Process Number Prepared By Date

Alpha Corporation PRO 2610Y Internal Audit March 20xx

Process Name Region Reviewed By Page

Period End Close Corporate / All Sites 1 of 7

START

Sub-Processes PROCESS AND CONTROLS OVERVIEW

- Cash and cash equivalents.
-Short term investments. Each month Treasury staff perform month end close
- Inter company funding.
-Debt activity.
activities and reconcile all bank accounts.
Treasury Staff - Compliance.
Per detailed monthly or - Other income and expense items. TRA 01.
quarterly Closing Checklist, - Stock Based Compensation Expense On a monthly basis, bank account reconciliations are
perform duties to reconcile/ - Equity – Common Stock Shares
close accounts and areas of - Monthly close meetings.
reviewed by individuals who are independent of the
responsibility of Treasury - Weighted Average & Diluted Shares ELC cash receipts and disbursements functions and do not
Department. (1) outstanding 202 have the capability to post journal entries.
- Supply other departments information Reconciliation differences are investigated and resolved
- Derivatives – FX exchange, interest rate
swaps, net investment hedge.
in a timely manner.
- Insurance expense/Prepaid
-Treasury accruals. ELC 202
Management establishes well-defined processes for the
GLR 06 various levels of financial reporting (site-level, regional-
TRA 01 level, entity-level, consolidated). The process and its key
attributes (including timing and deadlines,
Director of Treasury, Treasury methodology, format and frequency of analyses,
Manager
Review reconciliations, validation of trial balances, and the content of reporting
approve journal entries, tasks, packages from sites, departments, and subsidiaries) are
corporate deliverables/PBC s formally documented, approved, and updated on a
& closing checklists as regular basis.
needed. (2)

End
No specific TRA control was assigned to this
process flow in the original narrative but TRA 01 is
effectively the same as GLR 06.

- Manual Key Control - Manual Non- Key Control -Automated Key Control -Automated Non-Key Control - Key SGR - Non- Key SGR
 Process Number Prepared By Date
Alpha Corporation PRO 2610Y
2660Y Internal Audit
Internal
– Richard
Audit Bourke March 2016
20xx
Process Name Region Reviewed By Page

Bank
BankAccount
AccountEstablishment
Establishmentand
+ Maintenance
Maintenance Corporate / All Sites 2 of 7

Start Start PROCESS AND CONTROLS OVERVIEW

The Treasurer and Assistant Treasurer

Non
Key determine the need for new bank accounts
Director of Treasury
Initiate a change to Local Site Controller and the timing for closing existing bank
an online banking Upon departure of accounts. Authorized signatories, including
portal when needed. an authorized authorization limits of each, require
Examples add a new signatory the site
controller or a previous written approval by the VP &
account, add a
person for access, or member of Treasury Treasurer or Assistant Treasurer. In
delete an account. ensures that addition, the company uses Bank Account
(1) individual is Establishment and a variety of online
removed as an
authorized banking banking systems to initiate banking
signatory. (6) activities and the user access and setup of
End
those systems represents an important
Director of Treasury control.
Create a new bank
account using TRA 02
authority from
Board of Directors. TRA 02 The authority to open and close bank
(2) Treasury Staff Treasury Executive accounts in the company s name is
A member of Quarterly review restricted to individuals specifically
Treasury configures bank signatories and designated for this purpose by the Board
the account for bank their authorization
statement reporting limits. (7) of Directors and/or executive
Director of Treasury into Bank Account management. Bank account signatories
Determine Establishment and and their authorization limits are
appropriate signing the applicable
authorized in line with Delegatrion of
authority & add banking portal. (6)
Authority. These are periodically reviewed
signing card to file in
Treasury. (3) End along with bank portal access. The
authority to initiate investment activity or
Treasury Staff borrowings in the company s name is per
TRA 02 A member of the approved Delegation of Authority
ELC
120 Treasury requests guidelines.
Director of Treasury that Finance Internal
other than Director Reporting
who initiated department to set
change, or his/her up a new ERP
designee General Ledger
Be second authority account using the
on changes to an standard Chart of
online banking Accounts update
portal. (4) form. (5)

- Manual Key Control - Manual Non- Key Control -Automated Key Control -Automated Non-Key Control - Key SGR - Non- Key SGR
 Process Number Prepared By Date
Alpha Corporation PRO
PRO2650Y
2610Y Internal Audit
Internal
– Richard
Audit Bourke March 2016
20xx
Process Name Region Reviewed By Page

Interest Rate Risk Corporate / All Sites 3 of 7

Start
Company Policy PROCESS AND CONTROLS OVERVIEW
9.5 Interest Rate
Risk Policy Final This activity is performed whenever an
interest rate risk derivative is considered.
Treasury Manager
Document End
Treasurer determines the need to consider
assessment of an interest rate derivative based on
planned interest Interest Rate Risk Policy and financial
rate risk trading No needs of the Company.
activity. (1)

Treasury Manager TRA 03

Senior Treasury Prepare Interest Covenant calculations are reconciled to the
Accountant End of Quarter? Yes rate Risk general ledger and the credit agreement or
VP & Treasurer Complete Derivative Management Report
Review worksheet & Transaction (10) other independent third party evidence.
prepare Worksheet. (4)
presentation to CFO. TRA 04A
Yes
(2)
CFO approval is required for entry in to
derivative programs, the approval
TRA validates compliance with company
04A VP & Treasurer VP & Treasurer
Execute contract & TRA Review & approve policies and GAAP.
trades with 04B Interest rate Risk
Executive VP & CFO
approved Financial Treasury Manager Management
Review & approve TRA 04B
Institution. (5) Approve & post Report. (11)
interest rate risk The valuation of derivative transactions
journal entries for
strategy. (3) and the proper accounting distribution to
interest rate activity.
TRA 03 (9) OCI and/or Income (expense) are reviewed
and approved by the Sr. Treasury
Treasury Manager
Review trade Manager. Quarterly, Treasury performs
confirmations from effectiveness testing on derivatives
counter party & designated as an accounting hedge under
match to Treasurer s FASB ASC 815 (codification).
Hedging strategy is
trade sheets. (6)
approved.

No
Senior Treasury Senior Treasury
Accountant Accountant
End Update Interest rate Prepare journal
excel spreadsheet entries for trade
with trades. (7) activity. (8)

- Manual Key Control - Manual Non- Key Control -Automated Key Control -Automated Non-Key Control - Key SGR - Non- Key SGR
 Process Number Prepared By Date
Alpha
Itron Corporation
Corporation PRO
PRO2670Y
2610Y Internal Audit
Internal
– Richard
Audit Bourke March 2016
20xx
Process Name Region Reviewed By Page

Debt, Letters of Credit and Surety Bonds Corporate / All Sites 4 of 7

Start Start Debt Start

Debt activity classifications

Senior Treasury
Senior Treasury Senior Treasury
Accountant
Accountant Accountant
Receives activity
Calculate entries for Prepare a quarterly
statements
debt classification, summary of loan
periodically from
amortization, covenant
loan administrators
interest accruals, & calculations (9)
for principle &
foreign exchange
interest payments.
gain or loss. (4)
(1)
TRA 01 Senior Treasury
Accountant
Senior Treasury
Senior Treasury Senior Treasury Submit quarterly
Accountant
Accountant Accountants summary of loan
Reconcile Loan
Review statements Prepare journal covenant
Register to GL as
for accuracy, create entries for above calculations to
part of BSR process.
journal entries & calculations. (5) Treasury Accounting
(8) Spreadsheet
wire transfers, & Manager for review.
maintained to track. (10)
update Loan
Register. (2)

TRA 03

Senior Treasury Senior Treasury Director of Treasury,

Senior Treasury
Accountant Accountant Director of Treasury, Treasury Manager
Accountant
Submit to Treasury Submit journal Treasury Manager Review loan
Update Loan
Accounting Manager entries, Loan Review monthly BSR covenant
Register for above
for review. (3) Register, & & journal entries for calculations. (14)
calculations &
documentation to accounting for debt
ensure agreement
End Treasury Accounting related accounts.
with Bank Account
Manager for review. (13)
Establishment. (6)
(7)

End
Director of Treasury, TRA 03
Treasury Manager
Review periodic Director of Treasury,
payment of debt Treasury Manager
End
principal & interest Approve Journal
as submitted by Entries. (12) Loan covenant
Senior Accountant
Per the narrative these are covered
Treasury. (11) by TRA 02 and TRA 03. Also ELC 201
+ 209, GLR 02,

- Manual Key Control - Manual Non- Key Control -Automated Key Control -Automated Non-Key Control - Key SGR - Non- Key SGR
 Process Number Prepared By Date
Alpha
Itron Corporation
Corporation PRO
PRO2625Y
2610Y Internal Audit
Internal
– Richard
Audit Bourke March 2016
20xx
Process Name Region Reviewed By Page

Cash
CashManagement
Managementand
& Bank
BankReconciliations
Reconciliations Corporate / All Sites 5 of 7

Start
TRA 01/
GLR 06
Senior Treasury Senior Treasury Treasury Manager
Senior Treasury Accountant Accountant Initial review of each PROCESS AND CONTROLS OVERVIEW
Accountant Notify appropriate Create a JV to book reconciliation for
Obtains month end department of any any miscellaneous evidence of proper This procedure covers the Treasury
bank statements transaction that transactions such as completion,
should be booked by bank fees or credit/ function of reconciling bank statements
directly from including all
financial institutions. them. (6) debit interest. (7) TRA 01
and the supporting activity of daily cash
supporting
Uses BSR to make documentation. Sign Treasury Manager
management. All new bank accounts are
sure every bank & date reviewed Review BSR Tracking established using the controls described in
statement is reconciliation. (12) Log to insure every Bank Account Establishment +
Senior Treasury
received. (1) bank account is
Accountant Maintenance
Identify & reconciled. (13)
Senior Treasury investigates each
Accountant TRA 01
transaction that
Obtain month-end does not match. (5) On a monthly basis, bank account
bank statement reconciliations are reviewed by individuals
activity primarily
from treasury
who are independent of the cash receipts
workstation, Bank Senior Treasury Senior Treasury
Treasury Manager and disbursements functions and do not
Account Accountant Accountant have the capability to create journal
If necessary, inform
Establishment, Prepare copies of Apply a checkmark
Senior Treasury Internal Reporting of entries. Reconciliation differences are
online bank system supporting material to a hard copy of
Accountant material unmatched investigated and resolved in a timely
CEO system or other for any unmatched BSR Tracking Log for
Using an Excel cash transactions no
applicable online transactions. Notify current month for
later than 20th manner. Treasury manager reviews
format or ERP Cash each bank account
banking Management bank Treasury Manager working day of Balance Sheet bank account listing to
applications. For immediately of any reconciled. (11)
reconciliation following month ensure that all bank accounts are
accounts that don t process, manually unmatched end. (14)
have bank
reconciled.
clears transactions transactions greater
statements flowing that match both than $5,000. (8)
in from Bank bank statement &
Account GL or sub ledger
Establishment, activity. (4)
applicable online
banking application
portal is used to
Senior Treasury Senior Treasury End
obtain month end
Accountant Accountant
statements. (2)
Complete Sign and date
Senior Treasury reconciliation no completed
Accountant later than 20th reconciliation &
Print summary of GL calendar day delivers to Treasury
balances & following month Manager for review.
downloads GL & sub end. (9) (10)
ledger activity. (3)

- Manual Key Control - Manual Non- Key Control -Automated Key Control -Automated Non-Key Control - Key SGR - Non- Key SGR
 Process Number Prepared By Date
Alpha
Itron Corporation
Corporation PRO
PRO2630Y
2610Y Internal Audit
Internal
– Richard
Audit Bourke March 2016
20xx
Process Name Region Reviewed By Page

Investment in Debt Securities Corporate / All Sites 6 of 7

Start
PROCESS AND CONTROLS OVERVIEW

This procedure covers fixed income

investment products purchased directly by
TRA 02
the company through an Authorized
CFO / Treasurer
All fixed-income Investment Manager or Broker.
investment
transactions Investment account TRA 02
executed through an spreadsheet/control
The authority to open and close bank
investment manager log is maintained.
or brokerage firm accounts in the company s name is
must be properly restricted to individuals specifically
authorised by the designated for this purpose by the Board
CFO or Treasurer. of Directors and/or executive
management. Bank account signatories
and their authorization limits are
authorized in line with Delegatrion of
Director of Treasury Authority. These are periodically reviewed
As original trade along with bank portal access. The
confirmations are
received the
authority to initiate investment activity or
Director of Treasury borrowings in the company s name is per
forwards to Treasury the approved Delegation of Authority
Senior Analyst for guidelines.
review, confirmation
and filing. Trade
confirmations are
agreed to
transactions posted
to the spreadsheet,
general ledger and
setup within Bank
Account
Establishment.

GLR 02
Treasury Manager
A Treasury Manager
or designee reviews
End
and approves
investment related
journal entries.

- Manual Key Control - Manual Non- Key Control -Automated Key Control -Automated Non-Key Control - Key SGR - Non- Key SGR
 Process Number Prepared By Date
Alpha Corporation PRO
PRO2655Y
2610Y Internal Audit
Internal
– Richard
Audit Bourke March 2016
20xx
Process Name Region Reviewed By Page

ForeignForeign
Exchange
Exchange
Risk Management
Risk Derivatives
Derivatives Corporate / All Sites 7 of 7

PROCESS AND CONTROLS OVERVIEW

Start This procedure covers foreign exchange risk
derivatives.

Senior Treasury
Director of Treasury, TRA 04A
Accountant
Treasury Manager Senior Treasury
Document
Update Foreign
Accountant CFO approval is required for entry in to derivative
Exchange excel programs, the approval validates compliance with
assessment of Prepare journal
speadsheet with
planned foreign entries for trade End company policies and GAAP.
trades. (7)
exchange trading activity. (8) TRA 04B
activity. (1)
The valuation of derivative transactions and the
TRA No proper accounting distribution to OCI and/or
04B
Income (expense) are reviewed and approved by
Director of Treasury,
Director of Treasury, the Sr. Treasury Manager. Quarterly, Treasury
Treasury Manager
Treasury Manger performs effectiveness testing on derivatives
VP & Treasurer Approve & post ERP
Review of trade End of quarter?
Review worksheet & confirmations from
journal entries for designated as an accounting hedge under FASB
prepare foreign exchange ASC 815 (codification).
counter party &
activity. (9)
presentation to CFO. match to Treasurer s ELC 110
(2) trade sheets. (6) The Company employs a process to review SSAE
Yes
16 and ISAE 3402 (formerly SAS 70) reports
TRA provided by third party organizations and to
04A Director of Treasury, evaluate their impact to the company.
VP & Treasurer
Treasury Manager ELC 206
Execute contract &
Senior VP & CFO Prepare Foreign
trades with The carrying value of fixed assets compared to
Review & approve Exchange Risk
approved Financial fair value is reviewed. The calculation of
Foreign Exchange Management Report
Institution. (5)
strategy. (3) to include ?? (10) impairments is performed in accordance with
Corporate accounting policy and applicable
governing accounting literature. Estimates,
assumptions, and any resulting adjustments are
ELC
206 authorized and approved by the Controller's
Director of Treasury,
Treasury Manager VP & Treasurer team.
Hedging strategy
Yes Complete derivative Review & approve
is approved?
transaction Foreign Exchange
Worksheet. (4) ELC Risk Management
SSAE 16 provides that 110 Report. (11)
No the company must
review the adequacy of
internal controls of the
End third party through a
SOC 1.

- Manual Key Control - Manual Non- Key Control -Automated Key Control -Automated Non-Key Control - Key SGR - Non- Key SGR