Challenges

In 2018, AGC welcomed its first new CEO in over 30 years; the Association’s CFO of over 20 years announced his retirement shortly after. These changes and the bold vision of the Board called for a new leadership team and organizational culture to take shape, requiring a reorganization of the staff. New CEO Peter Tateishi set about establishing a renewed mission and service delivery model, preparing the association for its milestone centennial year in 2020. Mr. Tateishi recruited a Vice President of Operations & Finance, Katie Simmons, to work with the retiring CFO during the final months of his tenure. It was clear that the Board’s vision would require changes within the association’s operations, including an updated IT infrastructure, new data and reporting, refreshed policies and procedures throughout all departments, streamlined planning and budgeting, and new accounting processes.

Solutions

Mr. Tateishi and Ms. Simmons determined that addressing the needed accounting and financial management changes would require outside expertise to allow an association that had operated the same way for decades to evaluate itself. Ms. Simmons knew Morrison from her years working in northern California and enlisted them in a discovery session at AGC, meeting for two days with executives and staff then reading through reports, policies, and financial statements to develop a scope of work. Ultimately the agreed-upon scope included a new chart of accounts and reporting formats, documented month-end close and reconciliation processes, new accounting policies and internal control procedures, and a new monthly financial packet for reporting to the Board and management.Due to staffing changes that sprang from redefining departmental functions, Morrison’s services were broadened in scope. Morrison’s Sacramento office expanded its time at AGC to address the growing, changing needs of the accounting department. Morrison’s services included assistance with the development of the job description for a new Controller, participating in interviews, and assistance with selection and onboarding. Morrison assisted in managing cash flow, updating expense reporting processes, and researching contract administration trusts and funds. Morrison also created new budget templates to align with the updated general ledger structure.

Successes

As a result of Morrison’s work, AGC made the transition to a new era of financial accounting and reporting operations that serves the contemporary needs of the Association, about as painlessly as possible. The Morrison team’s work created greater transparency, documented and calendared recurring processes, in-depth reporting practices, and – best of all – clarity on how the accounting function can best serve the Association’s changing and accelerating needs as it works to achieve its new mission.

About the client

Founded in 1920, the Associated General Contractors of California (AGC) is the premier organization serving California’s construction and contracting industry. Through dedicated advocacy, education, career development, and networking opportunities, AGC members receive top-tier access to state and local governments, while connecting with industry leaders through responsive services and innovative programs and events. It is one of the largest chapters of the Associated General Contractors of America, encompassing all of California except San Diego County. With more than 1,000 contractors, specialty, and associate members, AGC members represent the full spectrum of the construction industry. Members range from smallest business enterprises to some of the nation's largest construction companies. AGC members build California's highways, roads, tunnels, dams, utility systems, power plants, bridges, commercial buildings, and just about anything else.

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