Client: Not-for-profit mental health agency

Client's Goals: Improve the financial health of the organization.

Our Team's Role: Provided outsourced CFO and controller services, decision support, and financial operations management.

A not-for-profit mental health organization was facing challenges in meeting its lender's financial reporting requirements due to high turnover in the CFO role. The organization struggled with generating timely and accurate financial reports, resulting in a lack of credibility with the board and lender. Citrin Cooperman’s Business Process Outsourcing (BPO) team was brought in to provide outsourced CFO and controller services, with the goal of restoring financial order, improving internal processes, and ultimately rebuilding trust with key stakeholders.

Challenges

• No clear process to month-end close. The finance department operated on a “perpetual” close.
• Unavailability of reliable information for management to make timely decisions.
• Late audits revealed internal control weaknesses, and the organization lacked a structured budgeting process.
• Damaged reputation with the board and the lender.
• ERP systems had not been upgraded for many years.

Citrin Cooperman's Approach

• Assigned experienced dedicated senior staff to lead the engagement.
• Conducted a comprehensive review of current state processes, staffing, and technology, identifying areas for improvement.
• Realigned staff responsibilities, provided training to the client's team, and introduced structured workflows for critical financial tasks.
• Identified internal and external stakeholders needs.
• Implemented technology for AP, AR, and close processes.

Results

• Established a transparent month-end close process, providing management with clear visibility into financials.
• Implemented effective reporting processes, allowing management to reduce the organization’s annual loss by $2 million.
• Reduced finance staff by 30%.
• Achieved timely audits with no internal control issues, restoring confidence in financial reporting.
• Reestablished credibility with the board and lender, fostering a stronger relationship for future initiatives.