fei-louisville

A Brief Welcome from Incoming President Uric Dufrene

Mon, 17 Mar 2025 14:20:34 GMT

Uric Dufrene

Welcome to the Louisville Chapter of Financial Executives International!

As President of the Louisville Chapter of FEI, I invite you to become part of a dynamic network of senior financial leaders dedicated to professional growth, knowledge sharing, and business success. In today’s ever-changing economic and business landscape, having a strong network and access to valuable resources is more important than ever.

FEI is the premier organization for financial executives, providing members with exclusive access to industry insights, top-tier professional development, and unparalleled networking opportunities. Whether you’re looking to expand your knowledge, exchange ideas with peers, or stay ahead of industry trends, FEI offers the tools and connections to help you thrive.

By joining the Louisville Chapter, you’ll gain access to:

Thought-Provoking Programs – Engaging discussions on key financial, economic, and business topics led by industry experts.

Exclusive Networking Opportunities – Build relationships with a strong community of financial professionals in the region.

Professional Development – Enhance your leadership skills and stay informed on the latest industry trends.

A Voice in the Business Community – Contribute to meaningful discussions on the financial and economic issues shaping our region.

If you are a financial executive looking to grow professionally and expand your network, I encourage you to explore the benefits of FEI membership. Our chapter is committed to fostering a community where members can connect, learn, and lead.

We would love to welcome you to an upcoming event to experience the value of FEI firsthand. To learn more about membership and how to get involved, please visit www.feilouisville.org or reach out to us directly.

I look forward to seeing you at a future FEI Louisville event!

Best regards,
Uric Dufrene
President, Louisville Chapter
Financial Executives International

Economic impacts on Kentucky and Indiana

Tue, 23 Jul 2024 19:53:31 GMT

National manufacturing impact on regional payrolls -- with rate cuts are on the horizon

By Uric Dufrene

Sanders Chair in Business

IU Southeast

Coming out of the pandemic, the Indiana and Kentucky economies fared quite well. Kentucky was one of the leading states with respect to job creation, and Indiana consistently saw unemployment rates that were under the national average. As the national economy continues to move toward a softening, along with the ongoing manufacturing slump, we examine the impact of manufacturing job growth across Indiana and Kentucky.

First , both states have a heavy concentration of manufacturing jobs, and any changes in the macroeconomy will be felt locally. Nationally, manufacturing has been experiencing slower growth, and some have even described it as a manufacturing recession.

The ISM Index, a measure used to show growth or contraction in manufacturing, has been under 50 since November 2022, except for one month, March 2024. A reading under 50 signifies contraction, and over 50 expansions. With a slower manufacturing environment, orders are being fulfilled, unlike the supply chain-challenged days of the pandemic. The ISM backlog orders index, for example, has been trending down for all of 2024, signaling that manufacturers are having less difficulty fulfilling orders.

Industrial production, a measure of the nation’s manufacturing activity, moved into negative territory last June, and has hovered around negative to slightly positive since. Durable goods orders, a leading indicator of future economic activity, have been trending downward for all of 2024. Orders plummeted last month and are now at negative year-over-year changes. The sluggishness in orders does not portend vigorous manufacturing activity ahead. A declining interest rate environment will work to reverse this trend, but the impact will not be immediate.

We can see the impact of the national manufacturing slowdown on payrolls across Indiana and Kentucky, as well as the region. The manufacturing employment concentration in Indiana is greater than 2, which implies that the proportion of workers employed in manufacturing is twice the national average. In Kentucky, while higher than the national average, the employment concentration in Kentucky manufacturing is 1.5, which implies that the proportion of workers employed in manufacturing is 150% higher than the national average. Thus, we expect any national slowing in manufacturing will have a greater impact on Indiana versus Kentucky.

Indiana manufacturing jobs peaked in August 2022, at 544,000. Since then, manufacturing payrolls have been on a steady decline, with the latest count at 531,000. This puts manufacturing employment down almost 15,000 jobs over the past 18 months, while overall job growth is up 71,000 over that same period. The metro areas of Elkhart-Goshen, Columbus, and Muncie are experiencing a negative change in payroll growth, with Bloomington and Terre Haute hovering just above 0, basically flat. The decline is not as significant in Kentucky, but the state has less than ½ of the manufacturing jobs of Indiana. Since August 2022, Kentucky has been seeing a small gain in manufacturing, compared to the loss of 15,000 in Indiana. However, since peaking in October 2023, manufacturing payrolls are now down almost 3,000. In Kentucky All metro areas in Kentucky are seeing positive job growth, with Owensboro and Louisville Metro seeing growth of less than 1%.

To be sure, job growth across both states continues to expand, but at slower rates. Indiana payroll growth has slowed to 1.4%, year over year, compared to 2% in early 2023. Kentucky growth has slowed to 1.3% year over year, compared to more than 3% in early 2023. While manufacturing does not employ the numbers from twenty years ago, both states continue to employ a greater percentage of workers compared to nationally. Consequently, the national manufacturing slowdown will also have an impact on regional payroll growth. Louisville area manufacturing is down close to 2,000 payrolls over the year, and Southern Indiana saw negative manufacturing job growth for the final three quarters in 2023. We can also see the overall softening with higher unemployment rates in both states: 4.6% (compared to 4.1% last year) in Kentucky and 3.7% (compared to 3.3% last year) in Indiana.

The leading contributor to job growth for both Indiana and Kentucky has been healthcare. Over the year, Indiana and Kentucky gained 15,000 and 14,000 healthcare jobs respectively. In the past two years, these amounts have doubled. Over the past year, health care is responsible for ½ of the job growth in Kentucky and around a third in Indiana.

In our last column, we suggested that the Fed would likely cut interest rates in September, with an outside chance of one happening in July. The CPI report was released last week, and it showed inflation came in weaker than expected, declining by .10% over the month. The super core CPI, which strips away food, energy and shelter, was under 2%. So, the Fed did receive the CPI print to justify a September cut. The missing piece for a July cut was on the labor side. The last employment report did show some labor market softening, with another uptick in the unemployment rate. Overall payroll growth was still strong, however, rising by another 206,000. Probability now shows the first cut for September. As the labor market continues to soften, and assuming the disinflation trend, we should see three rate reductions for the rest of the year.

Uric Dufrene is president of FEI Louisville and can be reached at udufrene@iu.edu .

My final President's column

Wed, 17 Jul 2024 20:00:27 GMT

Jim Schildt shares his thoughts

Thank you!

This is my last “President’s Corner” as my term as FEI-Louisville President has come to an end. Thank you for trusting me to guide the direction of this outstanding organization!

As I think about the items we have accomplished and look at the future, I can see that the direction and leadership are solid, and the outlook looks bright for our chapter.

For my final article I wish to share thoughts that are important to me, and I feel important to having a successful business and career.

While it is important to push ourselves and our companies to reach maximum potential, it is also important to understand the value of Helping Others! In my time as CFO of the Louisville Jaycees, the last line of the Jaycee Creed was "service to humanity is the best work of life."

What is your capacity to help others? I encourage you to think of the small things as well as the big things.

At work you might help train a new employee or assist an overloaded coworker.
Could you assist a neighbor or friend who is having issues (sick, working too many hours to take care of personal items, etc.)? Maybe take them a meal or cut their grass?
What about a random act of kindness? Have you ever paid for the Polar Pop for the person standing behind you in line at Thornton’s? Or maybe take the time to assist someone in need with a stranded car on the side of the road?

There are innumerable possibilities of helping those in need. Your act of kindness could be small or grand. Any act of kindness will be welcomed.

Here are some interesting thoughts from others on this subject:

The best way to find yourself is to lose yourself in the service of others. - Mahatma Gandhi
The meaning of life is to find your gift. The purpose of life is to give it away. - Pablo Picasso
No one has ever become poor by giving. - Anne Frank
The best way to help yourself is to help others. The more you help others, the more you help yourself. - Dr. Raj Raghunathan, Professor of Marketing at The University of Texas at Austin
We rise by lifting others. - Robert Ingersoll
When you help others, you help yourself. It is impossible to lift someone else up without also elevating yourself. - Dr. Mark Hyman, Functional Medicine Doctor and Author

I am reminded from my time on the Board with the Boy Scouts, Lincoln Heritage Council of the Scout slogan: Do a good turn daily.

I encourage you: Help others! You will find that the rewards will come back to you multiplied and in ways you do not expect.

Jim Schildt ( jims@feilouisville.org ) completed his term as FEI Louisville president. He is co-chair for the chapter's Strategic Partnerships.

Vaco and HIG events available to FEI members

Mon, 17 Jun 2024 15:40:26 GMT

Register for June 18 events

Vaco hosts 'Role of Leadership in digital change and AI'

On June 18, Vaco's webinar on "The Role of Leadership in Embracing Digital Transformation and AI" explains how financial leaders can effectively navigate the intersection of finance and technology. Gain insights on tools to drive innovation, streamline operations, and enhance decision-making processes. Register here to secure your spot and explore digital transformation for your finance team.

HIG invites FEI to its Healthcare Captive Round Table

Houchens Insurance Group is offering FEI members attendance at its June 18 Healthcare Captive Round Table. Learn how HIG is giving employers the ability to have greater control over benefits at a lower cost and with less volatility. Lunch will be provided. RSVP here .

Will consumers finally tap on the brakes?

Fri, 07 Jun 2024 15:35:01 GMT

Spending has slowed unexpectedly

Consumer spending on goods and services makes up more than 2/3rds of the nation’s economy. Healthy consumer spending drives the economy, and weaker spending can lead to slowdowns or even a recession. Coming out of the pandemic, the consumer emerged as strong as ever, initially spending high on goods and then moving on to services. However, the most recent report on consumer spending showed that spending cooled unexpectedly. Is this the beginning of a pullback from the consumer, leading to slower growth for the rest of the year?

One irony, and there have been many during the past couple of years, is that consumer moods were quite dismal, but consumer spending remained elevated. Consumer surveys, like the Conference Board’s Consumer Confidence Index or University of Michigan Consumer Sentiment, have been at record lows. But even with low levels of consumer sentiment, consumer spending continued to be solid. Forty-year high inflation, along with higher interest rates, were the primary drivers of this negative consumer sentiment, with recent levels being the lowest in 50 years. As inflation began to decelerate, consumer sentiment resumed a jagged edge climb, up until last month, when consumer sentiment plunged almost 10 points. Consumer confidence, which is more reflective of labor market views, has not seen the depths of consumer sentiment, but over the past year, it has moved sideways.

Along with subdued measures of consumer sentiment, consumers are beginning to show some signs of stress and changes in behavior. Credit card delinquencies have been rising since the end of 2021 and are now at the highest level since late 2011. Non-business bankruptcy filings are the highest since the 3rd quarter of 2020, when the economy saw a jump in pandemic-induced bankruptcies.

While the inflation rate has come down compared to 2022, it remains elevated and above the preferred 2% Fed goal. And while the inflation rate is lower now than a year ago, the price index itself is about 20% higher than two years ago, which means that prices remain higher.

All this is beginning to show up with changes in consumer behavior. An examination of foot traffic, based on Placer.ai data, shows that discount and dollar stores foot traffic across the Louisville Metro region is up 17% compared to last year. Consumers are seeking bargains to combat higher prices. Foot traffic at restaurants, which rely more on consumer discretionary spending, is down 10%. Furniture and home furnishings foot traffic is down 10% from last year. Attractions, which include cinemas and similar entertainment venues, are down 31% in foot traffic.

For the metro area, job growth has also slowed for the start of 2024. The most recent data show that the year over year change in jobs, on a percentage basis, is the slowest since 2010, excluding the job losses that occurred with Covid. Manufacturing, retail, financial and professional and business services are seeing a reduction in jobs, and leisure and hospitality has also slowed.

Signs are beginning to emerge that consumers may finally be taking a break. This may be welcome news to the Fed, but elevated inflation will make it difficult to lower interest rates anytime soon.

Uric Dufrene is the Sanders Chair in Business at Indiana University Southeast and president-elect of FEI Louisville.

Amy Szymansky and Michelle Kerstine join FEI Louisville

Thu, 06 Jun 2024 15:24:08 GMT

Michelle Kerstling, Chief Financial Officer, Dismas Charities (left) and Amy Szymański, Senior Director of Finance, American Printing House for the Blind

Michelle Kerstine

Michelle Kerstine is Chief Financial Officer for Dismas Charities, one of the largest, not-for-profit providers of residential, effective, evidence based re-entry services in the United States.

She joined Dismas in 2023 and is responsible for the management and oversight of Finance and Human Resources, according to her Dismas profile, and will have a critical role in the development of all plans regarding the continued growth and success of the company.

Michelle has more than 25 years of leadership experience with non-profit organizations in the roles of team member, consultant and board member, and has held several leadership positions in Finance during that time.

She holds a B.S. in Accounting and an MBA both from the University of Louisville and continues to make community involvement in local non-profit boards and civic organizations a priority.

Amy Szymansky

Amy Szymansky is senior director for finance at the American Printing House for the Blind. She was recommended for membership by Andrea Higgins from Robert Half.

Since 1858, APH has operated in Louisville as the world’s largest nonprofit organization creating accessible learning experiences through educational, workplace, and independent living products and services for people who are blind and low vision.

Prior to joining APH in 2023, Amy was Senior Controller at American Queen Voyages. She also previously served as controller for a family office and in financial positions for other companies.

She graduated from Sullivan University with an MBA with focuses in accounting and business.

Zachary Taylor succeeds Dave Lewis as FEI treasurer

Thu, 06 Jun 2024 14:31:52 GMT

Dave served the board as treasurer since 2006

Zach Taylor, CFA, senior financial analyst on the Family Allergy & Asthma finance team, joins FEI Louisville's board as treasurer, succeeding long-time director Dave Lewis.

Dave, who served as CFO for Humana Military, is retiring from the FEI Louisville board to concentrate on assisting Active Heroes, a non-profit established to support military veterans and their families through programs that facilitate community connections and camaraderie.

Dave says Zach "brings youth, enthusiasm and abundant technical skills to the (treasurer) position."

Zach, a 2021 University of Louisville finance and accounting graduate, is an FEI Scholar, interned with BKD (now ForvisMazars) and studied financial modeling and international business in Spain. Active in ACG Kentucky and a board member of CFA Society Louisville, Zach provided answers to our profile questions so that our chapter community can get to know him better.

"IN HIS WORDS"

Tell us about your background

I grew up and currently reside in Mount Washington – a little south of Louisville. I went to school at UofL where I graduated with two degrees in Accounting and Finance. Following that, I completed my Chartered Financial Analyst (CFA) Exams.

I serve on the CFA Society Louisville Board. Additionally, I mentor undergraduate and graduate business students. Occasionally, you can find me on university guest panels.

Professionally, I am currently a Senior Financial Analyst at Family Allergy & Asthma – a middle market healthcare firm headquartered in Louisville. I lead FP&A while supporting Corporate Development and Operations:

• Financial Due Diligence and Valuations – Comps/LBOs

• Consolidated and Regional Forecasts/Budgets

• Implemented standardization of metrics and KPIs across +100 locations

• Trained +20 director-level employees on financial and operational analysis

• SOFR/LIBOR Futures – Asset and Liability Management

What led you to finance?

Besides the cliché “that numbers just make sense” – a mix between golf, family, and education courses piqued my interest in business:

• Golfing: since the age of two, I have had thousands of conversations with business professionals

• Family: my grandfather helped build a business from 50 to +2,000 employees and most of my close friends’ parents owned lower market businesses

• Educational courses: in high school, I led an FDIC-insured bank with 30 student employees

What are a few of your greatest accomplishments?

There have been a few I would like to share:

• Sports-wise: my first ace and a 63 in the same round

• Personal: living and studying abroad in Europe

• Professional: passing all three levels of the CFA in one year while helping expand the company from 60 to +100 locations in the same time period

How did you get involved with FEI?

My first exposure to FEI was when I was recognized as an outstanding graduate of finance. So, I would like to thank Bill Stout, Vernon Foster, Matt Monteiro, Terry McWilliams, and others for the introduction.

Since then, I would say engaging conversations, events, and conferences have kept me involved. Additionally, I appreciate the insight from fellow members and content provided.

What is the largest challenge facing CFOs today?

Preparation and positioning. I like to ask, “Based on our preparation, can the team/organization be positioned to benefit from Event A or mitigate downside if Event B happens?” Each of us faces challenges with limited resources and constant change given the increasing flow of information – regardless of the industry.

How do you handle adversity?

Grit and adaptability paired with time, effort, and urgency. Additionally, if the situation warrants, it helps to have a few trusted advisors.

Favorite leisure activity or hobby?

When I am not in Excel – I enjoy golf, travel, fishing, and restoration projects.

Any life wisdom can you share with fellow FEI members?

New Environment = New Ideas; a good source to generate new ideas is visiting new places.

Zach Taylor can be reached by email at zachary.taylor.5@outlook.com .

Steve Klasskin, new FEI member

Mon, 06 May 2024 21:09:34 GMT

Please welcome Family Allergy & Asthma's CFO to our organization of financial executives

Steve joined FEI Louisville in April and we'd like to welcome him to the group.

As part of his company's executive team, Steve helped Family Allergy & Asthma grow the number of locations by 250%, physicians by more than 300% and revenues over 250%. The company has more than 100 offices, treating those who suffer from allergy or asthma problems across their nine-state footprint -- Arkansas, Florida, Illinois, Indiana, Kentucky, Missouri, Ohio, Pennsylvania and Tennessee.

He joined the company as controller in 2016 and became CFO in 2018.

According to LinkedIn, Steve was part of the company's diligence process for over 10 practice acquisitions, and developed forecasting and financial models to analyze business trends. He brought accounting function in-house, and was instrumental in helping to obtain private equity investment and reorganization. Prior to FA&A, he worked with Ecken & Smith, PSC.

Benchmarking Sustainability Efforts

Fri, 26 Apr 2024 19:26:22 GMT

Climate reporting is happening

After nearly three years since the US Securities and Exchange Commission (SEC) made its first overture toward mandated climate reporting in financial statements, the Commission released its final rule. While scaled back from the original proposal, this final rule represents a significant challenge and opportunity for finance teams and financial leaders.

The Financial Education & Research Foundation partnered with Persefoni to develop this year's State of Sustainability study to help finance teams benchmark their sustainability efforts.

Read the entire report at:

https://www.financialexecutives.org/Site-Wide/Files/2024/Research/FERF_ClimateReporting-2.aspx

Accolades, trophies and certificates

Fri, 19 Apr 2024 14:23:33 GMT

Who do you associate with?

I'm presenting a quiz that evolved online -- first seen in print in the 2001 book "G.R.A.C.E.: The Essence of Spirituality," and later erroneously attributed to cartoonist Charles Schulz, according to the fact-checking site Snopes.

But it's insightful. Read the following questions and ponder on them.

1. Name the five wealthiest people in the world.

2. Name the last five Heisman trophy winners.

3. Name the last five winners of the Miss America pageant.

4. Name ten people who have won the Nobel or Pulitzer Prize.

5. Name the last half dozen Academy Award winners for best actor and actress.

6. Name the last decade's worth of World Series winners.

How did you do?

None of us remember the headliners of yesterday. These are no second-rate achievers. They are the best in their fields. But the applause dies. Awards tarnish. Achievements are forgotten. Accolades and certificates are buried with their owners.

Here's another quiz. See how you do on this one:

1. List a few teachers who aided your journey through school.

2. Name three friends who have helped you through a difficult time.

3. Name five people who have taught you something worthwhile.

4. Think of a few people who have made you feel appreciated and special.

5. Think of five people you enjoy spending time with.

Easier? The lesson: We all have opportunities to make a difference in others' lives and have others make a difference in our lives. Are you making a difference as you engage with clients, team members, and our clients? Are you open to that same group of folks to be a change agent in your life? Look for opportunities to be a difference maker and allow others to make a difference for you.

Jim Schildt, president of FEI Louisville, passed this along to share with the FEI community.

Expect fewer interest rate cuts this year

Fri, 19 Apr 2024 14:16:27 GMT

The catalyst: higher than expected inflation

Coming into 2024, stock market investors were expecting 6 interest rate reductions by the Fed throughout the year. Year-over-year inflation had fallen, and Federal Reserve officials had signaled that cuts would likely begin this year.

Inspired by lower interest rates, the stock market surged. In late October 2023, the S&P 500 Index was at 4,117. Fast forward to early April 2023, and the S&P was over 5,200, representing a 26% gain since the October low.

While the market was expecting six rate cuts, the Fed had signaled only three for 2024. Market expectations and sentiment dominated the Fed view, and markets continued climbing. The impetus behind lower rates was tied to inflation.

At the start of 2023, the Consumer Price Index registered a year over year change at 6.6%. In October, when the market began its surge, the CPI had declined to 4.0%. In three quarters, inflation was trimmed by 2.6%. Since then, the progress on inflation has slowed considerably.

From October 2023, when the market began its upward trajectory, the CPI is only lower by a magnitude of only .08. Basically, the CPI has been stuck just above 3%, not quite at the level of the Federal Reserve target of 2%.

Since disinflation has basically come to a halt, the market is now pushing the first rate cut back to July, with mixed probabilities for additional cuts beyond July.

The last Fed Reserve meeting in March continued to point to three cuts for this year, but that was by a very slim majority. In that meeting, the Fed upped growth estimates of the economy and its inflation projections yet maintained an estimate of three cuts for 2024. Some suggested that this was counter-intuitive; higher inflation estimates, but no change in rate reductions.

Since the Federal Reserve March meeting, some Fed officials are on record calling for fewer than 3 cuts: one recently calling for none, and a historically dovish one calling for only one cut. The yield on the 10-year Treasury is knocking on the door of 4.5%, up from 3.9% at the start of the year. This will keep interest rates on credit cards, auto loans and mortgages higher for longer.

The CPI report released April 10 showed that both the headline and core rates came in higher than expected. With a monthly change of .4%, both rates are running higher than 4% on an annual basis and moving closer to 5%. Equity markets responded with a negative reaction and the Dow declined by more than 1%.

The CME Fed Watch Tool odds are now showing the first rate cut for September, further back than the initial reduction that had been initially expected in March. The Fed’s preferred inflation measure is out later this month, and this may result in odds shifting to a rate increase this year. Today’s CPI report pushed the 10-year Treasury yield above 4.5%, the highest since November.

The U.S. employment report was indeed a Goldilocks report. Jobs created surpassed all expectations, with the economy adding 303,000 jobs in March. Both the labor force and labor force participation rate increased by sizeable margins. Household employment also surged, reversing previous declines. Average hourly earnings slowed from the previous month, a key ingredient for the softer inflation story. The average work week also increased, which when combined with the number of jobs and average wages, point to more fuel for the spending consumer.

Locally, Louisville Metro is seeing the slowest job growth since early 2020. Preliminary estimates out of the Bureau of Labor Statistics show that Louisville Metro gained 3,500 jobs from February 2023 to February 2024. As a comparison, the metro area added approximately 15,000 jobs on an annual basis in early 2023.

On a percentage basis, this puts Louisville Metro last among the Kentucky metro areas. In Indiana, three metro areas (Bloomington, Columbus, and Elkhart-Goshen) are observing negative changes in payrolls from the prior year. As we have discussed in previous columns, both states continue to face labor force growth challenges.

The latest BLS metropolitan employment report showed that Louisville Metro also saw a decline in the labor force from the prior year. To be sure, these data are subject to revision, but the early data do show a slowing of job growth in the metro region.

Uric Dufrene is the Sanders Chair in Business at Indiana University Southeast and the president elect for FEI Louisville.

President's Corner - 10 Critical AI Impacts on Accounting and Finance

Mon, 25 Mar 2024 19:37:25 GMT

Jim Schildt's view of where AI will influence the accounting and finance landscape

1. Data Security: AI technology relies heavily on data collection and analysis, making it crucial for accounting and finance professionals to ensure the security and privacy of sensitive financial information. For example, a data breach could result in financial fraud or identity theft.

2. Regulatory Compliance: As AI technology becomes more prevalent in accounting and finance, it is important for professionals to stay up-to-date on regulations and compliance requirements to ensure accurate reporting and adherence to industry standards. Failure to comply could result in legal consequences and financial penalties.

3. Ethical Considerations: The use of AI in accounting and finance raises ethical concerns, such as bias in algorithms, lack of transparency in decision-making processes, and potential job displacement. It is important for professionals to consider the ethical implications of using AI in their work and take steps to mitigate any negative consequences.

4. Accuracy and Reliability: While AI technology can improve efficiency and accuracy in financial reporting, there is always a risk of errors or inaccuracies in data analysis. It is important for professionals to verify the accuracy and reliability of AI-generated reports and make any necessary adjustments to ensure the integrity of financial information.

5. Training and Education: With the rapid advancement of AI technology, accounting and finance professionals must continuously update their skills and knowledge to effectively utilize AI tools and systems. Training and education programs are essential to ensure that professionals are well-equipped to leverage AI in their work.

6. Cost and Return on Investment: Implementing AI technology in accounting and finance can be costly, and professionals must carefully evaluate the potential return on investment to determine if the benefits outweigh the expenses. It is important to conduct a cost-benefit analysis before investing in AI solutions.

7. Job Displacement: The automation of routine tasks through AI technology could lead to job displacement for accounting and finance professionals. It is important for professionals to adapt to the changing landscape of their industry and acquire new skills to remain competitive in the workforce.

8. Collaboration with AI: Rather than viewing AI as a threat to their jobs, accounting and finance professionals should see it as a tool to enhance their capabilities and improve decision-making processes. Collaborating with AI technology can help professionals streamline their work and achieve better outcomes.

9. Transparency and Accountability: AI algorithms can be complex and difficult to understand, making it important for professionals to ensure transparency and accountability in their use of AI technology. It is essential to document and explain the decision-making processes behind AI-generated reports to maintain trust and credibility.

10. Risk Management: As with any new technology, the use of AI in accounting and finance comes with inherent risks, such as system failures, data breaches, and regulatory violations. Professionals must develop robust risk management strategies to identify and mitigate potential risks associated with AI implementation.

Jim Schildt is president of FEI Louisville and can be reached at jims@feilouisville.org .

Get to Know: Michael Chase

Thu, 21 Mar 2024 15:49:15 GMT

Q&A with New FEI Director-at-Large

Tell us about your current professional position and responsibilities.

As the Director of Finance and Strategy for Denham-Blythe, I am charged with ensuring our financial controls and operational systems will support and effectively manage our risk profile which has shifted as we’ve more than doubled revenue in the last couple of years. I’ve worked with our Board to develop a longer-term Vision & Strategy and have the privilege of getting most of our new initiatives kick started.

Would you give us a snapshot of your background? Hometown, any early influences, how you got to Louisville (if you moved here from another city or state)?

After building a business in college and my mid-twenties with sales approaching $75M in my hometown of Charleston, SC, I learned the value of systems, hiring the right team, and the importance of managing expectations for both my clients (customers) and my team. My wife Julie and I owned (and sold) and a number of different business and I also managed the assets of a large Family Trust for a handful of years. I relocated to Louisville for a CEO position to help diversify and grow a seasoned Industrial company with operations in KY and OH. It was a great group of people and I learned a lot about developing vision with a diverse management team and a multi-generation, family owned business.

What motivated you to pursue a career in finance?

Ultimately, I have a passion for building and improving businesses and being in Finance allows me to touch all aspects of the business. I have always liked numbers, but also highly value relationships and collaboration. The financials and subsequent analytics tell a story about the business and its management team. Without a deep understanding of what is and will happen, the team can’t affect positive change. This path allows me to fully invest with same tenacity I did as an entrepreneur, but at a larger scale.

Why did you decide to join FEI?

After moving from Charleston, I needed to develop a network. As a guest at a few events, I enjoyed my time with FEI members as well as the content. It’s been valuable to have contacts and access to fellow CFOs in a number of different fields.

Who or what has influenced you and your career the most?

Two major influences come to mind. My faith grounds me regardless how turbulent our world and life may be: Christ and the Bible don’t change. Also, I extended my second summer internship to full-time and took a year off from college to be the Assistant to the Director of Strategic Planning for a publicly traded textiles company. My boss taught me not to be afraid to speak my mind or to assume control. I ultimately did special projects for the Board of Directors, presenting my findings, and would make recommendations. After that experience, I wasn’t going to settle for “normal” jobs or a career like everyone else was pursuing.

Would you describe your greatest accomplishment and what it means to you?

I once had a team member give me the best compliment. She said I cause those around me to be better people. I’m not sure I believe her, but ever since I’ve tried to live up to that ideal.

What issue concerns you most that has not received the attention it deserves?

The fundamental necessity and value of the free market seem to be undermined, if not defamed on our college campuses. There is a reason America became the most benevolent, innovative, productive and wealthy nation ever and it's disturbing to see the worldview and mindset of many youth in our culture. Our country won’t survive if both the government continues to be fiscally irresponsible and if the next generations don’t believe in personal responsibility.

What’s your favorite leisure activity or hobby?

Growing up in the Lowcountry of South Carolina, I love getting out on the water. I spend as much time with family as I can and enjoy playing golf, hunting, fishing, woodworking, and travel as much as I can.

What personal or professional wisdom can you share with younger FEI colleagues? Do you have a favorite saying or quote?

Your family is more important than your career.
Plan for best, but be prepared for the worst.
Assume everyone is crazy and there is much less drama.
Pause and ask, "What good will come out of this?"
Employees listen to managers because they fear the consequences.
Eisenhower said, “Leadership is the art of getting someone else to do something you want done because they want to do it.” Choose to become the best leader you can.

Michael Chase is a new director at large for FEI Louisville and can be reached at mchase@denhamblythe.com .

Welcoming new members Chris Taft and Kevin Trotta

Thu, 07 Mar 2024 19:32:51 GMT

The latest CFOs to join FEI Louisville

A warm welcome to new FEI Louisville members Christopher Taft, MBA, chief financial officer at Advantum Health, and Kevin Trotta, MBA, CFO of Eminence Speaker.

Chris is a 2023 Business First Best-in-Finance honoree and held several senior finance positions at Advantum prior to his 2022 appointment as CFO. He earned a bachelor of science in finance and accounting from the University of Richmond and his MBA from the University of Louisville.

Before joining Advantum Health in 2016 as a Director of Business Development, Taft worked in wealth management for Merrill Lynch and UBS, and founded a mobile app startup. At Advantum, Taft held positions of Senior Business Analyst, Vice President of Finance & Acquisitions, and Senior Vice President of Finance.

Kevin Trotta is the chief financial officer and treasurer for Eminence Speaker, LLC, a company with Kentucky roots that now owned by B&C Speakers, a prominent loudspeaker manufacturer based in Florence, Italy.

Kevin has served as CFO and Treasurer for nearly 30 years. He holds an MBA in business administration and a BA in accounting from Sullivan University.

Tracking trends in audit fees

Mon, 19 Feb 2024 16:03:23 GMT

FEI members can readily access the FERF study

Wondering about the direction of audit fees?

Look no further than the Financial Executives Research Foundation. FERF recently released findings from on its latest annual survey of audit fees for public companies. While the data is from 2022, the trends should interest CFOs, controllers and other finance executives.

I downloaded the full report from FEI National's website as a pdf. You can, too -- downloading the report as an FEI member almost pays for your annual membership!

The first section of the report discusses the value of an external audit. (And of course that’s from an FEI perspective, not AICPA.). The next section analyzes data on audit fees. The report then provides insights on the “key drivers of the changes in audit fees and related effort.”

Additionally, it discusses the current environment of financial reporting and auditing, covers the impact of ESG reporting (environmental, social, and governance) and ends with observations about the audit marketplace in the future.

Importantly, the report was prepared in partnership with the Center for Audit Quality, including anonymous surveys and interviews with FEI members and CPA audit engagement partners. Half of the respondents were from the “Big Four” accounting firms, meaning that input was also gathered from firms like FORVIS, giving a more complete view of the environment.

Although the focus is on public companies, the report likely has relevance to private companies, too. (Reporting on public companies is easier as information is readily available from SEC reports.)

Here are some select findings:

VALUE OF THE AUDIT

• 81% of FEI members surveyed believe the external audit enhances the quality of their financial reporting.

• Audit quality is improving using data analytics and other existing and emerging tools. Of management respondents, 64% reported that auditor use of those technologies resulted in improved audit quality, versus 49% in the last survey. Audit partners surveyed reported that data analytics were used on 97% of audits.

• Artificial intelligence (AI) is seen as having a significant effect in the future.

AUDIT FEE MARKETPLACE

• Across different sized public companies, average audit fees increased less than 5%.

• The report notes that SEC requirements that increase audit work were less onerous during this reporting period as compared to the previous FERF report.

• CPA firms are facing higher costs due to shortages of entry-level college graduates. Offsetting this to some extent is the increased use of technology.

AUDIT FEES IN THE FUTURE

• That phrase, “in the future,” actually includes “now.” As noted earlier, the data in the report is lagged by a year. The future is here.

• Of FEI members responding, 47% indicated that their audit support activities had increased, while 51% reported no change.

• A significant factor affecting management’s support for the external audit was M&A activity. I’m sure we’ve all seen reports that suggest M&A activity is increasing and may continue to increase.

• While major changes in financial reporting declined as compared to the prior FERF report. That prior report was affected by changes in lease accounting, revenue recognition, credit loss reporting (CECL), and reporting by auditors of critical audit matters. All added complexity to the external audit function and management activities to support the external audit.

• Audit partners responding to the survey reported an increase in audit team effort, with ICFR (internal control over financial reporting) a main driver of the change, along with increasing acquisition and divestiture activity.

• Sixty-eight percent of audit partners reported increased effort from IT-related (and increases in audit scope).

OTHER CONCERNS

• Cyber security. No surprise there.

• Increased regulatory and compliance activity. The report notes that the SEC and PCAOB have both been very active with new rules and standards, and proposals. And of course, there’s the FASB which also has an active agenda.

• The impact of AI on financial reporting and on auditing. (“Hey Siri, write a note to the financial statements on our leases.”)

• And of course, there is still economic uncertainty lurking.

I encourage you to download the report and read it. There is no substitute for reading the actual document.

Board member Bill Stout can be reached at william.stout@louisville.edu .

President's Corner - Handling Workplace Stress

Fri, 09 Feb 2024 19:21:53 GMT

Strategies to cope with stress

After going through another year-end close, I experienced deadline stress and thought other financial professionals might be experiencing the same. Handling stress in the work environment can be challenging, but there are several strategies you can implement to better manage and cope with stress. Here are some tips:

1. Identify the source of stress: Start by identifying what specifically is causing you stress at work. Is it the workload, deadlines, difficult colleagues, or something else? Understanding the root cause can help you find targeted solutions.

2. Prioritize and organize: Create a to-do list or use a task management system to prioritize your work. Break down big tasks into smaller, more manageable ones. This will give you a sense of control and help you focus on one task at a time.

3. Practice time management: Efficiently manage your time by setting realistic deadlines and avoiding procrastination. Break your day into chunks and allocate specific time for different tasks. Avoid multitasking, as it can increase stress levels and reduce productivity.

4. Communicate and seek support: Openly communicate with your colleagues, supervisors, or HR department about your workload, concerns, or challenges. Seek support when needed and collaborate with others to share the workload or find solutions together.

5. Take regular breaks: Allow yourself short breaks throughout the day to recharge and clear your mind. Engage in activities that help you relax, such as stretching, deep breathing, going for a walk, or listening to calming music.

6. Establish boundaries: Set clear boundaries between work and personal life. Avoid overworking or bringing work-related stress home. Create a routine that allows you to disconnect and engage in activities you enjoy outside of work.

7. Practice self-care: Prioritize self-care activities such as regular exercise, maintaining a healthy diet, and getting enough sleep. These practices can improve your overall well-being and help you manage stress more effectively.

8. Develop stress management techniques: Explore stress management techniques that work for you, such as mindfulness, meditation, or journaling. These practices can help you stay calm, focused, and resilient in challenging situations.

9. Seek professional help if needed: If stress becomes overwhelming and starts affecting your mental or physical health, consider seeking professional help. A therapist or counselor can provide guidance and support tailored to your specific needs.

Jim Schildt is president of FEI Louisville. He can be reached at jims@feilouisville.org .

Uric Dufrene weighs in on Meta's $800 million Indiana project

Wed, 07 Feb 2024 20:51:09 GMT

Business First taps Dufrene for comment

Joel Stinnett, senior reporter for Business First, reached out to incoming FEI Louisville president Uric Dufrene for his reaction to a major economic development announcement.

He wrote:

"When Indiana University Southeast finance professor Uric Dufrene heard that Meta Platforms Inc. was bringing an $800 million data center to Southern Indiana, he tapped the proverbial “Like” button — but not just for the reasons you may think.

“It’s not so much the facility but the name connected to the facility,” said Uric Dufrene, who also holds the Sanders Chair in business at IU Southeast. “The most positive aspect of this is the signaling aspect — that this region can land a company such as Meta.”

“My reaction was positive, but it was even more positive because of the name.”

Read Stinnett's coverage at Business First with a subscription.

Finance & accounting job openings

Fri, 26 Jan 2024 16:06:35 GMT

Month of January 2024

Robert Half

Contact Andrea Higgins regarding any of the positions below. (Listed Jan. 17).

Senior Accountant

A Senior Accountant position is open through Robert Half with an organization in the Louisville, Kentucky area. A flourishing client is seeking to expand their team with a long-term contract / temporary to hire opportunity.

Details:
- Administer monthly accounting close procedures and deliverables (journal entries, reconciliations, reports) in compliance with GAAP
- Function with business partners to ensure compliance with procedures and controls, corporate accounting policies, and provide support on special requests
- Assemble monthly consolidated P&L and Balance Sheet flux analysis for management reporting
- Create analysis on financial results (trends, performance metrics, benchmarks)
- Work with internal and external auditors to coordinate quarterly reviews and testing
- Formulate Balance Sheet account reconciliations
- Complete other projects as required
- Dedication to continuously improve the automation of the accounting and reporting process
- Participate in various department-wide initiatives

Requirements

- Exemplary analytical, quantitative and social skills
- Ability to work well with functional department managers
- BA/BS in Accounting, CPA credentials are preferred
- Self-starter with efficient time management and organizational skills
- GAAP Accounting experience preferred
- Microsoft Excel experience
- Bank Account Reconciliation experience
- Cash management experience required
- Comprehensive knowledge of month end closings
- Ability and willingness to meet business critical deadlines
- Ability to work well in matrix organization and dealing with ambiguity
- SOX internal control assessments (Section 404) experience
- High attention to detail and possesses excellent organizational and writing skills
- Minimum 5-7 years of overall general accounting experience
- Highly organized and self-motivated
- Aptitude for analyzing financial data and generating accurate reports in a timely manner
- Knowledgeable of ERP systems

Corporate Controller

Are you looking for work in a very dynamic and high-profile area with significant visibility at the executive management level? This Controller position has broad business engagement & impact. It is a short-term contract / engagement located in Louisville, Kentucky. You might be the Controller we're looking for if you can manage the process to ensure that models are correct and are fully accrued each month, verify and hold the operations team accountable to ensure end to end incentive processing, payments, accounting and related financial controls are operating effectively.

Major responsibilities

Manage team and month end close process.
Develop monthly financial reports for management.
Manage and build process improvements.

Requirements

- Experience engaging with teams and providing leadership across finance teams

- Bachelor's degree in accounting.

- Ability to manage, lead change and build process improvements

- Financial reporting experience preferred

- Knowledge of Intacct ERP

- Strong familiarity with Accounts Payable (AP)

- Comprehensive knowledge of month end closings

Senior Financial Analyst

Description

A short-term contract / project opportunity is available for a Senior Financial Analyst position. This consultant role will set up processes and analyze labor and productivity reporting, using Excel spreadsheets. Consultant will be extracting data from various systems.

Requirements

- Able to think critically and operate effectively with management
- A thorough understanding of office systems, reporting software, databases and other BI tools recommended
- Excellent problem-solving skills
- Required education: BA/BS degree in Finance, Business, or a related field
- CPA/MBA preferred
- Process Improvement experience
- Strong familiarity with Labor allocation
- Experience with process automation
- Expertise in cost analysis
- Proficient in Microsoft Excel

Senior Accountant

Robert Half Management Resources is seeking a highly skilled and motivated Senior Accountant with exceptional Excel skills to join our client’s finance team on a contract basis. As a Senior Accountant, you will assist with the day-to-day operations with respect to financial and accounting aspects of the company. This is a contract that is 100% remote.

ESSENTIAL DUTIES AND TASKS:

Prepare monthly journal entries and other tasks as part of the month-end close process.
Maintain financial metrics to be used in reporting of KPIs.
Lead monthly review of P&L’s for unusual variances and explain and correct any issues.
Prepare balance sheet reconciliations.
Identify and implement opportunities for automation and process improvements.
Assist with annual independent audit requests.
Document and maintain processes and procedures.
Ability to work effectively in a team environment, organize work activities, and meet deadlines.

Requirements:

Bachelor’s degree in accounting or finance
Minimum of 4 years accounting experience
Knowledge of Generally Accepted Accounting Principles (GAAP)
Knowledge/familiarity with Sarbanes-Oxley controls is MUST.
Ability to prioritize and complete assignments in a timely and accurate manner.
Demonstrated ability to maintain confidentiality relating to sensitive information.

A New Year

Tue, 16 Jan 2024 19:26:22 GMT

President's Corner: January 2024

By JIM SCHILDT

President, FEI Louisville

It is important to set the right tone for a new year. A positive attitude is crucial for fostering a productiveand motivated workforce, which ultimately leads to the success of the organization. Here are some

recommendations for getting 2024 started in the right direction.

1. Communicate a Clear Vision : Start the year by clearly communicating the company's vision and goals to all employees. This will help align everyone's efforts towards a common purpose and create a sense of excitement and positivity. Encourage team members to actively participate in shaping the company's vision to foster a sense of ownership and commitment.

2. Foster a Culture of Appreciation: Recognize and appreciate the efforts and achievements of employees regularly. Celebrate individual and team successes, no matter how small, to boost morale and create a positive work environment. Encourage peer-to-peer recognition and implement reward programs that acknowledge exceptional performance.

3. Encourage Professional Development: Invest in the professional development of your employees by providing training opportunities, mentorship programs, and career advancement prospects. When

employees feel that the company is invested in their growth, they are more likely to have a positive attitude towards their work and the organization.

4. Promote Work-Life Balance: Encourage a healthy work-life balance by implementing flexible work policies, promoting self-care, and supporting employees' personal goals. When employees feel supported in their personal lives, they are more likely to bring a positive attitude to work and be more engaged and productive.

5. Lead by Example: As a leader, it is essential to embody a positive attitude and set the tone for the organization. Demonstrate optimism, resilience, and a growth mindset in your interactions with employees. Encourage open communication, provide regular feedback, and be transparent about the company's challenges and successes.

In conclusion, planning for a new year with a positive attitude requires clear communication, appreciation, professional development, work-life balance, and leading by example. By implementing these recommendations, you can create a positive work culture that fosters employee engagement, productivity, and ultimately, business success.

Contact Jim at jims@feilouisville.org .

Do new finance graduates have what it takes to succeed?

Fri, 08 Dec 2023 15:21:33 GMT

A new survey raises some eyebrows

You may be hiring recent graduates just beginning professional careers in accountancy or finance. Do they have the training and skills needed to achieve success at your company?

Two professional groups -- the American Accounting Association and the Association to Advance Collegiate Schools of Business – looked at the landscape and offered their observations in a joint report titled, “Key Skills Accountancy Students are Lacking When They Enter the Profession.”

Through focus groups with representatives of accounting firms and corporations, the survey identified a number of weaknesses holding back new employees:

Business knowledge. Graduates are weak in their knowledge of how a business works, according to the feedback. College business programs include courses in management, economics, marketing, information technology, finance, and accounting. Those courses address specific parts of a business, but not necessarily the integrated whole. Many courses do relate to overall operations of a business (managerial accounting, for example), but still don’t give students (and ultimately graduates) the general understanding they need. Internships are an important answer to this issue, but an internship may still be focused on a particular aspect of a single business. The very basic question that graduates need to understand is this: How does the business make money?

Related to business knowledge are other weaknesses: identifying and assessing risk; evaluating risks and controlling/mitigating them; natural curiosity to ask questions about anomalies identified by analytics. “Critical thinking skills” is a widely used term in academia to describe the root skill a graduate needs to be successful.

Intellectual curiosity and life-long learning. Graduates need a great intellectual curiosity – why are things the way they are? Why is spending on R&D increasing, but revenue is not? Why are we losing employees? In an audit situation, why am I testing an internal control? Graduates need to be better at asking questions (and creating those questions). The report notes that graduates can identify issues, but do not understand the impact. They can look things up in the Internal Revenue Code and the Accounting Standards Codification but struggle to apply what they learn to the circumstances at hand.

Communicating Effectively. We all needed to work on this when we were new graduates, right? It hasn’t gone away. Graduates must be able to effectively communicate data, clearly and concisely, and with context for the audience (management, their team, customers). This isn’t only a writing and speaking skill, but also interpersonal skills and the confidence to speak up and speak out, to ask and answer questions. Presenting PowerPoint slides is good but being able discuss those slides and manage group discussion, to stop and listen to others is critically important. Having the confidence to deliver a difficult message, and not being afraid to be wrong about something (so long as it becomes a learning opportunity!). Finance and accounting majors need to be able to talk to marketing, IT, and others.

Writing, they said, is a major weakness. According to one focus group participant: “Spelling and grammar were nonexistent.” “LOL” to that comment!

Managing Time. Here’s another one we all needed to work on as new graduates. The study found that graduates often have a checklist mentality -- tell me what to do and I will do it. They need help learning to prioritize and organize their workload and manage distractions. Even professionals face this problem. Other suggestions: Don’t be afraid to make mistakes. Embrace change, don’t fear it.

Adapting to new technology. Being proficient at Excel is great, but …. Graduates need a strong fundamental knowledge of technology – databases, semi-structured data, the Cloud. Graduates need the skills and mindset to not only adapt to new technology, but also to apply new technology to their work and to their organization. Artificial intelligence is an excellent more recent example. It isn’t new, but it is exploding. How can I use AI to make me more efficient? How can AI make my team more efficient and more productive? This goes back to the curiosity weakness. We need graduates who will spend some time away from work learning about these new technologies and thinking about how to apply them.

How can we make sense of this?

Overall, the work world needs graduates who are well-rounded (know more than debits and credits), can easily and readily adapt to change, and are not afraid of making mistakes. Graduates need to be more generalist than specialist at that stage of their careers.

What can you do?

If you hire interns, make sure they have an opportunity to see the “big picture” as part of their time with your organization. (And if you don’t hire interns, think about doing that as a service to the next generation of CFOs, controllers, treasurers.)

Make sure you provide opportunities for your new graduates to make mistakes (and of course learn from those mistakes). Discuss these areas for improvement with your new graduates so that they are aware of what you expect.

I’ll close with my favorite personal experience of making mistakes. I made one. Our debt covenant compliance calculations had an error (we were still in compliance and likely no one would have noticed the error). My boss, the controller, was out of the office at the time. When he returned, I told him about it. He, in turn, informed the CFO. The CFO’s comment was, “If they can’t do this, we’ll find someone who can.”

Comments like that -- delivered indirectly -- can cause people to NOT report errors in the future. Don’t be like that CFO.

If you would like to read the full report (it isn’t long), go here: https://shorturl.at/wKM04

Bill Stout, PhD, CPA, is a director on the FEI Louisville board. He retired as associate professor from the University of Louisville's College of Business.

President's Corner - November 2023

Sat, 11 Nov 2023 12:52:27 GMT

Lessons for performance

A friend of mine, Johnny Carraro, shared this story with me. I have referred to it a couple of times.

----------------------------

The Red Boat

A man was asked to paint a boat. He brought his paint and brushes and began to paint the boat a bright red, as the owner asked him.

While painting, he noticed a small hole in the hull, and quietly repaired it.

When he finished painting, he received his money and left.

The next day, the owner of the boat came to the painter and presented him with a nice check, much higher than the payment for painting.

The painter was surprised and said, “You've already paid me for painting the boat, Sir!”

“But this is not for the paint job. It's for repairing the hole in the boat.”

“Ah! It was such a small service... certainly it's not worth paying me such a high amount for something so insignificant.”

“My dear friend, you do not understand. Let me tell you what happened. When I asked you to paint the boat, I forgot to mention the hole. When the boat dried, my kids took the boat and went on a fishing trip.

“They did not know that there was a hole, and I was not at home at that time.

“When I returned and noticed they had taken the boat, I was desperate because I remembered the boat had a hole. Imagine my relief and joy when I saw them returning from fishing.

“Then, I examined the boat and found that you had repaired the hole! You see, now, what you did? You saved the life of my children! I do not have enough money to pay your 'small' good deed.”

No matter who, when or how -- continue to help, sustain, wipe tears, listen attentively, and carefully repair all the 'leaks' you find. You never know when someone needs our kindness.

Along the way, you may have repaired numerous 'boat holes' for several people without realizing how many lives you've saved.

We are ALL in the sales/service environment all day, every day, whether we are working or not.

How many "boat holes" can you find? Be the best you can.

--------------------------------------

The story is not verifiable, referenced, cross-checked or any other necessity of validating a story. However, I always understood the importance of its messages:

• Do your job.

• Do it well.

• Go the extra mile.

• Don’t complain.

• Don’t brag.

• Help others.

• Without seeking recognition.

By following these simple, logical steps you will always put yourself in the outperform group!

Take pride in what you do.

Jim Schildt is president of the FEI Louisville chapter and is director of accounting at Onsite Management Group in Louisville. He can be reached at jims@feilouisville.org .

Bellarmine year-end CPE event scheduled for Dec. 19

Fri, 10 Nov 2023 20:49:15 GMT

FEI Louisville member discount available

Bellarmine University's Rubel School of Business Accounting Program has released details for its 2023 Year-End CPE Seminar, which offers a total of 8 CPE hours.

Date: Tuesday, December 19, 2023

Registration 7:30 a.m.

Program: 8:20 a.m. - 5:00 p.m.

Location: Bellarmine University, Frazier Hall - 2001 Newburg Road, Louisville, KY 40205 (FREE PARKING)

Insights on developments that may have an impact on your organization will be provided in areas including financial reporting, federal and state tax changes, robotic process automation, and more. The event will also include an ethics session.

CPE participants and Accounting Alumni are invited to a cocktail reception in Frazier Hall at the conclusion of the CPE to celebrate and meet Bellarmine's newest faculty members.

The net proceeds of this event go to Bellarmine University Accounting students in the form of scholarship funds handed out during the Accounting Alumni Event.

The seminar includes breakfast, lunch and cocktail hour (appetizers & drinks). The cost is $170 for the event. (Current FEI Louisville members in good standing can apply a special discount code at registration to attend at half price. Registrants may be required to verify FEI membership.)

Members may also contact Terry McWilliams at feilouisville@gmail.com for more information or to obtain the discount code.)

Specific sessions include:

Tax Policy and Economic Policy Update
Technical Accounting Update
Guide to the Markets
Charitable Gifting Strategies and Tax Implications ( Jonathan Smith , Encore Wealth Management Group)
Ethics Breakout / Forensics Breakout

Click the registration site on Eventbrite for more details or visit https://CPE2023.eventbrite.com

PROGRAM DETAILS

8:20 – 10:00 am. -- 2023 Tax Policy and Economic Policy Update. Presenter: EY
10:00-10:15 am. -- Coffee Break.
10:15 – 11:30 am. -- Technical Accounting Update. Presenter: EY
11:45 am-12:45 pm. -- Lunch and “Guide to the Markets” Program. Presenters: Brandon Ritter, Executive Director, JP Morgan Asset Management, and hosts Matt Kuerzi, Keith Norris, Frank Thompson, and Jonathan Slevin from Morgan Stanley.
1:00 – 2:05pm -- Charitable Gifting Strategies and Tax Implications.
Presenter: Jonathan Smith, CFP, CPA, CRPC, APMA, Encore Wealth Management Group, A private wealth advisory practice of Ameriprise Financial Services, LLC.
2:05 – 2:10pm Break.
2:10 – 4:10pm. Ethics Breakout. Presenters: Keith W. Richardson, Bellarmine; Robin Raypole, CPA, VP & CFO, Lawyers Mutual
2:10 – 4:10pm. Forensics Breakout. Presenters: Jarrad Roby, Special Agent, IRS Criminal Investigation; James Taylor, Special Agent, IRS Criminal Investigation

A Slowdown on the Horizon?

Fri, 10 Nov 2023 19:32:11 GMT

Is the Fed done raising interest rates?

In just one short week, the S&P 500 added more than 5%, and the Dow more than 1,600 points. It was not just one indicator that led to this surge, but a confluence of events and indicators that provided more convincing that the Fed is done with interest rate increases. This is consistent with the Eye on the Economy call made back in June, that the chance for any additional Fed hikes for the rest of the year would be doubtful. Next year is to be determined. For now, we can expect an extended pause in rates.

Market pricing places a high probability of a hold in rate increases until May 2024, when the odds favor the first rate cut. Several factors are contributing to this market sentiment. First, more evidence surfaced that the economy may be entering a cooling phase, despite the blockbuster 3rd quarter GDP report. GDP increased by almost 5%, an above normal rate of growth, but we must remember that GDP is backward looking. Last Friday’s national employment report showed that the economy added 150,000 jobs in October, short of the 180,000-consensus forecast. Looking under the hood, the private sector economy only added just over 100,000 jobs. More than 1/3 of job gains came in the government sector, adding 51,000 jobs. Additionally, the strong payroll gains of August and September were less than originally expected. Revisions wiped away 101,000 of these payrolls.

The household survey component of the report showed an overall decline in employment of 348,000, and a decline in the labor force. The number of unemployed increased by 146,000, pushing the nation’s unemployment rate to 3.9%, representing a ½ percent increase since the year low rate of 3.4%. Altogether, the report showed an overall softening in the nation’s labor market, a marked decline from the job gains observed over 2022, and earlier this year.

Other signs of a pending slowdown came from a national survey on manufacturing. The report indicated another contraction for manufacturing, more than the consensus forecast. The survey pointed to reduced new orders and order backlogs and declining employment. A sampling of respondent comments: “Economy absolutely slowing down”, “Seeing a slowdown in bookings”, and a “Slow fourth quarter”.

The slowdowns in some parts of the economy are counterbalanced by the resilient consumer. The last report on retail sales was very strong, more than what had been expected. Unfortunately, the robust consumer spending that we’ve been observing will gradually begin to cool down. High interest rates, overall higher prices, including the cost of shelter, and approaching labor market softness will finally begin to curtail consumer activity. Beyond that, the significant pickup in consumer spending that the economy observed due to government stimulus and pandemic-induced behavioral changes will gradually bring the consumer back to earth. It is only a matter of time.

Some clues and evidence on a softening consumer economy are beginning to emerge. The household debt ratio has moderated since December of last year but remains higher than pre-pandemic levels. Consumers have been using debt to finance some of this spending, and this is not sustainable. Delinquency rates on consumer loans and credit cards are now higher than levels that existed just before the pandemic.

Auto loan delinquency rates are also higher than levels that existed at the start of the pandemic. Mortgage delinquencies have also been climbing, but still lower than levels of 2020. Discretionary spending at food and beverage places, arguably a leading consumer indicator, is beginning to show some erosion. Credit card transactions, as provided by the Bureau of Economic Analysis, on food services and drinking places have noticeably declined in activity since August.

It is premature to call a recession at this point. While some consumer red flags are beginning to emerge, the household sector is still stronger today than prior to the pandemic. Higher net worth levels from housing values and equity markets will serve as a buffer for any slowdown. The next three months will contain some valuable indicators on the economy’s trajectory in 2024. As of today, a slowdown may be on the horizon.

Uric Dufrene is president elect of FEI Louisville and is the Sanders Chair in Business at Indiana University Southeast.

How do public accounting firms benefit from nearshoring solutions for talent relief?

Fri, 10 Nov 2023 19:18:58 GMT

A shortage of public accountants challenges accounting firms’ ability to deliver services

This article was contributed by Vaco, an FEI Louisville gold partner

The gross shortage of public accountants in the U.S. has challenged public accounting firms’ ability to deliver the services their clients need. With overworked auditors and accounting team members, and no available bench, firms have turned work away. Given the bleak labor outlook for this type of talent and no sign of relief in the coming years, public accounting firm clients have turned to Vaco to provide outsourced accounting and auditing professionals and alternative solutions that result in:

Qualified talent at all levels, especially mid-tier positions
Higher quality of work
Engaged and happy accountants and auditors
Reduced attrition of staff- and senior-level resources
Team continuity and a collaborative culture

In the past, firms often defaulted to offshore locations such as India or South Africa for outsourcing; however, time-zone differences, the inability to easily travel to onsite locations, high turnover and communication often become challenges to work quality and delivery. Although offshoring can be effective for transactional work, public accounting firms delivering professional services to clients benefit from the synergies and strong relationships achieved with teams comprised of onshore and nearshore resources. For our public accounting firm clients, Vaco delivered an optimal nearshore solution.

In 2020, nearly 75% of CPAs in the workforce reached retirement age or older. That and other factors are contributing to an extreme shortage of public accountants.

-- American Institute of Certified Public Accountants

The Solution

Vaco, in partnership with local providers in Trinidad, provided senior staff and senior auditor talent who we managed. Trinidad has a thriving economy and strong infrastructure. The island is not in the hurricane belt, and it boasts a stable power grid and subsea fiber-optic cables that support 4G networks.

In less than two weeks, our nearshore team based in Trinidad was operating effectively and was well-integrated with our clients’ teams. Vaco-managed consultants traveled from Trinidad to the U.S. for training, which contributed to the pace and efficiency of getting a successful solution in place. Once onboard, our nearshore talent acclimated with impressive speed and were able to fully execute a variety of functions, including leading audit engagements in a senior capacity. Our nearshore team members became integral to our clients’ organizations and accounting and auditing services. Clients gained a sustainable, long-term solution to their talent gaps.

The Impact

Our clients continue to report that Vaco’s nearshore solution feels quite different from offshoring. The nearshore teams seamlessly integrate with employees who are working in North America. Benefits experienced by our clients include:

Lower costs; Vaco designed and implemented a nearshoring solution at an average cost savings of 25%, as compared to rates in North America
Increased our clients’ ability and success in charging billable hours, resulting in an average of 1,600 additional billable hours per resource per year
Higher-quality work, due to well-trained, university-educated nearshore workers (they are often former Big 4 employees)
Effective communication (remote workers speak English as a first language)
Fewer time-zone barriers (nearshore location based in the Eastern Standard Time zone)
Highly productive remote teams, reducing the need to travel to nearshore teams
Collaborative relationships, where the U.S. and nearshore teams function as one
Boosted morale for U.S. teams who can offload workstreams and functions to energized professionals
Genuine bonds between U.S. and remote teams and excellent cultural alignment
Greater retention of intellectual capital due to high job satisfaction and retention of nearshore workers, who have unique growth opportunities and earning potential

Click to download a PDF copy of the case study here.

St. Louis FRB CEO/President addresses FEI and local financial groups

Fri, 10 Nov 2023 18:29:22 GMT

Sell out event included ACG and CFA members

In her formal comments Nov. 9, the interim president and CEO of the Federal Reserve Bank of St. Louis pointed to the pandemic's affects and the Fed's reaction to loosening, then tightening, monetary policy when inflation rose to recent highs.

"The Fed did not slam the brakes on the economy, but did expeditiously firm policy to bring inflation under control with as little negative impact on the real side of the economy as possible," said Kathleen O'Neill Paese, the Fed St. Louis executive, at the FEI/CFA/ACG event.

The event in Jeffersonville, Indiana, drew about 140 FEI Louisville members and strategic partners, ACG Kentucky and CFA Society Louisville members, FRB board members and guests.

Paese covered a number of topics (click here for her remarks). Slides accompanying her presentation are here .

"Monetary policy today remains modestly restrictive but not overly tight. At its most recent meeting on November 1, the FOMC reaffirmed its commitment to achieving 2 percent inflation. Although the Committee did not increase its target for the federal funds rate at that meeting, it

left the door open for further policy firming if necessary for achieving 2 percent inflation. At the meeting, I expressed support for both aspects of the decision—that is, for maintaining the target for the federal funds rate and for retaining the option of further firming if necessary for restoring price stability," she said.

"I’m optimistic that we can and will achieve price stability, but we’re not quite there yet and we should not declare victory and release the monetary brake prematurely. Price stability is critical for achieving maximum sustainable employment and a strong economy. Therefore, we must remain vigilant until inflation is clearly and convincingly well on its way back to target."

Paese also participated in a fireside chat with FRB Louisville market SVP Seema Sheth and answered questions about inflation targets and her experience as the interim CEO/president for the Federal Reserve Bank of St. Louis.

Some news stories generated by her appearance in Louisville include:

Stephen Schmidt, Louisville Business First:

https://www.bizjournals.com/louisville/news/2023/11/10/kathy-paese-federal-reserve-bank-st-louis-2023.html?utm_source=st&utm_medium=en&utm_campaign=ae&utm_content=LO&j=33331509&senddate=2023-11-10&empos=p4

Jeffry Bartash, MarketWatch:

Fed’s Paese says more data on inflation needed before deciding on another rate hike

Michael Derby, Reuters (Nov. 9, 2023, 11:44 a.m. CT)

Interim St. Louis Fed chief keeps alive possibility of more rate hikes

Jonnelle Marte, Bloomberg (Nov. 9, 2023, 12:20 p.m. CT)

Fed’s Paese Says She Backed Rate Pause, May Need to Tighten More

Video on Bloomberg YouTube:

Paese Says Fed Might Have to Tighten More - YouTube

(A version of this story appears on the ACG Kentucky website.)

Meet Doug Wickenheiser

Wed, 01 Nov 2023 14:38:09 GMT

FEI membership chair talks about influences

Would you give us a snapshot of your background? Hometown, any early influences, your current professional position and role?

Born and raised in Louisville. Currently in a challenging Controller role with a multi-billion dollar Travel Agency that is a conglomerate of several businesses across

the globe.

What motivated you to pursue a career in finance? Why did you decide to join FEI?

I started in finance mostly because I like numbers, and I like solving problems. Finance and Accounting have plenty of opportunity for both, and also allow for much interaction in business with talented individuals across many disciplines. I decided to join FEI when the last company I worked for (Insuramax) has a much higher percentage of their business in Kentucky. What I have come to appreciate is all of the local and national connections that can be had with FEI (in addition to attending terrific guest speaker events).

You are one of the leaders working to expand FEI’s reach to CFOs, treasurers, controllers and other financial executives in the Louisville community. Tell us why this effort is so important and what can FEI candidates expect to achieve as members?

Today's landscape for finance careers is changing rapidly with technology, AI, workforce competition, and other challenges. Leveraging influential contacts to learn from and connect with can help deal with these challenges. Members can expect to interact with a diverse group of talented individuals from many industries and a variety of corporate attributes.

Would you describe your greatest accomplishment and what it means to you?

Being a husband and father. Doing my part to provide for my family and hopefully instill generational personal growth is a big part of my "why" for working.

Everybody faces adversity sometime in their lives. How do you handle it?

I turn to my faith in Christ. I also try to look at every adversity as an opportunity to learn, improve, and understand "who your true friends are," so to speak.

What’s your favorite leisure activity or hobby? Perhaps a sports team?

Sports (University of Louisville) and dinners with friends.

What bit of personal or professional wisdom can you share with your FEI colleagues? Do you have a favorite saying or quote?

"Do the right thing even when no one is looking"

Doug Wickenheiser is a director on the FEI Louisville board and serves as secretary and membership chairman. He can be reached at Doug.Wickenheiser@Altour.com .

PRESIDENT'S CORNER: October 2023

Wed, 11 Oct 2023 18:25:37 GMT

Recession or not? Ideas to navigate a downturn

The President's Corner is featured in FEI Louisville's monthly newsletter.

The Economy. Will it slip into Recession?

There has been much discussion and debate over the last year if the economy will go into a recession. Economists had been split between, “Yes, absolutely” and “No or Maybe, but it will be small if there is one because the job market is so strong.”

Inflation is being felt by everyone and likely will reduce consumer purchases. Interest rates are high and may go higher which will likely curtail decisions to invest in new equipment or other expansion projects. Currently, most economists seem to agree that we are probably headed for a recession but there is still debate as to the severity and length.

I think it is time to do what financial professionals do best: Plan and prepare. It is a good time to employ the phrase that we have heard 1,000+ times: Plan for the worst and hope for the best. Very sound advice that has been proven time and again.

Do you have your plan ready if the economic downturn happens?

Staffing

Have you already targeted areas if layoffs become necessary?
Have you considered alternate staffing models? If 2 people leave, possibly replace with 1 person.
Have hourly workers work 7 hours instead of 8. If 7 hourly workers go to 7 hours/day, then you can save a person’s position instead of layoff.
If a full-time person leaves can the position be filled with a part-time person? In bad economies, more candidates are available and many will accept part-time. If a full-time position becomes two (2) part-time positions, then you can employ/help two people in times of greatest need.

Inventory

Do you need to start reducing inventory? You don’t want to have excess inventory when a slowdown occurs. Reducing inventory will increase inventory turns (if sales remain constant). This is usually preferred by banks.
Reduce or eliminate dead stock, over stock, and obsolete stock. There is no better time to deal with dead and obsolete stock than when the economy is still strong, and profits are good. Secondly, write-off or write-down known items.

Control spending

Bad economies are time to rule with an iron fist.
Reduce travel.
Reduce conferences and training that might be postponed for a year.
Make sure staff and projects are staying withing budget.
Create a revised budget with reduced costs.

Reduce debt

With rising interest rates, it might be a good time to review the entire loan portfolio.
Does it make sense to negotiate with your bank, or possibly switch banks, to get better rates?
Does it make sense to consolidate loans and refinance into one loan?
Consolidated loans might qualify for a slightly lower rate and probably a lower total monthly payment. This could increase cash flow at a time when “Cash is King.”

Customers

Make sure you maintain GREAT relationships with your customers. Don’t give them a reason to look at your competitors.
Does it make sense to take a reduced profit percentage for a while to keep your customers indebted to you?
Does it make sense to offer a rebate program? A rebate program can be more than just giving money back to the customer. It can be used to offer rebates on new products or new services.

These are only a few ideas to help navigate an economic downturn.

Do you have a plan?

Plan the work. Work the plan.

Jim Schildt is president of FEI Louisville and Director of Accounting at Onsite Management Services. Email Jim at jims@omgservices.com .

Educating the next generation of business leaders

Wed, 11 Oct 2023 18:03:36 GMT

(Or how to find a cool volunteer gig and travel America - or perhaps the world!)

Are you familiar with AACSB? If not, you should get to know them because there’s a potentially rewarding volunteer opportunity available that combines “doing good” and “travel.”

AACSB International is the Association for the Advancement of Collegiate Schools of Business. It’s the leading worldwide accreditor of business schools – both in the U.S. and internationally -- with more than 1,000 accredited.

Around here, Bellarmine, EKU, KSU, Morehead, Murray, NKY, UK, UofL, WKU, and IU Southeast are all AACSB accredited and three – WKU, UK and U of L – have “supplemental accounting accreditation” like 200 other business schools across the globe.

AACSB’s goal is to connect educators, students and business to “create the next generation of great leaders” – providing networking opportunities to help the schools continuously improve while inspiring innovation and quality.

Applying the standards

As a long-time educator, I‘d argue that AACSB’s most important effect is improving the quality of education by creating high standards to meet. The AACSB focuses on four critical areas:

1. Strategic Management and Innovation

Does the school have a strategic plan that includes stakeholder input?
Does it have sufficient resources to carry out that plan?
Is there sufficient faculty and supporting staff to teach and develop students?

2. Learner Success

Is the school curriculum current and does it create the path for students to succeed after graduation?
Does the school measure student learning, and is data used to guide changes to curriculum and program features – i.e. “continuous improvement.”
Are there appropriate policies for admission, student progression toward a degree and support for career development, plus a measurement of post-graduation success

3. Teaching Effectiveness and Impact

Does the school have a system of assessing the faculty’s teaching effectiveness?
Does it provide sufficient support to help the faculty teach new and emerging topics (such as data analytics, and AI)?
Is the school having a demonstrated teaching impact? This can be measured through the success of its graduates, employer satisfaction with programs, and other recognition of accomplishments.

4. Thought Leadership, Engagement and Societal Impact

Impact of scholarship – does the faculty produce high-quality, impactful intellectual contributions over time?
Does the school engage with the business community and have societal impact, measured through a number of special metrics?

That’s the Cliff Notes version. These standards are outlined in a 50-page document and are accompanied by equally long interpretive guidance.

Sending in the review teams

For accredited schools, a “Continuous Improvement Review” visit is conducted every five years. It’s preceded by a school report that summarizes how well they have implemented the standards – including accomplishments and plans for future improvements.

The Peer Review Team (PRT) – three business school deans from similar schools – get this report. The PRT evaluates the report by visiting the school to meet with faculty, students, advisory boards, and others as part of the assessment process.

It’s a fast paced visit: Arrive on Sunday, visit on Monday, write a report/rough draft and present it (usually to the president and provost) on Tuesday.

The PRT may recommend extending accreditation. Or if important issues are identified, a follow up might be scheduled for the next year.

Volunteering as an outsider for the team

Adding a practitioner to accounting accreditation teams is relatively new. These volunteers bring a perspective to the accreditation team that is welcome … and needed.

AACSB has been able to attract volunteers from public accounting (both large and small firms). But volunteers from industry are needed.

It’s a cool gig.

Over the past several years, I have visited about 25 schools. My most interesting visit is coming up in 2024, my first and only international visit. I’ll be going to Al Ain, United Arab Emirates, to visit the state supported university.

While there’s no compensation, all your trip expenses are covered, including travel to from the school, accommodations during the visit, all meals, airport parking, etc.

Since the school is likely trying to impress you, the hotel will generally be very nice. On one of my visits, the Hampton Inn was the best local hotel (no offense -- it was very comfortable, but it wasn’t the Ritz Carlton).

Consider either volunteering yourself, or perhaps encouraging someone who works for you or with you.

The benefit to you is getting an inside view of how the next generation of business leaders are being developed. And through your advice, you can have an impact on the school’s programs, helping that school do their best. I assure you; it is a rewarding experience. You will also develop a better understanding of the complexities of an accounting degree program and the effort that goes in to training the next generation of leaders.

To be accepted as a volunteer you must complete training (mostly online and not terribly time consuming), have at least 10 years of professional experience, strong written and oral communication skills, and strong emotional intelligence.

A volunteer should also have experience on a university accounting advisory board, university teaching experience, or service on firm peer review teams. Volunteers from industry must have a strong knowledge of current technology, and the ability to assess a school’s incorporation of that technology in the curriculum. And of course, the volunteer must be able to assess the school’s accounting curriculum to determine if it is properly preparing graduates for the workforce.

Typically, you will be assigned to a PRT several months in advance. You will likely be assigned to only one visit each year. Visits are scheduled in the fall or spring, not summer.

The Sunday-Tuesday visit is the only time you must commit to specific days.

I hope you will consider pursuing this unique volunteer opportunity. If you are interested, get in touch with me ( william.stout@louisville.edu ) and I will connect you with someone at AACSB who can provide additional information and get you started in the process.

Bill Stout is on the board of directors of FEI Louisville and retired as associate professor from the University of Louisville's College of Business.

PROFILE: Katrina Green

Wed, 11 Oct 2023 17:42:01 GMT

Working to make FEI a more diverse organization

EDITOR'S NOTE: This is the first in a series of profiles featuring FEI members, FEI sponsor partners and leadership.

Would you give us a snapshot of your background? Hometown, any early influences, how you got to Louisville (if you moved here from another city or state), your current professional position and role?

I grew up in Borden, Ind., which is a very small town. My parents, grandparents and great-grandparents all lived in Borden along with almost everyone else I knew. Both of my grandmothers were very strong women and encouraged me to go after what I wanted. My maternal grandmother worked outside of the home but somehow found the time to cook and sew, and to volunteer as the treasurer at her church. My paternal grandmother worked in the home and taught me some valuable life skills. One of which was to be very dependent and stand up for myself. She never learned to drive so she was very dependent on her husband. They were very different women but taught me so much!

I recently started a new chapter in my career. I am currently the Finance Director for Silver Creek Leather located in Jeffersonville. After experiencing breast cancer last year, I made the decision to put my mental health first and find a position that gave me balance in my life.

What motivated you to pursue a career in finance? Why did you decide to join FEI?

Upon graduating from high school, I decided to pursue a career in Fashion Merchandising. I worked for several years in retail but then decided to try something else. While pursuing a major in business at Indiana University Southeast, the accounting classes came easy for me due to my understanding of cash flow and inventory grained while working in retail. I had an accounting instructor take notice and encouraged me to major in accounting.

A female friend invited me to an FEI event and encouraged me to join. I was at a point in my career when I was making a change and needed to broaden my network. I realized it would be a great way to make those connections in the finance arena along with adding to my skills as I pursued a CFO role.

You recently became a part of chapter leadership to help make FEI a more diverse organization. Tell us about the importance of this effort and what you want to accomplish.

I worked for a company where I was the first female promoted to a director position. I’ve been the minority in the board room several times in my career. It is very intimidating and overwhelming to be part of a team when you don’t look or think like everyone else in the room. My goal is for FEI to be a support system for everyone. A place to make those connections and build relationships with those that don’t always look and think the same.

Would you describe your greatest accomplishment and what it means to you?

There are several things that I am proud of but what I truly value is being able to lift up those around me -- helping others believe in themselves.

Everybody faces adversity sometime in their lives. How do you handle it?

I was diagnosed a year ago with breast cancer. I quickly realized how important it is to be surrounded by those that can lift you up. I was fortunate enough to have a wonderful group of friends and family who checked in on me. Unfortunately, my work family wasn’t as supportive as I had hoped and expected, given our company’s core values. Ultimately, I was forced to make a decision that put me first. I chose to focus on my mental health and what my body needed to heal -- not my job.

What’s your favorite leisure activity or hobby?

I enjoy traveling, especially with my daughter. I love sharing new experiences with family and friends. I’ve always enjoyed reading and learning new things.

What bit of personal or professional wisdom can you share with younger FEI colleagues? Do you have a favorite saying or quote?

Believe in yourself! I was told no several times in my career, but I didn’t listen. Instead, I found a way to make it happen.

To learn more about FEI's diversity goals and initiatives, contact Katrina at greenkatrina101@gmail.com . Or contact FEI at FEILouisville@gmail.com or 502.410.2113.

IUS aims to partner with business to fuel the region's growth

Fri, 29 Sep 2023 19:58:17 GMT

IUS chancellor reaches out to FEI and the finance community

(Dr. Ford's remarks were lightly edited for space).

As a native Louisvillian, who is returning to the region after 20 years away, I have to say, I am impressed with everything going on in the Louisville Metropolitan Area. Communities are thriving, developments are booming. Employment is at an all-time high. From the continuing growth of the River Ridge Commerce Center in Clark County to the development of Blue Oval SK Battery Park in Hardin County, and the multitude of small and large businesses energizing our communities with new ideas, our region is spreading wide its proverbial arms to entrepreneurs, developers, and businesses with a giant flashing open sign. The development boom would not be possible without the fine work of financial, accounting, and human resources professionals like those members of FEI.

I am here today because Indiana University Southeast is a partner in the region’s growth, but we want to elevate our partnerships to a new level as we build bridges. A level that I hope will involve many of you. I am proud to say that eighty-six percent of our students come from our 19-county service region, 11 counties in Indiana, and 8 counties here in Kentucky. After graduation, 80 percent of our graduates remain in the area long-term to live, work, and raise their families.

Our most recent graduate outcomes top all of Indiana University with 98 percent, yes, 98 percent, of our 2022 graduates either employed or attending graduate school one year post graduation. Of those graduates working, 97 percent are working full-time, in careers related to their area of study AND they are working locally, in the communities we serve. This is quite a remarkable record that provides great momentum.

At IU Southeast we provide a world-class, internationally renowned Indiana University degree in a personalized high-touch environment. Think big university resources with small college accessibility.

Our strategy is built around three pillars of success:

1. Student success and opportunity

2. Transformative research and creativity, and

3. Service to Indiana and beyond

Let me talk briefly about each of these areas and why it matters to you.

Student success and opportunity

We attract, retain, and graduate students who receive an extraordinary and affordable education. We offer excellent opportunities to learn with more than 150 undergraduate and 50 graduate degrees, concentrations, and certificates in areas of business, education, nursing, social and natural sciences, and the arts. All of our programs provide the knowledge, skills, and values you are looking for to advance your organizations.

We know that our graduates are successful. I have personally heard testimony from alumni, business owners, and people throughout the community that IU Southeast graduates are the best teachers, best nurses, best accountants, best bankers, best leaders, …well you get the picture. IU Southeast Graduates are Ready!

Not only are our students well prepared, but they enter the workforce with less student loan debt. Our tuition is the lowest of any four-year college or university in the region and with $15.7 million in aid awarded annually, our graduates have lower student loan debt. In fact 51 percent of our graduates have no financial loan debt at all! Of those who do have student loan obligations, our student debt is 30 percent less than the average student loan debt amount of college graduates in Indiana or Kentucky.

Recently, IU Southeast was ranked by Third Way , a Washington, D.C.-based think tank, in the top 20 percent of colleges and universities nationwide for helping students from low- and moderate-income households to attain a college degree and provide a strong return on their educational investment. Not only are we ranked 125th of 1,410 colleges and universities, but we are also the only tier-one university in this region to provide the best economic and generational mobility for graduates. The support we show our students positions them for a better financial future for themselves and their families for generations to come.

Our goal at Indiana University Southeast is to enroll a broader representation of our region and attract even more first-generation students whose education will not only transform their lives but the lives of their families. I speak from experience as I was the first in my family to attend and graduate from college. My college education transformed my life and opened doors I never knew existed. This is what I hope for so many young people in our community, an opportunity to grow, to advance, to achieve their dream.

We are accomplishing this goal by working closely with education partners like Dr. Travis Haire , chancellor of Ivy Tech Community College Sellersburg, and Dr. Ty Handy , chancellor of Jefferson Community and Technical College, as well as the superintendents of schools throughout the 19-county region. We have set up direct admissions programs with these two community colleges, offering new freshmen enrolled in an associate degree program at either Ivy Tech Community College or Jefferson Community and Technical College a guaranteed transfer pathway to IU Southeast. Together, we are lifting up a generation of learners and leaders for a better future across our region.

Transformative Research

The second pillar of the IU 2030 strategic plan, Transformative research and creativity, works hand in glove with student success and opportunity. Our curriculum and methods of teaching revolve around hands-on learning, research, and creative pursuit. We educate tomorrow’s leaders prepared to lead as innovators by offering a unique combination of research, discovery, entrepreneurship, and knowledge generation that builds upon the expertise of our faculty scholars. We call this the IU Southeast Experience.

Our approach is market-driven. Our faculty and staff have spent decades building relationships with industry professionals in Louisville and Southern Indiana. Local leaders, like you, tell us what skills you are looking for when recruiting new employees. You identify the skills, and we fill in the educational needs. Then, when our students graduate, they have the knowledge needed to secure their dream jobs while helping the economy of our region grow and thrive. It’s a win-win-win for students, for your organizations, and for the region.

For example, all students participate in excursions beginning in their first year. These trips, whether local or abroad, provide opportunities to apply what is learned in the classroom into practice in the real world, to help students focus on their career objectives and get hands-on learning opportunities. One of our transformative excursions last year was to MCM CPAs & Advisors. After that visit, students expressed a clearer vision of their careers following graduation. It was life-changing for some of them. Let us know how we can partner with you to plan an excursion with your organization.

Excursions combined with learning communities, laboratory and studio learning, undergraduate research and creative projects, mentoring, internships, and study abroad opportunities prepare IU Southeast graduates empowered to change the world. That empowerment leads us to our last strategic pillar, service to Indiana and beyond.

It is our goal to serve as an integral community partner, responding to the needs of our region. We are committed to being a steward of place; to embrace our responsibility to serve as a cultural and economic hub of our region. We want IU Southeast to serve as the center for regional advancement to address community, cultural, workforce, economic, education, and health needs. In other words, build more bridges for talented leaders to learn more, and do more within our communities and beyond. One way that we do that is to connect our campus resources with business and industry.

The new partnership between IU Southeast and the NovaParke Innovation and Technology Campus is a marriage of higher education, business incubation, entrepreneurship, and government that will serve as a role model for business development in Southern Indiana. We hope this new partnership will produce the next Shady Rays, a Simpsonville sunglass company developed and led by alumnus Chris Ratterman , MBA class of 2013; the next Rivera Group, a nationally recognized IT defense contractor located in Sellersburg, started by Joey Rivera , Bachelor of General Studies with business concentration, class of 1993; the next Solid Light, Louisville’s visionary design company and industry leader founded and led by graduate Cynthia Torp , Bachelor of Arts/Fine Arts, class of 1984; or the next Summit CPA, led by Bill Eversole , Bachelor of Science in Business/Accounting, class of 1999. Successful companies, such as these were made possible by imagination, tenacity, resource investment, and an IU Southeast education.

Service to Community

Additionally, we have regional experts and researchers at your disposal.

• Dr. Uric Dufrene , whom you all know, is a professor of finance and Sander’s Chair of Business. Uric tracks economic development, career, and employment trends to inform business and industry about the strengths and weaknesses of our local economy.

• Dr. Melissa Fry is an associate professor of sociology, Director of the Applied Research and Education Center, and Director of Community Engagement and Service Learning. Her work focuses on community development through applied research, serving area nonprofit organizations, government entities, and coalitions. It's possible that some of you serve on a board or foundation that has worked with Melissa’s team as they’ve provided issue-based research on the region including needs assessments, strategic planning, and program evaluation.

• And hundreds of faculty members who are subject-matter experts, available for speaking engagements, consultations, customized training programs, and more.

We also want to involve you on our campus and with our students. One way to do that is Employer Connect. We make it easy for you to connect with our campus and for our students to connect with your organization.

We can help provide you with highly skilled and educated talent to fill your openings, and we can design customized training for your existing workforce to upskill their talents, and develop leaders, making your company more effective and competitive in the ever-changing business climate.

Do you have a tuition reimbursement program that’s part of your compensation package? Your dollars will go further at IU Southeast than at any educational institution in the area. You attract the workers you need; we help provide the education to advance their careers and their dreams.

How about passing along your knowledge and expertise? We have a few ways to get involved:

Be a guest speaker in our classrooms,
Host an excursion to your business to learn first-hand what you do, or
Mentor a student interested in your area of business,

If you have a professional need that no one is fulfilling, let’s discuss it. It is likely we will find a solution that is mutually beneficial.

And, of course, keep hiring our students as interns and our amazing graduates.

Get involved. It is easy.

Simply pick up the phone or drop me an email at debford@iu.edu. I want to meet with you to discuss how IU Southeast can help you, your organization, our community, and our region. I am here to build bridges for our mutual success. Let’s partner for a more prosperous Kentuckiana region.

Thank you and all the best for continued success!

Dr. Deborah Ford spoke to FEI Louisville on Sept. 19. She became chancellor of Indiana University Southeast in July 2023.

President's Corner - September 2023

Wed, 20 Sep 2023 19:18:04 GMT

My inaugural message to the finance community

You are a member of a strong professional group -- FEI Louisville.

FEI has over 10,000 members and was established in 1931. Our Louisville chapter was organized over 80 years ago.

In my term as President, I seek to engage our members and sponsors to develop and utilize the full potential of the organization. Members get the most value from their membership by accessing our vast resources:

Strong networking connections with powerful and influential leaders Powerful research tools
Free training (online and in person) on current issues and topics in our profession. Most qualify for CPE credit.

The best way to begin using FEI resources is to connect with current members and board members. Take advantage of monthly Lunch & Learn or breakfast seminars as an opportunity to meet others and learn how FEI can best assist you. Our quarterly social events are another great way to meet others and network. Every member has different needs. We believe our resources can help most financial professionals in whatever area they seek.

Our past Lunch & Learn events have included these powerful leaders and speakers:

Ford Blue Oval/SK CFO Jiem Cranney
Louisville Mayor Craig Greenberg
U.S. Senator Mitch McConnell

Upcoming speakers include:

IU Southeast Chancellor Dr. Debbie Ford (Sept. 19)
JP Morgan Chase Economist Ginger Chambless
Kathy Paese , First Vice President and Chief Operating Officer, Federal Reserve Bank of St. Louis

We seek to assist you with the tools and research necessary to be successful. It’s our mission – to advance the success of financial leaders, their organizations, and the profession.

Contact me directly for more information about FEI or our resources or ways we can help further your professional or personal goals. We are happy to help.

FEI is where engaged financial leaders thrive!

Jim

Jim Schildt, CPA

(M) 502-744-4604

jims@omgservices.com

Teamwork and process improvement: both vitally important

Wed, 20 Sep 2023 19:08:28 GMT

Change is going to happen. Manage it.

The Only Constant is Change!

Consider some of the momentous changes that have impacted our lives.

It was only 150 years ago when we used horses for transportation and candles for light. Today we have cars, planes, and space shuttles. Today we have LED lights that are unbelievably bright and use very little energy.
It was only 30 years ago when we had landline phones at home and pay phones in public. Today we have cell phones capable of anywhere communication and unlimited information with as much computer ability as a laptop.

Change is inevitable, and so is change in the work environment. People change, computers change, processes change... the world changes. And so, we must change and adapt to survive and grow.

What is Process Improvement?

Process improvement involves the business practice of identifying, analyzing, and improving existing business processes to optimize performance, meet best practice standards or simply improve quality and the user experience for customers and end-users .

What is Teamwork?

Teamwork is all about different parts working together to benefit the whole . Everyone is different and has their own talents, ideas, strengths, and weaknesses. When the parts are used properly, a team can be more capable, more efficient, and overall, more successful than someone working alone.

Being a master of one or a jack-of-all- trades in today’s world does not bring about success if you are unable to work as part of a team. The importance of teamwork cannot be stressed enough!

For effective change it is important to understand and use the 3C’s:

Communication

The act of linking people together. In management it is a vital role. Unfortunately, “Lack of Communication” is one of the top problems in many organizations.

Coordination

The act of people working together in an organized way. The absence of coordination could lead to an incapability control, confusion between stakeholders, inefficiency in resources usage, and replication of work. Among the main coordination difficulties in any organization is the one between the main office and field units and cultural differences between stakeholders.

Cooperation

The process of shared achievement: Two or more working together to establish shared objectives. Different from communication (to share information), it is about applying information to generate something none of the cooperators can achieve alone. Moreover, the opposite of cooperative is competitive .

A typical workflow for process improvement includes:

Providing information about the upcoming changes (The “What”)
Explain the benefits of the change (The “Why”)
Involvement with everyone effected (The “Who”)
Schedule of events (The “When and Where”)
Feedback

Of all the things discussed, COOPERATION/TEAMWORK is the most important. It is important to understand that not everything can be simulated, and problems/disruptions may occur during implementation. COOPERATION/TEAMWORK is the key to make the plan work effectively and to overcome problems that may arise.We can learn a great deal by listening to others about Cooperation/Teamwork:

“If everyone is moving forward together, then success takes care of itself.” – Henry Ford
“The ratio of We’s to I’s is the best indicator of the development of a team.” – Lewis B. Ergen
“Coming together is a beginning, staying together is progress, and working together is a success.” – Henry Ford
“Great things in business are never done by one person; they’re done by a team of people.” – Steve Jobs
“The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don’t play together, the club won’t be worth a dime.” – Babe Ruth

Email author Jim Schildt at jims@omgservices.com .

FEIconnect - a benefit you may be overlooking

Wed, 20 Sep 2023 18:42:32 GMT

FEI members converse prior to Senator McConnell's fireside chat.

FEI members everywhere can help solve issues

One of the best benefits of membership in Financial Executives International is NETWORKING.

That starts at FEI Louisville chapter meetings, which offer ample opportunities to connect face-to- face with members and sponsors. These conversations can open the door for advice, recommendations, referrals (or cautions), and other ways to help you in your job.

Another way to connect with members here and around the world is through FEIconnect . It’s an on- line community of engaged FEI members – CFOs, controllers, academics (like me), and others – who ask questions and get feedback from those who face the same issues we are trying to solve. We can learn from the successes, mistakes and experiences of other financial executives.

How can you connect with this community? It’s accessible through the FEI member website and through an FEIconnect app available through the usual sources (for me, that’s the Apple Apps store) for both cell phones and tablets.

The discussions cover just about every aspect of a financial executive’s professional experience. Here are some recent queries:

“I am curious to hear from anyone who might be using MS Dynamics 365 Finance and Operations ERP for their financial system. I work for a small company, about 60 employees. We have an in-house IT person but are considering an outsourced firm to supplement that person. Any recommendations?
“What is your practice when a vendor asks for your company’s financial statements for purposes of extending credit?
“I’m interested in the group’s thoughts on two points related to CFO qualifications. Is industry-specific experience/knowledge critical? Is experience as CFO for a large unit of a bigger company (and no other CFO experience) acceptable for you to consider a candidate?
“We are switching ERP systems. The cost of the new systems is much higher than we were expecting, any suggestions based on your experience? Interestingly, this item includes no information about the size of the company, the systems involved, etc., so it would be difficult for someone to provide meaningful information.”

FEIconnect helps facilitate answers by:

Connecting communities within FEI (such as the Louisville chapter)
Allowing as much discussion as is needed
Providing contact information
Allowing members to send and receive messages from other members
Providing advice through relevant blogs

FEIconnect also offers a library, which members use to post documents (like a sample RFP.)

If you're concerned about confidentiality, there really is none -- other than you must be an FEI member to access these discussions. Most of the above examples of questions asked would not have confidentiality concerns, in my opinion.

My advice? Give it a try. You may get some valuable input. And if not ... you’ve spent a few minutes framing your question and setting the stage for future interactions with other FEI members.

William Stout, PhD, CPA

Director, FEI Louisville

Email: william.stout@louisville.edu

FEI Louisville member/sponsor directory is live!

Thu, 14 Sep 2023 16:28:24 GMT

Password protected site open to members & sponsors

You may have noticed the word "Directory" in the navigation on FEI Louisville's website, www.feilouisville.org.

That's because we have added a password-protected online FEI Louisville directory to replace the printed booklet distributed in prior years. It's an easy way to find fellow members, FEI leadership and sponsor representatives.

If you are a member or sponsor and have not received your email invitation, let us know at feilouisville@gmail.com

You can scroll through the list or search by keyword, last name, company name, etc. If you want a copy for your desk, you have the option of downloading and printing a PDF. The list will be updated on demand and verified quarterly.

While the FEI Louisville site is open and available to all, the directory is restricted to members and sponsors who have registered and established a password to access the information.

Sales Tax Holidays are No Vacation for Tax Teams

Mon, 28 Aug 2023 19:06:50 GMT

Best Practices

This summer alone, roughly 15 states are enacting a tax holiday ranging from clothing to computers to school supplies. Though the goal of a tax holiday is to provide relief to consumers, it can often cause more complications for businesses.

As we settle into the summer, consumers will be experiencing more in terms of holidays than just the ones spent at the beach or lake. This summer alone, roughly 15 states are enacting a tax holiday ranging from clothing to computers to school supplies. Though the goal of a tax holiday is to provide relief to consumers, it can often cause more complications for businesses.

As tax holidays differ in length, location and items, it is hard for organizations to manage temporary and permanent exemptions. To stay ahead of the growing number of tax holidays and exemptions, tax teams need to commit to a seamless tax process to manage the growing complexities.

Ever-Changing Tax Holidays

Just this year, Florida implemented a $1.2 billion tax bill aimed at sales tax holidays and exemptions. The bill is a mixture of short-term and permanent sales taxes with a range of services including school supplies and energy-efficient appliances. Florida is not alone this summer, as multiple states are enacting tax holidays for various services and products.

Though the idea of a sales tax break sounds helpful in theory, it’s actually causing more issues in the long run for consumers, businesses and even the jurisdictions enacting the tax holidays. According to a 2022 report by Tax Foundation , tax holidays do not simulate the economy but just shift the timing of sales. The Tax Foundation also found that most consumers do not fully benefit from tax holidays as the holiday applies to certain products.

While Florida and other states are ramping up their sales tax holidays and exemptions, Virginia announced that it will be ending its annual sales tax holiday weekends. This is not unusual, as several states have previously canceled and reinstated tax holidays year after year. However, these ever-changing trends contribute to a range of complications for organizations, especially those who operate across state lines and need to manage tax compliance.

Combating the Complexity of Tax Holidays

Tax leaders, on a day-to-day basis, are already combating a complicated tax landscape with growing ecommerce trends and changing supply chain demands. The addition of a short-term sales tax holiday creates additional difficulties that can put organizations, retailers and tax leaders at a tax compliance risk. Tax holidays are only short-term solutions, yet they still have a range of administrative tasks that tax leaders need to follow. They often require the same administrative tasks as permanent exemptions to avoid tax compliance issues.

Organizations must ensure they are still managing their sales tax exemption certificates that are required for accurate reporting and tax compliance. This is why it is crucial for tax organizations to have a seamless, centralized tax exemption process, especially if operating in several states.

An additional factor that tax organizations will need to monitor as tax holidays and exemptions continue to arise will be the narrowing of the tax base and how it will impact tax holidays, states and organizations moving forward. This places a great pressure on sales and uses tax as a driving source of revenue for state and local tax jurisdictions.

While tax holidays are here to stay, tax departments can navigate temporary and long-term exemptions well if they have the proper personnel and technology.

Mike Bernard is VP of Tax Content and Chief Tax Officer for Vertex, Inc. (This story originally appeared in FEI Daily.)

A board lens on final SEC cybersecurity rules

Mon, 28 Aug 2023 19:06:16 GMT

The SEC's latest cybersecurity rules mandate companies to disclose significant cybersecurity incidents on Form 8-K and provide comprehensive details about cybersecurity risk management and governance in Form 10-K, necessitating boards to reevaluate oversight and collaborate for effective compliance.

The SEC’s long-awaited final rules on cybersecurity—as detailed in numerous summaries—greatly expand companies’ cybersecurity disclosure obligations. The rules require public companies to disclose material “cybersecurity incidents” on Form 8-K and disclose material information regarding their cybersecurity risk management, strategy, and governance in their annual reports on Form 10-K. Notably, the rules do not require companies to disclose board-level cybersecurity expertise, do not require aggregating unrelated non-material cyber incidents, and more generally, narrowed in certain respects the information to be disclosed. Nonetheless, the expanded disclosure requirements will be a significant undertaking for management and will require more robust oversight by the board.

To that end, we highlight the following areas for particular attention by the board and board committees that have oversight responsibility for aspects of cybersecurity risk and disclosures.

Cybersecurity governance disclosures

The final rules require that, in its Form 10-K, a company “[d]escribe the board of directors’ oversight of risks from cybersecurity threats. If applicable, identify any board committee or subcommittee responsible for the oversight of risks from cybersecurity threats and describe the processes by which the board or such committee is informed about such risks.” In preparation for this disclosure, boards should reassess how the board—through its committee structure—assigns and coordinates oversight responsibility for the company’s cybersecurity risk.

Boards are taking various approaches to oversight of cybersecurity risk.

For many, oversight is housed with the audit committee. Even if cybersecurity oversight is housed with the full board or a different committee, such as a technology committee, the audit committee will still need to oversee the effectiveness of internal and disclosure controls and procedures relating to cybersecurity. When multiple committees are involved, information sharing, communication, and coordination among committees and with the full board is essential. The board should help ensure the necessary processes are in place to accomplish this.

The governance disclosure must also describe management’s role in assessing and managing the company’s material risks from cybersecurity threats. The preparation of these governance disclosures will take time and care, and likely require a reassessment of the boards and management’s current cybersecurity governance processes, as well as existing governance disclosures. Boards should be working with management teams now as management prepares for the upcoming Form 10-K disclosures.

Cybersecurity risk management and strategy disclosures

The final rules require that a company describe in Form 10-K its processes, if any, for assessing, identifying, and managing material risks from cybersecurity threats in sufficient detail for a reasonable investor to understand those processes. The rules also require that the company describe whether any risks from cybersecurity threats, including because of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect the company, including its business strategy, results of operations, or financial condition.

The preparation of these risk management and strategy disclosures will require a reassessment, and perhaps modification, of the company’s existing risk management processes and related disclosures. Again, boards should be working with management now as management prepares for the upcoming Form 10-K disclosures.

Management’s cyber incident response plan

Public companies will be required to report information regarding a material “cybersecurity incident” on Form 8-K within four business days after the company determines that the incident was material—not from the time of discovery of the incident. And companies must make materiality determinations “without unreasonable delay” after discovery of the incident. Information to be disclosed includes a description of the material aspects of the nature, scope, and timing of the incident, as well as the material impact (or reasonably likely material impact) on the company, including its financial condition and results of operations.

If the US Attorney General determines that immediate disclosure poses a substantial risk to national security or public safety and notifies the SEC in writing, disclosure may be delayed for a maximum of 60 days (about 2 months). Updated incident disclosures on an amended Form 8-K are required for any new information about a previously disclosed material incident that was unavailable or undetermined at the time of the initial Form 8-K filing.

Management’s cyber incident response policies and procedures, including disclosure controls and procedures, must be reviewed and updated to provide for the timely consideration of materiality—while management is engaged in remediation and investigation efforts. This would include a clear delineation of responsibilities of management’s cybersecurity and risk management teams, management’s disclosure committee, and the legal department, as well as escalation procedures for determining materiality and the preparation and review of disclosures.

Escalation protocols should also include when the board is notified and how internal and external communications are handled. Management and the board should conduct tabletop exercises to test management’s response plans and procedures, including protocols for documenting incidents, evaluating for materiality, and drafting Form 8-K disclosures—and refine response plans and procedures to reflect what is learned from those exercises. Incident response plans should also be updated to take into account the changing cyber risk landscape.

Consideration of “materiality”

The final rules require companies to make a materiality determination “without unreasonable delay after discovery of the incident.” While the definition of materiality has not changed, applying that standard in the context of a cybersecurity incident is not straightforward. In its final release, the SEC said that companies should consider qualitative factors in assessing the material impact of an incident, and indicated that harm to a company’s reputation, customer or vendor relationships, or competitiveness, and the possibility of litigation or regulatory investigations or actions, may be examples of material impacts.

Audit committees and boards should confirm that management has in place policies and procedures for making the materiality determination, including the identification of significant cyber incidents that should be escalated and discussed with management’s disclosure committee and legal team for final materiality determination, and documenting its materiality determinations.

The role and composition of management’s disclosure committee

Given the expanded cybersecurity disclosure obligations, companies may need to reconsider who serves on management’s disclosure committee and the role and responsibilities of the committee in developing and maintaining cybersecurity-related disclosure controls and internal controls and procedures. What resources and processes does the committee require to make a timely determination of materiality in the event of a cyber incident?

Expansion of management’s sub certification process

The management’s disclosure committee supports quarterly CEO and CFO certifications of the effectiveness and design of the company’s internal controls and disclosure controls and procedures required by Section 302 of the Sarbanes-Oxley Act. The disclosure committee typically maintains a sub certification process involving cascading sub certifications from employees regarding the company’s internal controls to support the CEO and CFO certifications. Given the expanded scope and detail of the company’s required cybersecurity disclosures, the sub certification process should be expanded, as necessary, to obtain new cybersecurity-related sub certifications.

While many companies began preparations for the SEC’s cybersecurity rules some time ago, the July release of the final rules provides a clearer line of sight for management’s compliance efforts, and for the key areas that will likely require heightened board focus.

This article appeared in FEI Daily. John H. Rodi and Patrick A. Lee are Leader and Senior Advisor, respectively, of the KPMG Board Leadership Center.

How to gain competitive edge through targeted digital finance

Tue, 18 Jul 2023 14:38:26 GMT

Tools needed to drive the transformation

The time to embrace change and secure a competitive edge is now. This guide will give you all the tools you need to drive end-to-end transformation and achieve a competitive advantage in your industry.

The financial landscape is currently undergoing a seismic shift driven by rapid technological advancements. The digital finance revolution is sweeping across industries, ushering in a new era of possibilities and redefining how we approach financial processes. From small startups to multinational corporations, organizations recognize the need to adapt and harness the power of this revolution to remain competitive in today’s fast-paced world. With each passing day, digital transformation becomes more than just a buzzword—it becomes a fundamental necessity.

Integrating automation, data analytics, and immersive digital experiences is reshaping how financial executives strategize , make decisions, and engage with customers. The traditional boundaries of finance are being shattered as emerging technologies like cloud computing and robotic process automation (RPA) take efficiency and innovation to a whole new level.

The impact of this revolution extends far beyond mere optimization; it is a catalyst for enhanced operational efficiency, elevated customer satisfaction, and, ultimately, competitive advantage.

In this extraordinary era of possibilities, staying ahead of emerging trends, embracing evolving customer expectations, and continuously evolving the finance function is paramount. It is no longer enough simply to adapt to the changing landscape; one must seize the opportunity to reshape it.

So, the time to embrace change and secure a competitive edge is now.

This guide will give you all the tools you need to drive end-to-end transformation and achieve a competitive advantage in your industry.

What Is Digital Finance Revolution

The digital finance revolution represents a profound transformation in the financial industry fueled by advanced technology.

It encompasses the adoption and integration of digital tools, systems, and strategies to revolutionize traditional financial processes. This revolution aims to optimize operations, enhance decision-making, and improve customer experiences by leveraging emerging technologies like automation, data analytics, and cloud computing.

At its core, the digital finance revolution empowers financial executives to adapt and thrive in an increasingly digital landscape. It enables organizations to streamline and automate manual tasks, reducing errors and increasing operational efficiency.

Organizations can also do so in a way that helps alleviate financial stress for their customers. The medical industry is an example of where customers and patients often rack up major expenses. This is why medical clinics can offer pay-over-time financial plans to increase payment flexibility for customers and keep track of the transactions until the customer pays in full.

In essence, the digital finance revolution marks a shift towards a technology-driven, agile, and customer-centric approach within the financial industry. It empowers organizations to embrace change, optimize processes, and gain a competitive edge in a rapidly evolving digital era.

Benefits of Embracing the Digital Finance Revolution

Improved Operational Efficiency. Embracing digital finance enables you to automate manual processes, streamline workflows, and reduce time-consuming tasks, increasing operational efficiency and cost savings.
Enhanced Customer Satisfaction. Leveraging digital technologies enables you to provide seamless and personalized customer experiences, including self-service options and real-time access to financial information, leading to higher customer satisfaction and loyalty.
Data-Driven Decision Making. According to McKinsey Global Institute, data-driven organizations are 23 times more likely to acquire customers, 6 times as likely to retain customers, and 19 times more likely to be profitable!
Increased Security and Compliance. Adopting advanced technologies like blockchain and cloud computing helps you enhance data security, protect against fraud, and ensure regulatory compliance, building trust with customers and stakeholders.
Competitive Edge in the Market. Embracing the digital finance revolution positions you as an innovative and forward-thinking organization, giving you a competitive advantage over traditional competitors and enabling you to attract new customers and partners

Key Steps for End-to-End Transformation

Embarking on the journey of end-to-end transformation requires a clear roadmap and strategic execution. Here are the essential steps that financial executives must take to orchestrate a successful end-to-end transformation:

1. Process Automation

Process automation plays a pivotal role in driving end-to-end transformation for financial executives. Automation technologies can help you streamline and digitize manual tasks , reduce errors, improve efficiency, and free up valuable resources.

From automating routine data entry processes to implementing robotic process automation (RPA) for complex workflows, you can achieve significant time and cost savings, enabling your entire team to focus on higher-value activities and strategic initiatives.

To embark on the path of process automation, you should begin by thoroughly assessing your existing processes to identify areas ripe for automation. Prioritize processes with high volumes, repetitive tasks, or prone to human error to effectively target automation efforts.

Evaluate the available automation tools and technologies in the market and select the most suitable ones that align with your specific needs and goals. Remember to involve key stakeholders throughout the implementation process to ensure seamless integration and effective change management.

2. Data-Driven Decision-Making

To make effective data-driven decisions, you need to establish a solid foundation for data management. Ensure your data is accurate, consistent, and easily accessible by implementing robust data governance practices. Invest in advanced analytics tools and technologies that allow for efficient data analysis and visualization, empowering you to extract actionable insights from complex datasets.

In addition, identify key performance indicators (KPIs) and metrics that align with your strategic objectives. Regularly measure and track these metrics to evaluate the effectiveness of your decisions and pinpoint areas for improvement.

Also, strive to foster a data-driven culture within your organization by promoting data literacy and encouraging employees to rely on objective insights rather than gut feelings alone.

3. Digital Customer Experiences

When it comes to digital customer experiences, putting your customers at the center of your strategy is essential. You can leverage the power of digital technologies to create seamless and personalized experiences that leave a lasting impression on your customers.

Start by understanding your customers’ needs, preferences, and pain points. Collect data from various touchpoints to gain valuable insights into their behaviors and expectations. Use this information to tailor your digital experiences, ensuring each interaction feels personalized and relevant to their unique journey.

Invest in user-friendly interfaces and intuitive design to create a frictionless experience across different digital channels. Streamline processes and eliminate any barriers that could hinder your customers’ engagement. Provide self-service options and empower your customers to access information and complete transactions easily, at their convenience.

Remember, the key to successful digital customer experiences lies in continuous improvement. Regularly monitor customer feedback and measure key metrics to identify areas for enhancement. Stay agile and adapt to evolving customer expectations to ensure your digital experiences remain relevant and engaging.

Leveraging Emerging Technologies for Digital Finance Transformation

Technology is taking center place in almost every business today, so you can’t lag behind if you want to drive end-to-end transformation and gain a competitive advantage. Here are some of the key emerging technologies that are revolutionizing the finance industry:

Cloud Computing

Imagine having the ability to access critical financial data and applications anytime, anywhere, without the limitations of physical infrastructure. Cloud computing offers just that.

With the power of this technology , you can streamline your operations, improve scalability, and enhance data security. Whether storing vast amounts of financial data, deploying applications rapidly, or collaborating seamlessly across teams, the cloud empowers you to optimize your finance function efficiently.

Blockchain

In today’s digital landscape, where trust and security are critical, blockchain technology offers decentralized and transparent finance ledgers that ensure higher integrity and immutability of financial transactions.

For instance, it can help reduce the risk of data manipulation. According to a survey conducted by Duke University, 78% of high-level executives showed a preference for tampering with quarterly reporting to appease stakeholders’ sentiments.

Not only does this revolutionary technology reduce the risk of fraud, but it also enhances the efficiency of processes such as payments, settlements, and auditing. Therefore, integrating blockchain into your finance operations can significantly enhance trust among stakeholders, reduce costs, and expedite transaction times.

Robotic Process Automation (RPA)

Repetitive, mundane tasks can drain valuable time and resources from your finance team. This is where Robotic Process Automation (RPA) comes in. RPA software bots can mimic human actions and perform rule-based tasks with remarkable speed and accuracy.

Automating routine processes like data entry, reconciliation, and report generation can free up your talented finance professionals to focus on strategic initiatives. Plus, RPA also minimizes errors , improves compliance, and delivers cost savings.

NLP & Reporting Automation Bots

Imagine having a virtual assistant for your financial reporting needs - that’s exactly what NLP and reporting automation bots offer. NLP is an advanced technology that enables machines to understand and process human language.

When applied to finance, NLP can analyze unstructured financial data, such as emails, news articles, and social media, and extract valuable insights for decision-making. With reporting automation bots powered by NLP, financial executives can easily generate and distribute comprehensive reports in real-time without manual intervention.

These bots can comprehend complex queries, understand natural language instructions, and pull relevant data from various sources to compile insightful reports on financial performance, market trends, and risk assessments. They eliminate the tedious task of manually gathering data from disparate systems , reducing the chances of errors and ensuring consistency in reporting.

Document Automation Tools

In the financial industry, a vast amount of documents are generated, ranging from contracts and invoices to compliance reports and client communications. Document automation tools revolutionize this process by enabling financial executives to streamline document creation, standardize templates, and automate repetitive tasks associated with document management.

These tools use predefined rules and templates to automatically populate data into documents, ensuring consistency and reducing the risk of errors.

Document automation tools also facilitate collaboration among team members by providing a centralized repository for documents, making it easier to access and share information securely. Additionally, they often come equipped with version control features, allowing financial executives to track changes and maintain an accurate audit trail.

The digital finance revolution is not merely an option but a necessity for financial executives seeking to thrive in today’s dynamic landscape. Rapid technological advancements have presented extraordinary opportunities to drive end-to-end transformation and achieve a competitive advantage.

Leveraging emerging technologies such as cloud computing, blockchain, and robotic process automation further accelerates the transformation journey, unlocking new possibilities for efficiency, security, and innovation.

Staying ahead of emerging trends, adapting to changing customer expectations, and continuously evolving the finance function are crucial to embracing the digital finance revolution. This revolution not only optimizes financial processes but also empowers you to seize new opportunities, drive transformative growth, and gain a competitive edge in the market.

From FEI Daily | July 10, 2023

CFO to CEO: Tips for Finance Leaders Who Want A Shot At The Corner Office

Fri, 14 Jul 2023 19:29:08 GMT

In the early 2000s, the COO role was the most common steppingstone to becoming a CEO. Today, with rising interest rates, inflation, and tight margins at the forefront for most organizations, CFOs have embraced more strategic responsibilities and are well positioned for the corner office. In fact, eight percent of 681 CFOs at Fortune 500 and S&P 500 companies surveyed in the first half of 2022 were promoted to the role of CEO. That’s a modest increase from roughly 5 percent a decade ago, but the numbers have steadily increased, and the trend is clear.

When CFOs become CEOs, it’s usually an internal promotion. Board and peer relationships are paramount to secure the role, and often the most influential voice is the very person you are hoping to replace.

To become a top finance partner to the CEO and demonstrate that you are a worthy successor, here are five best practices and skills to develop.

Strengthen your business acumen

A successful business leader is someone who can provide strategic insights to guide decision making, increase productivity, and bolster the bottom line. This requires both financial savviness and business acumen.

To prove your leadership abilities, look beyond the numbers. As a CFO, it’s important to collaborate with cross-functional teams and build strategy into your financial responsibilities including budgeting and forecasting.

CFOs that can demonstrate they have a holistic view of the business including a deep knowledge of the business’ customers, competitors, and market will not only make better decisions, but will earn the respect of their leaders and peers.

“Demonstrate” is the key word is here as CFOs seeking to become a CEO need to develop their storytelling skills. CFOs are guiding the ship that is the future of the business and being able to effectively communicate major decisions regarding investments or cutbacks in a succinct, compelling way will go a long way in showcasing they are ready for the top job.

Knowing your numbers is important. Understanding your business landscape that influences the numbers and being able to tell the story of how that impacts the financial strategy you are charting is critical.

Expand your sphere of influence

A CEO has the responsibility to oversee a range of functional departments including sales, marketing, operations, human resources, and legal. To prepare for this role, it’s important to have increased visibility and influence in every area of the business.

CFOs are expected to analyze data and clearly explain complex concepts to employees, internal stakeholders, and investors. However, recent research shows non-finance executives rate CFOs’ communication skills about 20 percent lower than their own. To improve communication and collaboration, use your ability to analyze numbers and distill the facts of new initiatives and business challenges. By offering objective truths, you can then listen to stakeholders, ask questions, and help build consensus on a course of action that makes sense for the business’ long-term goals.

Effective communication abilities are also important for fostering strong relationships, especially with internal leadership and board members that are influential in promotion decisions. As a CFO, it’s your responsibility to be a trusted advisor who provides impartial advice and helps “tell the hard truths.”

Sharpen your tech-savviness
As organizations invest in new technology to increase productivity and efficiency, it’s important that CFOs work closely with CIOs to ensure investments make sense. CFOs don’t need to become technologists, but they are expected to offer discernment and avoid overspending on isolated point solutions.

An enterprise resource planning (ERP) system can provide a solid technology foundation by centralizing data across departments and automating manual processes. An ERP can also benefit CFOs by providing a single source of truth with real-time insights across business operations.

This allows CFOs to gain control of the business, understand its performance to clearly communicate to stakeholders and board members, and ultimately make better decisions.

In addition, staying up to date on the advancements in technology such as AI, data privacy, and security and understanding how these technologies can be best leveraged for the success of the business will go a long way in demonstrating you’re ready for the corner office.

With a greater understanding of technology possibilities and trends, CFOs can help ensure technology investments are bolstering the business’ bottom line and enabling a culture of innovation.

Strengthen your ability to be proactive and flexible

A forward-thinking mindset is key for a successful CFO and future business leader. While growth is important, it’s also critical to have the foresight to anticipate and prepare for possible financial setbacks. Recent economic and industry challenges including inflation, rising interest rates, and supply chain disruptions have proven the need for flexibility to adapt to rapid changes.

For a CFO, regular cash flow analysis helps understand the amount of working capital available to manage business operations. When challenges arise, an understanding of cash flow can help quickly identify ways to reduce expenses and improve margins. Cash flow visibility can also help improve real-time financial forecasting and inform scenario planning.

As CFOs prepare to advance in their careers, it’s important to help ensure the business is strongly positioned for the future with proper plans in place to safeguard continued operations and ensure long-term viability.

Understand calculated risks to drive growth

As stewards of an organization’s financial health, CFOs are often very cautious. As a CEO, you will be expected to drive growth, which will often require taking moderate risks. To develop a CEO growth mindset, try being more solutions oriented.

Risk assessment will require internal visibility, deep knowledge of your customers and their pain points, and a mastery of your business’ competitive advantage and place in the market. This will help you understand potential challenges and develop plans to mitigate risks and capitalize on new opportunities.

For CFO’s that have successfully transitioned into CEO roles, they have proven that they can drive success across the entire organization by demonstrating initiative beyond their formal title. During challenging economic times, financial management is increasingly important and offers opportunities for CFOs to expand their influence among the c-suite to position themselves to be next in line.

Ranga Bodla is Vice President of field engagement and marketing at Oracle NetSuite. This article was published July 2023 on financialexecutives.org

Congratulations to FEI Louisville "Best in Finance" winners

Thu, 22 Jun 2023 20:19:09 GMT

FEI members Gil Wentzel and Dub Newell were among those honored at the Louisville Business First Best in Finance Awards, held recently at the Galt House.

Dub Newell, CFO, Louisville Tile Distributors, and Gil Wentzel, director of finance at Catholic Education Foundation, were among 24 professionals in recognized by the business newspaper.

Mark Hohman on strengthening relationships with customers

Sat, 29 Apr 2023 16:54:24 GMT

Goodwill Industries of Kentucky CFO Mark Hohmann contributed his thoughts to a national Business Journal's Leadership Trust series - this one on strategies to build strong relationships with customers. With his permission, we are highlighting what he had to say:

Talk with customers directly

"At a recent visit to one of our Goodwill retail locations, I made my usual rounds, talking with managers and employees in the back and then walking through the front of the store. As I exited from a back room, I was approached by a customer who shared her love for the store and its workers. To connect further, I asked her what the store could improve on, and I gained some good insights."

– Mark Hohmann , Goodwill Industries of Kentucky, Inc.

New FEI member Dub Newell

Thu, 02 Mar 2023 14:58:18 GMT

CFO of Louisville Tile Distributors, Inc.

A hardy FEI Louisville welcome to Walter "Dub" Newell, new FEI member and chief financial officer of Louisville Tile Distributors.

Dub's career includes roles at the University of Louisville as controller and treasurer and as President/CEO of FirstLight Home Care. He also had senior roles with Cotton + Allen (partner) and Ernst & Young (senior manager) earlier in his career.

He earned his MBA from the University of Louisville and attended UK as an undergraduate.

Secret Service Agent Nord publicizes child protection summit

Thu, 19 Jan 2023 19:58:29 GMT

Leading efforts to educate vulnerable youth

As an Ambassador for the National Center of Missing and Exploited Children (NCMEC), Secret Service Agent Rick Nord (January 2023 FEI Speaker) says he has the great fortune of educating youth in Kentucky and Southern Indiana about the dangers of social media, sexting, sextortion, exploitation and trafficking.

He was involved in putting together a major outreach -- Operation Angel Summit -- that took place in February at the Kentucky Fair & Exposition Center.

It's part of a push to protect vulnerable youth, namely seventh to tenth graders, from exploitation and to proactively prepare young adults with information about encounters and where to go if they are victimized.

The event featured Rachel Denhollander, who was the Initial whistleblower of the actions of Dr. Larry Nasser, Michigan State University, who was convicted of sex abuse of over 500 victims.

Also involved were YMCA Safe Place Services and the Project Safe Childhood program from the US Department of Justice, United States Attorney’s Office – Western District of Kentucky.

They provided strategies and resources available to all community youth - regardless of age, race, gender, socio-economic status, sexual orientation or abilities. The empowerment event was designed to help the youth feel confident enough to avoid confrontations and report unsafe behavior or victimization.

Additional background:

https://www.newschannel5.com/news/gabbi-doolins-mom-on-heartbreaking-murder-he-destroyed-our-family
https://www.wkyt.com/2020/11/16/seven-kentucky-men-charged-in-operation-gabbi-doolin/
Discovery Channel Documentary “Murder Under Friday Night Lights- When Danger is no Stranger” https://www.imdb.com/title/tt23038692/?ref_=ttep_ep4
https://www.secretservice.gov/operationangelsummit

Donations can be made through YMCA Safe Place by contacting

Dave Brennan ( dbrennan@ymcalouisville.org ) and advising him it is for Operation Angel. YMCA is a 501(c)(3).

Welcoming Corporate Finance Associates to FEI Louisville

feilouisville@gmail.com (Terry McWilliams) — Wed, 07 Dec 2022 22:24:20 GMT

Investment banking group is latest FEI supporter

Corporate Finance Associates of Kentucky, a leading Investment banker firm with offices in Louisville and Lexington, is supporting FEI Louisville as a new silver sponsor for 2023.

The Louisville office is headed by Dennis Wells (pictured above at left). Patrick Powell is based in Lexington and is managing director and principal of CFA.

Corporate Finance Associates Worldwide (CFAW) is an independent international investment banking firm serving middle-market businesses. For over 65 years CFAW has been advocating on behalf of business owners who are restructuring a company, either through divestiture, merger, acquisition, or recapitalization. Combining the knowledge and leverage of a larger bank with the customer-focused detail of a boutique firm, from inception to completion, the firm's senior principals provide hands-on expertise to clients buying, selling, or recapitalizing a business.

“With over six decades of M&A experience, our global reach with senior level local coverage and exceptional results make CFAW a clear choice when buying, selling or growing a busines s," Powell said .

Well s, a Managing Director with the Louisville team , focuses on helping middle market business owners in Kent ucky with exit planning and growth strategies. Dennis has over 30 years of experience in operational management and was employed by several of the largest global manufacturers of electrical and lighting products. He has a unique cross functional background with experience in finance, marketing, production, strategy development and acquisitions. He played a lead role in twelve acquisitions as a strategic buyer during his corporate career.

Prior to joining CFA, Dennis was the CEO of LSI Industries in Cincinn ati and was named CEO of the year in 2016. He served on the board and is certified by the National Assoc iate of Corporate Directors at the Fellow level.

Dennis also has experience with the start-up and operation of several small family businesses including agricultural equipment, motorsports, auto repair, and retail .

Powel l, fo under of the Lexington CFAW office, brings over thirty years of comprehensive bu siness experience to the practice of middle market mergers and acquisitions.

In addition to being a skilled M&A intermediary, Powell brings a personal understanding of the complexities and risks associated with family business. This unique awareness enables him to expertly navigate and coach business owners through the intricate transaction process of selling or growing a business.

Powell 's business experiences include nearly two decades of contributions to his family's real estate and industrial mineral s b usinesses in Kentucky and Tennessee, with management responsibilities ranging from strategic planni ng, finance, and business development.

Pat formerly managed state economic development contracts for the University of Kentucky and Murray State University as the Director of the Innovation & Commercialization Center (ICC) at each university. Most of the ICC clients were technology-related, early-stage businesses ranging from Software / IT to Life Science companies.

He holds a BBA degree in Business Computer Science from Abilene Christian University (Abilene, Texas)

CFAW has offices in the Unit ed States, Austria, Belgium, France, Germany, India, Ireland, Italy, Mexico, Netherlands, Spain, Switzerland, United Kingdom. For more information about CFAW, go to the silver sponsor page on the FEI Louisville website.

Nominations open for 2023 FEI Louisville leadership

feilouisville@gmail.com (Terry McWilliams) — Sun, 06 Nov 2022 12:43:52 GMT

The deadline for nominations is Jan. 31, 2023

Interested in helping Louisville's premier organization for financial executives move ahead in 2023? Join us in FEI leadership!

Nominate yourself or another trusted FEI member to lead our chapter forward. We will announce the names of nominees soon for the important roles of p resident and president-elect.

Click HERE to send your preferences with your contact details. There are many other FEI service opportunities available, such as on the program, membership and sponsorship committees, for example.

Talk with a member of the board for more information, or contact chapter administrator Terry McWilliams (502.410.2113, email feilouisville@gmail.com) for more details.

Intergenerational wealth transfer is topic of panel discussion

Fri, 14 Oct 2022 17:30:46 GMT

No-cost event scheduled for Derby Museum

FEI silver sponsor Encore Wealth Management Group is hosting an Oct. 25 panel discussion entitled, "Intergenerational Wealth Transfer

The Great Wealth Transfer from Baby Boomers to Gen X to Millennials."

The discussion will cover Estate Planning, Charitable Giving, Housing Transitioning for the Aging, and Tax considerations. Panelists include Dean Donohue, Jonathan Smith and Courtney Yartz from Encore Wealth; Rosalyn Carothers from Triplett & Carothers; Realtor Julia Parsons from Homepage Realty; and CPA Chris Bechtler.

Check in begins at 10 a.m. The panel discussion is followed by a Q&A, lunch and tour of Churchill Downs. Registration (required) ends 10/18. Click here to RSVP for additional information or call 502.412.4050.

Ford joint venture CFO outlines project progress

feilouisville@gmail.com (Terry McWilliams) — Tue, 27 Sep 2022 21:46:13 GMT

Jiem Cranney updates Louisville CFOs on Ford's battery manufacturing initiative

BlueOval/SK CFO Jiem Cranney spent an hour discussing the battery plants that will be constructed in Kentucky and Tennessee and talking about many of the nuances the new business will face. Cranney appeared before about 75 people at FEI's September meeting.

As David Mann wrote in his Business First coverage:

"In the joint venture agreement between Ford Motor Co. and SK Innovation, both parties agreed that some leadership positions would always be filled by just one company or the other.

"For instance, the chief technology position at the joint venture, called BlueOval SK LLC, will always be filled by SK Innovation, while the plant management will always be Ford Motor Co. It's in this way that each of the companies hope to harness their own expertise as they seek to build the U.S. market for electric vehicles.

"That little tidbit on corporate structure was one of several points noted by Jiem Cranney, CFO, BlueOval SK LLC, who spoke Tuesday in front of the Louisville chapter of Financial Executives International, which met for its regular meeting at Baird's Downtown Louisville headquarters on Jefferson Street."

To read David's coverage, those with subscriptions can go to:

https://www.bizjournals.com/louisville/news/2022/09/21/inside-fords-electric-vehicle-joint-venture.html

Finance executives Kozal and Wickenheiser join FEI Louisville board

feilouisville@gmail.com (Terry McWilliams) — Tue, 09 Aug 2022 20:53:39 GMT

CFOs bring a diversity of finance, insurance and banking solutions experience

Doug Wickenheiser and David Kozal are FEI Louisville's newest board members.

Kozal, who associated with the chapter in 2015, is the CFO of i2c, Inc., a banking services technology firm. David will be focusing on chapter programming, and plans to reach out to members and sponsors for interests and input.

Wickenheiser is Director of Finance for Insuramax, an independent insurance agency, and is based in Louisville. At FEI Louisville, Doug is currently an at-large director. He brings a health care perspective to his role with the group.

"I recently joined FEI while with Insuramax and am excited to leverage learning and networking opportunities with the organization ," he said.

A li felong Louisvillian with over 30 years of experience in leadership roles within finance and operations in health care logistics and insurance industrie s, Wickenheiser earned BS and MBA degrees from the University of Lo uisville, and holds an active CMA license. During his career, he has built finance teams and managed integrative matrix environments such as Omnicare, CVS, and McKesson.

Kozal's finance position is with i 2c, a global provider of configurable payment and banking solutions from a global SaaS platform. Founded in 2001, and headquartered in Silicon Valley, i2c's technology supports millions of users in more than 200 countries/territories and across all time zones. He has previously worked in CFO roles with Payment Alliance International, V-Soft Consulting and First Data Resources.

To contact Doug and David, go to the FEI Louisville leadership page at https://www.feilouisville.org/chapter-leaders.

SPAC Warrants, Founders’ Shares, PIPEs: What Practitioners Should Know

Sat, 02 Jul 2022 11:49:50 GMT

Accounting and valuation for the financial instruments that fuel the booming special purpose acquisition company market.

Photo © Hazal Ak/iStock/Getty Images Plus from FEI Daily

The special purpose acquisition company (SPAC) market experienced breakneck growth over the last 15 months. More than 300 SPAC IPOs were completed in the first quarter of 2021 representing $100 billion in capital raised (compared with $83 billion raised during 2020).

SPACs are investment products that provide a mechanism for private companies to access the public capital markets. In the simplest terms, SPACs are designed as a fundraising structure with two stages. In the first stage, the SPAC entity raises capital in an IPO with the stated purpose of selecting and merging with a private company. In the second stage, the SPAC announces the merger and raises the required funds (purchase consideration) using a combination of IPO proceeds and private investment in public company (“PIPE”) financing and consummates the merger in what is known as the de-SPAC transaction.

The Securities and Exchange Commission (SEC) recently issued commentary highlighting the regulator’s concerns about the reporting requirements and internal controls in the red-hot SPAC market. Areas of scrutiny include complex financial reporting and corporate governance issues inherent in the SPAC structure. The SEC has also warned market participants that SPAC structures are subject to the legal liabilities for financial disclosures and reporting pursuant to securities laws that dictate IPOs and other capital market issuances. Most recently the SEC published a statement that specifically called into question the accounting treatment for warrants issued by SPAC entities. The SEC’s comments suggest that the public and private warrants issued by many SPACs should be classified as liabilities rather than as equity instruments based on the regulator’s review terms included in existing company filings. These comments may require that existing SPAC entities amend or restate their financial statements by recording the warrant shares as liabilities at fair value on the balance sheet.

In this note we address the technical accounting classification issue for SPAC warrants that has placed most SPAC filers into limbo and caused the IPO and merger market to seize. We then provide an overview of best practices for the valuation of the financial instruments created in a typical SPAC transaction: private warrants, public warrants, founders’ shares, and PIPE investments. We highlight the structural features of these SPAC instruments and recommend valuation techniques that take into account the features of the SPAC structure, such as the probability of successfully completing a merger and traditional valuation methodologies, including option theoretic models and simulation models for path-dependent options.

Accounting Considerations

Determining whether a warrant should be classified as a liability (or asset) or equity under generally accepted accounting principles (GAAP) is both complex and nuanced. Under current GAAP, a warrant is accounted for as an asset or liability unless it 1) is considered to be indexed to the entity’s own equity, and 2) meets certain equity classification criteria. If both of these conditions are satisfied, the warrant is classified as equity. The recent SEC statement included examples of warrants that violated either the indexation guidance or the equity classification guidance and result in liability classification.

Generally, a warrant will satisfy the indexation guidance if it is indexed only to the entity’s own equity. Any feature that is indexed to another underlying asset will violate the indexation guidance and result in liability classification. Determining whether a warrant is indexed to an entity’s own equity is performed under a two-step process: 1) evaluation of contingent exercise provisions, if any, and 2) evaluation of settlement provisions.

Typically, contingent exercise provisions entitle the entity (issuer) or the holder to exercise a warrant based upon the occurrence or non-occurrence of a specified event. Contingent exercise provisions that are not based directly on the entity achieving a specific result (e.g., achieving a metric or completing a specific event) may result in a conclusion that the warrant is not indexed to an entity’s own equity. Warrants will generally meet Step 2 of the indexation guidance if the settlement amount equals the difference between the fair value of a fixed number of the entity’s shares and a fixed amount (i.e., fixed-for-fixed). In the first example cited by the SEC, the warrant failed to meet the indexation guidance because the settlement provisions are not considered to be fixed-for-fixed.

The equity classification guidance can be complex, but the basic premise is that a warrant is generally classified as a liability (or asset) if it either 1) requires net-cash settlement, or 2) allows the holder to elect either net-cash settlement or settlement in shares. Conversely, a warrant is generally classified as equity if it either 1) requires settlement in shares, or 2) allows the entity (issuer) to elect either net-cash settlement or settlement in shares. However, there are certain exceptions to this basic premise. For example, a warrant may be classified as equity if it requires net-cash settlement upon the occurrence of a change of control, provided that holders of the underlying equity receive the same form of consideration. In the second example cited by the SEC, the warrant failed to meet the equity classification guidance because the holders of the underlying equity do not receive the same form of consideration as the warrant holders in the event of a tender or exchange offer.

The implication of the recent SEC statement is that SPACs will need to re-evaluate their warrants to determine whether they fail either the indexation or the equity classification guidance, giving consideration to the examples cited by the SEC. To the extent that a SPAC concludes that warrants that were previously equity classified are appropriately classified as liabilities, prior period materiality should be assessed to determine whether a re-statement of previously issued financial statements is necessary.

Valuation Considerations

SPAC vehicles are financed with a set of financial instruments that are all linked to the SPAC common share price. In the period following the SPAC IPO and prior to a merger announcement, the SPAC common shares represent an interest in a pool of capital placed in trust for the sole propose of making an acquisition within a two-year term. Following the announcement of a proposed merger, the SPAC shares can be said to represent the expectation of share in the proposed merger target (conditioned on the likelihood of closing and subject to the terms of the transaction). Finally, SPAC common shares are converted into common shares of the merged operating company (with a new stock ticker listed on the exchange) following the consummation of the de-SPAC transaction. There are three categories of SPAC financial instruments that may require independent valuations as assets of liabilities: warrants, founders’ shares, and PIPE instruments.

SPAC Public Warrants

A representative public SPAC warrant instrument has the following features:

Underlying Asset Price - $10.00 at IPO, SPAC share price thereafter
Strike Price - $11.50
Term - 5 years
Redemption Price - $18.00
Listing Status - Exchange traded separately 45-days after SPAC IPO
Conditions - All public warrants subject to extinguishment if a de-SPAC merger is not consummated

The fair value of the public warrants may be determined by observable trading prices in the period after these instruments are listed. If trading prices are not available on a frequent basis or the warrant trading volumes are low, adjustments to observed prices may be required. For periods before public prices are observable, the fair value of public warrants can be calculated using option pricing models. We note that due to the redemption provisions for public warrants (typically $18.00 subject to certain consecutive trading price criteria), practitioners are likely to employ Monte Carlo simulation models or binominal lattice models that can accommodate path-dependent payoffs rather than the Black-Scholes option pricing model. The primary significant input to the option pricing models is the assumed volatility, which may be estimated based on observations of comparable financial instruments or other market observable information. Finally, because each of the public SPAC warrants are subject to forfeiture if a qualifying merger transaction is not completed, the calculated value of the warrant is also conditioned on the likelihood of a successful merger.

SPAC Private Warrants

Private SPAC warrants are typically issued to the sponsors or founders as part of a package of equity-linked instruments, referred to as the “promote.” A representative private warrant has following features:

Underlying Asset Price - $10.00 at IPO, SPAC share price thereafter
Strike Price - $11.50
Term - 5 years
Redemption Provisions - 1. Make-whole table, if applicable. 2. May include $18 redemption price. 3. Founders’ warrants convert to public warrants if transferred to non-sponsor
Listing Status - Unlisted
Conditions - All private warrants subject to extinguishment if a de-SPAC merger is not consummated

Private or non-listed SPAC warrants can be valued by using option pricing models that use information observed or implied from the trading of the public warrants for the subject SPAC entity. For certain private warrants, the structure of these warrants is nearly equivalent to the public warrants. For example, the make-whole provisions – expressed as a warrant price payoff and based on a share price matrix and the timing of redemption in the governing documents – affect the economics of the instrument. In essence, private warrants that include the make-whole provision limit the upside for the holder. Therefore, in certain circumstances the public warrant price may provide a reasonable estimate for the value of the private warrants.

For private warrants that do not have a redemption provision, the valuation specialist will need to implement an option pricing technique to value the warrant. In this scenario, the assumed volatility is the significant input into the model. For periods in which public warrant prices are observable, the implied valuation for these instruments can be calculated by back-solving using the public warrant price. In order to reverse engineer the SPAC warrant volatility, the analyst should also consider the estimated probability that a merger will be completed by the SPAC due to the risk of forfeiture discussed previously.

SPAC Founders’ Shares (Performance-Based)

Underlying Asset Price - $10.00 at IPO, SPAC share price thereafter
Threshold Prices - Variable – Example of multiple tranche structure:
Tranche 1: $10.00
Tranche 2: $12.00
Tranche 3: $13.50
Tranche 4: $15.00
Tranche 5: $17.00
Term - Exercisable for unlimited time after closing of the de-SPAC merger
Threshold Conditions (Path Dependent) - Variable – For example, share price must exceed the tranche Threshold price for 20 of 30 consecutive trading days:
Listing Status -Unlisted
Conditions - All founders’ shares subject to extinguishment if a de-SPAC merger is not consummated

Founders shares that are conditioned on the share price hurdles also necessitate a path-dependent valuation technique. As per the stylized example provided above, many founders shares will vest in the period after the closing of the de-SPAC transaction based on stock price hurdles that require appreciation from the normalized $10.00 per share. For example, a Monte Carlo simulation can be used to generate daily share prices for the purposes of calculating the contract payoff terms for each tranche threshold. While the probability of hitting a barrier can be calculated using a closed-form equation, a simulation approach is recommended for the contingent founders’ shares to properly capture the path-dependent criteria (conservative trading day provision) embedded in founders’ shares with performance-based lockup features

PIPE Shares and Commitments

PIPE investments by institutional investors provide an important bridge between the SPAC IPO (blank-check stage) and the post de-SPAC publicly listed operating company. PIPE instruments can be highly negotiated between the parties, and the terms can vary on a case-by-case basis. As with other private placement instruments, practitioners are advised to consider the contractual features of the PIPE shares that are different form the listed equity shares, including restrictions on transfers or other barriers to liquidity.

The introduction of capital from PIPE investments also can affect the value of the founder’s promote instruments and the relative ownership of public shareholders. For example, in order to induce investors to participate in PIPE equity (and to dissuade public shareholders from exercising their redemption option) to fund the proposed de-SPAC merger transaction, the SPAC sponsors will frequently relinquish a portion of the sponsor promote package (founders shares and warrants).

Finally, many PIPE investments are structed in the form of a financing commitment with a pre-determined contractual purchase price. These financial contracts can be subject to fair value adjustments when there are fluctuations in the public SPAC share price in the period between the PIPE commitment date and the PIPE funding date.

Continued SPAC Scrutiny

Given the deep reservoir of capital raised by SPAC sponsors over the last year and the recent spate of high-profile merger announcements, we expect that SPACs will remain important vehicles for accessing the public markets. However, communications from the SEC in early 2021 related to internal controls, investor communications and prospective financial information, and legal liability signal a change in the regulatory regime. Moreover, market observers have also raised important questions pertaining to SPAC performance and relative returns. While we focus on the narrow topics of warrant accounting and SPAC instrument valuation here, we anticipate continued scrutiny around SPAC entity and de-SPAC company financial reporting and valuations of SPAC financial instruments.

About the authors: Steve Hills is a Managing Director and Head of the Accounting and Reporting Advisory practice at Stout. Justin Burchett is a Managing Director in the Complex Securities & Financial Instruments practice at Stout. This article originally appeared in FEI Daily.

Welcome new member Michael Merman

feilouisville@gmail.com (Terry McWilliams) — Wed, 25 May 2022 18:31:10 GMT

New FEI Louisville member Michael Merman, CFO of Premier Packaging, is experienced with a demonstrated ability to provide strategic vision, execution accountability and leadership development.

He joined Premier in 2016 as director of finance and became CFO in 2018. He is skilled in Acquisition Integration, Treasury Management, Business Intelligence Analytics, Finance, Accounting, Financial Statements, and Technical Accounting Research.

He was previously Director of Accounting at Trilogy Health Services, LLC and prior to that, Plant Controller (Division Controller) at ASG Worldwide. He was a senior accountant at KPMG and earned degrees at Bellarmine and UK.

His profile can be located at https://www.linkedin.com/in/michael-merman-44911122/. Please welcome Michael to FEI Louisville.

FEI Louisville announces Summer golf outing

feilouisville@gmail.com (Terry McWilliams) — Wed, 18 May 2022 19:22:24 GMT

Scramble set for July 25 at Hunting Creek CC

FEI Louisville members | sponsors | executive guests |
corporate finance teams

C hallenge the Hunting Creek Country Club course this July 25. Enjoy a day with friends from FEI, colleagues and business associates. Box lunch ,
drink tickets, greens fees and cart, post-golf cocktail and awards social are
included in the participation price.

If you’re an FEI member, put together a foursome from your company and invite business guests to join you. Sponsors - invite your representatives and those you know from the finance community (CFOs, Finance VPs, Controllers, Treasurers, others) to play. Individuals are also welcome.

Standard Foursome | $425
Covers the entire day's activities -- box lunch, drink tickets, greens fees and cart, post-golf cocktail and awards social - for four golfers. It’s a perfect opportunity to engage your finance staff, sponsor support team, clients, prospects or other guests.

Individual Golfer | $125
If you don’t have a foursome, it’s not a problem. We’ll combine singles into teams.

GOLF Registration website: CLICK HERE

For corporate visibility, check out the following event visibility packages:

Title Sponsor
I ncludes a paid foursome package (cart, drinks, lunch, social, etc.) plus marketing and event signage as primary sponsor, speaker at announcements and Post-Golf Awards, ad in the player program and
visibility on FEI Louisville website, emails, LinkedIn and event marketing materials.

Beverage Cart sponsor
Includes a paid foursome package, plus the opportunity to be FEI’s interactive refreshment “hero” on the course. Sponsorship includes beverage cart and clubhouse signage, program inclusion, and event
marketing outreach.

Lunch sponsor
Includes golf foursome, clubhouse signage, program inclusion, and event marketing outreach

Driving Range sponsor
Includes paid foursome, signage at the driving range and clubhouse, program inclusion, and marketing outreach.

Practice Green sponsor
Includes foursome, and post-golf event activities,, signage at the practice green and clubhouse, program inclusion, and marketing outreach.

Foursome hole champion
Includes foursome package, signage at a sponsored hole and clubhouse, inclusion in program and event marketing visibility

Hole champion
Signage at a sponsored hole, inclusion in program and event marketing. (Golf fees are separate).

Call 502.410.2113 or email feilouisville@gmail.com to reserve your sponsorship support package.

How CFOs can prepare for a post-pandemic world

Wed, 18 May 2022 19:09:11 GMT

Useful strategy from FEI National

CFOs learned important lessons about speed and agility over the past two years, and are turning to technology like FP&A software and AI for strategic insights and competitive advantage.

Before the pandemic, corporate performance management (CPM) software and automated financial planning and analysis (FP&A) processes were viewed as a nice-to-have, but not a must-have for many companies. Most organizations were getting by, simply relying on manual finance processes and manipulating spreadsheets. CPM was seen as an area that might help a company edge out its competition, but not as an essential tool. But all of that changed with COVID-19.

According to data from a new “State of the Finance Function” survey of more than 200 CFOs and senior finance leaders commissioned by Prophix in collaboration with CFO Dive, many executives have committed to substantial upgrades in automating FP&A. Today, cloud-based CPM software has become an essential element of a digital transformation strategy for finance. The pandemic proved all companies, regardless of size, need to be equipped to tackle dynamic market shifts as they happen. Whenever there is uncertainty in the markets, CFOs and their finance teams are increasingly called up on for their insights to help steer strategic decisions. But given most finance teams were pretty much “maxed out”, this drove the need to adopt technology, such as CPM software, that could accelerate insights and automate FP&A processes to give them the agility they would need.

Lessons Learned from a Turbulent Economy

When the pandemic hit, CFOs were thrust into triage mode and asked to model and propose plans to keep their companies financially healthy. With that, they assumed more strategic roles as their companies struggled under harsh economic conditions acerbated by Covid-19. These finance leaders needed to create sophisticated models for personnel planning and contend with supply chain issues, two areas that turned into long-term business issues. As a result, according to Prophix’s survey, three-quarters of finance executives reported stepping up their forecasting frequency during the pandemic and focusing more on ‘what-if’ scenario modeling.

Thoroughly embracing digital transformation helps prepare organizations for the new finance imperative: to move at the speed of change. The survey found 36% of businesses quickly moved their finance technology to the cloud, and almost a quarter of respondents said they scrambled to implement automated FP&A processes to keep their businesses afloat. These moves allowed for more nimble adjustments to plans, budgets, and forecasts in a remote environment.

On the flip side, companies that failed to embrace technology in their finance office, and instead continued to rely on reviewing and manipulating data through manual processes, struggled to keep up with the pace of these market shifts: ten percent of businesses surveyed barely managed by using manual or legacy processes, and 14% found it extremely difficult to react to changes while relying on Excel spreadsheets.

Automation Continues to be a Key Strategic Advantage in 2022

In a post-pandemic world, automating the FP&A process can bring many advantages to organizations looking for a competitive edge. By leveraging CPM software, finance executives can see an instant return on investment by eliminating error-prone manual and spreadsheet-dependent processes. Even more significant is the strategic value that finance executives receive by better understanding internal and external data to make more confident and timely decisions.

The benefits of automated FP&A are proving valuable to companies as they contend with ongoing supply chain issues, the Great Resignation and inflation. For instance, companies can model the implications on their production capabilities given workforce shortages and also understand how production shortfalls would affect company financials. Because CPM software automates tasks, CFOs and their teams can tackle more critical business initiatives, become less reactive to business changes, and uncover strategic investment and growth opportunities for the company based on scenarios and complex modeling capabilities.

Further, investing in cloud-based CPM software allows finance teams to work more efficiently no matter where they’re located. But the advantages go beyond remote work. Instead of working using manual processes where versions of spreadsheets are shared over email, finance team members can access cloud-based CPM for accelerated budgeting and/or rolling forecast adjustments. CPM tools help to consolidate and centralize company data, updating that information in real-time. Finance leaders can access and analyze data across the organization – whether it’s ERP data, personnel planning from human resources or sales information from customer relationship management (CRM) tools. This provides a single, holistic view of the company’s financial situation.

This visibility makes scenario planning “in a timely fashion” possible: companies with automated FP&A can map out combinations of possible events, how those events might affect the company, and implications on the company’s financial wellbeing. Then the FP&A team can develop detailed action plans and run them through various scenarios, revealing how those action plans would affect company finances over the long term. With automated FP&A processes, CFOs and their finance teams can also incorporate daily and weekly data into the models to capture rapidly changing circumstances and adjust their planning accordingly. These automated FP&A processes also allow CFOs to plan further into the future, creating rolling 36-month forecasts they can update with new data every month.

Finance Leaders are Making Moves - Now

The survey found there is significant room for improvement in most finance offices, with 91% of companies reporting fewer than 75% of their FP&A processes are currently automated. But companies are jumping on the strategic opportunities presented by agile FP&A, with 82% of CFOs dedicating their 2022 budgets to the purchase of CPM software, business intelligence and AI tools that make this type of agile forecasting possible. And they’re planning to move quickly. Two-thirds of surveyed executives report an increase in their finance budget of at least 10% to date in 2022 and one-third will have automated 75% of their FP&A processes by the end of the year; a threefold increase from current figures.

In a chaotic and uncertain world, the CFO and the FP&A organization must understand both the company’s internal business and external factors, and then extrapolate answers for what finance can do to move the company forward. Before the pandemic, many CFOs focused more on simply getting through financial processes and meeting compliance. They took a reactive rather than a strategic role. But as the stakes rose to survival mode for many companies, the strategic importance of CFOs and the finance function has been validated. Some CFOs have embraced their ability to drive change at their companies with the help of CPM software and FP&A tools. But those who lag in digital transformation risk their company’s future—and their own.

Writer: Wayne Slater| Director of Product Marketing | Prophix.

Photo: ©metamorworks/iStock/Getty Images Plus

Pappy helps rebuild tornado-ravaged Western Kentucky

Wed, 16 Mar 2022 16:00:38 GMT

Former EY rep turned CFO heading up effort

Greg Greenwood - a former Ernst & Young tax professional - has found something fun to do in his retirement. Besides working as Habitat for Humanity's Metro Louisville CFO, he spreading the word about a project designed to raise funds to help the tornado stricken residents of Western Kentucky.

Habitat for Humanity of Metro Louisville is selling 5,000 tickets to secure a whole family of the elusive Pappy Van Winkle brand, donated locally, with proceeds dedicated toward rebuilding homes in Western Kentucky and building affordable homes in Louisville.

The grand prize, valued at $20,000, includes an Old Rip Van Winkle 10 Year , Van Winkle Special Reserve 12 Year, Van Winkle Family Reserve Rye 13 Year, Pappy Van Winkle 15 Year, Pappy Van Winkle 20 Year, and a Pappy Van Winkle 23 Year.

More information can be found at https://louisvillehabitat.org/bourbon-raffle/. "We appreciate your support," he says.

Kentucky Municipal Energy Agency CFO joins FEI Louisville

feilouisville@gmail.com (Terry McWilliams) — Mon, 17 Jan 2022 15:24:49 GMT

CPA worked 2 decades in the power industry

Heather R. Overby has joined FEI Louisville.

As Kentucky Municipal Energy Agency’s Vice President of Finance & Accounting / CFO, Heather is responsible for all accounting and financial reporting activities, member settlements, and all treasury functions.

After beginning her career with Deloitte & Touche, LLP, Ms. Overby has worked over 20 years in the municipal public power industry. She has served as Chairman of the Prairie State Energy Campus Finance Committee, Chairman of the American Public Power Association Business and Finance Conference Planning Committee, and Chairman of the Tennessee Valley Public Power Association Finance Committee. She currently serves as Chairman of the Kentucky School Facilities Construction Commission, an appointment made by Governor Bevin.

Ms. Overby holds a Master’s of Business Administration with an emphasis in Finance and Accounting from Regis University and a Batchelor’s Degree in Business Administration with an emphasis in Accounting from Transylvania University. She is a Certified Public Accountant in Kentucky and a member of the American Institute of Certified Public Accountants and the Kentucky Society of CPAs.

Ms. Overby is also a Certified Yoga Instructor and has attended over 750 Pure Barre classes. She and her husband, Jeff, have one daughter, Shelbe, and reside in Louisville, Kentucky.

A technology reviews can benefit your business

Mon, 10 Jan 2022 21:47:10 GMT

The assessment can find ways to lower costs, identify risks and improve productivity

Louisville Geek provides IT support to small and medium-sized businesses and each year, offers clients an opportunity to schedule a free Technology Review with one o f our technicians. When you opt for the assessment as a client, similar to a financial review, we take a comprehensive look at your IT investments, evaluate your technology’s performance and determine whether any changes need to be made.

Though we don’t require an annual Technology Review, we strongly encourage clients to take advantage of the offer, especially when considering what’s at stake. If done properly, these technology assessments allow you to:

Save Money

The first thing we do during a Technology Review is examine your software licenses to ensure you aren’t paying for things you don’t need. Last year, we were able to save a client three-hundred dollars per month because we discovered the client was still unnecessarily paying for Microsoft 365 licenses for former employees. We also typically conduct a brief cost-benefit analysis to determine whether an implemented solution is worth the continued investment. Technology is constantly evolving, so if there are technologies costing you a fortune in fees, we might be able to find cost-effective alternatives that allow you to do more with less.

Assess Risk

During a Technology Review, we search for security risks within your business. Cybercriminals are constantly finding new ways to exploit businesses, so it’s important to continually evaluate your cybersecurity strategy. If you operate a business that’s subjected to data regulations, like the Health Insurance Portability and Accountability Act (HIPAA) or Payment Card Industry Data Security Standard (PCI DSS), this is a good opportunity to pinpoint noncompliant IT practices and solutions and then customize a strategy that ensures the privacy, integrity and availability of your data.

This is also a good time to review your disaster recovery and incident response plans to ensure your data is backed up and protected should a disaster occur. Malicious actors are increasingly compromising backups, too, so it’s particularly important to ensure your backups are protected from corruption and ransomware.

In crease Productivity

Odds are, your business processes and operations have been altered since the pandemic began. A Technology Review offers the opportunity to review your existing infrastructure and pinpoint any processes that may be hindering business operations and formulate solutions to increase productivity.

For example, we recently had a client who was spending 10+ hours each week producing basic financial reports (balance sheets, income statements, etc.). The reason these reports took so long to produce was because the corresponding data was siloed. Like a lot of small businesses, they used one company for their payroll (ADP), another for their accounting (QuickBooks), and a third for ERP (Dynamics). Before they could produce an accurate report, they had to extract data manually from each source. Upon hearing this, our technician recommended using Microsoft Power BI (a program they were already paying for) to build automated reports, which wound up saving them a great deal of time and money.

(Louisville Geek is a silver sponsor of FEI Louisville.)

The Log4j vulnerability affects everything

Mon, 20 Dec 2021 15:31:19 GMT

The Log4j Vulnerability Affects Everything From The Cloud To Developer Tools And Security Devices. Here’s What To Look For, According To The Latest Information.

A vulnerability in a commonly used logging platform has security experts and officials rushing to patch systems before cybercriminals are able to exploit the flaw. Also known as Log4Shell, the flaw is exposing some of the world’s most popular applications and services to attack, and the outlook hasn’t improved since the vulnerability was announced last week. Cybersecurity experts warn this vulnerability will continue to haunt the internet for the next several years.

Here are 5 important things to know about the Log4j vulnerability. Click the link below to visit Louisville Geek's website to continue reading.

https://louisvillegeek.com/news/apache-log4j-exploit-5-things-to-know/

Louisville Geek is a silver sponsor of FEI Louisville.

Bellarmine End of Year CPE Event on Dec. 14

Fri, 03 Dec 2021 17:20:45 GMT

FEI members get half off registration fees; 8 hours of CPE available

Join Bellarmine's Rubel School of Business Accounting Department and earn up to 8 CPE hours during this all-day virtual educational event on Dec. 14. All net proceeds fund student scholarships.

Verified FEI Louisville members receive a 50 percent discount from registration fees by applying the promo code FEIDEC21. (The previous code provided was incorrect.)

For more information, contact Jorge Pazmino at 502.272.7240 or jpazmino@bellarmine.edu.

'Great Resignation' panel attracts attention

feilouisville@gmail.com (Terry McWilliams) — Wed, 17 Nov 2021 21:46:04 GMT

Recruiting experts provide perspective to a large event audience and TV/print media

Exceptional attendance and curious news media marked FEI Louisville's November meeting exploring the "Great Resignation" phenomenon. With recruiting and management consultant firms Vaco, Robert Half and Ingenium participating, local executives explained economic effects and impacts on both employers and employees.

Robert Half SVP Andrea Higgins, Vaco Managing Partner Clif Freeman and Senior Director of Accounting and Finance Recruiting Brittany Scroggin, and Ingenium Talent president Michael Bodner were panelists in a Jeopardy-style event, answering questions about recruiting, hiring and retention challenges. FEI Louisville board member and former president Mark Stegeman was the show's "host" and moderator.

For WHAS-11 coverage from Grace McKenna, click here .

For Business First coverage from Haley Cawthon, click here .

To learn more about joining FEI Louisville, contact Matt Monteiro or Marilyn Cleeff at matt@bulletproof-finance.com or mscleeff@gmail.com .

Key tips from cybersecurity incident response experts

Tue, 02 Nov 2021 21:19:37 GMT

(Louisville Geek | Ben Lawrence) -- All companies, regardless of the size of the business or industry, should have a cybersecurity incident response plan. Some companies, particularly those that haven't yet experienced a major security incident, don't know where to begin, let alone what to prioritize.

To shed some light on this pressing issue, we turned to a panel of cybersecurity experts and industry professionals and asked them to weigh in. While nothing can fully alleviate the pressure of dealing with a critical cyberattack, understanding these key tips will give your team an advantage when defending your organization.

1) Determine Key Stakeholders

Contrary to popular belief, properly planning for a potential incident is not the sole responsibility of your security team. In fact, an incident will likely impact almost every department in your organization – especially if the incident turns into a full-scale breach. To properly coordinate a response, you must first determine who should be involved. This often and additionally includes representation from:

Senior Management
IT
Legal
Marketing/Public relations

Knowing who should be involved in your organization’s planning exercises is something that should be determined in advance. It’s also important to take into consideration that your normal channels of communication (i.e., email) may be impacted by an incident.

2) React as Fast as Possible

Every second matters when an organization is under attack, but unfortunately most organizations don’t understand the severity of the situation. This lack of awareness inevitably leads to a lack of urgency.

Another thing to consider is that attacks tend to hit at the most inopportune times: holidays, weekends, and in the middle of the night. In 2021 alone we’ve seen attacks on Mother’s Day Weekend (Colonial Pipeline), Memorial Day Weekend (JBS Meat Processors), and July 4 ^th (Kaseya). Malicious actors often know that long weekends mean there will be a delayed response or an unprepared 'skeleton crew' that simply doesn't have the resources to monitor for simultaneously and deter threats fast enough.

Overwhelmed teams are also more likely to react slowly to indicators of attack because they suffer from alert fatigue, which means signals get lost in the noise. Even when a case is initially opened, it may not be correctly prioritized due to a lack of visibility and context. This costs time, and time is not on a defender’s side when it comes to incident response.

Even in situations where the security team is aware that they are under attack and something needs to be done immediately, they may not have the experience to know what to do next, which also makes them slow to respond. The best way to combat this is by planning for incidents in advance.

3) Don’t declare “Mission Accomplished” too soon

When it comes to incident response, the first thing to do is to address the immediate attack. This might include cleaning up a ransomware executable or blocking the exfiltration of data. While this is a solid first step in mitigating the attack, it’s the equivalent of treating the symptom and this is no time to declare mission accomplished. Successfully removing malware and clearing an alert doesn’t necessarily mean the attacker has been ejected from the environment. It’s also possible that what was detected was only a test run by the attacker to see what defenses they’re up against. If the attacker still has access, they’ll likely strike again, but more destructively.

Incident response teams need to ensure they address the root cause of the original incident they mitigated. They should determine if the attacker still has a foothold in the environment and take whatever course of action necessary to eject them before they are able to launch a second wave of attacks. Experienced Incident response operators know when and where to investigate deeper. They look for anything else attackers are doing, have done, or might be planning to do in the network – and neutralize that, too.

4) Complete visibility is critical

Nothing makes defending an organization more difﬁcult than having blind spots in a network. It’s important to have access to the right data, which makes it possible to accurately identify potential indicators of attack and determine the root cause.

Over the years, several big-data tools have entered the market and tried to solve the challenge of limited visibility. Some tools rely on event-centric data like log events, others use threat-centric data, and some utilize a hybrid approach. Regardless of the approach, the end-goal is the same: collect enough data to generate meaningful insights for investigating and responding to attacks that would otherwise have been missed.

Fearing they won’t have the data they need to get the full picture of an attack; some organizations decide to collect everything. This is a big mistake, especially considering the amount of data we are swimming in on a daily basis. This not only adds to the cost of data collection and storage, but it creates a lot of noise, which leads to alert fatigue and time wasted chasing false positives.

Remember, it’s OK to ask for help

No organization wants to deal with breach attempts. However, there’s no substitute for experience when comes to responding to incidents. This means that the IT and security teams often tasked with high-pressure incident response are thrown into situations that they simply don’t have the skills to deal with; situations that often have a massive impact on the business. The lack of skilled resources to investigate and respond to incidents is one of the biggest problems facing the cybersecurity industry today. Recent estimates from ISC, a nonprofit association of certified cybersecurity professionals, pegs the global talent shortage at more than 3.1 million people.

As a result, organizations are increasingly seeking to outsource some or all of their security efforts. Specifically, managed detection and response (MDR) services. MDR services are outsourced security operations delivered by a team of specialists, and act as an extension of a customer’s security team. These services combine human-led investigations, threat hunting, real-time monitoring, and incident response with a technology stack to gather and analyze intelligence. According to Gartner, “by 2025, 50% of organizations will be using MDR services,” signaling a trend that organizations are realizing they will need help to run a complete security operations and incident response program.

Ben Lawrence is the managing partner of Louisville Geek, which is a silver sponsor of FEI Louisville.

Rhodes Bratcher is PNC's new FEI rep

feilouisville@gmail.com (Terry McWilliams) — Tue, 12 Oct 2021 20:48:16 GMT

There's a new face representing PNC Bank to the FEI Louisville chapter. He's Rhodes Bratcher, a commercial banker who recently joined the organization.

A Louisville native and graduate of the UK Von Allmen School of Accountancy, Bratcher previously worked with PNC as a relationship manager, with Crowe and another organization before returning to PNC.

Welcome new members

feilouisville@gmail.com (Terry McWilliams) — Wed, 22 Sep 2021 17:27:26 GMT

Wickenheiser, Esselman become FEI members

Paul Esselman, CFO of Mint Julep Experiences, and Doug Wickenheiser, Controller, Insuramax, have joined the Louisville chapter of Financial Executives International. Please welcome them!

Getting the Executive Edge

Mon, 20 Sep 2021 12:15:17 GMT

FENG Nashville speaker event

Mark Myers, representing the Nashville FENG (Financial Executives Networking Group), invites members of Louisville FEI to a virtual Zoom event Tuesday morning at 8:30 a.m. ET.

London speaker Johnny Walker, Job Seeking Coach and Founder of The Executive Edge, will be presenting "How to get your ideal job, faster."

His 'no-sales' conversation will cover:

The three big structural shifts in the executive job seeking market - which is a big 'aha moment'.
The three structural shifts turn job seeking on its head and is something that will resonate with members as they will (mostly) have been hiring managers at some point in their career, but won't necessarily have put two and two together, now they are the ones looking for work.
Johnny will share a free 50 page ebook – Seven Steps to Six Figures, which has an absolute ton of value in it. And give you free access to his Executive Edge Job Seekers Facebook Group.
Includes 'nothing off limits' job seeking Q&A.

Speaker bio :

Johnny is an award-winning digital marketer and former executive search consultant from London’s square mile. Founder of The Executive Edge program, specifically aimed at senior and executive job seekers, with one objective - to help them get their ideal job, faster, for more money, without having to sell themselves.

Johnny is the only job seeking coach, focused exclusively on executive job seekers, and whose program also has a 100% money back guarantee. His profile is at https://www.linkedin.com/in/johnnymwalker/

To Register:

Members: www.TheFENG.org. In order to be able to download the directory of who registered, you MUST log in with your password. This is a great networking tool.

Guests: www.thefeng.org/chapters/tennessee/nashville/23 The directory is not available to you.

If you do not receive the link (make sure you check your SPAM folder), please contact Mark Myers, Nashville Chapter Chair, at mark.myers@comcast.net.

Feds issue cybersecurity warnings for Labor Day weekend

Fri, 03 Sep 2021 15:31:54 GMT

From Louisville Geek -- The FBI and the Cybersecurity and Infrastructure Security Agency (CISA) have issued an advisory warning of potential cyberattacks that may occur over the coming Labor Day weekend, noting that in recent years hackers have launched dozens of devastating attacks on long weekends.

Modern cybercriminals use sneaky tactics to maximize the damage and collect the most money per attack. Because organizations are generally short-staffed over holiday weekends, the swiftness with which they can respond to attacks that occur during these times will be impacted.

What You Can Do

To avoid these phishing schemes, please observe the following email best practices:

Do not click on links or attachments from senders that you do not recognize. Be especially wary of .zip or other compressed or executable file types.
Do not provide sensitive personal information (like usernames and passwords) over email.
Watch for email senders that use suspicious or misleading domain names.
Inspect URLs carefully to make sure they’re legitimate and not imposter sites.
Do not try to open any shared document that you’re not expecting to receive.
Be especially cautious when opening attachments or clicking links if you receive an email containing a warning banner indicating that it originated from an external source.

Actions to Protect Against Ransomware

Make an offline backup of your data.
Do not click on suspicious links.
If you use RDP, secure and monitor it.
Update your OS and software.

For more, visit Louisville Geek's website or us-cert.cisa.gov

5 Professional Development Options for Financial Staff

Fri, 27 Aug 2021 15:58:20 GMT

Benefits include greater employee morale

(Robert Half | August 27, 2021) -- An accounting and finance department is only as productive and effective as the staff who comprise it. Good leaders understand this and encourage their employees to continually develop new skills and knowledge — and keep refining the abilities they already possess. They also prioritize training for finance employees.

Many businesses that pulled back on professional development activities at the start of the COVID-19 pandemic are now reinvigorating these programs — even redesigning them in many cases to accommodate remote and hybrid teams. These employers recognize that professional development options remain an important way to engage and motivate their team members and expand and strengthen the collective knowledge and overall capabilities of their workforce.

You will likely find that many of your accounting and finance staff members are eager to take advantage of finance skills development and other professional development opportunities. In a recent Robert Half survey, 44% of U.S. workers who reported that the pandemic had stalled their career also noted that their ability to develop skills has suffered during this time.

Devoting resources to staff training and skills enhancement can boost team morale and enhance retention and create positive returns for your business. Employees with solid technical skills work more efficiently and are less likely to make mistakes on the job. Solid soft skills — including adaptability and empathy — are important to team success, as well. And if all or some of your employees are working remotely, outstanding communication and collaboration abilities are an absolute must for keeping your workforce in sync and productive.

Training for finance employees and other professional development opportunities can be quick and easy to implement. In many cases, they cost little or nothing to put in motion. If you’re looking for professional development ideas for your accounting and finance staff, including options for fully remote and hybrid teams, considering trying one or more of the following options:

1. Arrange for employees to rotate jobs

Professional development is all about helping employees to grow. But managers often find it challenging to provide meaningful, “hands-on” learning opportunities. Job rotation offers an answer; it can be a valuable form of training for finance employees. Through job rotation, your team members can build and master new skills and start putting their newly gained knowledge to work almost immediately.

Not only can job rotation arrangements help workers learn other roles, but they also can increase their business acumen — an essential ingredient for problem-solving and big-picture thinking on the job. Rotating positions can also keep your accounting and finance staff from becoming bored with their duties, which, in turn, helps to improve job satisfaction and bolster retention efforts.

2. Make mentorship a priority

Maximize the strength of your multigenerational workforce by asking senior-level employees to serve as mentors and guides to their less-seasoned colleagues, helping to shape their finance skills development and growth in other areas.

Keep in mind that mentoring relationships can work both ways, though: Those just starting their accounting careers also have unique knowledge and skill sets that more experienced accountants and auditors may not, such as creative ways to reach millennial clients.

More than likely, you’ll find that every employee in your organization could benefit from taking part in a mentoring or coaching program.

3. Create cross-departmental teams

Create project task forces that span two or more divisions so that accounting and finance employees can get to know their colleagues from other parts of the business. Yes, this is possible even in a remote work environment — in fact, it can be an effective strategy for keeping a distributed team feeling connected.

Cross-departmental collaboration can boost both technical and interpersonal skills, as staff will better appreciate the roles, responsibilities and workflows of coworkers across the organization. Also, when a technological, marketing or other nonfinancial business issue arises, your team will know right away which colleagues to contact for help and what skills and expertise they can bring to the table to help solve problems.

4. Invite virtual guest speakers

Consider hosting monthly lunch and learn sessions, held virtually and led by industry experts. These sessions are a quick, easy and cost-effective way to engage your staff and provide them with continuing education, including finance skills development.

To ensure these events create value, feature current topics that would likely interest all staff, from entry-level accountants to veteran budget analysts. Some ideas include the benefits of accounting automation or cloud computing, changing tax legislation, year-end audits, and the latest U.S. Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board (PCAOB) developments.

Outside specialists can provide knowledge, introduce new ideas and help spark innovative thinking in your finance department.

5. Offer upskilling and reskilling opportunities

Upskilling and reskilling can help accounting and finance employees prepare for the future of work, advance their finance skills development, and make the most of their other professional talents. Some ideas for budget- and schedule-friendly tactics include:

Virtual training. Offer hands-on training via an online platform that workers can access remotely on their own time.
Microlearning. Upskilling and reskilling can be achieved gradually through microlearning, delivered through online videos, podcasts, mobile applications and other formats.
P2P learning. Peer-to-peer (P2P) learning is informal and can take many forms, including employee-led virtual workshops and team projects. This type of knowledge-sharing within your department can be beneficial for finance skills development across your whole team.
Also, don’t overlook the value of financial aid. If you know your accounting and finance staff will eventually require certification or in-depth study of a new subject, consider offering tuition reimbursement or assistance if your budget allows.

Training for finance employees requires time

When your team members constantly face the challenge of lengthy to-do lists, they’ll be inclined to push professional development to the back burner — even if they’d like nothing more than to do something new that helps advance their career. And now, many professionals face the added challenge of juggling professional and personal demands while managing remote or hybrid work schedules.

So, it’s important to encourage your team members to prioritize finance skills development and make room in their schedule for other professional development. Just as important: You need to help them find time to focus on development.

One way to make it easier for core staff to find time for professional development is to hire contract professionals. These workers can complement your full-time team by providing skills, knowledge and support when and for as long as they are needed. Many of these professionals can work remotely, too. Engaging contract talent helps your workers stay on top of their current responsibilities while also freeing them to build the skills and knowledge they need to succeed at your firm in the future.

The initial time and effort to implement the professional development ideas listed above can help increase the overall knowledge and abilities of your entire staff, making this investment a win-win for your employees and your business.

Robert Half is a silver sponsor of FEI Louisville.

Cybercriminals Target Disgruntled Employees to Deploy Ransomware

Fri, 27 Aug 2021 15:43:04 GMT

How do businesses protect themselves?

(Louisville Geek | August 27, 2021) -- Picture this scenario.

William is an intelligent, up-and-coming 32-year-old IT technician. For the past three years, he’s overseen the organization’s migration to the cloud. Even though he’s passionate about IT, he’s become increasingly frustrated with the leadership. He doesn’t trust their vision for the company, plus he feels he’s underpaid and undervalued.

One day the vice president lashes out at him in front of the entire team for something that wasn’t even his fault. He decides ‘enough is enough’ and begins polishing his resume. He starts skimming job boards, updates his LinkedIn profile, and sends a few feeler messages to his network notifying them that he’s looking for a new job.

Then, out of th e blue, he receives the following email message:

Translation:

William, are you interested in making some money before you leave the company? If so, all I need you to do is install a file on your company server. We will lock up their files and request a $400,000 ransomware fee. To compensate you for your efforts, we will pay you 40% of whatever we receive in BTC. Let me know if you are interested.

Real Threat

The scary thing is this: there are ransomware groups acting out this very scenario all over the globe. And, while multi-million-dollar ransomware payments are dominating the headlines, the biggest financial losses tied to cybercrime each year stem from social engineering tactics just like this. These are called Business Email Compromise (BEC) or CEO Scams (where cybercriminals impersonate the organization’s CEO), and according to the latest figures released by the FBI, the reported loss from these threats increased to $1.86 billion in 2020.

The concept of a disgruntled (or not) employee as a cybersecurity threat isn’t new. In April 2020, a Tesla employee was approached by a member of a Russian ransomware gang who offered the employee $1 million to install malware on the Tesla network. Luckily for Tesla, the employee rejected the offer and instead alerted his employer, which in turn alerted the FBI. The Russian citizen, Egor Igorevich Kriuchkov, was arrested in Los Angeles as he was trying to flee the country.

How do cybercriminals find their targets?

Cybercrime is a business, and often the perpetrating criminals mirror the practices of legitimate organizations to find, profile, and connect with targets they view as high value. Social media platforms such as LinkedIn and Facebook are goldmines for cybercriminals, especially when most users overshare everything. In the example above, the bad actor most likely identified his targets on LinkedIn based on their job title (CIO, Systems Engineer) and industry (healthcare). Then, they probably wrote a script sending notifications when these profiles are updated (e.g., looking for a new job) and the rest is history.

Protecting Your Business from Profiling and Social Media Engineering

Data has replaced oil as the world’s most valuable commodity. When you consider that the entire business model of social media revolves around collecting data to sell on to advertisers, it’s easy to understand how advantageous social media is for cybercriminals. Here are some ways we recommend protecting your business from these types of attacks.

Ensure two-factor authentication is applied on all apps, tools, and logins.
Educate your employees about the latest cybersecurity trends and threats and to be mindful about what they post on their own social media accounts.
Inform your employees about the responsible use of social media. Let them know that this is not only for the organization’s sake, but for theirs as well.
Ensure that your organization has an offboarding plan that revokes access to any employee leaving the company.

Final Thoughts

Even though disgruntled employees are something to be mindful of, keep in mind loyal employees also experience these types of socially engineered tactics on a regular basis. Our best advice is to continuously train your employees about the threats that exist and how to respond to potential incidents.

By: Ben Lawrence, Managing Partner at Louisville Geek (Louisville Geek is a silver sponsor of FEI Louisville).

Cybersecurity threats facing financial industries

Thu, 22 Jul 2021 17:47:49 GMT

Separating facts from fears

(Louisville Geek | July 22, 2021) -- Are you familiar with the story of Chicken Little?

You know, the baby chick that kept proclaiming that the sky was falling when an acorn bopped it on the head? To that baby chick, the acorn falling on his head was the end of times. The poor guy did everything possible to warn anyone who would listen, “The sky is falling! The sky is falling!” To the animals around him, it was just an endless rant from a confused baby chick.

In today’s world, we are constantly swamped by advertisements and distractions. A recent study by Microsoft found that the average person is now estimated to encounter between 6,000 to 10,000 ads every single day. When considering the amount of information we are exposed to everyday, it can be difficult to differentiate between the “sky is falling” fear factor approach or legitimate information that we should be concerned about.

Ransomware is no “Chicken Little” news story

When it comes to ransomware and the impact it’s having on businesses of all sizes around the world, rest assured that this is not just another “Chicken Little” news story. In the latest annual ransomware report issued by Sophos, 34% of the 550 respondents in the financial industry have been victims of a cyberattack within the last year. When asked how successful they were in stopping the encryption of their data, 51% of the 185 respondents reported their data was encrypted, and 41% report they were able to stop the attack before encryption. While the larger picture shows that the percentage of attacks has decreased from 2020, extortion across all industries has increased. The tactics and tools used by cybercriminals continue to advance as digital transformation accelerates, making it critical to stay aware of the current cybersecurity risks facing the financial industry today.

Human Behavior

Great employees are the building blocks to any successful business. However, human error is natural and one of the largest risks to keep in mind. The shift to remote work last year and the adjustment to a hybrid work schedule this year have brought new light to challenges such as falling victim to phishing attacks and poor security hygiene. On the other side of the same coin, insider threats pose an equivalent risk that human error does. Apathetic, disgruntled, and uncooperative employees put organizations at risk with malicious intentions that can leave the door open for cybercriminals.

Emerging Technologies

The rapid advancement of technology means the latest cutting-edge tools are widely available to the public and hackers. These same emerging technologies used to propel growth are the same ones explored by cybercriminals to expose vulnerabilities in new technology, like 5G, and use them to their advantage. Software vulnerabilities, the use of deep fake technology, and supply chain threats all pose a threat because of advancing tech.

Third-Party Vendors

After the pandemic last year, many people want cashless transactions, and they want it all with the click of a button securely. Many financial industries rely on third-party vendors to support services like this. Using multiple vendors makes it challenging to manage, especially when you consider the high number of security risks this poses, like improperly vetting and researching them.

Backdoors and Supply-Chain Attacks

The SolarWinds incident early this year proved that supply chain attacks should not be taken lightly. Hackers can add backdoors to compromised and vulnerable systems used by third-party vendors and inject malware into the weakest points of a system in the organization's supply chain. This reliance on third-party vendors leaves the financial industry little to no control of how security features and compliance are monitored and regulated.

Cloud and Network-based Attacks

The use of the cloud as a service comes with pros and cons. This same service enabling financial institutions to minimize cyber risks and maximize the accelerating digital transformation exposes them to threats by having much of the cybersecurity responsibility offloaded to outside vendors. With no authentication required, misconfigurations, and data mismanagement, cloud, and network-based attacks will be a major threat to watch out for.

Conclusion

Cybercrime has wreaked havoc on companies from all industries this year, and there is no sign of it slowing down. The biggest challenge at hand will be learning to recognize the cybersecurity risks your industry may be in and what steps to take to counter them to be prepared for when an attack does occur.

To learn about cybersecurity risks your business might be facing, contact Louisville Geek and a team member will reach out to you.

(Authors: Ben Lawrence, Managing Partner, and Tina Whiteside, Vendor Relations Manager, Louisville Geek, an FEI Louisville silver sponsor.) WEBSITE

The phase out of LIBOR

Mon, 21 Jun 2021 15:45:20 GMT

(PNC Bank) -- LIBOR has been the most prevalent benchmark rate in the financial industry for three decades. On March 5, 2021, the administrator of LIBOR issued statements that certain settings will either cease to be provided or will no longer be representative after December 31, 2021 and all remaining settings will either cease to be provided or will no longer be representative after June 30, 2023. Further, regulators have directed banks to stop issuing new LIBOR contracts by year-end 2021.

In its Tuesday, June 29 webinar, PNC executives discuss the timing of the LIBOR phase out and recommended rate alternatives.

PNC speakers leading the discussion are:

Jim Bernier, Executive Vice President, Head of Derivative Products Group
Connie Cesario, Executive Vice President, Head of Loan Syndications – Originations
Rebecca Feinberg, Managing Senior Counsel Corporate Banking & Commercial Banking
Jill Gateman, Executive Vice President, Co-Head of Corporate Banking
Randy King, Executive Vice President, Treasurer
Alex Spiro, Deputy General Counsel Lead Lawyer for Enterprise LIBOR Cessation Project

Click here for registration details.

FEI members Monteiro, Shannon recognized by Business First

feilouisville@gmail.com (Terry McWilliams) — Sun, 23 May 2021 16:00:46 GMT

Pair selected for 2021 Best in Finance

Matt Monteiro, owner of Bulletproof Finance and president of the FEI Louisville chapter since 2018, and Charah Solutions CFO and FEI member Roger Shannon are among the 25 individuals being honored June 24 by Business First.

The annual Best in Finance event recognizes Louisville-area finance professionals who stood out from their peers as they dealt with COVID and other business issues during 2020. To attend this virtual event to honor Matt and Roger (a past FEI Louisville president and board member), register at http://bizj.us/1q9wfg .

Valuation Research Corporation joins as silver sponsor

Wed, 19 May 2021 11:41:50 GMT

Larry Van Kirk heads VRC's regional efforts

FEI Louisville' s newest sponsor is Valuation Research Corporation and Senior Managing Partner Larry Van Kirk.

Van Kirk is a practice leader for closely-held company valuations and financial reporting related valuations. He also specializes in the valuation of business enterprises, underlying intellectual property and financial opinions of fairness, solvency or capital adequacy. Mr. Van Kirk is a leader for industries including energy, healthcare, death care services, hospitality, lighting, life sciences, pharmaceuticals and amusement parks.

Prior to joining VRC, Mr. Van Kirk was manager with Arthur Andersen's Valuation Services Group. There, he was responsible for client development, and procurement and management of engagements and was on a team servicing global utility clients.

He holds a master of business administration degree in finance/accounting from the University of Pittsburgh, and a bachelor of business administration degree in economics from Xavier University.

5 new manager tips that can help experienced leaders

Wed, 19 May 2021 10:59:20 GMT

Your first day as a manager can be one of the most daunting of your career. You’re suddenly responsible for not only your own projects but also the work of those on your team — many of whom were your peers just the day before. It’s a major transition. That’s why it’s important to get it right from the start and convince employees to trust your leadership.

And seasoned managers, what about you? Are work pressures causing you to fall into bad boss habits, like not giving your team the right amount of space and support to deliver quality work on time? Is your department experiencing low morale or a higher-than-expected turnover rate? If so, perhaps it’s time to step back, revisit some basics and refresh your management approach.

Below are five new manager tips that can help first-time managers hit the ground running, and seasoned managers brush up on the fundamentals that will help them refine their leadership:

1. Maintain a professional tone

Keeping things professional at work sounds like a no-brainer, but it can be tricky to monitor the performance of people who are your friends or close associates. Supervising friends or former peers is one of the most difficult parts of becoming a manager for the first time. Tasks like performance reviews and disciplinary action can be especially awkward.

Maintaining a professional tone while on the job includes not griping about policies, the workload or senior leadership — things you may have done in the past as a staff-level employee.

Also top among new manager tips is this recommendation: Don’t overshare details of your personal life. However, do remain on friendly terms with your colleagues and continue to socialize with them.

Be sure to treat all staff members fairly as well, so that you avoid the perception of having favorites. There will always be star players you turn to frequently, of course. But your job as a leader is to help everyone on your team feel valued and realize their potential.

2. Don’t micromanage

Experienced professionals don’t need much direction once they’ve been given their assignments. They deserve feedback and recognition, but they don’t need their manager constantly asking for status updates.

Good bosses know it’s important to trust their team to do what they were hired to do. And that’s why “don’t micromanage” is one of the most essential new manager tips.

Admittedly, a hands-off approach can seem counterintuitive. Isn’t it your job to be involved and make sure everything is getting done? Yes. But the most effective leaders ensure their staff members have what they need to succeed — from technical resources to training and professional development. And once their team is set up, they let them get down to work.

Looking for insight on how to manage a remote team effectively? See this post.

3. Delegate when possible

Delegating can be hard, but it’s one of the most important new manager tips to apply. It’s good for your own productivity and success on the job. Balancing individual job responsibilities with the time spent overseeing staff is one of the biggest challenges of becoming a new manager.

When you share the department’s responsibilities across your team, it helps your employees to grow. It also lets you focus on higher-level tasks like budgeting, strategy-setting and generating new business. But how do you hand things over when you’re used to doing everything yourself (or feel like you can do things better)?

Delegating effectively starts with good communication. Find the right person for each task, give them clear instructions, and offer both praise and constructive criticism, as appropriate. Have an open-door policy — a virtual one, if needed — so that the team members you delegate to know they can come to you with questions and concerns.

4. Encourage work-life balance

Your employees have responsibilities outside of their job. And maintaining work-life balance can be a struggle for many professionals, whether they work remotely or in an office. What’s the advice for first-time leaders and seasoned managers? Do what you can to help your staff manage their work and personal demands, so that they don’t get overwhelmed.

Allowing for flexible scheduling and alternative work hours can go a long way toward helping your team members find the time and space they need to perform at their best. In fact, in a Robert Half survey, 73% of professionals who said their employer allows them to engage in windowed work — breaking up their day into distinct chunks of personal and business time — reported greater productivity.

Job sharing and compressed workweeks are other strategies to consider for promoting work-life balance. Also, encourage your employees to use all their vacation days.

And there’s something else that you can do: Set a good example. If you often work late and on weekends, you may be unintentionally creating a corporate culture where workaholism is rewarded — and that’s simply not healthy. So, look after your own well-being. And if you or your employees are burning the candle at both ends because there’s simply too much to do, consider hiring more full-time staff or bringing in consultants.

Research by our company suggests that corporate health and workplace wellness offerings could give your business an edge when hiring. Learn more in this post.

5. Expand your network

New manager tips for success include getting to know and building rapport with others who are working at the same level in your organization. You can do this by stepping up cross-departmental collaboration.

Get to know the directors and principals in all departments, including accounting, sales, marketing, IT, human resources, legal and so on. See how the team can help improve their key metrics and quarterly results. Create opportunities for your staff and other business groups to together to brainstorm on strategy. By building and strengthening relationships throughout the organization, you’ll help foster a more cohesive workforce. You’ll also be honing your business acumen — a definite asset as you continue to advance in your career.

It also wouldn’t hurt to ask senior executives for advice on how to motivate staff, balance your management responsibilities, and walk the fine line between friend and boss. You may even decide to ask one of them for professional mentoring as you learn to manage a team and develop your leadership skills. (Even seasoned managers can benefit from mentoring arrangements.)

Being a manager can be rough sailing at times, including for those who’ve been at the helm for years. That’s why it’s good practice for all managers to think critically about how they can refine their approach to their role and responsibilities. The new manager tips outlined above can be useful for any manager who wants to chart a course for management success.

Robert Half is a Silver Sponsor of FEI Louisville.

Balbach helps guide $60M expansion

feilouisville@gmail.com (Terry McWilliams) — Fri, 30 Apr 2021 12:04:34 GMT

KCC plans HVAC facility in Shelby County

Excerpt from Louisville Business First, April 29

KCC Companies has announced it will build a $60 million manufacturing facility in Simpsonville, according to company CFO and FEI Louisville member Tony Balbach.

The 380,000-square-foot plant will support the production of HVAC equipment, roof curbs, curb adapters and sheet metal products for roof-mounted air conditioning equipment.

Balbach said the company was excited about the expansion and its healthy building initiative, which includes outdoor air units and other HVAC products to be produced at the new facility.

FEI Louisville directory published

feilouisville@gmail.com (Terry McWilliams) — Tue, 27 Apr 2021 11:41:40 GMT

Handy reference for members and sponsors

If you haven't received your copy in the mail, please contact Chapter Executive Terry McWilliams at FEILouisville@gmail.com or call 502-410-2113. The directory is exclusive to members and sponsors.

Outstanding area finance students honored

feilouisville@gmail.com (Terry McWilliams) — Mon, 26 Apr 2021 21:49:22 GMT

Achievers represent Bellarmine, UofL and IUS

LOUISVILLE -- The Louisville chapter of Financial Executives International (FEI), a professional association for CFOs, controllers, treasurers and senior finance executives, has honored three finance and accounting students from local universities for outstanding performance and achievements.

Those honored are:

• Abbie Oetting, Bellarmine University

• Reynaldo Sierra-Escobedo, Indiana University Southeast

• Zachary B. Taylor, University of Louisville

In addition to an awards certificate and a congratuatory letter from FEI President Andrej Suskavcevic, the students receive subscriptions to the finance community’s research publications and executive reports, and a daily newsfeed that provides financial news and analysis. 

“We’re very proud of Abbie, Reynaldo and Zack and what they have achieved,” said William Stout, University of Louisville accounting professor and FEI Louisville board member and academic chair. “I’m confident we will be hearing much more about these individuals as they progress in their careers and apply their considerable talents to whatever business challenges that come before them.”

Taylor majored in Finance and Accounting and minored in Economics and has been in the U of L honors program since 2017. He was vice president of the Investment Club, and served as a tax intern for BKD CPAs and Advisors.

“I approach each opportunity with the short-, mid-, and long-term benefits in mind – gaining experience along the way. Knowledge – like money or investments – can compound over time,” he said.

Abbie Oetting expects to earn an undergraduate degree in Finance in May from Bellarmine University. On the President’s List all four years, she received the Rubel School of Business Faculty Merit Award in Finance, served as VP/Investment Relations for the university’s investment group, and earned honors as a four-year scholarship athlete on the women’s volleyball team.

She served various internships in accounting, finance, planning and operations for Humana since June 2020, and plans to join Churchill Downs after graduation.

Reynaldo Sierra-Escobedo, from Jeffersonville, is on track to graduate from IUS with a Bachelor of Business Administration degree in Accounting and Finance. He plans to become a tax consultant or business owner. He has served as an accounting intern for Monroe Shine & Co.

Through dozens of chapters in the U.S., Canada and overseas, FEI represents the interests of more than 10,000 financial officers. Learn more about FEI and the Louisville chapter by visiting www.feilouisville.org.

Professionals interested in exploring membership should contact board member Bryan Eble at bryan.eble@gmail.com.

# # #

Contacts: Matt Monteiro, FEILouisville president, at matt@bulletproof-finance.com or 502.386.3815; Terry McWilliams, FEI Louisville administrator, president, Mozaic Investor Relations, terrym@mozaicir.com, 502.410.2113.

Financial analyst opportunity

Fri, 23 Apr 2021 14:05:20 GMT

FEI friends: I am currently hiring for a Financial Analyst at Fastline. If you know of anyone please feel free to send them the job posting. Reminder that we are out in Oldham County so anyone who lives in that area or is comfortable commuting to Oldham would be great. Click on the image above or the following URL: https://recruiting.paylocity.com/recruiting/jobs/Details/537834/Fastline-Media-Group-LLC/Financial-Analyst

- Christy Paulin, Controller, Fastline Marketing Group

Financial paths for busy executives

feilouisville@gmail.com (Terry McWilliams) — Fri, 09 Apr 2021 11:14:30 GMT

PNC veterans survey the business landscape at April meeting

Directing a company's financial functions takes considerable effort. Every day's news seem to highlight another important trend to track.

For FEI Louisville's April 22 meeting, three veteran professionals from PNC review top financial topics and share their expertise on ways that executives can enhance their business's -- and their own - success.

Advisors Neil Byrne, Kristin Dunlevy and Jonathan Johnson will address:

• Investment solutions in a low interest rate environment

• Financial acumen and fiduciary investment plan education

• Retirement and estate planning strategies with tax considerations

• Prescriptions for financial wellness

Members can submit questions to the team in advance by emailing FEILouisville@gmail.com. Breakout rooms allow members to mix and socialize in a more intimate small group setting.

FEI Louisville brings privacy expert speaker

feilouisville@gmail.com (Terry McWilliams) — Tue, 02 Mar 2021 21:34:01 GMT

Data privacy in a whirlwind world

Protiviti's Kevin Strope will discuss the challenges that corporations and businesses face on data privacy. He'll cover how to manage data responsibly, ethically & compliantly, the frameworks to do so, and the latest global & US data privacy trends.

Working from its Cincinnati office, Kevin has significant experience providing data privacy, information security, risk management, IT audit and other technology services for a wide range of clients within an extensive selection of industries.

As a CIPT, PCI QSA and CISA, Kevin applies a disciplined approach to managing projects in accordance with industry best practices. Providing technical expertise balanced with risk-based methodologies, Kevin seeks to align business goals with technical strategic initiatives. He is well versed in internal controls and has successfully served in a variety of roles including program management, consulting, risk management, and internal audit. His work has resulted in a proven track record of success in protecting information assets, identifying system control weaknesses, and leading clients to successful organizational changes.

Fire King's Michael Lynch named sponsorship chair

feilouisville@gmail.com (Terry McWilliams) — Fri, 12 Feb 2021 17:09:02 GMT

Background includes work with CRS Reprocessing, Shoe Sensation and EY

Fire King CFO Michael Lynch has been named FEI Louisville sponsorship chair.

Michael began his stint on the board as membership chair. He has worked with Fire King for six years and as CFO for the last four. helping lead a business turnaround and successful sale of the Fire King International, LLC business unit.

He currently serves as the Chief Financial Officer of FK Intermediate, LLC, a portfolio company of Pfingsten Partners, a Chicago-based private equity firm. FK Intermediate operates Fire King Commercial Services, LLC and Fire King Security Products, LLC.

Prior to joining Fire King, Michael was the Corporate Controller at CRS Reprocessing, the CFO of Shoe Sensation, and a Senior Manager in EY’s Transaction Advisory Practice.

Bryan Eble barrels into FEI Louisville membership chair

Tue, 09 Feb 2021 16:30:12 GMT

CFOs and finance executives who are not yet members of FEI Louisville: meet Bryan Eble, our new membership chair. Bryan, Vice President of Finance and Administration of Canton Cooperage, knows how FEI can help connect those who are responsible for overseeing corporate finance.

20 fraud prevention tips to help protect your business

Tue, 12 Jan 2021 17:09:01 GMT

Submitted by Silver Sponsor BKD CPAs & Advisors

According to a recent study, organizations lose 5 percent of revenue to fraud each year—a staggering statistic. In an effort to help your organization decrease this percentage, we decided to share our top 20 fraud prevention tips. These have been cultivated from the BKD forensics team’s decades of experience conducting fraud investigations and helping clients mitigate fraud risk.

Confidential Hotline – Did you know this is the single most cost-effective anti-fraud action you can take? Tips via hotlines are the number one way that frauds are detected, according to the ACFE 2020 Report to the Nations, and most tips come from employees. We encourage you to set up a confidential hotline operated by a third party and advertise it internally to all of your employees.

Fraud Awareness Training – Lower losses and shorter duration can correlate to awareness training for employees. Organizationwide awareness is critical, so turn all your employees and managers into fraud detectors and take advantage of all those eyes and ears.

Vendor Controls – Vendor fraud is very common across all industries due to the large number of payments going out to different companies and entities—everyone has vendors/suppliers, so it’s an easy place to perpetrate fraud. Here are a few items to consider:

Take control over selection of new vendors: Who can select? How are they selected?
Perform due diligence on new vendors. Ask yourself: Is the vendor real? Is their pricing reasonable? Is the vendor related to an employee?
Periodically reassess vendor relationships.
Reduce or eliminate conflicts of interest.

Solid Budget-to-Actual Process – Variances can really tell a story if budgets are done well and variances are dutifully and diligently followed up on. Consider the following:

Is your budget reliable?
Are you examining variances monthly?
Understand what is really causing variances.
Identify and follow up on any unusual trends.

Use Bank Account Controls – Financial institutions have some great resources available to help you prevent financial transactions from leaving your bank accounts—an ounce of prevention is worth a pound of cure.

Positive pay: Protects your bank account against counterfeit checks. Protects you against schemes you have no other way to prevent. Over the past few years, most corporate account holders have implemented this.
Automated Clearing House (ACH) block and filter: Corporate account takeover is the latest fraud plague. If you don’t use ACH transactions, block them with your bank. If you do use ACH transactions, place restrictions with your bank. Protect your credentials.

Log Customer Complaints – Don’t assume your customers are just complaining to get something out of you or get a concession. They may notice things you don’t, and when you see a pattern of complaints showing up, it’s time to dig in deep. Patterns in complaints are seldom recognized until it’s too late. Pay attention to complaints about payments, timeliness of posting, and statements.

Implement Good HR Practices – Conducting checks on candidates before they walk in the door can go a long way in preventing fraud. If they are never employed, they never commit occupational fraud. Also, having exit interviews can be a very useful tool in finding out about fraud, waste, and abuse in your organization. Without the interview, exiting employees may not bother to tell you what they know. These checks include:

Background checks.
Credit checks.
Performance evaluation processes.
Exit interviews.

Inventory Control – Sloppiness in inventory controls can leave you vulnerable to shrink. Be especially vigilant with small, high-value inventory or valuable scrap. Here are a few things you can implement to enhance your inventory controls:

A reliable inventory system.
Control over inventory adjustments.
Strategically placed cameras.
Cycle counts and test counts.
Physical inventory adjustment follow-up.

Review of Bank Statements & Canceled Checks – This is one of the easiest, yet most overlooked, fraud detection controls. This can prevent and detect many different types of fraud, and it doesn’t have to be done every month to be effective—although we of course recommend a monthly review if possible. Review:

Bank statements for ATM transactions, counter withdrawals, unusual ACH transactions, credit card payments, etc.
Canceled checks for unusual payees, endorsements, and amounts

Implement Mandatory Vacations – You know those employees who never take a vacation day, and if they do, they are checking in the whole time? It may not be because they are super dedicated. Many problems are identified during perpetrator vacations, as someone must fill in for them to perform their duties. Implementing mandatory vacations (or job rotations) can help identify fraudulent activities.

Credit Card & Expense Reimbursement Policies – Purchase and credit cards are a very common tool for committing fraud. They are convenient and, if monitored, can be very useful. However, having strong controls in place is essential to reducing your fraud risk. Start with a clearly defined policy on what is and is not acceptable:

Card use for “business purposes” is not good enough.
What types for expenses do you really want to be paying?
What types of expenses are not acceptable?
What documentation is required?
Soft expenses need better documentation of business purpose and who was present (meals and entertainment, sporting events, etc.).
Policies need more details and enforcement.

Review of Credit Cards & Expenses – Similar to tip 11 above, diligent review of credit cards and expenses is needed. This task needs to be assigned to the right person who needs support to perform the appropriate level of review.

Fraud Risk Assessment – This is like going to the doctor for a checkup. It’s not something you need to do all the time, but it’s a great idea to do annually or biannually. Your company or organization changes, and with the changes come different risks. A periodic fraud risk assessment will help you adapt to those changes and allow you to understand your fraud risks and help you focus your efforts. This assessment should be performed by someone who looks at fraud issues on a regular basis.

Internal Audit – These are the watchdogs for the company and can come in both in-house and outsourced varieties. It’s critical they report to the right individual(s) to maintain independence. Internal auditors should be independent of management and accounting. Internal auditing may not be feasible for all organizations; if not, have “tire-kicking” procedures performed by someone. Consider doing one or two high-risk areas per year.

Data Mining & Continuous Auditing – 100 percent testing of transactions is an efficient and effective means to find anomalies that could be leading indicators of fraud, waste, and abuse, especially transactions related to accounts payable and vendors. Data mining can help you identify patterns indicative of fraud schemes and find information you’ll never find by looking at documents.

Management Reviews – Everyone is busy, but having management set aside specific time to review these areas can go a long way in reducing your fraud risk.

Review key financial reports, including: A/P check register Payroll detail report Write-offs
Determine if reports are appropriate for board-level review.
Ask questions.
Follow up when something doesn’t seem right.
Establish “perception of detection.”

Segregation of Duties – This can be a hard one for small organizations or growing organizations whose controls have not kept pace with their growth. This is an old tip that’s been around for a long time, but it’s just as critical today as any time in the past. A few to focus on (there are many more):

A/P access to signed checks.
Internal delivery of checks.
A/P clerks who can set up vendors.
Payroll clerks who can set up new employees.

Code of Conduct – These seem like “soft” controls, but it is critical that a company or organization has these in place so employees cannot claim “ignorance” that what they were doing was wrong. Policies to consider implementing include: Anti-fraud policy. Conflict of interest policy. Policy related to gifts and gratuities. Consider annual acknowledgment and disclosure of: Any awareness of inappropriate activity. Any conflicts of interest with vendors or customers.

Create the Right Culture – Similar to establishing a code of conduct, this tip may seem “soft,” but it is a critical component to fraud prevention. If leadership demands and displays integrity and transparency, it typically permeates through a company or organization. Tone is set at the top – Management must “walk the walk.” Create a positive workplace environment. Establish a culture of honesty and high ethics. Put an emphasis on doing the right thing.

Prosecute – Only about six out of 10 fraud victims actually prosecute, leaving four perpetrators free to strike again. A lack of enforcement undermines your anti-fraud efforts, so making an example of those who steal helps set the tone for other would-be offenders while leaving a criminal record for the perpetrator.

Decades of experience also have taught us that even if you implement all the tips above, you may still become a fraud victim. Fraudsters are infinitely creative with their schemes, and detecting or preventing those schemes is a never-ending task. That said, when taken together, these top 20 tips can go a long way in helping you mitigate your fraud risk.

When will I feel safe to fly? COVID-19 consumer insights focus of Dec. FEI/ACG meeting

feilouisville@gmail.com (Terry McWilliams) — Mon, 07 Dec 2020 17:33:04 GMT

Groups to explore issues at virtual event

How have online purchases changed during COVID-19? When will it feel safe to fly again?

Vivien Azer, a managing director and senior research analyst for Cowen Inc., a diversified financial services firm based in New York, will highlight some of the finding of Cowen's ongoing consumer research from the pandemic at a special online event hosted by Louisville's pre-eminent financial organizations -- FEI Louisville and ACG Kentucky, an organization that promotes Middle Market corporate growth.

The web event is set for Monday, Dec. 14 at 4 p.m. ( RSVP here. )

Azer participates on a team of Cowen analysts who contribute to Cowen's ongoing COVID-19 consumer tracking. Cowen has surveyed thousands of individuals exploring a wide range of areas.

Azer is no stranger to Kentucky, having covered the bourbon industry (including Brown Forman) and contributing her expertise to the INVEST Kentucky Equity Conference. In addition to the beverage industry, Azer covers the tobacco and cannabis sectors.

She has been named several times to Institutional Investor's All-America Research Team and has elicited notable press coverage from media such as CNBC, the Wall Street Journal, The Economist, Barron's and Forbes. Prior to joining Cowen, she spent nine years covering consumer staples for Citi.

Founded in 1918, Cowen provides investment banking services, research, sales and trading, prime brokerage, global clearing, commission management services and investment management services.

Following Azer's presentation, the meeting will break into small discussion/networking groups, led by FEI and ACG directors and including members, sponsors and guests representing both groups.

Registration details

Attendance is included in FEI membership and sponsorship. Enter the code FEIDEC20 at checkout. Financial executives exploring membership may attend as an FEI guest - email FEILouisville@gmail.com with your name, company and title for the guest code. ACG members will apply a separate code to attend.

After you've registered, you'll receive an email prior to the event with the URL for the virtual meeting and the password needed to participate.

The Demand for Skilled Talent in the COVID19 Landscape

gabe@blueguru.marketing (Gabe Gibitz) — Thu, 24 Sep 2020 19:55:23 GMT

The pandemic refined the workplace

COVID-19 and its consequences have caused a sea change in the job market and the workplace. The unemployment rate more than tripled in April 2020 after the outbreak, but there are signs of improvement in the labor market most recently.

Remote work is the new normal for many. 63% of the professionals we polled say they realize their job is doable from home.
79% of workers are managing work and home life better by blocking their day into chunks of business and personal time (windowed work).

Bright spots bring optimism

18 million people who were temporarily laid off expect to return to work.
Nearly 40% of small business owners expect better business conditions in the next six months.
60% of workers surveyed said the lack of a commute has improved their work-life balance.

Geographically diverse candidate pool

With so many jobs now being done remotely, employers can extend their candidate searches beyond geographic boundaries.
Firms must also factor in not only the requirements of the job but also the market where the candidate lives when setting salaries.

Unemployment rates for some positions much lower than the national average

The unemployment rate for college-degreed workers 25 and older is just under 7%, far below the national unemployment rate, which is near 11% (for June 2020).
And for positions in high demand, the rate is even lower: 4.1% for financial analysts, for example, and only 1.4% for security professionals.

Employees have expectations about safety procedures when offices reopen

52% think their employers should require workers to wear masks.
46% feel the office layout should be changed to maintain social distancing.

Content from silver sponsor Robert Half. For more information, contact Andrea Higgins (andrea.higgins@rhmr.com) at Robert Half.

PNC is celebrating Virtual Women in Business

gabe@blueguru.marketing (Gabe Gibitz) — Thu, 03 Sep 2020 19:44:40 GMT

Virtual programs cover a diversity of topics

During the week of September 14, PNC is hosting virtual programs every day as part of its 10th Annual Women in Business Week. The programs cover everything from diversity and inclusion to fighting financial fraud to wellness activities for the mind and body, including a lively conversation with Orange theory Fitness Creator and Co-Founder Ellen Latham.

Michael Wheatley Jr., Louisville-based Commercial Banking VP, asked FEI to share this with our members and professional women on corporate teams. Please notify Michael at michael.wheatleyjr@pnc.com if you or your team register so that he knows they came through FEI.

Event details and RSVP link - click here

Monday, September 14, 2020, 11:00 a.m.

Shellye Archambeau, Executive and Author

A candid conversation with executive and author, Shellye Archambeau, about her career and experience as a Black female and her advice for creating a diverse, inclusive workplace culture. One of high tech’s first female African American CEOs, she has been featured in Forbes, the New York Times, and elsewhere.

Tues., Sept. 15

11 a.m.

Votes for Women

2020 marks the centennial anniversary of the ratification of the 19th amendment, guaranteeing and protecting women’s right to vote. During this webcast, historians in Nashville, Tenn. – the state that put ratification over the top – will discuss the suffragists’ hard fought battle to win the right to vote.

2 p.m.

Esports: Leveling the Playing Field for Women and Girls

A conversation with industry leaders who will debunk myths and shed light on the career and financial opportunities in this $1 billion industry for women and girls. Featuring insights from Angelica Sirabella of the Pittsburgh Knights Esports League and Auverin Morrow of Hi-Rez Studios.

4 p.m.

Story Time with PNC Great Readers

With schools and many early learning centers closed due to the COVID-19 pandemic, it has been challenging for families to keep children entertained. PNC spearheaded a creative response to these challenges with the creation of PNC Great Readers, featuring more than 30 community partners from across PNC’s markets reading aloud their favorite children’s books on video

Wed., Sept. 16

10 a.m.

Brand Trust in 2020

Building trust in your brand can lead to deeper, more resilient relationships. Experts from global communications firm, Edelman, share results from their Trust Barometer Survey.

12 noon

Celebrating Hispanic Heritage Month with Nina Vaca

A lively conversation with Nina Vaca, Pinnacle Group chairman and CEO, and the Presidential Ambassador for Global Entrepreneurship. Hosted by PNC’s Office of Diversity and Inclusion and Latino Employee Business Resource Group.

2 p.m.

Fighting Financial Fraud

A conversation about this parallel pandemic and how to protect yourself and your company, with PNC Chief Security Officer Debbie Guild and PNC Treasury Management Executive Miranda Creel.

Thurs., September 17

11 a.m.

Keynote Presentation: PNC Presents a Q&A with Ellen Latham - Creator and Co-Founder, Orangetheory Fitness

In “The Heartbeat of a Billion-Dollar Business,” Ellen shares how she grew a business that she started in her own home into a successful fitness franchise. Highlights: 1) Turning a job loss into an opportunity. 2) The importance of mentorship. 3) Deciding to franchise. 4) Overcoming challenges due to COVID19.

Friday, September 18

10 a.m.

Virtual Yoga

12 noon

Reel Fitness

Bardstown Bourbon's CFO is new FEI Louisville member

feilouisville@gmail.com (Terry McWilliams) — Fri, 28 Aug 2020 20:44:06 GMT

FEI Louisville welcomes Ingrid Gentry into its membership.

Ingrid joined Bardstown Bourbon as CFO in January 2020. Set on 100 acres of active farmland, The Bardstown Bourbon Company produces the highest-quality Kentucky bourbon, whiskey, and rye brands and offers custom whiskey production through its one-of-a-kind Collaborative Distilling Program. It offers a Napa Valley-style destination on the Kentucky Bourbon Trail to combine distilling, culinary, and beverage expertise to create a modern, authentic bourbon experience.

Ingrid's previous experience includes 18 years at Brown Forman, and financial roles at Tri-Arrows Aluminum, U of L and Keurig Green Mountain.

Wehr Constructors' CFO joins FEI Louisville

feilouisville@gmail.com (Terry McWilliams) — Tue, 25 Aug 2020 20:51:59 GMT

Best in Finance honoree Shawn Woosley has joined the FEI Louisville chapter.

Chief Financial Officer at Wehr Constructors Inc. since 2004, Shawn is a former accounting officer for Deloitte and staff accountant at Strothman and Company.

He is an accounting graduate of the University of Louisville.

Lisa Daugherty joins FEI Louisville

gabe@blueguru.marketing (Gabe Gibitz) — Tue, 11 Aug 2020 20:20:53 GMT

We welcome Lisa Daugherty, VP Finance, Atlas Machine & Supply, Inc., Louisville, to the Louisville chapter of Financial Executives International.

Atlas Machine and Supply is a 4th-generation family-owned and operated business based in Louisville, Kentucky, and has eight other satellite locations across the Midwest. Atlas is a leading supplier of industrial air compressors and related products and also has a full-service Machine Shop that designs, repairs and re-manufactures complex equipment for industry and municipalities

Bryan Eble joins FEI Louisville

gabe@blueguru.marketing (Gabe Gibitz) — Tue, 11 Aug 2020 19:42:51 GMT

Andrew Russman joins FEI Louisville

gabe@blueguru.marketing (Gabe Gibitz) — Tue, 11 Aug 2020 18:49:50 GMT

We're very pleased to welcome Louisville CFO Andrew Russman as a new member of FEI Louisville.

FEI Louisville membership special launched

feilouisville@gmail.com (Terry McWilliams) — Wed, 29 Jul 2020 18:47:14 GMT

Keep climbing

THERE IS NO BETTER TIME to benefit from the networking, advocacy, education and leadership that membership in Financial Executives International provides.

FEI offers the executive resources for navigating COVID-19 - and the guidance that CFOs and finance professionals need for every-day financial leadership.

From now through August 21, you can get this peer networking resource for only $299 for a full-year membership.

At an exclusive member/sponsor wine-tasting social, new members will be welcomed to a presentation led by California master sommelier Will Costello, with your own bottles of Solomon Hills Pinot Noir and a Bien Nacido Chardonnay.

Remember: Join by August 21 and get:

$299 annual membership in FEI and FEI Louisville
Wine gift (approximate $100 value) and sommelier welcome
Local peer networking and programs
Leading industry research
Exclusive FEIconnect online community - finance leaders in 65 U.S. chapters
CPE credit opportunities
Complimentary registration to select national conferences
90+ webinars each year at no additional cost and curated content via FEI Daily
Leadership development through FEI Committee membership and volunteer opportunities
Access to regulators at the FASB, IASB, US SEC, PCAOB, FAF, US Treasury, IRS, and more

Visit the membership page on feilouisville.org and click on the button to download a membership application. Questions, contact Matt Monteiro, president, 502.386.3815 or matt@bulletproof-finance.com; Terry McWilliams, FEI chapter administrator, FEILouisville@gmail.com or 502.410.2113.

How to operate in the new normal

gabe@blueguru.marketing (Gabe Gibitz) — Fri, 24 Jul 2020 14:31:48 GMT

A guide to reopening post-pandemic

Submitted by Michael Wolf, strategic partner, Pridestaff

Can you hear it? It’s the sound of our economy’s gears cranking back up. Across the country, machines are whirring back to life. Computers are booting up. Light switches are flipping on.

With no economic precedent, organizations must address a host of safety, policy, HR operational and staffing obstacles. Faced with the challenge of reinventing your workplace, how can you reopen sensibly and responsibly, while helping your team adjust to a new normal?

In a whitepaper , PrideStaff’s workforce, safety and legal experts share insights and questions to help you get back to work safely and recover rapidly. Topics include:

Building your response team and reopening plan
Addressing operational, safety, legal and mental well-being issues
Leading your team confidently through the coming months
Leveraging your staffing partner’s resources and expertise to stay flexible, operate safely and rebound quickly
Emerging from this crisis stronger than ever

For further information:

Link to Pridestaff Whitepaper Planning Guide

Link to Pridestaff Podcast on Workplace Challenges

(Pridestaff is a silver sponsor of FEI Louisville. Michael Wolf leads the Louisville office.)

Election 2020 tax policy coverage

gabe@blueguru.marketing (Gabe Gibitz) — Thu, 16 Jul 2020 15:42:27 GMT

Presidential tax policy scorecards launched

Mark Hohmann - new member

feilouisville@gmail.com (Terry McWilliams) — Tue, 14 Jul 2020 20:21:12 GMT

We're very pleased to welcome back Mark Hohmann, CFO of Louisville based Goodwill Industries of Kentucky. Mark was among the executives honored by Louisville Business First for its 2020 Best in Finance class. Congratulations to a deserving Louisville financial executive on your return to FEI Louisville and Best in Finance recognition.

What to Consider When It’s Time to Reopen the Office

gabe@blueguru.marketing (Gabe Gibitz) — Tue, 14 Jul 2020 20:02:28 GMT

What to expect under the “new normal”

Robert Half has announced its latest virtual presentation offering, What to Consider When It’s Time to Reopen the Office . It highlights insights as companies plan to reenter the office by explaining what to expect under the “new normal” and offers tips for managing and hiring a team that may include both remote and on-site professionals.

Topics include:

Taking steps to help foster a safe return to in-office activity
Communicate new office procedures effectively
Hire, manage, and retain remote and in-office staff more effectively
Boost morale and support employees’ mental well-being

If you are interested in a presenter from Robert Half discussing this topic during a virtual meeting, please contact Andrea Higgins at 502.432.4646 to set it up.

( Andrea Higgins is Division Director for Robert Half in Louisville.)

Takeaways for mid-2020 and beyond

Mon, 13 Jul 2020 20:34:40 GMT

COVID triage and sizing up the future

I’ve heard that “Working from Home” has officially mutated in to “Living at Work,” and I certainly don’t disagree—it seems that whatever lines were blurred with the transition are assuredly gone.

While some companies have made the move back to the office, we at Prudential are staying at the home office for the time being. Part of the decision is based on the fact that our operations have been minimally disrupted. While we miss being on the road and seeing folks face-to-face, we’ve adjusted well and appreciate the flexibility for phone calls and video conferences from all our clients, prospects, and network contacts. All told, our production through the second quarter was slightly up YoY despite the circumstances, which demonstrates the resiliency of our portfolio and the capital markets.

The mid-point of the year is a great time to assess where we are for 2020 and beyond. Below are three key takeaways thus far:

1. Triage is Complete: The first couple months after the outbreak of Covid-19 were centered on assessing where our clients and prospects stand. As we see it, most everyone falls into categories of Challenged, Surviving, and Thriving, with some businesses having a mix of all three depending on the diversity of their end markets. We have been working diligently with the Challenged credits to make sure they’re in the best position to get through these hard times. And for those who are Surviving or Thriving, we have provided support through guidance or new capital investment. Our goal, as always, is to be a valuable partner and co-pilot through all cycles.

2. Activity Is Improving: Both from our perspective as investors and from our partners’ perspective as operators, we have seen activity start to pick up these past several weeks, with April and May seeming to be the trough. Some sectors are ramping up quicker than others with a “V” shaped recovery and others are experiencing more of a “Nike Swoosh” slower recovery. We have been fielding more in-bound requests for senior capital—to take advantage of highly attractive rates or to fund a capital project—and we have seen deal flow increase on the mezzanine side of our business as well. We know real challenges remain, but we take this as a positive sign.

3. Planning for the Future : With a solid understanding of the new normal and some positive indicators, we are now preparing for the rest of 2020. We are planning new methods of outreach including webinars, virtual industry round tables, and video conferences, all in an effort to maintain a high level of connection with our borrowers and prospects. Similarly, our partners have fully adjusted and are running business with a “new usual.” The bottom line is that despite all the challenges in 2020, businesses are adapting effectively and seeking to have a strong second half of the year.

(Tom Molzahn, CFA, is a director at Prudential Private Capital)

FEI Louisville survey outlines the COVID-19 impact on local members and companies

feilouisville@gmail.com (Terry McWilliams) — Tue, 19 May 2020 13:47:03 GMT

Searching for the best path to reach the other side of the pandemic

LOUISVILLE (May 19, 2020) - Since its appearance, COVID-19 has blazed an unprecedented trail of medical mayhem and economic destruction. In the United States, the pandemic has infected more than one million people, and tens of thousands of Americans have perished. Measures to mitigate its spread have handcuffed commerce, resulting in the highest job losses since the Great Depression .

People are hurting. Business is suffering. All across the country, owners and executives are searching for the best path forward in the struggle to reach the other side of the pandemic.

That's also true in Kentuckiana, based on the results of a survey conducted by the Louisville chapter of Financial Executives International. FEI Louisville asked its 80-plus members and community CFOs to assess the impacts.

We wanted to know: Is your business facing liquidity issues? Are supply chains working? What steps have you taken to combat your way through this? What have you learned -- and when will we get back to normal?

The results from the online and email survey, which took place from mid-April through early May, are not statistically representative but provide insights into the breadth of difficulties Louisville executives are facing and how they are coping.

The bottom line: They are concerned for their employees - keeping them secure, keeping their talents available. They worry about disrupted collections and cash flow. They want to keep processes running and efficient in the midst of social distancing, supply chain and transportation issues. Uncertainty is disarming. In the face of the pandemic, they've found better ways to do things. They've seen successes with remote work and face-to-face video communication. Many are using existing resources more efficiently and in unexpected ways.

While many are critical of the government response to COVID-19, they're divided on when - if at all - society will return to "normal."

Who participated in the survey

Nine industry groups were represented, divided roughly among manufacturing, food service, distribution, banking/finance, technology, utility, construction, healthcare and professional services companies. Nearly half had 500 or more employees; 35% had between 51-200 employees. Of the executives who participated, 35% were FEI members more than 5 years; 38% less than 5 years. The rest were non-member financial executives in the community.

Liquidity, financial stress and sales impacts

More than half (56%) said COVID-19 brought financial stresses or liquidity issues, with 48% reporting lower sales.

"No sales," one person lamented. Remarked another: "Manufacturing has ceased except for essential orders. Global supply chain problems."

Said another about the company's one-third drop in sales: "Schools are closed. Restaurants are operating at a fraction of capacity."

Regarding supply chains, six in 10 had difficulties due to the inability of domestic and/or foreign suppliers to fulfill orders or problems with transportation. Others had issues obtaining raw materials or commodities.

The news wasn't bad for everyone. 20% of the executives said their companies were experiencing greater demand and sales because of the nature of their services or products.

Facing the most important issues

The biggest worry the CFOs cited was the economic and financial impact. Having sufficient liquidity, collecting cash and worrying about the ability of customers to pay were frequently mentioned.

Employee issues were another key focus. Leaders talked of the need to keep in place core staff and mission-critical employees.

"Ensuring we keep our employees employed, serving our customers, and coming out strong to continue our double-digit growth," one finance executive wrote. Still other comments cited the need to proactively take care of associates, balance production needs with employee safety and even worrying about employees working from home who may contract the virus.

Maintaining production and service levels also got CFO attention. "Long term, the redesign of work to facilitate social distancing without the frustration and productivity loss (currently) experienced," one said.

Another observed that his company was less efficient working from home because certain activities such as R&D have to be scaled back. Another company is handcuffed by the inability to reopen locations.

Still others lamented the difficulties of planning and operating in a pandemic. "You can't plan for things like this. Everyone has risk back-up plans, but this is unprecedented and we cannot go forward based on fear," one said.

"No one likes uncertainty."

Responding to COVID in the workplace

Nearly 9 in 10 allowed all or some of their employees to work from home.

"Employees are working from home where possible or on a reduced/staggered in-the-office schedule," said one executive. "We are finally able to fill previously open positions given the number of other companies who have laid off staff."

Six in 10 people said their companies cut non-payroll expenses; 25% also reduced or eliminated staff. Half have applied for federal payroll assistance and another quarter sought SBA or other funding.

New business practices executives will keep

Most financial executives found that employees can perform in places other than the traditional office.

"Working remotely has 'worked' better than I thought. Productivity seems to be high, even in the face of unparalleled challenges," one wrote, echoing the comments of many others. "Zoom turned out to be a nice tool that we use in the future."

Video has helped executives communicate. More than 9 of 10 increased their use of video meeting software such as Zoom or WebEx for internal discussions. 75% said they were using it more for external meetings with bankers, customers, suppliers and others. 73% said they were staging more conference calls than before.

Others mentioned they'll continue to laser focus on costs and cash flow, and capital sources.

Observations varied on the government's handling of the pandemic

Executives were divided on their assessment of how federal and state governments have responded to COVID-19.

Many praised Kentucky Governor Andy Beshear's handling of the virus response. "Kentucky has set the standard. The national response has been horrific." Others chided the state for not opening more quickly. "We can't just live around this virus when so many other issues for people's lives are at risk," said another.

On the federal level, there was a diversity of opinion. "These policies assume a short-term economic hit with a duration of 30-90 days. They are aimed at keeping people in current jobs through that period...These policies are just postponing the realignment of the workforce to the new reality and creating a massive public debt. Nobody knows what the impact of all this money being poured into the economy this fast will have."

Another said the federal unemployment offering has "made it difficult to find quality help," while still another called the federal response "confusing at best, with mixed signals that probably cost precious time and possibly lives."

One financial executive summed up: "I wish our economy could be spared but I know that is nonsense and we all have to sacrifice. Some in major ways."

When are things returning to normal?

"Normal may never happen again," said one, "but hopefully a return to a near normal operating environment."

In the survey, 15% thought that would happen in the third quarter of this year; 35% said the fourth quarter. Another 27% thought it would happen sometime in 2021. Nearly a quarter of the executives thinks the "old normal" will never be back.

"I expect a slow re-opening of the economy, in sectors or waves, but with an ongoing focus on social distancing, personal protective gear and work-from-home. Absent a vaccine, I expect re-emergences of the virus, with necessary local quarantines possible for the foreseeable future."

Click here for a PDF of detailed survey results.

About FEI Louisville

The Louisville chapter of Financial Executives International has been an integral resource for senior financial executives for more than 75 years, representing members from private and public companies, universities, associations and foundations. As part of a 10,000-strong national organization, FEI Louisville helps ﬁnancial executives make informed business decisions, promotes ethical leadership, provides insightful programs and offers networking opportunities for CFOs, treasurers and controllers. Our national organization monitors legislative and regulatory issues impacting CFOs and offers online networking and career development capabilities. FEI Louisville provides a calendar of COVID-19 related webinars and websites from banking, accounting, HR, insurance, legal and employee recruiting resources. Visit www.FEILouisville.org for more information, call 502.410.2113 or email FEILouisville@gmail.com . The national FEI website is www.financialexecutives.org.

FEI Contacts

Terry McWilliams, chapter administrator. 502.410.2113, FEILouisville@gmail.com or terrym (at) mozaicir.com
Matt Monteiro, FEI Louisville president, 502.386.3815 or matt@bulletproof-finance.com .

About the Author

The chapter administrator for FEI Louisville, Terry McWilliams is a veteran financial communications professional based in his hometown of Louisville, a city well known for its bourbon, horse racing, fried chicken, basketball and Muhammad Ali. McWilliams is president of Mozaic Investor Relations, an IR communications consultancy he founded in 1997 serving regional public companies and other clients. In 2004 he launched a series of state-focused equity conferences that provided investor forums for CEOs and CFOs. McWilliams began his career as a newspaper reporter, working for dailies in Kentucky, Tennessee and New Jersey and contributing to The Wall Street Journal, USA Today and, Investor Relations Magazine. He has cross-border experience through engagements in London and Tokyo and has been involved with professional organizations related to communication, real estate and finance. He earned a Masters of Business Administration from the University of Tennessee and a bachelor degree in journalism from the University of Kentucky.

FEI Louisville launches CFO-level survey to assess effects of COVID-19

feilouisville@gmail.com (Terry McWilliams) — Wed, 22 Apr 2020 19:20:57 GMT

Chapter seeking to inform members

FEI Louisville is surveying its members and financial executives in the community to assess the business response to COVID-19. The chapter is seeking CFOs, controllers, treasurers, finance VPs and other senior corporate financial executives representing large companies and small.

The URL for the Survey Monkey survey is: https://www.surveymonkey.com/r/FEILOU_covid

If you have any questions, please contact Chapter Executive Terry McWilliams at FEILouisville@gmail.com or call 502.410.2113.

2020 Best in Finance winners unveiled

feilouisville@gmail.com (Terry McWilliams) — Fri, 17 Apr 2020 20:40:02 GMT

FEI Louisville applauds executive picks

Chad Dobson, Chief Accounting Officer at Churchill Downs, Inc., is one of the Louisville area financial executives to be honored.

Business First announced its 2020 Best in Finance class of CFOs and other senior financial executives who work in the Louisville region. FEI Louisville supports this effort and applauds the selections.

Their stories will appear in a special Business First publication June 15 and will be honored in a rescheduled event this fall. Here are the honorees:

Matthew Bacon, CFO, Community Foundation of Louisville
Larry Bergamini, CFO, Saint Xavier High School
Jan Chambers, CFO, Bachman Auto Group
Chad Dobson, vice president, Churchill Downs Inc.
Gary Dryden, vice president, Jefferson Community and Technical College
Kristine Gaines, director, LSS Holdings LLC
Shelley Gast, vice president, Norton Healthcare
Leslie Getz, controller, Miranda Construction
Derrick Grigsby, CFO, Harrison County Community Foundation
Tracy Hawkins, vice president, PMR Companies
Mark Hohmann, CFO, Goodwill Industries of Kentucky
Robert Kester, director, Blue & Co. LLC
Lynnette Kokomoor, CFO, Bandy Carroll Hellige
Marc McCormick, partner, Rodefer Moss & Co. PLLC
Glenn Metten, CFO, Mister P Express Inc.
Angie Morrison-Duncan, CFO, ARGI
Jennifer Phipps, chief accounting officer, BrightSpring Health Services
Samuel Riddick, CFO, Family Health Centers Inc.
Charles Ritter, partner, KPMG LLP
Ryan Sienkowski, CFO, Caesars Southern Indiana
Kristin Stuedle, CPA & partner, Stuedle Spears & Co.
Mitch Wagner, CFO, Maker's Mark
Shawn Woosley, CFO, Wehr Constructors Inc.
Adal Yousef, CFO, Denton Floyd Real Estate Group
Steve Zagar, CFO, Farm Credit Mid-America

FEI Louisville launches COVID-19 webinars and online resource list

Fri, 03 Apr 2020 00:00:00 GMT

Legal, HR, accounting webinars and websites available from FEI Louisville sponsor partners and FEI National

LOUISVILLE - COVID-19 is shredding business reality and plans of public and private companies alike. To make it easier for our members, FEI Louisville has aggregated a wide range of legal, HR, accounting and other business resources being offered by our sponsor partners to help you face this pandemic.

To access a calendar with upcoming COVID-19 related webinars and a list of sponsor websites providing the latest information and guidance, click the blue "FEI Partner Webinars & Resources" box at the lower right of this page.

For a replay of FEI's webinar featuring a panel of experts on the crisis, click here .

Other Coronavirus response resources are available through FEI National from https://www.financialexecutives.org/Topics/CrisisManagement/COVID-19-Tools-and-Resources.aspx

CARES Act Paycheck Protection Program Documents and Forms: https://www.financialexecutives.org/Topics/CrisisManagement/CARES-Act-Documents-and-Forms.aspx#.Xod0...

Centers for Disease Control and Prevention : Includes what you should know about the virus, situation updates, guidance for mass gatherings and information for travelers, businesses, and others.

U.S. Department of State Bureau of Consular Affairs : Information on travel advisories, presidential proclamations on travel restrictions, and information for U.S. citizens returning from Europe and China.

World Health Organization : R isk assessment and mitigation checklist for mass gatherings, which includes a decision matrix that provides a recommendation on whether an event should be held.

Meetings Mean Business Coalition : MMB's toolkit of coronavirus preparedness and response resources is tailored specifically for meeting and event professionals. It includes talking points, templates, and "fast facts" graphics that can be shared in social media.

U.S. Chamber of Commerce : The Chamber’s “Understanding the Coronavirus” webinar, recorded on January 27 in partnership with CDC, discusses the impact of the virus on the private sector and what businesses should consider as they respond.

U.S. Travel Association : Emergency Preparedness and Response: Coronavirus (COVID-19) . This toolkit includes guidance for travelers, a guide for communicating healthy travel practices, and other resources.

EY: Responding to COVID-19 : COVID-19 is an unfolding event bringing uncertainty to every business. To help you navigate through these unprecedented times, here you’ll find the most relevant EY insights on responding to volatility and building enterprise resilience.

Moody's: Coronavirus Effects : The economic and trade disruption caused by the coronavirus outbreak has spread from the APAC region to the rest of the world. The impact on economies, sectors and issuer credit profiles will depend on the severity and duration of the crisis.

FEI Louisville contact: Terry McWilliams | FEILouisville@gmail.com | 502.410.2113

FEI Louisville cancels March 17 chapter meeting

Thu, 12 Mar 2020 16:58:08 GMT

RE: FEI Louisville has cancelled its March 17 lunch meeting at the Pendennis Club.

Given the growing confluence of concerns about public health and safety, FEI Louisville has decided to cancel its March 17 lunch meeting. It’s never easy to take steps such as this, but we believe it’s in the best interest of everyone involved.

While FEI Louisville won’t have a March meeting, we intend to look at dates later this year to bring additional, relevant programming. If you are a non-member who paid to attend, please let us know if you want to apply it to a future meeting, or receive a refund.

We appreciate your understanding and look forward to providing engaging speakers and topics in future meetings. If you have any questions, please contact FEI Louisville at (502) 410-2113 or FEILouisville@gmail.com .

Sincerely,
Matthew Monteiro
President, FEI Louisville

March 12, 2020

FEI seeks the Best in Finance

Wed, 19 Feb 2020 18:52:07 GMT

Chapter is an event partner with Business First

Sponsored by FEI Louisville, the Business First Best in Finance awards recognize financial professionals for outstanding performance as corporate financial stewards. This year's awards ceremony is scheduled for June 16 at the Galt House Archibald Cochran Room. As of March 29, no announcement has been made regarding postponing the event.
To learn more about the nominating process, go to the "Best in Finance" tab .

Things to know about critical audit matters

Fri, 24 Jan 2020 17:34:30 GMT

The Louisville Ambassadors

Wed, 22 Jan 2020 19:57:00 GMT

New program aims to keep members active and engaged

FEI Louisville has launched a new Ambassador Program to help ensure members and prospective members have a great experience with FEI, see the value of membership, and are eager to become and remain members.

Ambassadors, who are chapter members or sponsors, have the opportunity to be very proactive and interact with members or prospective members they choose. Ambassadors can send a personal invitation to attend an upcoming meeting and introduce them to other attendees and presenters. They can develop a rapport with and understanding of their invited members, to learn what they expect from FEI membership and work to meet or exceed those expectations.

The program is being guided by Dale Gibbons, an operational excellence coach who is FEI Louisville's membership chairman. To learn more about getting involved, or linking up with an ambassador, contact Dale at dale@mentorship360.net or call administrator Terry McWilliams at 502.410.2113.

CNBC commentator and investor strategist Jason Trennert set to speak

Tue, 19 Nov 2019 19:50:45 GMT

Trennert and Baird Vice Chair Jim Allen peer into the 2020 economic crystal ball

FEI Louisville and ACG Kentucky present a special economic event featuring Jason Trennert -- a nationally renowned investment strategist -- and Jim Allen, longtime CEO of Hilliard Lyons and vice chairman of Baird.

The event takes place Dec. 10, starting with 11:30 a.m check-in at Baird's 12th Floor Conference Center, 500 W. Jefferson, downtown Louisville.

Among their investment and economic topics:

The possibility that we’re still relatively early in the business cycle

The Bull Market No One Loved

The Case for Value over Growth

The Unintended Consequences of QE

Valuation Issues More Serious in Private Markets than Public Markets

Thoughts on the 2020 election

Strategas Research Partners

Managing Partner

The event is free to FEI members and sponsors and ACG members. Non-members may attend at a cost of $60. Go to the registration site here .

Trennert is the managing partner of Strategas Research Partners LLC and the chairman and chief executive officer of the firm's broker-dealer subsidiary, Strategas Securities, LLC. Prior to co-founding Strategas in 2006, Mr. Trennert was the chief investment strategist and a senior managing director at International Strategy & Investment Group where he built and oversaw two of that Firm's most popular research efforts, its Company Surveys and Investment Strategy groups.

Widely quoted in the domestic and foreign press, Mr. Trennert is a regular guest host on CNBC's "Squawk Box" and "Bloomberg Surveillance" with Tom Keene. He is the author of three books on investing and the investment business, including his 2015 "My Side of the Street."

Allen, the Chairman and CEO of Hilliard Lyons since 2004, led the company's 2019 merger with Baird and is currently Vice Chair. Jim is active in the financial services industry and with the Securities Industry and Financial Markets Association, where he serves on the board.

His civic service includes leadership with the Jefferson County Public Education Foundation, Greater Louisville, Inc., the Fund for the Arts, and the Metro United Way Campaign for Greater Louisville.
A Chartered Financial Analyst, Allen also serves on the Advisory Board for the University of Louisville School of Business, the Board of Trustees of Bellarmine University, and the Dean’s Advisory Council for the Fisher College of Business at the Ohio State University. Jim holds a bachelor’s degree in economics from DePauw University and an MBA in finance from the Ohio State University.

Event contact: Terry McWilliams, 502.410.2113 or feilouisville@gmail.com.

2019 Best in Finance honorees

Tue, 18 Jun 2019 19:47:40 GMT

FEI Louisville members Cox, Schulz honored at Finance banquet

FEI Louisville members Danette Cox (Appriss, Inc.) and Helena Schulz (Norton Healthcare) were honored at the Business First Best in Finance banquet. Some 25 finance executives from the region were recognized for excellence in the positions they hold for public and private companies in the Louisville Metro region.

FEI national reduces executive member dues

Fri, 14 Jun 2019 16:57:18 GMT

Other member categories standardized at $299

Andrej Suskavcevic, FEI's President and Chief Executive Officer, today announced that the board of directors approved changing national dues in all membership categories for new and renewing Members.

Effective July 1, all new Members joining the association as an Executive Member will be charged national dues of $399, a reduction of $100. All other categories (excluding life retired) will be standardized to $299. All renewing Members will be charged the same dues rate changes, effective August 1.

NEW Members to FEI

Executive Category

At July 1, 2019 - $399 national dues (No chapter-level fees for FEI Louisville members)

In-transition | Government/Military | Academic Categories

At July 1, 2019 - $299 (No chapter-level fees for FEI Louisville members)

RENEWING Members of FEI

Executive Category

At August 1, 2019 - $399 (No chapter-level fees for FEI Louisville members)

In-transition | Government/Military | Academic | Entrepreneur Retired Categories

At August 1, 2019 - $299 (No chapter-level fees for FEI Louisville members)

Life Retired Category

At August 1, 2019 - $1,500 (No chapter-level fees for FEI Louisville members)

Should you have any questions, please contact FEI’s Member Services and Chapter Support Department via email, chaptersupport@financialexecutives.org . FEI Louisville members, contact administrator Terry McWilliams at 502.410.2113 ( feilouisville@gmail.com ).

Cybersecurity experts lay out the threats

Thu, 16 May 2019 16:52:06 GMT

At FEI Louisville's May meeting, Garrett Pieratt, Crowe LLP cybersecurity consultant, discusses the cybersecurity threats facing companies. He was joined by Crowe expert Andre Fomby.

An FEI Social, hosted by Norton and SIHO

Wed, 13 Mar 2019 00:00:00 GMT

Breakthrough strategies to manage health care costs

LOUISVILLE - The Louisville chapter of Financial Executives International (FEI), Norton Healthcare and SIHO Insurance Services hosted an exclusive discussion on breakthrough strategies to proactively manage health care costs.

Over bourbon tastings and hors d'oeuvres, of course.

The event, at the Rabbit Hole Distillery in downtown Louisville, provided members and guests an evening of fun and insights into total solution health partnerships.

Against the backdrop of health insurance premiums increasing at an unsustainable rate, CFO peers and colleagues heard industry leaders discuss ways to help people access the best quality care at the most affordable rates. At the event and afterward, the financial executives provided feedback directly to Norton Healthcare and SIHO Insurance Services.

The speakers were Adam D. Kempf, Senior Vice President, Chief Financial Officer, Norton Healthcare and Allison Ledford , Director, Employee Wellness.

Kempf has served as senior vice president and chief financial officer since 2017, and manages operating and capital budgets, account systems, audits and long-term financial planning. Ledford leads N Good Health, Norton Healthcare’s employee wellness program, and brings this workforce background to the organization’s employer relations strategy group.

Rabbit Hole Distillery is one of the relatively new additions to the downtown Louisville landscape. The Kentucky-based craft bourbon and whiskey distiller, is located in a contemporary, industrial-chic facility "that raises the bar in the science of distillation and the art of hospitality," said its CEO, Kaveh Zamanian.

Hemp's rapidly expanding presence

Wed, 13 Feb 2019 17:18:41 GMT

Ananda Hemp marketing director explains why to FEI-Louisville

Reporter David Mann covered the Feb. 12 FEI-Louisville meeting.

"Kentucky had 33 acres of hemp growing in 2015.

"Back then, I'm sure we thought it was a big deal to see such a large swath of soil devoted to a plant that, decades ago, had been declared illegal.

"This year, 42,000 acres of this crop are expected to be planted in Kentucky, according to Samantha Timmerman n, marketing manager for Ananda Hemp Ltd., a grower and manufacturer that operates out of Cynthiana, Ky. Timmerman spoke Tuesday afternoon to the Louisville chapter of Financial Executives International at the Louisville Water Tower."

To read the rest of his report, go here to the Business First site. (You must have a subscription to access his article.)

Hilliard and Baird execs talk merger transaction

Thu, 17 Jan 2019 00:00:00 GMT

LOUISVILLE (Jan. 17, 2019) -- In the wake of the Hilliard-Baird transaction announcement, FEI Louisville and ACG Kentucky featured Hilliard Lyons CEO James Allen and Baird Vice Chair John Taft. Jim and John discussed Hilliard's heritage and provided additional color about Baird and the future of the company in Louisville.

The sale of Hilliard Lyons came together quickly after a conversation last summer between officials of the Louisville-based financial firm and its largest shareholder, Houchens Industries Inc. ( Click here to read more from David Mann at Business First)

In November, HL Financial Services, LLC signed a definitive agreement allowing Hilliard Lyons and Hilliard Lyons Trust Company to join Baird. Baird, headquartered in Milwaukee, is an international, employee-owned wealth management, capital markets, private equity and asset management firm with more than $200 billion in client assets. The transaction is expected to close in the first half of 2019.

Established in 1854, Hilliard Lyons is one of the nation’s oldest investment firms and has nearly 1,000 employees, including more than 380 financial advisors, operating in more than 70 offices in 11 states. Along with its sister company Hilliard Lyons Trust Company, the firm offers wealth management, trust, and estate planning services, as well as investment banking, municipal finance, and asset management services. It has over $50 billion in client assets and had more than $280 million in revenue for its fiscal year ended September 30, 2018.

Baird, established in 1919, has more than 3,450 associates, including 890 financial advisors, working from 97 locations in 30 states.

About FEI:

The Louisville chapter connects about 100 senior-level financial executives -- CFOs, Finance VPs, Controllers and Treasurers -- from private and public companies, associations, foundations and academia. We’ve engaged Kentucky and Southern Indiana execs for more than 75 years, highlighting issues that impact CFOs and their companies, building foundations for trusted relationships with peers, and providing opportunities to learn and share wisdom and resources.

About ACG:

ACGKentucky is focused on fostering corporate growth in Kentucky and Southern Indiana through an ecosystem that engages corporate executives, bankers, attorneys, accountants, risk management, private equity and M&A professionals. As part of the global ACG network, ACG Kentucky offers programs that provide insight on capital formation trends and important local and national issues. ACGKentucky connects members through its monthly speaker series, the Mid-South ACG Capital Connection, and other educational and business events.

Contact for FEI and ACG:

Terry McWilliams, President, Mozaic Investor Relations, Inc. Phone: 502-410-2113. Emails: feilouisville@gmail.com, acgkentucky@gmail.com, terrym@mozaicir.com

Spring 2019 FEI-Louisville chapter events

Tue, 18 Dec 2018 00:00:00 GMT

(Updated Feb. 13, 2019)
FEI-Louisville's Spring 2019 programs:

March 12 : Chris Ryan, VP, Strategic Advisory Services, ADP, "What in the world is happening with benefits?" Breakfast. Location: Big Spring Country Club.
March 19: Evening social hosted by Norton Healthcare, SIHO Insurance and FEI Louisville - Innovations in managing health care costs. Location: Rabbit Hole Distillery.
April 16 : Darren Srebnick, Internationanl Trade Manager, World Trade Center, Kentucky, "Commerce, Tariffs, Trade Wars and the Economy."
May 14 : Glen Combs, Partner, Crowe, "Hold on to your (virtual) wallet: Cyber Security and more." Location: Louisville Water Tower.
June 13: Business First "Best in Finance" honors program.

Previous events this chapter year:

Hilliard Lyons Chairman and CEO Jim Allen and Baird Vice Chair John Taft discussed the pending transaction joining Hilliard Lyons with Baird, an employee-owned wealth management, capital markets, private equity and asset management firm.
Samantha Timmermann, VP Marketing, Ananda Hemp, "The future of hemp in Kentucky."
Bill Engelking, managing director, Prudential Capital Group, "The state of today's capital markets."
James E. Glassman, Managing Director & Head Economist, Chase Bank, New York. Glassman, managing director and head economist for Chase's Commercial Banking division, provides market insights on the economy and impacts on business.
Dan Issel, ABA-NBA all star working to bring the NBA to Louisville;
Scott Koloms, CEO of Kentucky's first B-Corporation;
Ax-throwing (yes, really).

Additional information about FEILouisville and events can be obtained from the FEI Louisville website or by contacting Administrator Terry McWilliams at 502-410-2113 or feilouisville@gmail.com.

fei-louisville

A Brief Welcome from Incoming President Uric Dufrene

Uric Dufrene

Economic impacts on Kentucky and Indiana

National manufacturing impact on regional payrolls -- with rate cuts are on the horizon

My final President's column

Jim Schildt shares his thoughts

Vaco and HIG events available to FEI members

Register for June 18 events

Will consumers finally tap on the brakes?

Spending has slowed unexpectedly

Amy Szymansky and Michelle Kerstine join FEI Louisville

Michelle Kerstling, Chief Financial Officer, Dismas Charities (left) and Amy Szymański, Senior Director of Finance, American Printing House for the Blind

Zachary Taylor succeeds Dave Lewis as FEI treasurer

Dave served the board as treasurer since 2006

Steve Klasskin, new FEI member

Please welcome Family Allergy & Asthma's CFO to our organization of financial executives

Benchmarking Sustainability Efforts

Climate reporting is happening

Accolades, trophies and certificates

Who do you associate with?

Expect fewer interest rate cuts this year

The catalyst: higher than expected inflation

President's Corner - 10 Critical AI Impacts on Accounting and Finance

Jim Schildt's view of where AI will influence the accounting and finance landscape

Get to Know: Michael Chase

Q&A with New FEI Director-at-Large

Welcoming new members Chris Taft and Kevin Trotta

The latest CFOs to join FEI Louisville

Tracking trends in audit fees

FEI members can readily access the FERF study

President's Corner - Handling Workplace Stress

Strategies to cope with stress

Uric Dufrene weighs in on Meta's $800 million Indiana project

Business First taps Dufrene for comment

Finance & accounting job openings

Month of January 2024

A New Year

President's Corner: January 2024

Do new finance graduates have what it takes to succeed?

A new survey raises some eyebrows

President's Corner - November 2023

Lessons for performance

Bellarmine year-end CPE event scheduled for Dec. 19

FEI Louisville member discount available

A Slowdown on the Horizon?

Is the Fed done raising interest rates?

How do public accounting firms benefit from nearshoring solutions for talent relief?

A shortage of public accountants challenges accounting firms’ ability to deliver services

In 2020, nearly 75% of CPAs in the workforce reached retirement age or older. That and other factors are contributing to an extreme shortage of public accountants.

-- American Institute of Certified Public Accountants

St. Louis FRB CEO/President addresses FEI and local financial groups

Sell out event included ACG and CFA members

Meet Doug Wickenheiser

FEI membership chair talks about influences

PRESIDENT'S CORNER: October 2023

Recession or not? Ideas to navigate a downturn

Educating the next generation of business leaders

(Or how to find a cool volunteer gig and travel America - or perhaps the world!)

PROFILE: Katrina Green

Working to make FEI a more diverse organization

IUS aims to partner with business to fuel the region's growth

IUS chancellor reaches out to FEI and the finance community

President's Corner - September 2023

My inaugural message to the finance community

Teamwork and process improvement: both vitally important

Change is going to happen. Manage it.

FEIconnect - a benefit you may be overlooking

﻿ FEI members everywhere can help solve issues

FEI Louisville member/sponsor directory is live!

Password protected site open to members & sponsors

Sales Tax Holidays are No Vacation for Tax Teams

Best Practices

A board lens on final SEC cybersecurity rules

How to gain competitive edge through targeted digital finance

Tools needed to drive the transformation

CFO to CEO: Tips for Finance Leaders Who Want A Shot At The Corner Office

Congratulations to FEI Louisville "Best in Finance" winners

Mark Hohman on strengthening relationships with customers

New FEI member Dub Newell

FEI members everywhere can help solve issues

Accounting and valuation for the financial instruments that fuel the booming special purpose acquisition company market.