Consulting Services

I currently consult in two areas: corporate governance and financial reporting. Please contact me if you require further information and would like to discuss how I may be of assistance to you and your company.

The following outlines the services I provide.

Corporate Governance

I strongly believe that good corporate governance is essential to well-run business. Good corporate governance will make your shareholders money by creating an environment in which rational decisions are made.

Poor corporate governance equals poor company performance. Money is wasted in an environment that promotes sub-optimal decision making, lack of oversight and lack of accountability. Capital spent that does not optimize shareholder returns is wasted.

I was fortunate enough to spend nine years working in public practice for KPMG and Deloitte, starting as a junior accountant and working my way up to senior manager. During that time I had the opportunity to work with over 100 companies. There were common themes in those companies that were successful and those that were not.

Some indications a company has poor corporate governance:

Decisions are made by the CEO or COO with minimal information and discussion.

The business strategy changes frequently.

The company does not provide the Board with periodic updates through a monthly management report.

Management works around the CEO and approaches majority shareholder to lobby for approval for projects.

The Board offers little input during meetings, often acting as a rubber stamp.

Board resolutions are circulated and executed without review of the underlying agreements.

Financial statements, press releases and forecast results are often issued at the last minute with minimal time to review and discuss.

Staff continually racks up large expense reports.

Staff is not clear on what they have the ability to approve.

Actual operating results are not close to budget. Capital projects are almost always overspent significantly.

Management is not held accountable for poor results.

Some indications a company is well governed:

The Board of Directors has a majority of independent members.

The Board of Directors and its committees are governed by formerly approved mandates. Annually, the Board assesses its performance.

The Company has adopted a Code of Ethics, Whistleblower, Health and Safety, and Corporate Disclosure policy.

Management issues a detailed monthly report to the Board.

Management assesses risk at least annually.

The Company has a Board approved Delegation of Authority that clearly indicates the activity and dollar limit approvals for staff members.

The Company has clearly articulated travel and expense policies.

The Company has effective internal controls over financial reporting.

Management relies heavily on forecasting and scenario analysis as a planning tool.

The auditors are able to complete their work and issue their opinion on a timely basis without delays.

Management compiles a comprehensive package of materials for each Board of Directors meeting and circulates those materials well in advance of each meeting.

I have worked for companies at both ends of the spectrum. I have been able to practically apply what I had learned in industry, most recently at a start-up private oil company, Waseca Energy Inc. There I served as Vice President Finance and Chief Financial Officer.

Starting with a blank slate, I implemented corporate governance best practices. The result was an extremely well run company that delivered exceptional returns.  Management received very positive feedback from our Board, our auditors, our investment bankers and most importantly, from our shareholders.

I am usually referred clients who struggle with the timeliness and quality of their Board meeting materials and financial reporting. I am not sure I have ever had someone say, “We need help with our corporate governance”, but that is typically the issue that needs to be resolved.

My approach is project based, focusing on improving corporate governance over a relatively short time frame. Ideally I work with my clients through a Board meeting or two and then check in periodically to help encourage progress.

Each project is different, but the following covers a company that needs a fair bit of assistance.

Help draft key corporate governance documents, including Board and Committee Mandates, Code of Ethics,

Delegation of Authority and other related policies.

Develop quarterly Board and Committee agendas that ensure mandates are being fulfilled.

Work with management to increase the amount of time spent during Board meetings on business strategy through forecasting and scenario analysis.

Work with management to implement monthly reporting materials that will virtually eliminate the need for departmental updates at Board meetings.

Assist management in preparing and distributing Board and Committee materials, ensuring they are circulated one week in advance of the meeting.

Financial Reporting

Financial reporting typically comprises the primary communication with a company’s shareholders, investors and general public. As such, it is important the communication is clear, concise and accurate. A key to achieving that goal is completing the auditors work in a timely manner to allow adequate time for management and Board review of the materials.

A significant portion of my audit career was spent reviewing financial statements. I also spent time drafting and editing prospectuses, information circulars, press releases and related materials. During my time in industry I have also had the opportunity to draft financial statements, management’s discussion and analysis, along with annual information forms.

The biggest challenge to timely and accurate financial reporting is the fact the underlying numbers will change during the audit and review process. It is time consuming to make numerical changes and difficult to ensure changes have been made across all the documents.

My approach to this challenge is to make use of Excel as the foundation to all financial reporting. All numerical statements and tables are prepared in Excel and then embedded into the Word document. As numbers change, they are automatically updated throughout the various financial reporting documents. This dramatically reduces initial preparation and subsequent edit time.

I offer companies two primary means of improving their financial reporting:

I can provide the tools to improve the quality, accuracy and timeliness of a company’s financial reporting. This entails working with the finance department for a quarter or two.

I can write and edit the financial reports on a quarterly basis.

Contact me to discuss how I might assist you and your company.