TECHNICAL ACCOUNTING

Challenge: Our client needed to quickly and efficiently evaluate whether a significant number of entities were subject to consolidation under FIN 46R. H&L was engaged to create a project plan to review the underlying documents to determine if the entities qualified as QSPEs under SFAS 140, thereby falling under the scope exception in FIN 46R (consolidation not required). Our client lacked the available personnel to staff and manage the project.

H&L Solution: H&L developed a project plan that met the client's objectives and quickly assembled a project team to perform, review, and manage the engagement all within a tightly established timeframe.

In addition to managing the engagement and performing the related work, we took on the training of project personnel, issue tracking and initial issue resolution. Our goal was to provide the underlying logistics and support to efficiently and expeditiously gather information regarding the nature of the entities. The engagement was staffed using a combination of attorneys who served as primary reviewers and a team of subject matter experts to oversee the attorneys' findings as well as make initial accounting observations.

The H&L Difference: H&L exceeded client expectations by quickly assembling a project team of over 20 individuals who completed the task well within the client's deadline despite an increase in scope that resulted in a significant number of additional entities being subject to review by the project team.

STAFF AUGMENTATION

Challenge: As a result of the unexpected departure of our client's CFO, H&L was engaged to provide feedback regarding the structure of the CFO's organization, an analysis of current finance and accounting policies and procedures, and feedback regarding the capabilities of current finance and accounting personnel. We were also tasked with identifying an interim CFO as well as working with senior management to develop a skills requirement listing for the new CFO.

H&L Solution: We recommended several changes to the CFO's organization to better align supporting functions with the skill set of existing staff. We also identified numerous redundant processes within operations and finance, made suggestions to enhance the overall organizational and internal control structure of the CFO's organization, suggested enhancements to existing policies and procedures to better reflect the current business climate as well as fill gaps identified in existing policies and procedures. Part of our effort involved determining the needs of internal stakeholders and perceptions of the finance and accounting function. This feedback was incorporated into our proposed changes to the CFO's organization. We interviewed candidates for the interim CFO position and developed a skills requirement listing for the new CFO. Our work was documented in a series of reports which we reviewed with Senior Management and the Audit Committee of the Board of Directors.

The H&L Difference: H&L executed a quick interim solution for our client and added value as a result of suggestions to enhance the CFO's organization, the existing closing process, policies and procedures, and related internal controls.

CAPITAL RAISING

Challenge: Our client was a start up company with a great business concept and was seeking funding to initiate operations. H&L was engaged to prepare the company's background documentation to provide to potential investors and evaluate and recommend the appropriate type of funding that would best meet our client's operational and strategic objectives.

H&L Solution: Working with management, we assisted in the preparation of a business plan for the company including financial projections as well as a road show presentation. We also performed a due diligence review to ensure that all legal documentation and other information required during a fund raising process was available and in good condition. Any deficiencies noted during the due diligence process were addressed by company counsel, H&L, or management consistent with a project plan that we had prepared.

The H&L Difference: Based on our assessment of the client's needs and available sources of funding, H&L was instrumental in assisting our client with obtaining their initial funding. We also assumed a part-time CFO role to provide ongoing counsel regarding finance and accounting, administrative, and other matters as necessary.

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