Finance at Microsoft:An Inside Look

Robert M. WeedeAssistant Corporate Controller

robweede@microsoft.com

Finance at Microsoft

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Finance at Microsoft: Our Vision

Elevate the role of the finance organization to be leaders in shareholder value creation for Microsoft

Expectations of FinanceNo material weaknesses or significant deficiencies at any period-end

Rapid response to remediate deficiencies

Control improvements = Process improvements = $$

Efficient implementation to minimize external audit costs

Sustainable processes

Continued commitment to internal controls by operational and financial management

Controllership PrioritiesOperational Excellence

Financial Leaders

Drive Shareholder Value

Culture of Teamwork, Respect and Growth

Deliver world-class finance and global services that maximize shareholder value while living Microsoft values

Our Quarterly Close Process and How We Leverage Technology

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Rhythm of the Business – Another View

Other Info

Week 1 Week 2 Week 3 Week 4

GL Closed Day 4

General Ledger Closed

Controller & CFO Reviews

Drafting of SEC Report

Drafting of Earnings Release

Financial Statement Analysis

Disclosure Committee Meeting

CEO Certification

Audit Committee

10Q Filed; ER Publishe

d

Distribution of Drafts 4th Thursday

Key Challenges

Close Process

Calendar managementAccount reconciliationsSupport documentation and retention Issue managementWorkflow managementInbox managementInformation access

Reporting Process

Workflow managementSupport documentation and retentionComment resolution Version controlAuditor managementStatutory compliance Inbox managementInformation access

Close And Reporting Management: Old World

The Ideal Solution

Flexible

Out of the box

Simple enough to not need IT help

Online environment for distributed access

Real time – “Live”

Process-oriented, not person-specific

Ability to integrate controls

Secure

Close And Reporting Management:Current State

Single point of collaboration for all group activities

Dash board view for management

Close Management SharePoint Site

Default view – custom task list in calendar view filtered by user

Calendar Management

Workflow Management

Shared Documents

One location to contain and display common/supporting document for sharing (“One version of the truth”)

Document retention for audit trail

Status

Review

SOX Controls

Technology is embedded in the process (support attachments, evidence of completion, and review)

ResponsibilityTask

Task List

Individual Task

Comments and links as needed

Support as attachments

Helps ensure completion of all required disclosures

Supporting documents are attached to tasks to facilitate review/sign-offs/audit trail/retention

Aids both internal and external auditors in their review

Review Comment Management

One location to enter all review comments/ questions and assign as tasks for resolution

Document retention for audit trail

One Calendar

One calendar to display all close events and activities

Facilitates process flow and due dates

Integration With Outlook

Synch Outlook with SharePoint calendar

for seamless calendar view/management in Outlook

Personal Calendar

SharePoint Calendar

10Q/K Reporting SharePoint Site

Sub-site of Corporate Accounting SharePoint Separate site for added security and access control of highly

confidential financial information Master SEC documents 10-Q/10-K task w/support Documentation of review/validation and quality control procedures

Review Management Review comments/ questions are entered directly on “live” version by reviewers using Word functionality

Changes are tracked for review and acceptance

Comments are reviewed and addressed with clear trail of resolution for quality control and commenter final review

Version Control

Version history

Document library contains all versions with proper version indicator Each version shown maintains version history for ability to control

changes made to the document

Numbers Certification (Quality Assurance)

Final report is electronically certified via tie-out to relevant supporting documents in task list as indicated by tick marks and hyperlinks

Use hyperlinks to task lists (and attachments) providing audit trail

Numbers Certification Support = Excel spreadsheet

Support saved

in task list

Use of hyperlinks and tick marks

Numbers Certification

($ in millions)Balance as of July

1, 2007

Acquisitions/Purchase Accounting adjustments

Balance as of September 30, 2007

Acquisitions/Purchase Accounting adjustments

Balance as of December 30,

2007Client 77$ - 77$ -$ 77$ Server and Tools 580 70 650 5$ 655$ Microsoft Business Division 3,132 - 3,132 93$ 3,225$ Online Services Business 552 5,330 5,882 41$ 5,923$ Entertainment and Devices Division

419 (9) 410 19$ 429$

Total 4,760$ 5,391$ 10,151$ 158$ 10,309$

Support saved

in task list

Support = Excel spreadsheet

Security Management Access is fully

controlled by site administrator(s)

Different site access levels are allowed Owners – full access Members – contribute

access Visitors – view only

access Item/document level

security features available

Both internal and external auditors are given “visitor” access to have full view of work performed/shared documents

SOX Controls

Included in list as tasks to be performed as part of Close and Reporting

Easily identifiable for monitoring of completion

SOX controls incorporated into task list

Quick StatsApproximately 300 tasks contained in site

Approximately 250 users

Tie out with auditors is less than an hour per quarter

Benefits AchievedReduced consolidated close by 5 days

2009 annual filing in 29 calendar days

Quarterly filing completed simultaneously with Earnings Release

XBRL filing completed simultaneously with 10Q/10K

Streamlined auditor engagement

No significant deficiencies or material weaknesses

Reduction in e-mail pileup/enhanced productivity

Getting Started / Key Take Aways

As little or as much as you want

Ongoing refinement; SharePoint is flexible

Initially took us 3 ½ days to set up; ongoing about ½ day

Other Uses of SharePoint within Finance

FinWeb

Earnings Release Support

Controller Workspace

© 2010 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.