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. 

Challenges:

  • 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.

Solution:

  • 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.