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?
The role of CFO has changed immensely over the past few years. In the past, CFOs were responsible for maintaining books in accordance with generally accepted accounting principals which were more straightforward than they are today. Accounting rules are constantly changing and evolving and a CFO needs to monitor and implement these changes as needed. With the increased scrutiny from state and federal regulators, CFOs need to ensure controls and standards are established and adhered to for the protection of the organization. This level of scrutiny has made us better accountants.
What talents and credentials do you perceive as essential for a CFO to be qualified and succeed in today’s business environment?
The CFO’s responsibilities go beyond that of ensuring proper accounting controls. I believe a CFO needs to work hand in glove with senior management. A CFO needs to have the ability to understand the story being told by the numbers and communicate that story to senior management and others. The CFO brings an analytical viewpoint and tools for determining where an organization needs to go in the future. Without these tools, an organization will become stagnant. For financial modeling and forecasting, it is essential for a CFO to seek out information and listen to a variety of viewpoints to determine how to incorporate the information into the model. It is also essential for a CFO to have strong computer skills and be open to organizational changes.
How has today’s difficult economy affected your role as CFO?
As a CFO in a multi-site not-for-profit long term care organization, I face incredible challenges as government funding declines and expenses rise. I have found that I am relied upon more and more for guidance and ideas to address these challenges. We need to look for system efficiencies within each of our organizations. Being part of a multi-site organization allows us to compare and contrast our own communities. These benchmarks along with industry benchmarks are critical for analysis. Being part of a not-for-profit organization offers unique challenges. More and more we are seeking grants and donations to supplement revenue shortfalls. Although financial reporting and accounting controls are the backbone of my responsibilities as CFO, strategic planning for program growth and development has become a key function within our organization. Financial modeling and forecasting has become a large part of my role as CFO.
What are the top challenges you face in your role as CFO?
The biggest challenge I have faced as the CFO of this organization has been in keeping up with the changes within the organization. We are part of the Central Connecticut Health Alliance. I am the CFO for the long term care group of this organization which includes Jerome Home, Arbor Rose at Jerome Home, Southington Care Center, The Orchards at Southington, Mulberry Gardens of Southington and The Connecticut Center for Healthy Aging. When I joined this organization 15 years ago we were one nursing home. We have grown to two nursing homes and three assisted living communities. Each community maintains its own set of financial records, operating budgets and capital budgets. The two nursing homes are subject to Medicaid and Medicare reporting requirements and Medicaid audits. During the last 15 years we have gone through multiple bond financing projects, an acquisition and three construction projects. The bond financing and construction projects were especially challenging. In addition to the building and acquisition, we have diversified our services offered within each of the communities. Each new endeavor has created challenges and learning opportunities that are both exciting and fulfilling.
The increased scrutiny from state and federal regulators has also become one of my biggest challenges. In long term care we have additional reporting requirements which can change from year to year. To stay current with these requirements, I am involved with the Connecticut Association for Not-for-Profit Providers for the Aging (CANPFA) and the Association for Long Term Care Financial Managers (ALTCFM). Both of these excellent organizations offer a variety of educational programs and networking opportunities.
What aspects of your role bring you the most job satisfaction?
There are many aspects of my job that I find satisfying. Having an office located in a nursing home adds immensely to job satisfaction. Being part of a non-profit organization that believes in patient-centered care has allowed me to become more than a CFO. I have had the pleasure of spending time with our residents. Most recently I spoke with a group of residents in each community sharing my interest in the Tour De France. Opportunities for interactions like that make my role as CFO unique
Our president and vice president have encouraged and supported me as I have grown with the organization. I am very fortunate to work with a management team that challenges and inspires me. I have built a team comprised of individuals who possess unique strengths. I find great satisfaction in their growth as they gain confidence in their abilities.
Name: Carol Barno
Title: Chief Financial Officer
Company: Central Connecticut Senior Health Services
Company headquarters: Southington
Age: 43
Hometown: Rocky Hill
Education/Credentials: B.S., Accounting, Central Connecticut State University; A.S., Business Administration, Manchester Community College
