Case Studies
The incoming interim CEO of a regional transit agency was concerned that the previous CFO had produced no monthly financial statements for a number of months before his departure. No financial information had been provided to the board of commissioners for seven months during a period when the agency’s cost base had been trending well in excess of budget. At the same time, creditor pressure was mounting as payment terms were being stretched beyond their contractual limits.
J.S. Held was asked to assume the role of interim CFO. Our team immediately began work to align the financial reporting timetable within acceptable standards, address issues related to the implementation of a new ERP system, and bring the agency’s finances under control. Many unidentified issues related to the ERP system cutover were identified and resolved while an acute liquidity crisis became imminent. These issues were discussed with stakeholders, and remedial plans were implemented based on their critical importance.
It was evident that the new ERP system was incompatible with the business requirements. We took immediate action to ensure accurate and reliable financial reporting could be brought up to date within two months. Simultaneously, our team implemented strict cash management protocols, reducing accounts payable by over 60% during our engagement.
A balanced budget was prepared and approved for the upcoming fiscal year, incorporating a reduction in operating costs by over 25% with minimal impact on service levels. Through the end of our engagement, seven months into the fiscal year, the agency was operating within budget. Additionally, we provided a detailed report for management and the board outlining procedural and cultural issues within the agency’s administrative functions, along with recommendations for addressing them.
Hamish P. Davidson
Managing Director
+1 689 223 5380
[email protected]
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Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value.
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