A local CDC operated several programs and three major real estate projects. Upon being engaged we found:

• No financial records for two years
• Detailed subsidiary ledgers did not agree to financial records
  
• No cash flow planning or budgeting
  
• An entity out of control incurring substantial ongoing loses
  
• Financial information provided the bankruptcy court was materially inaccurate
  

Action Plan

• The CRL team consisting of an interim CFO to deal with current operations, Senior Consultant to reconstruct twenty - four months of financial information, and a partner to integrate the financial and operating plans.
• The team installed new technology and systems to provide meaningful on time real time information to management and the board.
• The team reconstructed prior financial records literally assembling data from "shoe boxes", and third party inquiries.
• The team interacted with the Board of Directors and management to bring about a balanced operating plan and a focus for the future.

Results

• Issuance of financial statements that increased liabilities by $2 million and reduced assets by $1.7 million versus the financial information previously reported to the bankruptcy court
• Issuance of Prior Year adjustments to "audited" financial statements for $2.5 million
• Uncovered a joint venture agreement that resulted in overstatement of prior years income by $500 thousand
• The fair market value of the real estate exceeded market value by $10 million
• Reduced claims submitted by vendors by $700 thousand
• Our work allowed the entity to renew its license to operate and successfully emerge from Chapter 11