Implementation Overview

Salmon SoftwareOctober 2013

Implementation Methodology

Generally we believe that actual implementation project is usually a 50/50 split between Salmon Software effort and the client’s team effort. This varies from task to task. However the initial project scoping phase is normally a client task and requires 100% of their time. Therefore we have not included this task in the overview below.

However, as you will see below; whereas the SAP accounting interface will need half of the effort from the client team, as Salmon will do most of the integration work, the Hedge Accounting task needs 50% more effort from the client team as from the Salmon team. This is due to the internal discussions with your Auditors to ensure we have the right scope before starting the configuration set up.

A sample project plan over view is given below, for more details on the effort estimation involved for both teams. Typically 40-45 days is required.

Typical Project Milestones

1 Install and Commission the System

2 Prepare and Create Static Data

3 Prepare the Various Banking interface download data

4 Prepare and Create Opening Data and Positions

5 Integrate the Bank File data with the data created in Step 4

6 Prepare and Test the suite of Reports Required

7 Prepare and Configure any interfaces to External Systems

8 Set Up the Process Control and the Security Manager

9 Parallel Running & Go Live

10 Hedge accounting scoping and implementation

11 Interface To the SAP Accounting System

12 Forecasting & IC Dealing Module - Setup & Configuration

13 Forecasting Reports Scoping & Creation

14 Rollout of Forecast/IC Module to subsidiaries (30 user block)

15 Training

Sample breakdown of Cost

, Panning & Actual – Cash Flow adjustments & transfersFile Import – Bank Statements, Account system info, etc.

Including 15 days implementation

No. Activity Salmon Time Client Time

1 Install and Commission the System 1 1

2 Prepare and Create Static Data 1 2

3 Prepare the Various Banking interface download data 1 1

4 Prepare and Create Opening Data and Positions 1 1

5 Integrate the Bank File data with the data created in Step 4 2 1

6 Prepare and Test the suite of Reports Required 4 3

7 Prepare and Configure any interfaces to External Systems 2 2

8 Set Up the Process Control and the Security Manager 1 0

9 Parallel Running & Go Live 2 5

10 Hedge accounting scoping and implementation 5 10

11 Interface To the SAP Accounting System 10 2

12 Forecasting & IC Dealing Module - Setup & Configuration 2 2

13 Forecasting Reports Scoping & Creation 3 5

14 Rollout of Forecast/IC Module to subsidiaries (30 user block) 3 5

15 Training 2 2

Total Days 40 42

Cost @ £1,750 per Day £70,000.00

Discount @ £750 per Day -£30,000.00

Project Cost £40,000.00

with additional :Dealing: Trader Pad, 4x selected Instrument Types .Cash Pooling, What-if Scratch Pad and Counterparty Limit Monitoring.

Including 20 days implementation

1. Installation and Commissioning the System

Salmon, with assistance of Client Group IT personnel will deliver, install and commission the system. This will include installing and commissioning Crystal Reports 2008.It assumes that Microsoft SQL 2005 or Microsoft SQL 2008 / 2008 R2 is already installed and commissioned with appropriate permissions.

Estimated Time Required:Client Group IT Department: 1 DaySalmon: 1 Day concurrent with Client Group IT team.

2. Preparation and Import of Master Data

The Master File Data Required comprises of the following data:a. Address Bookb. Counterpartiesc. Divisions / Subsidiariesd. Contactse. Bank Accountsf. Intercompany Accountsg. Settlement instructionsh. Categories / Portfoliosi. Currencies and FX Currency Pairsj. Accounting Periodsk. Etc.

Master Data Continued

Some of this data will be input directly into Salmon and some will be prepared in template format and imported into Salmon. Salmon will provide the templates in EXCEL format and import the data from these EXCEL sheets. Client Group need to prepare this data from existing sources including their existing Treasury Management System and volume will dictate whether they are to be input directly or imported. Client Group will be responsible for ensuring that the data presented is ‘PURE’, i.e. does not contain duplicate records and is accurate. When it has been input / imported it will be checked and verified and signed off. Sometimes with imported data this can take 2 or 3 iterations before sign off.

Estimated Time Required:Client: 2 Days Salmon: 1 Day

3. Bank Interfaces

Simultaneous to preparing and creating the Master File data templates, Salmon will also prepare the templates for importing Bank Balances and Bank Transactions from the files downloaded from the NatWest BankLine systems.

To do this Salmon will need sample files of real data from the various providers.From these we will prepare our Data Integration Services, so that the imported data can be added to the Deal Data and Opening Balance data referred to in Step 4 below.

To minimise disruption, all of Salmon’s involvement in Steps 1 to 3 above can be done in our own offices with remote connection to Client Group. It is significant preparatory work and the majority of it is carried out by Salmon, so there is no need to disrupt the daily activity with treasury at this stage.

Estimated Time Required:Client: 1 DaySalmon: 1 Day

4. Preparing Opening Positions

Before creating the Opening Data & Positions, Client must decide on a take on date for all Deals and Balances. Usually this is the start of a Financial Year or a Financial Period and will include ALL deals that are ‘Open’ at that date and ALL balances on Accounts, Intercompany Positions and Credit Facilities as at that date.

Deal Types include: DepositsBorrowingsForeign ExchangeDebt SwapsFacilities StructuresLimits

Balances include: All Bank Account BalancesAll intercompany positions

Preparing Opening Positions cont.

Deposits, Short Term Borrowings, FX and Balances can be imported using templates which Salmon will provide. This again will be determined by the volume and by the ability of the existing system to output the data into a usable format for importing. All open Long Term Debt and Swaps should be input with their full history for completeness and for audit purposes. Estimated Time Required:Client: 1 DaySalmon: 1 Day

5. Integrating bank dataWith position data

With the opening positions established and the data import and data input actually in the system, integrating the bank file data completes the Data Capture process. This process is then repeated to bring the entire data set up to a current date in order to create the reports necessary to run the Treasury Function on a Day to Day basis. Estimated Time Required:Client: 1 DaySalmon: 2 Days

6. Preparing and testing report suite

Salmon uses Crystal Reports as the Report Writing Toolkit.The implementation requires the preparation of All of the reports that Treasury Require.

These include:Daily ReportsWeekly ReportsMonthly ReportsConfirmation Documents In our experience, this Report suite usually constitutes between 15 and 20 reports and 3 to 5 confirmations. The objective is to have as few reports as is necessary with as many variations as are necessary depending on the data view. Variations are best achieved using parameters.

Preparing and testing report suite cont.

To achieve this Client Group need to present Salmon with a set of Report Designs and Specifications. These will be taken from existing reports or they may be new reports that Client Group don’t currently have but want to have in the New environment. All reports will be checked and signed off by Client Group. Training in Crystal and in the Salmon Data Dictionaries can, if required, be carried out at a later stage. All reports will be presented in a neat and professional layout with Client Group logos as appropriate. Estimated Time Required:Client: 3 DaysSalmon: 4 Days

7. Configuring external interfaces

There may be interfaces to External systems such as the NatWest BankLine Electronic Payments systems. This part of the implementation requires the preparation and testing of the output. This part of the implementation does NOT include interfacing to the accounting system. Estimated Time Required:Client: 2 DaysSalmon: 2 Days

8. Process and security control setup

Having reached this stage, the data will have been checked and verified and signed off. Under this part of the implementation, the segregation of duties are agreed and assigned. Workflow is divided between Front, Middle and Back office and User Rights are assigned accordingly. At least 2 internal Security users are assigned and Dual Authorisation on Master Files is turned on. Audit Control and Log Reports are specified and produced. Warnings and Alerts are agreed and created within the system including any automated emailing for Critical log entries such as Limits Breaches. Estimated Time Required:Client: 0 DaysSalmon: 1 Day

9. Parallel run & Go Live

A series of parallel runs are agreed and Client Group carry them out over the nominated period. This will include at least 2 month ends to ensure that the month End Reports are accurate. After successful conclusion and sign off to the parallel run, the system is ready to go Live. Estimated Time Required:Client: 5 DaysSalmon: 2 Days

10. Hedge Accounting Scope& Implementation

In parallel with task 11 above it is recommended to work with your auditors to document and sign off the accounting structures for hedge accounting purposes. Most of this task will be an internal Client Group effort. Estimated Time Required:Client: 10 DaysSalmon: 5 Days

11. Accounting Interface

After the system is running live, it means the data is accurate and up to date.Therefore the Accounting interface can now proceed under the certainty that the underlying data and it’s classification is accurate. This is the most time consuming part of the Implementation and the following breakdown shows the transactional data and the related calculated data

Part 1: Prepare and test the Transactions Accounting Rules Set.Each transaction in the data will generate at least one set of Debit and Credit journal postings. The Rules for each transaction type and sub-classification has to be agreed and prepared.

Part 2: Prepare and test the Accruals Calculations and Rules SetEach interest transaction will require an accrual calculation. These have to be prepared in accordance with the Accounting periods to which the accruals apply.

Part 3: Prepare and test the Valuations Rules Set.Certain transactions will require Valuations and Mark To Market Calculations. These have to be prepared and tested.

Accounting Interface cont.

Part 4: Prepare and test the accounting system upload file.When the printed output is signed off, the same data is output to the accounting system Upload file format. This file is loaded into the accounting system and the postings generated in there are checked against the report format of the same data. This is repeated to ensure that all scenarios are captured.

Part 5: Sign Off and Go live.When the file passes a series of tests, the process is signed off and applied to the Live environment.

Accounting Interface cont.

All of the Rules sets are tested for a period and output to a Report Format for checking. The Report output will include GL Codes, Calculations and Relevant Dates. These will all be tested over at least 2 periods and then signed off.

Estimated Time Required:Client & Accounting: 2 DaysSalmon: 10 Days

12. Forecast and IC Module Setup

Including scope, specification and design. Estimated Time Required:Client: 2 DaysSalmon: 2 Days

13. Forecast Reports Creation

Including scope, specification, design and development. Rollout involves providing access to the Operating Hubs. This includes reports such as:Forecasts by EntityForecasts by Product Forecasts by CurrencyForecast vs ActualsSummary PositionsEtc. Estimated Time Required:Client: 5 DaysSalmon: 3 Days

14. Rollout of Forecast Module to Subs

Rollout involves providing access to the Operating Hubs. This includes reports such as:Forecasts by EntityForecasts by Product Forecasts by CurrencyForecast vs ActualsSummary PositionsEtc. Estimated Time Required:Client: 5 DaysSalmon: 3 Days

15. Training

Training is part of the implementation process itself.However, outside of that, 2 training days are allocated for General Training. Subsidiary training can be supported by the ‘train the trainer’ concept and be the responsibility of the customer due to ‘change management’ requirements. However this can also be supported by Salmon via WebEx sessions etc. if required.

Successful treasury management does not depend on size – whether that is the size of the operation, the number of accounts or the quantities of transactions.

What really matters is knowledge of the team, the quality of the underlying system supporting them and its data.

What matters is managing your working capital effectively.

30 Years of Knowledge – Founded in 1985

• Founded in1985 in Dublin Ireland, Salmon Software Limited• Independent company and has over 25 years specialist experience in Treasury

knowledge.• Built on Microsoft to take advantage of the continued evolution of technology.• Heavily focused on development and customer feedback.• Functionally rich for ‘future proof’ treasury operational growth.• Simple and effective user interface for logical system navigation. ‘Treasury kept simple’.• Large reporting library and simple report adjustment tools.

Salmon Software's Goal:

Support our clients in their improvement of Working Capital Management and Cash Flow through a scalable solution that works across all levels of Treasury Management.