Page 401 - Board Member Onboardin August 2019

The only sourcing fees collected through the invoicing process are dry mix sourcing fees collected by non-USF and McLane distributors. The
CSCS Controller provides audited amounts to invoice the distribution center to the InfoSync Accountant on a biweekly basis. Invoices are
generated and emailed to the distribution centers each Wednesday copying CSCS. The biweekly invoices include all POs that were delivered
to the distribution centers the previous week. The invoices are automatically added to the aging and an Aging Report is sent to CSCS as part
of the monthly financial package. The invoicing process creates journal entries that update the appropriate revenue and accounts receivable
accounts. The CSCS Controller maintains a master tracking list of all POs sent for invoicing. This list is reconciled on an on-going basis
BP 55 Dry Mix Sourcing Fee Invoices against what is invoiced to ensure all invoices are generated and billed appropriately.
Payments are received from the distribution centers either by check, ACH or wire transfer. If paid by check, checks are received by the
Controller at CSCS and deposited upon receipt. The InfoSync Accountant is notified via email of bank deposits made by CSCS. The
Accountant has view-only access to previous day online bank information. When the deposits post (checks, ACH, wires), the payments are
manually keyed into the accounting system to relieve the Accounts Receivable and update the Aging Report. No one at InfoSync can make
any bank transfers or withdrawals.
CSCS monitors the prices distributors charge its Members against pricing established through purchasing arrangements negotiated by CSCS.
When CSCS identifies and resolves an overcharge situation with a distributor, CSCS invoices the distributor for those amounts, collects the
overcharges and remits them to the impacted Members. The invoicing, collection and tracking process works the same as noted above.
BP 56 Price Variance Analysis Invoices These transactions all are recorded on the balance sheet (no revenue is recognized since it’s a collection pass-through to the Member) and
reconciled as part of the standard balance sheet reconciliation process. Payments to Members for price variance recovery are included on the
Accounts weekly cash requirements report and approved through the standard check approval process as noted in the Accounts Payable section of this
Receivable document.
Controls / BP 57 Membership Fees CSCS Business Analyst manages membership fees from Coop's Members
Processes
BP 58 Patronage Calculations CSCS Controller calculates patronage amounts which will be returned to Members
CSCS collects money from suppliers in support of Applebee’s and IHOP national franchise conventions and passes these amounts back to the
Brands. This process was established as a means to provide franchisees with visibility to supplier contributions to support the conventions.
Suppliers register for the conferences and commit to certain funding levels through third-party systems contracted for by Applebee’s and IHOP
and not Associated with the Co-op. Once a supplier registers and commits to a certain funding level, the Brand’s third party organizers
generate an invoice that is payable to CSCS. The invoices are sent to the supplier, copying the InfoSync Accountant and the CSCS
Controller.
BP 59 IHOP and Applebee’s Franchisee Conference Invoices
The collection process and Associated tracking process utilized is the same as noted above. When payments are received from suppliers, the
CSCS Controller generates a check request to remit those funds to either Applebee’s or IHOP. The check request must be approved per the
CSCS invoice authorization policy. Disbursement is through the same process noted above where these payments are noted on the weekly
cash requirements report subject to the same disbursement approval process.
In all scenarios, all accounts receivable balances are reconciled by the InfoSync Accountant, reviewed and approved by the InfoSync
Controller, and the CSCS Controller. A daily deposit verification report is provided by the InfoSync Accountant to the CSCS Controller, and
the CSCS Chief Financial Officer.
The CSCS Controller sends all necessary and approved changes in payroll and benefits via email or hard copy to InfoSync for processing.
The email changes are printed and filed by pay period by InfoSync. The changes are keyed for the appropriate payroll date. The CSCS
Controller verifies the changes have been made by reviewing each payroll register. There is a segregation of duties for data input and
validation and approvals at InfoSync.
All CSCS Associates are paid via direct deposit. Payroll checks are only created for new Associates, for a terminated Associate’s final check,
Payroll and or when a new direct deposit must have a pre-note period. The payroll check printer is in a locked secure area with limited access. Every pay
Benefits BP 60 Data Entry, Reconciliations and Approval period a direct deposit payroll file is generated and uploaded to the bank for payment. Files are also generated for 401K and HSA
Controls / contributions. Detail of these file transfers are provided to the CSCS Controller. The Benefit Specialist is responsible for transmission of these
Processes files and to confirm reconciliation of the files. System generated journal entries for each payroll are auto captured and posted to the monthly
financial statements. Associate pay advices are sent via overnight mail to CSCS the day before the payroll date for distribution to the
Associates.
The InfoSync Accountant provides a cash requirements report with each payroll run and reconciles the GL accounts. Payroll taxes are
processed by the Payroll Tax group at InfoSync. Prior to making every payment, the Payroll Tax Accountant sends a notice of pending
transfer to the CSCS Controller, and the CSCS Chief Financial Officer.
Other
Administration BP 65 Business Insurance and Corporate Taxes CSCS complies with regulatory requirements for business insurance and corporate taxes
Processes
Managing
Human BP 70 Human Resource Management This process is about hiring new associates, managing existing associates' performances, and terminating associates.
Resources
HR Data BP 75 Personal Files and Related HR Data This process is about managing personal files and related HR data
Management
Asset BP 80 Bank Account Management This process is about managing CSCS bank account
Management BP 85 Hardware assets This process is about monitoring and managing hardware assets
System BP 90 System Management This process is about managing current systems such as HAVI (integrated supply chain management), Office 365, and Website
Management
Data BP 95 Data Management This process is about managing data for the whole organization
Management
This process is about managing communication to Membership regarding CSCS pricing updates, contract status and negotiation, Brand
BP 1 Communication Management program updates, logistics & distribution updates, new programs, Board of Director updates, annual reports, patronage and rebate
Communication information, and commodity updates.
BP 2 Website Management This process is about managing content and access control on CSCS Associate website and Concept Co-op websites.
Membership This process includes managing new Member on boarding(proper documents and payment for stock share received, stock certificate issued,
Data BP 3 Membership Management concept Co-op website access provided, addition to communication distribution lists, status change/new operator updated in HAVI); off
boarding (redemption of stock share, removal from communication distribution list, removal of access to Concept Co-op website, status
Management change in HAVI), store ownership changes, contact information changes, maintenance of Membership communication distribution lists
This process is about managing the nomination and voting process, including updating the documents, mailing & sending nomination forms
BP 4 Annual Board Elections and proxies, creating the proxy statement, tracking the proxies received and votes, sending completed proxies to legal counsel, and preparing
Board ballot for the meeting
Governance
BP 5 Director Compliance This process is to ensure that all Board Members have completed the appropriate compliance documents and that they are on file at CSCS
BP 6 Board Meeting Management This process includes preparing decks for Board Meetings, minutes, binders
This process is to ensure that pricing, DC item mappings, DC mark-ups, and daily feeds from the supplier's, brand's, and distributor's are
BP 15 A Data Integrity Audits
audited and validated before being integrated into the system (Havi).
Analytics BP 15 B Price Index (Commodity pricing tracking and forecasting) This process includes tracking and forecasting commodity prices
BP 15 C Modified PPI or Performance Tracking of the Co-ops This process includes measuring the annual performance of the Co-ops against the modified PPI.
BP 15 (D) Commodity Quintile Tracking Tracking hedging positions of several commodities.
Produce DC BP 690 Produce Distributor Compliance This process is to assure that produce distributors comply with CSCS's produce spec requirements and purchases are made from approved
Compliance vendors.