may cause delays in transaction processing as even the most minute of
approval matrix expenses have to the GMD for approval
3 There was no evidence of a formal period end close timetable. Staff This may lead to delays in preparing and presenting management accounts to
however indicated that management reports are presented on the 15th of the relevant parties for decision making
each month.
4 The procure to pay approval process is currently being done manually with This can lead to delays in processing transactions and duplication of efforts as
a lot of hard copy documents being signed off approval need to be done on Navision as well.
6 A single staff is allowed to upload transactions for different subsidiaries on This may increase the likelihood of error especially in the case of inter
the platform company transactions
7 Management information and reports are prepared manually and analysed This can be costly, time consuming and prone to errors
mostly using spreadsheets
8 Some fixed assets are not tagged and tracked on the ERP system This can lead to increased incidence of theft or disposal of assets without
management approval.

PwC 14
include:
Technology
S/N Practice Implication
1 Evidence of a comprehensive Disaster Recovery Plan (DRP) that Company’s financial information is not safeguarded and this will lead to risks
documents steps to taken in the event of a major data loss was not sited associated with data loss in the event of a disaster
2 Findings indicate that fixed assets may not be appropriately tagged and This may lead to the understatement or overstatement of the fixed asset
tracked by the ERP system (Navision) values on the system
3 Same finance officer is allowed to upload and post on the accounting This might increase the amount of posting errors, transaction omissions, fraud
software without second review risk and inaccurate financial information

PwC 15
3
Finance Target
Operating Model
Finance Target Operating Model (F-TOM)
A well articulated and effectively communicated finance vision is the key to providing clarity on intent and the role of finance
in achieving the organisation’s overall goals
The Finance Target Operating Model describes the structure in which Finance organisation, processes, systems and people are aligned to
deliver the Finance strategy. This report focuses on the design of the blueprint for Sifax's Group of Company’s Finance function and will guide
the implementation of some initiatives highlighted in the Finance strategy document.
The following are the objectives of the F-TOM:
1 It provides a single and holistic roadmap of what the Finance function needs in order to create long term value and enhance the
future growth of the business
2
It positions the Finance function strategically to operate as a effective partner to the business
3
It promotes an improved Finance service delivery to stakeholders through structured Finance activities and responsibilities
4
It ensures the accuracy and quality data is used to support the management decision making

PwC 17
F-TOM- Finance Vision
A well articulated and effectively communicated finance vision is the key to providing clarity of intent and the role of finance
in achieving the Organisation overall goals
Developing a vision is the first step in developing a finance target operating model. A number of financial design principles have been established and considered to
support the development of this vision. These design principles are representative statements of what leadership and management will want the finance function to look
like in future as well as how it will do it. The principles takes into account global best design practices, managements intention’s and certain limitations and constraints
such as the specific cultural, statutory and regulatory environment.
• A common finance manual owned at centre
• A central control resource to ensure strengthened internal
controls
• Up-to-date policies, tested against leading practices
Risk & Control
• A decentralised finance function with oversight from • Forward looking finance teams providing
the head office insight that drives decision
Organisation
• Promoting flexibility and scalability (Sharing Customer Focus • Effort focused on activities that drive value
Model
expertise across the business) • Business partners working to integrate
• Regional teams focused on Business Partnering Finance with the business
Design
Principles • Ensuring our people are continuously
• Cleaner master data and chart of accounts
• Consistent metrics and a focus on KPIs developed
• More real-time reporting and ability to deliver self-service Systems and • Creating clear career path options and
Commitment to
• reporting Data succession planning for our people
people
• Systems aligned to industry best practice and based on • Ensuring the Finance organisation is diverse
• modern technology • Attracting and entertaining talent, including
competitive reward packages
Process
• 90% of processes to be standardised, with adjustments made on exception
• Leveraging automation to ensure teams are focused on more value adding
activities
• Processes to be continuously reviewed and improved, though as a standard activity
PwC 18
F-TOM- Finance Vision
Sequel to discussions with management and interviews with key stakeholder, we propose the following vision statements
“A finance function that support the company in achieving its growth strategy through
operating as a trusted and insightful business partner; providing timely and accurate
information; being adaptable to business needs; and empowering our people to shape the
future.”
“A Finance function respected by the business for efficiently supporting growth, while
operating a preventative control environment, and providing an enabling place to work for
our people.”

PwC 19
F-TOM- Finance Structure
The finance structure has been developed to support Sifax group in its quantum leap transformation program
Key Considerations Analysis Output
Sifax’s Current State
Sifax’s Finance Vision
Sifax’s Management desire for tracking The inputs fed into the analysis that Finance Target Operating Model
subsidiary performance leads to the development of the options
finance target operating model
Business model and volume of
transaction for subsidiary’s
5-Year strategy (Quantum leap)
Leading practice for future Finance

PwC 20
3.1
Option 1-
Centralized Structure
F-TOM- Centralized Structure Option 1
The centralized structure implies that all finance function activities will be managed from the head office. This
option involves splitting finance across functional areas with responsible officers allocated to each group entity
Merits Demerits
• Clear reporting lines- finance staff within across the various subsidiaries know who to report to, there
• Unnecessary control- top management may
is a clear delegation of authority line and decisions are executed in a unified manner.
include blanket controls that may deter
• Focused group vision- fulfilling group vision can be achieved where communication easily flows, performance or business operations of some
group is better monitored, feedback is easily attained aiding corrective measures and finance staff subsidiaries and stiffen initiatives.
have a clear communication and authority line.
• Bureaucratic leadership- finance staff are
• Administrative cost reduction- this structure adheres to standard procedures for guidance purposes, unable to contribute to decision-making, only
preventing distribution of finance staff and focus on skilled staff across the group that may potentially expected to deliver results and are merely
reduce administrative costs, for example; clear chain of command reduces duplication of roles and implementers of decisions made. It might
responsibilities. demotivate employees leading to a decline in
• Quick enforcement of decisions- financial decisions will be made by top management rather than performance and absence of initiatives.
middle to low management and then communicated across the subsidiaries, which makes decision- • Job delay- finance staff may solely rely on
making more efficient. information communicated from the top, and
• Work quality improves- better supervision in the finance function would result in improved quality of be less productive if longer wait time persist
work and standardized work would reduce task replication. before next task can be assigned
• Function focused finance model- finance transaction processing becomes function driven to deliver • Accounting implication- accounting for
work in a standardized manner, offering greater productivity and reduced operational cost. finance staff based on operating subsidiary
cost allocation might be difficult and would
• Financial Discipline- the risk of misappropriation is mitigated as this structure enforces the need for a give rise to accounting complexity.
schedule or plan and necessary approvals.

PwC 22
F-TOM- Finance Structure for Sifax Group
The structure will have a Group CFO who will be responsible for all finance activities across the group with support from the
Tax Manager, Treasury Manager and Finance Controller/Manager
Could be vacant depending on transaction volume
Board of Directors
Group Head of
Group Head of Internal Audit
Compliance
Group Managing Director
Group Chief Financial Officer
Group Head of Tax Financial Controller Group Head of Treasury
Tax Manager Finance Manager Treasury Manager

PwC 23
The finance controller and treasury manager will have accounting officers responsible for transaction processing and
reporting for each group entity as direct reports
Financial Controller Treasury Manager
Financial Account
Account Payable Asset/Inventory Treasury Officers/ Management
Accountant Receivable/
Officer Officer Accountants
Billing Officer
Sifax Off Sifax Off Sifax Off Sifax Off Sifax Haulage Ports and Cargo
dock dock dock dock Sifax Off dock Handling
and Logistics
Services
Sifax Sifax Sifax Sifax
Haulage Haulage Haulage Haulage Cashier
and and and and Cashier
Burma Cashier
Logistics Logistics Logistics Logistics Okota
Road
Ports & Ports & Ports & Ports & Cashier Cashier
Cargo Cashier
Cargo Cargo Cargo Trinity Ijora
Services Services Services Services
Cashier
Ijora
PwC 24
The Tax manager will be supported by a compliance officer, transfer pricing specialist and data management specialist who
can be someone outside the finance team
Tax Manager
Transfer pricing
Tax compliance and ICT/Data Management
specialist
audit officer Specialist
Tax and Regulatory Corporate and

Dispute resolution Contract review
Compliance transactional taxes
Contract Staff

PwC 25
Tax Function Responsibilities
CFO - Develops and monitors tax risk management ICT/Data Management Specialist
- Provide oversight over tax for the Company framework, tax risk strategy and tax policies - Develop data warehouse in collaboration with
- Oversee key tax issues relating to the Company and communicates with Group Head of Tax external services providers.
such as transfer pricing, account consolidation, - Consider training needs and knowledge - Consider system automation opportunities to
investigate sources of significant liabilities transfer strategy automate key tax computations and obligations.
arising from tax audits, etc. - Develops and implements training curriculum - Leads the automation of the tax compliance
- Coordinates the tax planning and strategy for the for tax staff process
company - Continues to drive sensitisation campaign for - Develop data management system that will store
- Has ownership for tax projects and initiatives at change management in respect of the tax all documents for corporate reporting purposes,
the decision review board and leadership team function to ensure maximum compliance in the event of an audit etc.
levels - Direct strategy to increase use of credits, - Performs data analytics on data gathered for
incentives and explore possible tax presentation to the Head of Tax and Group Head
Group Head of Tax optimization strategies. of Tax
- Communicates pertinent tax issues and tax - Ensuring that appropriate internal controls are
strategy from the Head of Tax to the CFO in place over accounting for income taxes Transfer Pricing (TP) specialist
- Supports the CFO with defending tax initiatives - Assisting the Group Head of Tax with tax - Ensure compliance with the transfer pricing
at Board level planning issues as required. regulations in Nigeria.
- Seeks support for tax function by sourcing - Responsible for intercompany and related party
external consultants if required Tax Compliance and Audit fee arrangements.
- Oversee general tax operations, compliance - Support with establishing arm’s length pricing for
Tax Manager technology, accounting all related party transactions
- Advice on the tax impact of the and economic - Ensure accurate, timely filing of consolidated - Support the planning team with appropriate arms
impact assessments relevant to the company federal, state and local income tax returns length pricing for all intercompany transactions
- Maintains a log of tax issues and risks identified and other business/regulatory related filings
that is maintained and reviewed by the Group - Review tax returns and quarterly/yearly tax
Head projections.

PwC 26
F-TOM- Finance People for Sifax Group
Group Chief Financial Officer (CFO)
DESCRIPTION
• The Group CFO represents finance on the board and reports to the Group Managing Director.
• He is responsible to the Board for all accounting and financial matters and reports.
• He provides financial insights that help in formulating and executing the company’s strategy.
• In addition to the general oversight of the Finance function, he is also responsible for financial
management of the various subsidiaries.
KPIs TRAININGS
 Undertake defined day to day
• Cost of Finance as a percentage of total Finance
• Strategic processes
Business Partnering
revenue  Track and monitor performance
• CFO Leadership
 Update Finance policies and
• Total revenue per Finance Full-time procedures on a continuous basis
Equivalent (FTE) • Performance Reporting & Analytics
• Finance headcount ratio
• Overall Finance function effectiveness

PwC 27
Financial Controller
DESCRIPTION
• The Financial Controller is responsible for co-ordinating financial reporting across the subsidiaries
and reports to the Group Chief Financial Officer.
• He is responsible for co-ordinating the period end close, fixed asset verification, inventory count and
management reporting across the group.
• He is responsible for implementing and monitoring internal control framework and policies across the
subsidiaries
KPIs TRAININGS
• Number of reports delivered after the period • Strategic Business Partnering

end close
• Financial reporting, management and
• Total revenue per Finance Full-time analysis
Equivalent (FTE)
• IFRS
• Quality of financial and management reports
(Minimal errors and audit adjustments) • Performance Reporting & Analytics

PwC 28
Group Head of Tax
DESCRIPTION
• The Group Head of Tax is responsible for communicating pertinent tax issues and tax strategy to the
Group Chief Financial Officer.
• He supports the Group Chief Financial Officer with defending tax initiatives at the Board level.
• He seeks support for tax function by sourcing external consultants if required and supports the Tax
Manager on any issue arising.
KPIs TRAININGS
• Accuracy of tax computation • Tax Planning and Management
• Internal tax advisory services and tax related • Understanding Local and International Tax
inquires Laws
• Tax and regulatory guidelines for compliance • Finance Act
• Tax costs as a percentage of profits • International Financial Reporting Standards

on Taxes, such as IAS 12 – Income Taxes

PwC 29
Group Head of Treasury
DESCRIPTION
• The Group Head of Treasury reports to the Group Chief Financial Officer and is focused on effectively
managing cash, working capital, banking relations, interest rate and foreign exchange risks.
• He also supports the Treasury Managers across the subsidiaries by overseeing their cash flow,
revenue and overall finances..
KPIs TRAININGS
• Amount of idle funds • Liquidity Management and Investments
• Available credit • Developing Treasury Policies and

Procedures
• Number of outstanding vendor payments past
the payment due date • Designing a Cash Flow Forecasts
• Variance of cash flow forecast from actual • Treasury and working capital management
• Return on invested cash

PwC 30
Finance Manager
DESCRIPTION
• The Finance Manager reports to the Financial Controller and is responsible for the oversight and control
of transactional Finance processes.
• Specifically, he is responsible for developing and maintaining the control environment, monitoring tax
filing and remittance, and ensuring compliance with the tax and finance policies.
• He also monitors accounting and financial performance, oversees budgeting process, supervises task
performed by the Financial Accountant, Account Receivable and Payable Officers and Asset/Inventory
Officers across the group.
KPIs TRAININGS
• Financial report process turnaround time • Analysing Financial Performance for

Effective Business Decision Making
• Number of Audit comments
• IFRS
• Percentage of financial reports issued on time
• Financial and Internal Control Management
• Accuracy of financial statements
• Finance as a Business Partner
• Budget development and management

PwC 31
Financial Accountant
DESCRIPTION
• The Financial Accountant reports to the Finance Manager and is responsible for the preparation and
management of periodic financial statements and ensure statements are prepared in line with IFRS in
order to guide managements in decision making.
• He is also responsible for managing general account, provide expertise regarding GAAP
interpretation and recording of transactions on the ERP at positioned subsidiaries.
• He ensures general ledgers are reconciled and provides variance explanations where necessary.
KPIs TRAININGS
• Financial and Management report process • International Financial Reporting

turnaround time Standards (IFRS)
• Accounting and its use in business
• Degree of meeting internal reporting decisions
deadlines • Completing the accounting cycle
• Financial accounting process improvement
• Accuracy of prepared finance report training
• Training on recent updates on the
functionalities of Navision and Oscar

PwC 32
Accounts Receivable Officer
DESCRIPTION
• The Account Receivable Officer reports to the Finance Manager.

• He is responsible for processing and managing customer information, billing system, preparing and
analysing debtors reports and communicating with customers across the stationed subsidiary.
• He is also responsible for keeping track of incoming payments and other income to ensure that
payment is received from customers as and when due, processes transactional taxes and ensures
appropriate records on the ERP.
• He will also liaise with the business development unit at the head office to ascertain new credit
customers, and ensure all sales are fully documented.
KPIs TRAININGS
• Percentage of disputed invoices for charges • Account receivable management and

process improvement
• Cycle time to resolve disputed invoice • Financial reporting standards
• Debt recovery management
• Average Collection Period • Understanding local and international tax
laws
• Accuracy of tax computation • Training on recent updates on the

PwC 33
Account Payable Officer
DESCRIPTION
• The Account Payable Officer reports to the Finance Manager.
• He is responsible for ensuring timely payments of vendor invoices, tracking expenses, preparing
expense reports, monitoring accounts to ensure payments are up to date and processing & posting
transactions on the accounting software.
• He is also responsible for researching and resolving invoice discrepancies and issues, preparing
invoice lifecycle report, communicating with suppliers and resolving invoice disputes across the
stationed subsidiary.
• He will also liaise with the business development unit at the head office to get updates on purchases
made, and ensure all purchases/payables are fully documented.
KPIs TRAININGS
• Number of invoices processed per week
• Account payable process improvement and
• Average time from invoice receipt to invoice management
payment • Financial reporting standards
• Supply chain management
• Percentage of invoices processed using • Understanding local and international tax
automation laws
• Accuracy of tax computation functionalities of Navision and Oscar

PwC 34
Asset/Inventory Officer
DESCRIPTION
• The Asset/Inventory Officer reports to the Finance Manager and is responsible for the preparation
and management of the fixed asset register and inventory reports in order to guide managements in
decision making.
• He is also responsible for overseeing order and storage of inventory and manage all costs relating to
intangible assets.
• He ensures fixed asset register is maintained and reconciled with general ledgers and provides
variance explanations where necessary.
KPIs TRAININGS
• Degree of meeting internal reporting • International Financial Reporting

deadlines Standards (IFRS)
• Completing the accounting cycle
• Accuracy of prepared finance report • Financial accounting process improvement
training
• Accuracy of asset and inventory register • Asset and inventory management
techniques
• Subsidiary budget variance

PwC 35
Treasury Manager
DESCRIPTION
• The Treasury Manager reports to the Group Head of Treasury and is focused on effectively managing
cash, working capital, banking relations, interest rate and foreign exchange risks.
• He monitors the financial markets, suggest credit risk management strategies, liaise with the financial
regulatory bodies on treasury issues, provide investment advice and carry out investment appraisal.
• He also supports the Treasury Officers by liaising with local lenders and investors to secure required
funds, and manage financing for foreign and local purchases.
KPIs TRAININGS
• Amount of idle funds • Liquidity Management and Investments
• Available credit • Developing Treasury Policies and

Procedures
• Number of outstanding vendor payments past
the payment due date • Designing a Cash Flow Forecasts
• Variance of cash flow forecast from actual • Treasury and working capital management
• Return on invested cash • Hedging strategies

PwC 36
Treasury Officer/ Management Accountant
DESCRIPTION
• The Treasury Officer reports to the Treasury Manager and is focused on preparing bank
reconciliations, monitoring working capital and preparing macro economic reports.
• He is also responsible for the preparation of budgets and management reports to guide
managements in decision making and ensures that the right costing methods are applied.
• He also monitors budget performance and liaise with the Treasury Manager in formulating financial
strategies and budget reviews
KPIs TRAININGS
• Amount of idle funds
• Treasury and working capital
• Available credit Management
• Number of outstanding vendor payments and • Microsoft Excel

customer receipts past the payment due date
• Preparing a Cash Flow Forecasts
• Variance of cash flow forecast from actual
• IFRS
• Management report process turnaround time
• Budgeting and Cost Accounting
• Accuracy of prepared budgets

PwC 37
F-TOM- Finance People for Sifax Off dock
Cashier
DESCRIPTION
• The Cashiers reports to the Treasury Officer and is focused on preparing expense reports and petty
cash reconciliation statements.
• They liaise and collates expense reports at their various stationed subsidiary location.
• They are also responsible for counting the contents of cash register drawer daily, and maintaining
receipts, records and withdrawals periodically.
KPIs TRAININGS
• Amount of time to disburse cash • Petty cash management

• Number of complaints/outstanding cashier • Microsoft Excel
requests
• Variance of cash flow forecast from actual

PwC 38
F-TOM- Finance Organisation Structure
With the proposed structure, the diagram below shows how finance will interact with its key stakeholders across the group
“Suppliers” “Customers”
Business Human Requesting
Planning Manifest Claims Department
Development Resources Department
Sifax Group’s Finance

Federal Inland
Revenue Service
Financial Management Budgeting &
Governance stakeholders
External Stakeholders
Accounting Reporting Forecasting
Board of Directors Banks
Fixed
Billing Tax Management Asset/Inventory
Management
Treasury Payroll External Auditors

Executive Payment
Management Processing
Management
Credit Control Internal Audit Compliance Regulatory &

Statutory
Authorities
Procurement St0res Donations
Others

PwC 39
Proposed functions and Stationed locations
S/N Functions Locations
1 Group CFO Head Office
2 Financial Controller Head Office
3 Group Treasurer Head Office
4 Group Compliance & Tax Officer Head Office
5 Tax Manager Head Office
6 Finance Manager Head Office
7 Financial Accountant Head Office, but functionally mobile i.e. runs the activities of the subsidiary apportioned to
8 Account Receivable Officer Head Office, but functionally mobile i.e. runs the activities of the subsidiary apportioned to
9 Account Payable Officer Head Office, but functionally mobile i.e. runs the activities of the subsidiary apportioned to
10 Asset/Inventory Officer Head Office, but functionally mobile i.e. runs the activities of the subsidiary apportioned to
11 Treasury officer Head Office, but functionally mobile i.e. runs the activities of the subsidiary apportioned to
12 Cashier Head Office, but functionally mobile i.e. runs the activities of the subsidiary apportioned to

PwC 40
F-TOM- Finance Processes
The RACI Matrix further explains the Finance Interaction Model by defining process responsibility and accountability of the
Finance function across Sifax Group
Description Operational Implications

• Execute: Implements the task as per agreed processes and standards.
• Document & Communicate: Documents the task and ensures that all parties understand
R Responsible Who undertakes the task what is involved.
• Manage: Ensures inclusion of all impacted parties.
• Report: Provides updates on how the activity/process is being delivered/performed.
• Oversee: Ensures that the task delivers the promise.
Who is ultimately accountable
A Accountable (approver) for the completion of the • Set Direction: Ensures clarity in the objectives and standards of the task.
task
• Approve: Monitors and approves any changes to the task and approves the final output.
• Contribute: Contributes information/knowledge to the activity owner to ensure that current

Who is consulted/whose opinion is information is captured.
C Consulted
sought to complete the task
• Check: Ensures activity stays relevant and up to date
Who is kept informed of the progress

I Informed • Update: Receives continuous updates on the objectives and delivery of the task/activity.
of the task

PwC 41
The RACI Matrix indicated the function/units within Sifax group that are responsible, accountable, consulted and informed for
the different processes that interface with finance
Business Human
Finance Treasury Tax Procurement Compliance Planning Manifest Operations Legal
Development Resource
Finance Activity
Asset/Inventory
A C R/I C/I C
Procurement
Payroll
R/A I C/I I C
Processing
Payment C/I C R/A I C/I I
Credit Control R/A R/A I
Billing R/A C R C
Internal Audit C/A C R/I C
Compliance C/A I A C

PwC 42
Business Human
Finance Activity
Treasury
R/A I A C
Management
Fixed Asset
R/A I R C/I
Management
Inventory
R/A C/I I
Management
Tax Management A R/C I I
Management
R/A C/I C/I C C C/I C C C C C
Reporting
Financial
Accounting
Budgeting &
R/A C/I C/I C/I C/I C/I C/I C/I C/I C/I C/I
Forecasting

PwC 43
An efficient and effective ERP software should include the following
Administration Commercial
Facilities Management, Office Business Development, Order
Running, Document Control, Processing, Sales Forecasting,
Transport Management, Admin Commercial Customer Support
Internal Communications,
Security & Safety External Relations
Supply Communities, Regulators,
Supply Chain Management External Corporate Social
(SCM) Chain
Management Relations Responsibility, Image Building
Supplier Management,
Purchasing, Receiving, Legal
Logistics Company Secretariat Services,
ERP
Project/Asset Legal Counsel &
Inventory/Asset Legal Representation, Drafting
Management
Management Contracts/Documents
Exploration, Development,
Production, Storage, Human Resources
Maintenance, Health & Safety Recruitment, Payroll, Benefits,
Human Training, Career Management,
Finance Resources Performance Management
Finance
Accounting & Reporting, Risk
Planning & Budgeting, Cash Management Risk Management
Flow Management, Tax, Fixed Corporate Governance,
Assets, Investments internal Audit, Compliance

PwC 44
The ERP should effectively support business processes across the various subsidiaries
Key Requirements *
Collect Data Harness Insight
Financial Accounting & Management This refers to the ability of the ERP to collect This means the ability of the ERP to apply
1 Reporting data from the different units, consolidate the data the insight obtained from processed data
and appropriately record the data in the relevant into more effective decision-making
joint venture accounts
Manifest
2 Vendor Management
Planning
Finance
Procurement
HR
Supply Chain & Procurement
3 Management
Business D.
4 Facility Management
Process Data Perform Analytics

This refers to the ERP’s ability to apply This applies to converting processed data
5 Production & Revenue Accounting intelligent techniques and industry specific into a more comprehensible, visual and
analysis to process the relevant data user-friendly format
6 Human Resources Management
7 Planning, budgeting and cost

management

PwC 45
3.2
Option 2 -
Finance Business Partner
F-TOM- Pros & Cons of Proposed Structure
The finance business partner option also involves all finance function activities being managed from the head office. This
option involves having one person (business partner) being held accountable for each subsidiary’s financial activities
Merits Demerits
• Focused group vision- fulfilling group vision can be achieved in a shorter time frame due to the • Unnecessary control- top management
finance staff clear communication and authority line. may include blanket controls that may deter
• Improved supervision- the CFO will have a better structured oversight of processes and procedures performance or business operations of
with line management of the Subsidiaries, which would improve the quality of work overall. some subsidiaries and stiffen initiatives.
• Job delay- finance staff may solely rely on
• Quick enforcement of decisions- financial decisions will be made by top management rather than
information communicated from the top,
middle to low management and then communicated across the subsidiaries, which makes decision-
and be less productive if longer wait time
making more efficient.
persist before next task can be assigned
• Stronger accountability- delivery teams will provide accurate and timely evidence of transactions to
the accounting team who will assure, process and provide timely reporting of the data. Competition is • Accounting implication- accounting for
introduced. finance staff based on operating subsidiary
cost allocation might be difficult and would
• Financial discipline- the risk of misappropriation is mitigated as this structure enforces the need for a give rise to accounting complexity.
schedule or plan and necessary approvals.
• Healthy competition- the FBP structure can offer greater productivity as a result of healthy competition
amongst the different Subsidiaries, and ultimately drive efficiency across all the Subsidiaries
• Succession planning- this structure highly supports succession planning; Employees have roles to
aspire to and develop their careers with the Company
• Clear lines of responsibility- The FBP role ensures that there is someone to hold responsible for a
Subsidiary at every point in time, because the FBP is solely dedicated to a specific Subsidiary

PwC 47
F-TOM- Finance Structure for Sifax Group (1/2)
With this structure, the finance business partner reports to the finance controller on all finance related activities . The
finance controller in turn consolidates and reports to the Group financial officer
Board of Directors
Group Head of Internal Audit

Group Head of Group Managing Director
Compliance
Group Head of Tax Financial Controller
Manager Tax Treasury Manager
Tax team
Finance Business Partners across the Subsidiaries

PwC 48
The finance business partner will be responsible for all finance related activities and will serve as a one stop point for all
financial information required for each subsidiary
Treasury Manager
Finance Business Partners across the Subsidiaries
Account Payable (AP) Treasury Officers /

Financial Accountant Account Receivable
Officer Management
(AR)/Billing Officer
Accountants

PwC 49
The Tax manager will be supported by a compliance officer, transfer pricing specialist and data management specialist who
can be someone outside the finance team
Tax Manager
Transfer pricing
specialist

Contract Staff

PwC 50
impact assessments relevant to the company federal, state and local income tax returns length pricing for all intercompany transactions
- Maintains a log of tax issues and risks identified and other business/regulatory related filings
Head projections.

PwC 51
DESCRIPTION
• The Group CFO represents finance on the board and reports to the Group Managing Director
• He is responsible to the Board for all accounting and financial matters including reports
• He provides financial insights that help in formulating and executing the company’s strategy.
• In addition to the general oversight of the Finance function, he is also responsible for financial
management of the various subsidiaries.
KPIs TRAININGS
Finance processes
• Cost of Finance as a percentage of total • Strategic Business Partnering
revenue  Track and monitor performance
 Update
• CFO Finance policies and
Leadership
• Total revenue per Finance Full-time procedures on a continuous basis
Equivalent (FTE) • Performance Reporting & Analytics
• Overall Finance function effectiveness

PwC 52
Financial Controller (FC)
DESCRIPTION
• The Financial Controller reports to the Group CFO and is
responsible for co-ordinating financial reporting across the
subsidiaries
• He is responsible for co-ordinating the period end close, fixed

asset verification, inventory count and management reporting
across the group.
• He is responsible for developing and implementing internal control

framework and policies across the subsidiaries.
•KPIs
. TRAININGS
• Strategic Business
• Number of reports delivered
Partnering
after the period end close
• Financial reporting,
• Total revenue per Finance
management and analysis
Full-time Equivalent (FTE)
• IFRS
• Quality of financial and
management reports
• Performance Reporting &
(Minimal errors and audit
Analytics
adjustments)

PwC 53
Group Head of Tax
DESCRIPTION
• The Group Head of Tax reports directly to the Group CFO and ensures
that the group functions in a legal and ethical manner across the various
subsidiaries.
• He is responsible for ensuring tax and regulatory compliance, developing

and implementing tax strategy, developing compliance programs,
reviewing policies, and advising management on possible risks.
• He also supervises the subsidiary in processing transactional taxes.
• .
KPIs TRAININGS
• Internal tax advisory services • Understanding Local and

International Tax Laws
and tax related inquires
• Finance Act
• Tax and regulatory guidelines
for compliance • International Financial Reporting
Standards on Taxes, such as
• Tax costs as a percentage of IAS 12 – Income Taxes
profits

PwC 54
Treasury Manager
DESCRIPTION
• The Treasury Manager reports directly to the Financial Controller and is focused
on effectively managing cash, working capital, banking relations, interest rate
and foreign exchange risks.
• He supports the subsidiary Treasury Officers by overseeing their cash flow,

revenue and overall finances. He also liaises with local lenders and investors to
secure required funds, and manage financing for foreign and local purchases.
• He monitors the financial markets, suggests credit risk management strategies,

liaises with financial regulatory bodies on treasury issues, provides investment
advice and handles investment appraisals
KPIs TRAININGS
• Amount of idle funds • Liquidity Management and
Investments
• Available credit
• Developing Treasury Policies and
• Number of outstanding vendor Procedures
payments past the payment due
date • Designing a Cash Flow Forecasts
• Variance of cash flow forecast • Treasury and working capital

from actual management

PwC 55
Treasury Officer/ Management Accountant
DESCRIPTION
• Each Subsidiary’s Treasury Officer reports to the Treasury Manager and Finance Business
Partner and is focused on preparing bank reconciliations, posting payables due, monitoring
working capital and preparing macro economic reports.
• He is also responsible for the preparation of budgets and management reports to guide
managements in decision making, and ensures that the right costing methods are applied.
• He also monitors budget performance and supports the Treasury Manager formulating
financial strategies and budget reviews..
KPIs TRAININGS
• Amount of idle funds • Treasury and working capital
Management
• Microsoft Excel
• Number of outstanding vendor
payments and customer receipts past • Preparing a Cash Flow Forecasts
the payment due date
• IFRS
• Variance of cash flow forecast from
actual • Budgeting and Cost Accounting
• Management report process

turnaround time

PwC 56
Finance Business Partner
DESCRIPTION
• Each Subsidiary’s Finance Business Partner reports to the Financial Controller

and is responsible for the oversight and control of transactional Finance
processes.
• Specifically, he is responsible for developing and maintaining the control

environment, monitoring tax filing and remittance, and ensuring compliance with
the tax and finance policies.
• He also monitors accounting and financial performance, oversees budgeting

process, supervises task performed by the Financial Accountant, Account
Receivable and Payables Officers, and provides supports to the Treasury Officer
of his Subsidiary
KPIs TRAININGS
• Analysing Financial Performance for
• Financial report process Effective Business Decision Making
turnaround time
• IFRS
• Financial and Internal Control
• Percentage of financial reports Management
issued on time
• Budget development and
management

PwC 57
Financial Accountant
DESCRIPTION
• The Financial Accountant reports to the Finance Business Partner and is
responsible for the preparation and management of periodic financial statements
and ensure statements are prepared in line with IFRS in order to guide
managements in decision making.
• He is also responsible for managing general account, provide expertise

regarding GAAP interpretation, recording of transactions on the ERP,
overseeing order and storage of inventory, and manage all costs relating to
intangible assets.
• He ensures fixed asset register is maintained and reconciled with general

ledgers, and provides variance explanations where necessary
KPIs TRAININGS
• Financial and Management report • International Financial Reporting
process turnaround time Standards (IFRS)
• Accounting and its use in
• Degree of meeting internal reporting business decisions
• Financial accounting process
• Accuracy of prepared finance report improvement training
• Asset and inventory management
• Accuracy of asset and inventory techniques
register • Training on recent updates on the
functionalities of Navision and
• Subsidiary budget variance Oscar

PwC 58
Accounts Receivable Officer
DESCRIPTION
• The Accounts Receivable Officer reports to the Finance Business Partner.

• He is responsible for processing and managing customer information, billing
system, preparing and analysing debtors reports and communicating with
customers within the subsidiary. Several officers are in charge of this process.
• He is also responsible for keeping track of incoming payments and other
income to ensure that payment is received from customers as and when due,
processes transactional taxes, and ensures appropriate records on the ERP.
• He will also liaise with the business development unit at the head office to
ascertain new credit customers, and ensure all sales/receivables are fully
documented.
KPIs TRAININGS
• Percentage of disputed invoices • Account receivable management

for charges and process improvement
• Financial reporting standards
• Cycle time to resolve disputed • Debt recovery management
invoice • Understanding local and
international tax laws
• Average Collection Period • Training on recent updates on the
• Accuracy of tax computation

PwC 59
Account Payable Officer
DESCRIPTION
• The Accounts Payable Officer reports to the Finance Business Partner.
• He is responsible for ensuring timely payments of vendor invoices, tracking

expenses, preparing expense reports, monitoring accounts to ensure payments
are up to date and processing & posting transactions on the accounting
software.
• He is also responsible for researching and resolving invoice discrepancies and

issues, preparing invoice lifecycle report, communicating with suppliers and
resolving invoice disputes within the subsidiary.
• He will also liaise with the business development unit at the head office to get
updates on purchases made, and ensure all purchases/payables are fully
documented.
KPIs TRAININGS
• Number of invoices processed per week • Account payable process
improvement and
• Average time from invoice receipt to invoice management
payment • Financial reporting standards
• Supply chain management
• Percentage of invoices processed using • Understanding local and
automation international tax laws
• Training on recent updates on
• Accuracy of tax computation the functionalities of Navision
and Oscar

PwC 60
With the new structure, the diagram below shows how finance will interact with its key stakeholders across the
organisation

Federal Inland
Revenue Service
Fixed
Management

Executive Payment
Management

Statutory
Authorities
Others

PwC 61
Proposed functions and Stationed locations
S/N Functions Locations
1 Group CFO Head Office,
2 Group Head of Tax Head Office
3 Financial Controller Head Office
4 Treasury Manager Head Office
5 Finance Business Partner Head Office- runs the activities of the subsidiary apportioned to
6 Financial Accountant Head Office- runs the activities of the subsidiary apportioned to
7 Account Receivable Officer Head Office- runs the activities of the subsidiary apportioned to
8 Account Payable Officer Head Office- runs the activities of the subsidiary apportioned to
9 Treasury Officers / Management Accountants Head Office- runs the activities of the subsidiary apportioned to

PwC 62

task

C Consulted

of the task

PwC 63
Business Human
Finance Activity
Asset/Inventory
A C R/I C/I C
Procurement
Payroll
R/A I C/I I C
Processing
Billing R/A C R C

PwC 64
Business Human
Finance Activity
Treasury
R/A I A C
Management
Fixed Asset
R/A I R C/I
Management
Inventory
R/A C/I I
Management
Tax Management A R/C I I
Management
Reporting
Financial
Accounting
Budgeting &
Forecasting

PwC 65
(SCM) Chain
ERP
Management
Exploration, Development,
Production, Storage, Human Resources
Finance Resources Performance Management
Finance

PwC 66
F-TOM- Finance Technology
Key Requirements *
Manifest
2 Vendor Management
Planning
Finance
Procurement
HR
3 Management
Business D.
Process Data Perform Analytics

5 Production & Revenue Accounting intelligent techniques and industry specific into a more comprehensible, visual and
analysis to process the relevant data user-friendly format

management

PwC 67
3.3
Option 3
Decentralized Structure
F-TOM- Pros & Cons of Proposed Structure
The finance business partner option also involves all finance function activities being managed from the head office. This
option involves having one person (business partner) being held accountable for each subsidiary’s financial activities
Merits Demerits
• Diversification of activities- decentralization reduces the burden of the top level management with • Loss of deploying highly skilled personnel-
making routine decisions. They can easily devote such time in more important activities and solving this structure requires the utilization of the
crucial problems of the business concern, while routine works may be left to the lower level services of exceptionally talented people, but
management. due to weak financial resources, such
• Improve managers morale- it builds a cadre of satisfied managers by improving their managerial ability deployment may be impossible.
which leads to an increase in their morale and resulting in a higher productivity. • Organizational flow maybe impaired-
decentralizing the finance function may increase
• Better management utilization- an efficient utilization of lower and middle management may lead to
the problems of coordination across the various
greater incentive due to impressive profit figures, more and improved training opportunities for all staff
subsidiaries within the group.
within the finance function across the subsidiaries, insurance that job quality will not be impaired at the
expense of other deliverables to attain. • Increased administrative expense- the
• Management of finance employees- closer and better employee management and community expenses surrounding administrative
relations are highly possible in a decentralized structure for the business as a whole, because this may responsibilities might be increased because
improve a widespread distribution of finance function roles, which might proportionately reduce the highly-paid managers would be a necessity and
unfavorable impact of sales decline. have to be appointed.
• Improves motivation- a decentralized structure provides more chances for the lower level • Higher operating cost- establishing new job
management to exercise better initiatives without any undue influence from the top level management, roles and description across the various
which may eventually improve employees morale and motivate them for greater and more advanced subsidiaries and employing several specialists in
performance. each of the subsidiaries will result in a higher
cost of operation across the group.
Internal March 2020

PwC 69
Finance Target Operating Model (F-TOM)
Given the strategic objectives of management, we have recommended that the following functions within the finance
department be decentralised
Function Decentralise Centralise Function Decentralise Centralise
Budgeting and Forecasting P X

Management reporting P X Credit Control P X
Billing P X Financial Accounting P X

Tax Management X P Internal Audit X P
Fixed Asset Management P X Compliance X P
Asset & Inventory
Inventory Management P X P X
procurement
Treasury Management X P
Payments
P X
Payroll processing
P X
PwC 70
We propose this finance structure at the group level to ensure effective service delivery within finance and provision of
business support to the organization.
Board of Directors
Group Head, Compliance Group Head, Internal Audit
Group Managing Director
Group Head, Tax Group Treasurer

Tax Manager
Finance and Treasury Managers across the Subsidiaries

PwC 71
The tax function will be centralized at group level with the responsibility for developing tax strategies, tax planning and
compliance
Group Head, Tax
Tax Manager
Transfer pricing
specialist

Contract Staff

PwC 72
impact assessments relevant to the company federal, state and local income tax returns and length pricing for all intercompany transactions
- Maintains a log of tax issues and risks identified other business/regulatory related filings
Head projections.

PwC 73
F-TOM- Finance structure for Sifax Off dock
We propose this finance structure to ensure effective service delivery within finance and provision of business support to the
organization.
GM, Sifax Off dock
Billing Manager Finance Manager
Treasury Officer/
Account Receivable/ Management Accountant
Account Payable
Billing Officer Financial (AP)- Trinity
(AP)- Trinity Accountant (AP)- Okota
(AP)- Okota
(AP)- Ijora
(AP)- Ijora
Should have expertise in transactional tax processing
Cashier Cashier Cashier

Okota Trinity Ijora

PwC 74
F-TOM- Finance Structure for Ports and Cargo Handling Services (PCHS)
We propose this finance structure for PCHS to ensure effective service delivery within finance and provision of business
support to the organization.
Managing Director
Ports and Cargo Handling Services
GM, Billing Financial Manager
Account Treasury Officer/

Receivable Financial Account Payable Management Accountant
(AR)/Billing Accountant (AP) Officer
Officer (2)
Cashier (2)

PwC 75
F-TOM- Finance Structure for Sifax Haulage and Logistics/Shipping
We propose this finance structure for Sifax Haulage and Logistics to ensure effective service delivery within finance and
provision of business support to the organization.
GM, Sifax Haulage and Logistics
Finance Manager
Financial Treasury Officer/ Management Accountant

Accountant/ Account Receivable Account Payable
Asset/Inventory officer (AR) (3) officer (AP)
Manager
Credit Control Cashier (Burma

Cashier (Ijora)
Officer road)

PwC 76
DESCRIPTION
• The Group CFO represents finance on the board and reports to the Group
Managing Director
• He is responsible to the Board for all accounting and financial matters and
reports
• He provides financial insights that help in formulating and executing the

company’s strategy.
• In addition to the general oversight of the Finance function, he is also

responsible for financial management of the various subsidiaries.
KPIs TRAININGS
• Cost of Finance as a percentage Finance processesBusiness Partnering
• Strategic
of total revenue
 Track and monitor performance
• CFO Leadership
• Total revenue per Finance Full-  Update Finance policies and
time Equivalent (FTE) procedures on a continuous basis
• Performance Reporting &
Analytics
• Overall Finance function

effectiveness

PwC 77
Financial Controller (FC)
DESCRIPTION
• The Financial Controller is responsible for co-ordinating financial reporting

across the subsidiaries and reports to the Group CFO
• He is responsible for co-ordinating the period end close, fixed asset

verification, inventory count and management reporting across the group.
• He is responsible for developing and implementing internal control framework

and policies across the subsidiaries.
KPIs TRAININGS
• Number of reports delivered • Strategic Business Partnering

after the period end close
• Financial reporting, management
• Total revenue per Finance Full- and analysis
time Equivalent (FTE)
• IFRS
• Quality of financial and
management reports (Minimal • Performance Reporting &
errors and audit adjustments) Analytics

PwC 78
Group Head of Tax
DESCRIPTION
• The Group Head of Tax reports directly to the Group Chief Financial Officer
and ensures that the group functions in a legal and ethical manner across the
various subsidiaries.
• He is responsible for ensuring tax and regulatory compliance, developing and

implementing tax strategy, developing compliance programs, reviewing
policies, and advising management on possible risks.
• He also supervises the subsidiary in processing transactional taxes.
KPIs TRAININGS
• Internal tax advisory services • Understanding Local and

and tax related inquires International Tax Laws
• Tax and regulatory guidelines • Finance Act

for compliance
• International Financial Reporting
• Tax costs as a percentage of Standards on Taxes, such as IAS
profits 12 – Income Taxes

PwC 79
Group Treasurer
DESCRIPTION
• The Group Treasurer reports directly to the Group Managing Director and is
focused on effectively managing cash, working capital, banking relations,
interest rate and foreign exchange risks.
• He also supports the subsidiary Treasury Managers by overseeing their cash

flow, revenue and overall finances.
KPIs TRAININGS
• Amount of idle funds • Liquidity Management and

Investments
• Developing Treasury Policies
and Procedures
payments past the payment due date
• Designing a Cash Flow
Forecasts
actual
management

PwC 80
Financial Accountant (1/3)
DESCRIPTION
• The Financial Accountant reports to the Finance Manager and is responsible for
the preparation and management of periodic financial statements and ensure
statements are prepared in line with IFRS in order to guide managements in
decision making.
• He is also responsible for managing general account, provide expertise

regarding GAAP interpretation, and recording of transactions on the ERP.
• He ensures general ledgers are reconciled and provides variance explanations

where necessary.
KPIs TRAININGS

Oscar

PwC 81
F-TOM- Finance People for Ports and Cargo Handling Services (PCHS)
DESCRIPTION
decision making.
• He is also responsible for managing general account, provide expertise regarding

GAAP interpretation, and recording of transactions on the ERP.
• He ensures general ledgers are reconciled and provides variance explanations

where necessary.
KPIs TRAININGS


PwC 82
F-TOM- Finance People for Sifax Haulage and Logistics
DESCRIPTION
decision making.
• He is also responsible for managing general account, provide expertise regarding

GAAP interpretation, recording of transactions on the ERP, overseeing order and
storage of inventory, and manage all costs relating to intangible assets.
• He ensures fixed asset register is maintained and reconciled with general

ledgers, and provides variance explanations where necessary.
KPIs TRAININGS
• International Financial Reporting
• Financial and Management report
Standards (IFRS)
process turnaround time
decisions
• Degree of meeting internal reporting
• Asset and inventory management
• Accuracy of asset and inventory techniques
register • Training on recent updates on the
• Subsidiary budget variance Oscar

PwC 83
Finance Manager (1/3)
DESCRIPTION
• The Finance Manager reports to the General Manager and is responsible for the
oversight and control of transactional Finance processes.


Receivable and Payables Officers, and provides supports to the Treasury
Manager.
KPIs TRAININGS
• Financial report process • Analysing Financial Performance for

turnaround time Effective Business Decision Making
• Number of Audit comments • IFRS
• Percentage of financial reports • Financial and Internal Control

issued on time Management
• Accuracy of financial statements • Finance as a Business Partner

PwC 84
DESCRIPTION
• The Finance Manager reports to the Managing Director and is responsible for
the oversight and control of transactional Finance processes.


Receivable and Payables Officers, and provides supports to the Treasurer.
KPIs TRAININGS
• Analysing Financial Performance for

• Financial report process
Effective Business Decision Making
turnaround time
• IFRS
• Financial and Internal Control
• Percentage of financial reports
Management
issued on time

PwC 85
DESCRIPTION
• The Finance Manager reports to the General Manager and is responsible for the
oversight and control of transactional Finance processes.


Receivable and Payables Officers, and provides supports to the Treasurer.
KPIs TRAININGS
• Financial report process • Analysing Financial Performance for

turnaround time Effective Business Decision Making
• Number of Audit comments • IFRS
• Percentage of financial reports • Financial and Internal Control

issued on time Management
• Accuracy of financial statements • Finance as a Business Partner

PwC 86
Accounts Receivable Officer (1/3)
DESCRIPTION
• The Accounts Receivable Officer reports to the Finance Manager.

customers at the 3 several locations within the subsidiary.
ascertain new credit customers, and ensure all sales are fully documented.
KPIs TRAININGS
• Percentage of disputed invoices for • Account receivable management

charges and process improvement
• Cycle time to resolve disputed invoice • Debt recovery management
• Understanding local and
• Average Collection Period international tax laws
• Accuracy of tax computation functionalities of Navision and
Oscar

PwC 87
DESCRIPTION

• He is responsible for processing and managing customer information,
preparing and analysing debtors reports and communicating with customers
within the subsidiary, while 2 separate officers operate the billing system.
ascertain new credit customers, and ensure all sales are fully documented.
KPIs TRAININGS
• Percentage of disputed invoices • Account receivable management and
for charges process improvement
invoice • Understanding local and international
tax laws

PwC 88
DESCRIPTION

customers within the subsidiary, and 3 separate officers are in charge of this
process.
ascertain new credit customers, and ensure all sales/receivables are fully
documented.
KPIs TRAININGS
• Percentage of disputed invoices for • Account receivable management

charges and process improvement
invoice • Understanding local and
PwC 89
Account Payable Officer (1/3)
DESCRIPTION
• The Accounts Payable Officer reports to the Finance Manager.

software.

resolving invoice disputes at the 3 several locations within the subsidiary.
documented.
KPIs TRAININGS
• Number of invoices processed per • Account payable process
week improvement and management
• Average time from invoice receipt to • Supply chain management
invoice payment • Understanding local and
• Percentage of invoices processed • Training on recent updates on the
using automation functionalities of Navision and
Oscar

PwC 90
DESCRIPTION

expenses, preparing expense reports, monitoring accounts to ensure
payments are up to date and processing & posting transactions on the
accounting software.

documented.
KPIs TRAININGS
invoice payment • Understanding local and
using automation functionalities of Navision and
Oscar

PwC 91
DESCRIPTION

software.

documented.
KPIs TRAININGS
invoice payment • Understanding local and international
tax laws
using automation functionalities of Navision and Oscar

PwC 92
Treasury Officer/Management Accountant (1/3)
DESCRIPTION
• The Treasury Officer reports to the Treasury Manager and is focused on

preparing bank reconciliations, monitoring working capital and preparing macro
economic reports.
• He is also responsible for the preparation of budgets and management reports to

guide managements in decision making, and ensures that the right costing
methods are applied.
• He also monitors budget performance and supports the Treasury Manager

formulating financial strategies and budget reviews.
• .
KPIs TRAININGS
• Amount of idle funds
Management
• Microsoft Excel
payments and customer receipts
• Preparing a Cash Flow Forecasts
past the payment due date
• IFRS
actual • Budgeting and Cost Accounting
• Management report process
turnaround time

PwC 93
Treasury Officer/ Management Accountant (2/3)
DESCRIPTION
• The Treasury Officer reports to the Treasurer and is focused on preparing bank

• He also monitors budget performance and supports the Treasurer formulating

financial strategies and budget reviews.
• .
KPIs TRAININGS
• Number of outstanding vendor • Microsoft Excel

payments and customer receipts past
the payment due date • Preparing a Cash Flow Forecasts
• Variance of cash flow forecast from • IFRS
actual
• Management report process • Budgeting and Cost Accounting
turnaround time

PwC 94
Treasury Officer/ Management Accountant (3/3)
DESCRIPTION
• The Treasury Officer reports to the Treasurer and is focused on preparing bank

• He also monitors budget performance and supports the Treasurer formulating

financial strategies and budget reviews..
KPIs TRAININGS
• Number of outstanding vendor • Microsoft Excel

payments and customer receipts
past the payment due date • Preparing a Cash Flow Forecasts
• IFRS
actual
• Management report process • Budgeting and Cost Accounting
turnaround time

PwC 95
Cashier (1/3)
DESCRIPTION
• The Cashiers reports to the Treasury Officer and is focused on preparing
expense reports and petty cash reconciliation statements.
• They liaise and collates expense reports at the various locations within the
subsidiary.
• They are also responsible for counting the contents of cash register drawer
daily, and maintaining receipts, records and withdrawals periodically.
KPIs TRAININGS
• Number of complaints/outstanding • Microsoft Excel

cashier requests

actual

PwC 96
Cashier (2/3)
DESCRIPTION
• They liaise and collates expense reports within the subsidiary.
daily, and maintaining receipts, records and withdrawals periodically
KPIs TRAININGS
• Number of complaints/outstanding • Microsoft Excel

cashier requests

actual

PwC 97
Treasury Officer (3/3)
DESCRIPTION
• They liaise and collates expense reports at the various locations within the
subsidiary.
daily, and maintaining receipts, records and withdrawals periodically.
KPIs TRAININGS
• Amount of time to disburse cash
• Petty cash management
• Number of complaints/outstanding
• Microsoft Excel
cashier requests

actual

PwC 98
The diagram below shows how finance will interact with its key stakeholders across the organisation

Federal Inland
Revenue Service
Fixed
Management

Executive Payment
Management

Statutory
Authorities
Others

PwC 99

task

C Consulted

of the task

PwC 100
Table below explains the Finance Interaction Model by stating the Finance functions, process categories and Finance
requirement across Sifax Group (2/2)
Business Human
Finance Activity
Asset/Inventory
A C R/I C/I C
Procurement
Payroll
R/A I C/I I C
Processing

 Undertake defined day to day Finance
processes
 Update Finance policies and procedures on a
Billing R/A C R C
continuous basis

PwC 101
Table below explains the Finance Interaction Model by stating the Finance functions, process categories and Finance
requirement across Sifax Group (2/2)
Business Human
Finance Activity
Treasury
R/A I A C
Management
Fixed Asset
R/A I R C/I
Management
Inventory
R/A C/I I
Management
Tax Management A R/C I  Undertake defined day to day Finance I
processes
Management
R/A C/I C/I C C C/I  Track and
C monitor performance
C C C C
Reporting
Financial continuous
R/A C/I C/I C C C/I C basis C C C C
Accounting
Budgeting &
Forecasting

PwC 102
(SCM) Chain
ERP
Management
Exploration, Development,  Undertake defined day to day Finance
Production, Storage, processes Human Resources
Finance  Update Finance policies
Resources and procedures
Performance on a
Management
Finance continuous basis

PwC 103
Key Requirements *
Manifest
2 Vendor Management
Planning
Finance
Procurement
HR
3 Management
Business D.
Process Data Perform

Undertake defined day Analytics
to day Finance
processes
5 Production & Revenue Accounting intelligent techniques and industry specific into performance
Track and monitor
 data a more comprehensible, visual and
analysis to process the relevant user-friendly format
continuous basis

management

PwC 104
3.4
Key Performance
Indicators
F-TOM- Key Performance Indicators
To ensure finance performs at its optimal level, we have developed key performance indicators that will assist management in
appraising performance of the finance function
Finance Area KPI Calculation Target

Reporting and Compliance
Financial Report Error rate This is the number of errors in the financial reports prepared by the finance A maximum of 1 error
teams at the subsidiary for every 40 reports
prepared
Number of audit adjustments/journals This is the number of journals raised by either the internal and/or external <=5
raised audit team as audit adjustment to the financial reports
Number of days to conduct period The amount of time it takes for the finance function to conduct it’s period To be decided by the
end close activities end close activities Group CFO
Degree of meeting internal and This amount of times reporting deadlines are met divided by the number 100%
external reporting deadlines reporting deadlines the finance team has expressed as a percentage.

PwC 106
F-TOM- Key Performance Indicators
To ensure finance performs at its optimal level, we have developed key performance indicators that will assist
management in appraising performance of the finance function
Average time to perform budget The amount of time it takes to check if a purchase order exceeds budget Instant
control of a purchase order on the expense line item
Transaction processing and
Payment error rate The number of outgoing payments processed by the Account payable staff 0%
that contained an error divided by the total number of transactions initiated
over a period of time
Efficiency
Score in Internal Customer This refers to the overall rating of finance function in the monthly, quarterly An overall score of at
satisfaction surveys and yearly internal customer satisfaction surveys least 4 of 5
Inventory balance lag This is the average number of days that the inventory balance in the To be determined by
system does not tally with the physical inventory stock CFO

PwC 107
F-TOM- Finance Key Performance Indicators
% of time used on data analysis, The amount of time finance staff spend on predictive data analysis divided 70%
management reporting and providing by the total amount of working hours in a month
management insights
Number of hours to prepare and The amount of time it takes for the finance team to provide management <1hr
finalise periodic forecasts, with periodic cashflow forecasts and trade profitability calculations
profitability analysis
Insights
% of cashflow forecast error This is a business liquidity and cash management indicator. This is the Daily Error- 0%
difference between the forecasted cash balance and the actual cash Weekly Error- 0%
balance expressed a percentage of the actual cash balance
Monthly Error- 10%
Quarterly Error- 15%
Yearly Error-20%
Number of inventory or spare parts The amount of times the company runs out of inventory for its different Maximum of 1 per year
stock outs white products and lubricant raw materials

PwC 108
F-TOM- Finance Key Performance Indicators
Number of implemented ERP modules This is the number of modules within the ERP not being used by those who Nil
Finance People & Technology
not being used have access
Number of transactions approved This is the number of postings and/or transactions that are approved via Nil
outside the ERP email or verbally
Frequency of system downtime This is the number of times the system is inaccessible or unable to process Nil
within and outside the office network transactions in a period
Finance costs as a percentage of total The sum all finance cost including staff, IT, overheads divided by the total To be determined by the
support function costs support function costs CFO
Rate of Finance Staff turnover This refers to the number or percentage of Finance staff who leave the To be determined by the
organisation and are replaced by new employees. CFO
It is calculated as follows:
• The total number of exited Finance staff to the total number of Finance
staff employed in a given period, expressed as a percentage

PwC 109
4
Implementation
Road Map
Implementation Map
To ensure Sifax reaches it’s target, the following needs to be conducted
• Develop policies and • Deploy staff to their new

procedures aligned roles, responsibilities
with new structure based on staff capacity
Staff Monitoring
Structure Policy and Capacity
deployment and
Procedures Building
and evaluation
realignment
F-TOM
Current
Operating
• Sifax Management to • Conduct staff training • Ongoing Monitoring,
Model decide on preferred on newly developed evaluation and
finance structure policy and procedures support for staff.

PwC 111
5
Next Steps
Implementation Map
S/N ACTIVITY TIMELINE RESPONSIBILITY
1 Provide comments on draft F-TOM Immediately Sifax Group of Companies
2 Update F-TOM with comments and present final F-TOM TBD PwC
3 Validate and sign-off on the final F-TOM TBD Sifax Group of Companies
4 Design accounting policies and procedures manual In progress PwC
5 Approve the design and implementation of proposed F-TOM TBD Sifax Group of Companies
initiatives and other recommendations from the gap analysis
6 Discuss and agree policies and procedures with TBD Sifax Group of Companies
management

PwC 113
Thank you
© 2020 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member firms of PricewaterhouseCoopers
International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act
as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its
member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions
of any other member firm nor can it control the exercise of another member firm’s professional judgment or bind another member firm or PwCIL in any way.

SIFAX Finance Target Operating Model - 17032020 PDF

Uploaded by

Copyright:

Available Formats

SIFAX Finance Target Operating Model - 17032020 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SIFAX Finance Target Operating Model - 17032020 PDF

Uploaded by

Copyright:

Available Formats

www.pwc.

Next This report is based on information provided by

Finance Target Operating Model Draft March 2020

2 Current State Operating Model

3 Finance Target Operating Model

3.1 Option 1- Centralised Structure

3.2 Option 2- Finance Business Partner

Content 4 Implementation Map

Finance Target Operating Model Draft March 2020

Aviation Logistics Hospitality Oil and Gas Financial Services Haulage

Finance Target Operating Model Draft March 2020

Project Scope Key Considerations Benefits

Phase Deliverable Organisation

Finance Target Operating Model (Draft) March 2020

(x) Number of staff

Senior Manager, Finance

Manager, Manager, Manager, Manager,

Deputy Manager, Deputy Manager, Deputy Manager,

Assistant Manager, Assistant Manager

Finance Target Operating Model (Draft) March 2020

(x) Number of staff Head of Finance

Manager, Manager, Manager, Manager,

Assistant Manager, Cash Asst Manager,

Finance Target Operating Model (Draft) March 2020

(x) Number of staff

Deputy Manager, Deputy Manager, Deputy Manager,

Assistant Manager, Payroll Assistant Manager, Assistant

Account officer (2) Credit Control Officer Finance

Finance Target Operating Model (Draft) March 2020

Billing Done Done Done Done Done Done

Finance Target Operating Model (Draft) March 2020

Finance Target Operating Model (Draft) March 2020

Finance Target Operating Model (Draft) March 2020

Finance Target Operating Model (Draft) March 2020

Finance Target Operating Model (Draft) March 2020

The following are the objectives of the F-TOM:

Finance Target Operating Model (Draft) March 2020

Finance Target Operating Model (Draft) March 2020

Key Considerations Analysis Output

Sifax’s Current State

Sifax’s Finance Vision

5-Year strategy (Quantum leap)

Leading practice for future Finance

Finance Target Operating Model (Draft) March 2020

Finance Target Operating Model (Draft) March 2020

Group Chief Financial Officer

Group Head of Tax Financial Controller Group Head of Treasury

Tax Manager Finance Manager Treasury Manager

Finance Target Operating Model (Draft) March 2020

Financial Controller Treasury Manager

Tax and Regulatory Corporate and

Finance Target Operating Model (Draft) March 2020

Finance Target Operating Model (Draft) March 2020

• Finance headcount ratio

• Overall Finance function effectiveness

Finance Target Operating Model (Draft) March 2020

• Number of reports delivered after the period • Strategic Business Partnering

Finance Target Operating Model (Draft) March 2020

• Accuracy of tax computation • Tax Planning and Management