A $5 million budget, multi-line social services organization with 175 full and part-time employees serving over 5000 people.

Challenge: Engaged by Board initially to uncover, investigate and report on the root and scope of the problems, leading to executive management resignations. Due to concealed and unknown operating and financial mismanagement, the organization faced an unexpected annual operating deficit ($1 million) and debt ($3 million). Subsequently appointed Executive Director and CFO (interim) after garnering Board endorsement for turnaround objective, strategies and priorities.

Solution: Identified opportunities and began implementing plan for reducing deficit, rectifying operating deficiencies and regaining stakeholder confidence. Engaged and directed external consultants (e.g., fraud examiner, legal counsel and controller) and hired new independent auditors.

Results:

◦ Stabilized operations, accelerated operating cash flows, secured unqualified auditor’s opinion, executed program re-pricing and cutbacks, uncovered and fixed failures in internal controls, restored operating discipline, maintained employee morale, advised on obtaining immediate short-term bank debt and long-term financing, and smoothed transition for new executive director from within the industry.

• Following engagement, appointed volunteer Audit Committee Chairman and instituted committee charter.