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Case Studies

Non Profit with failed accounting department engages GMA

 

Case study 3


Non profit company with 250 employees services included adult day care, children school, residential care; workshops, work training, etc.    Engaged Mr. John (Giancarlo) Meazzo, M.A GMA’s President.   Controller resigned, accounting performed by staff of 5.  General ledger and financial statements were maintained in Excel without the use of accounting software.  An accountant responsible for the accounting was ill and accounting fell behind considerably.   Considering the complex Excel spreadsheets used as a general ledger, no one else could perform the GL accounting functions nor prepare financial statements.  Mr. Meazzo was engaged to review systems, develop a Gantt chart where he made a list of over 30 problem areas.  He installed new ACCPAC accounting software; developed departmental and company-wide financial statements, developed a budgeting system.  Presented financial statements using fund accounting; trained accounting personnel; developed accounting policy and procedures; installed internal controls, and key performance indicator reporting system;  trained department heads and executives on use, interpretation of financial statements budget preparation and variance reporting; presented financial statement to finance committee and board of directors.  Other changes, upgrades and financial management functions were performed.  At the end of the engagement, the CPA, president of the finance committee remarked: “I am flabbergasted on how you accomplish and complete your assignment at half of the cost and time”.  At GMA we take pride in providing the best, timely and professional service to satisfy all our client’s needs. 

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Non Profit months behind in financial statements engages Mr. Meazzo

 

Case study 2.

A non-profit company provider of services (under $2 million in yearly revenues) to the developmentally disabled children and adults lost their CFO.  Engaged Mr. John (Giancarlo) Meazzo, M.A GMA’s President.   Company services included adult day care, children school, residential care; work training, etc.   In six months from the CFO’s departure, the accounting department went into disarray.   The typical billing functions stopped.  All department heads took on the billing responsibility and opened a bank account for each of the departments.  The revenue began recording on a cash basis of accounting vs. accrual basis.  No journal entries and balance sheet schedules, i.e. prepaid and accrued expense accounts, were prepared nor maintained.  Internal controls where not adhered to.  Budget was never prepared (required by funding agencies). Financial statements were not prepared for over eight months.  Accounts payable did not have proper internal control procedures.  Board of directors upset and concerned of potential liability.   Mr. Meazzo as the CFO took control of the company finances and within 3 months centralized the accounting department;  installed a new accounting system and set up “fund accounting” following FASB 116 and 117 standards.  Developed division income statements and company wide; brought all transactions and accounting up to date.  Issued long awaited current financial statements using the newly installed accounting software.  Began a key performance indicator (KPI) system as well as a new budgeting system.   Instructed all departments to develop company wide policies and procedures if missing.   Instrumental in obtaining total government funding of residential homes.  Mr. Meazzo was applauded at the finance committee and board of director’s meetings. 

 

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CPA firm replaced by GMA

 

Case study 1. 

 

A grocery store with $24 million of yearly revenue engaged Mr. John (Giancarlo) Meazzo, M.A GMA’s President, for his services as a “turn around” interim CFO.  In this six months engagement Mr. Meazzo replaced a medium size CPA firm that had provided accounting services for over eight years.   The CPA firm failed in providing timely financial statements; the accounting practices did not follow standard accepted ones;  e.g. sub-ledgers nor reconciled to general ledger; significant balance sheet items not recorded, journal entries system lacked structure, etc.  In his customary initial client finance system review, he developed a list of over 25 problems with the accounting and financial systems.   Within 6 months the accounting was brought in-house; developed key policies and procedures; installed equipment inventory system; reconciled equity section that was not supported by sub-ledger (membership based company); set up all the schedules necessary to maintain account analysis, sub-ledger to ledger reconciliations; trained staff.   At the conclusion of the engagement, all systems including internal controls have been optimized and perfected, financial statements current; reduced CPA fees by 80%.     

 

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