Case Studies - Part-time CFO
Not for Profit Needs to Improve Board Fin.Info.
The Board of Directors of a non-profit agency wanted better financial reporting and insight into the financial status and viability of the agency.
- Financial statement preparation was outsourced and not being reported in a timely manner.
- The Executive Director found the statements difficult to understand.
- The agency had consistently been losing money and was running out of reserves.
- The long-term sustainability of the agency was in question. It was unknown how long the agency could survive.
- A Part-time LauberCFO was engaged to work with the office manager to bring the outsourced accounting function back in-house.
- Financial statements were revised into a meaningful and understandable format and were completed in a more timely manner.
- The LauberCFO worked closely with the Executive Director allowing her to gain a better understanding of the financial workings of the organization.
- Historical and forecasted financial information was presented at all board meetings.
What this meant to the organization:
- When presented with thorough and easily understood financial information, the comfort level of the board increased dramatically.
- A realistic picture of the financial status allowed the board to strategize about the mission and alternatives regarding the agency’s future.
- Normalized operations allowed the Agency to operate for over two years before they negotiated a merger with a larger agency that shared a compatible mission.
- As part of the merger, all obligations were satisfied and all employees retained their jobs.
The value of a Part-time LauberCFO:
- Extensive domain expertise in senior financial position.
- A trusted advisor to CEO on many matters.
- Looks at business through perspective of maximizing competitiveness and long term enterprise value.
- Extended tenure with clients helps develop stronger financial and business acumen across client’s leadership team.