Public Accounting Partner to Private Company CFO: Lessons Learned Presentation to the University of

1
Public Accounting Partner toPrivate Company CFO
Lessons LearnedPresentation to the University
of Illinois Professional LyceumDaniel P.
Doheny - March 17, 2005
2
Outline

• Personal Background
• Lessons Learned from Public Accounting
• Transition to Private Company CFO, Comparisons to
  Public Company Environment
• Summary

3
Personal Background

• Graduated from University of Illinois in 1984
• Passed CPA in May 1984
• Went to work for Peat, Marwick, Mitchell in
  Chicago in July 1984
• Started in audit, interned in international tax
  in 1985
• PMM became KPMG in 1987
• Focused on transportation and commercial clients
• Helped launch National Manufacturing Practice in
  1991
• Promoted to partner in June 1995
• Founded Audit Committee Institute in 1998
  transferred to Montvale, NJ for 18 months
• Recruited to be CFO of Reyes Holdings in 2000

4
Reyes Holdings, LLC

• An international leader in food and beverage
  distribution
• Founded in 1976 by Chris and Jude Reyes family
  owned
• With recent acquisition, will become the 17th
  largest privately held company with revenue in
  excess of 7 billion
• 50 facilities in the US, Canada, Brazil, Latin
  America
• 6,400 employees
• 300 million cases
• delivered per year
• Acquisition-oriented
• High quality
• High ethics

5
Taking Care of Many Great Brands and Customers
6
Lessons Learned from Public Accounting
7
Transition from Public Accounting to Private
Company CFO
8
Public Company versus Private Company Environment
9
General Impact of Sarbanes-Oxley to Reyes Holdings

• In General, RH has adopted the spirit of all
  Sarbanes-Oxley requirements
• Greater emphasis on control environment, internal
  controls (existence, documentation, testing) and
  accountability (linking compensation to controls)
• Enhanced representations on a quarterly basis
  from financial and operational officers
• Establishment of ethics committee, enhanced
  policies
• Independent accountants are not utilized for
  consulting projects other than tax
• Detailed MDA for lenders
• Certain provisions, however, have not been
  adopted
• No formal audit committee has been adopted
  however, communications between owners and
  independent accountants has been strengthened
• Independent accountants perform detail tests of
  controls, but will not be asked to report on them

10
Sarbanes-Oxley Requirements for Private Companies
11
Sarbanes-Oxley Requirements for Public Companies
12
Final Thoughts

• Appreciate the education you receive from the
  University of Illinois it will separate you
  from many outstanding professionals the rest of
  your life
• Accountants, in general, are not risk takers
  sometimes it is best to take educated (ethical)
  risks
• Life is short - take the opportunity to enjoy
  the finer points, such as
• St. Patricks Day, and

13
(No Transcript)
14
Questions and Answers

• Questions?