How has the role of CFO evolved over the past few years as a result of increased scrutiny from state and federal regulators and corporate governance requirements?
Transparency is more important than ever. This has always been a very high priority at Foodshare, so I think we’re just doing more of what we’ve always done in the past. Financial information is now available on the web site, for example.
I think it’s very important for the CFO to help senior management and the board of directors create an internal environment in which all staff members feel that they are part of the financial success of the organization. And, it’s important for our reporting to be clear and accurate so that the donors, corporations, foundations, government agencies and others who invest in our mission are confident that their resources are being put to good use each and every day.
I’m spending more time with management and board committees. We’ve added an Audit Committee, Retirement Plan Committee and Risk Management Committee over the past four or five years. We also changed the way the Executive Committee reviews executive compensation a number of years ago in response to guidance issued by the IRS. And, speaking of the IRS, we spent time making sure we adequately addressed all the governance-related questions included in the recently revised Form 990, which is the nonprofit tax return.
What talents and credentials do you perceive as essential for a CFO to be qualified and succeed in today’s business environment?
An ability and desire to work with people and not just numbers is a must. Successful CFOs must be able to build relationships with all types of people, both inside and outside our organizations. We must also have the ability to think strategically and be excellent communicators. A broad-based business perspective is necessary, as are technical accounting and finance skills. I think a technical undergraduate degree (engineering, education, social work, economics, etc.) together with an MBA or MPA is a terrific combination. And, of course, on-the-job experience with as many organizational functions as possible can’t be beat. The exposure to numerous industries, functions and levels of management that I got as a Price Waterhouse consultant way back when, still stands me in good stead today!
How has today’s difficult economy affected your role as CFO?
Today’s circumstances have reinforced for me how important it is to do things right when times are good. Having a strong foundation in place is what gets your organization through the tough times. You can’t underestimate how important it is to pay attention to things like establishing credibility, creating an environment of transparency, building the financial capacity of the staff, living within your means, building reserves, creating and following policies and procedures, reporting clearly and accurately, maintaining strong relationships internally and externally, and communicating regularly with management and the board of directors.
The difficult economy has made it more important than ever to make sure we have a good understanding of how today’s planning and budgeting decisions impact tomorrow’s bottom line. Our annual budgeting process includes the year in question plus the development of assumptions and projections for another three years. In uncertain economic times, expenses are inevitably projected to increase faster than our revenue forcing us to begin thinking about contingency plans well in advance of potentially needing to implement them.
What are the top challenges you face in your role as CFO?
It’s a never-ending challenge to keep up with new developments and best practices. Fortunately, I’m not the only one at Foodshare who tries to keep on top of these things. We read various relevant publications and newsletters, look at web sites and attend workshops. I make sure that I maintain strong relationships with the experts who advise us both formally and informally in the areas of accounting standards, insurance, investments, compensation, legislation, etc. I take my responsibility to alert senior management and board committee(s) about relevant changes very seriously. Always wanting to be sure to use our resources effectively, we sometimes have to figure out ways to comply with the spirit of new requirements or to implement new best practices without going overboard.
What aspects of your role bring you the most job satisfaction?
Being part of a dynamic team that is working to end hunger in our community is really important to me. I’m not on the front lines of that work, but I get tremendous satisfaction from knowing that my role on the team is also critical to Foodshare’s ability to manage its resources and accomplish its mission efficiently and effectively. It’s rewarding working closely with the business office staff, all of whom take great pride in accomplishing their work accurately and on time month in and month out. I couldn’t do my job without them. I also enjoy working with all different types of people and helping them see that the financial aspects of the organization aren’t as difficult to understand as they might think. I love to see the light go on when I’m explaining something to a non-financial person who is convinced that numbers just aren’t his or her thing. And hearing from the auditors that there are no significant audit adjustments, material weaknesses, or significant deficiencies never gets old!
Name: Ann E. Thomas
Title: Chief Financial Officer
Company: Foodshare Inc.
Company headquarters: Bloomfield
Age: 59
Hometown: West Hartford
Education/credentials: MBA, University of Michigan Ross School of Business, courses in MS Accounting program, University of Hartford
