Client Profile – Heavy Manufacturing – DOD Contractor

The Need

• Financial restatement and required SEC filings
• Revenue recognition deficiencies for government contracts
• Request extension of filing deadlines for NASDAQ compliance
• Develop accounting policies and procedures for SEC reporting
• Interim support for vacancies in key management roles

The Solution

• Deploy experienced technical and SEC reporting consultants to lead specific initiatives addressing  revenue recognition issues and begin the restatement process
• Provide experienced interim management support in key roles : CFO, Controller, SEC Reporting Director and Accounts Receivable Manager
• Develop, plan and then aggressively seek reporting extensions from NASDAQ to prevent delisting
• Develop accounting policies and procedures to standardize reporting and day-to-day operations

The Results

• NASDAQ provided the Client with a 180 day extension; this deadline was met and client was not delisted
• Client successfully restated its financial statements and filed all outstanding SEC Reports

Subsequent to the completion of the restatement and SEC filings, client re-engaged our team to assist with the reconstruction and roll-back of their inventory balances to prior years

Client Profile – A Paper and Wood Products Producer

The Need

• Assist Client’s preparation for transition of the corporate accounting function from offices in Canada to offices in South Carolina
• During the engagement planning phase; the client filed a voluntary petition for Chapter 11 bankruptcy protection and under the Trustee’s direction began the restructuring process. Our new priority was to assist with Case Reporting and Compliance
• Institutional knowledge losses due to employee attrition
• Focus on the Accounting process, systems, and controls

The Solution

• Our team was deployed to Canada to assess the requirements and develop a plan for transition
• Our team refocused on the priorities of the bankruptcy tasks and timetable
• Technical bankruptcy support resources were deployed to Canada and South Carolina to work with the CFO and Corporate Controller to coordinate the additional reporting and compliance related to the reorganization
• Accounting related issues including intercompany balance control, integration of accounting and reporting applications, tax management assistance, audit support, treasury management and internal reporting, account reconciliation, and analysis of key account activity and improvements became a primary focus of the team
• Provide staff and management as needed during the restructuring process
• Preparation of Statements of Financial Assets, Cash Flows, Monthly Operating Reports, and other related schedules
• Analyzed current accounts and reports and determine if they would be transitioned to the new organization
• Prepared InterCompany model to balance Intercompany transactions made after company merger for forty plus business entities
• Assisted financial systems teams to plan and migrate the accounting and reporting to the new the Client ledgers

The Results

• The Client emerged from bankruptcy and has successfully reorganized
• Corporate accounting and reporting functions were transitioned to South Carolina
• Migration to a single platform was completed