Post by Ginny Andrews on Aug 31, 2021 20:59:11 GMT
Scenario #1: Go/No Go Analysis
• What are the major (obvious and not so obvious) risks of this contract?
• Financial & business risks-if previous team was unable to meet milestones/metrics—may be risky to take on
• Reputational Risk—if we are unable to meet metrics—puts our reputation at risk for future contracts
• Tight timeline for implementation that could impact success puts us at business risk. Do we have current staffing and supports to handle taking on a tight timeline?
• What should be done early to ensure that the contract does not fail?
• Immediate connection with other programs within Fedcap that are similar to discuss how to implement
• Contacts/meetings with area business connections/stakeholders for support
• Assign experienced staff who are already familiar with services to lead/provide guidance and support
• Have clearly defined goals and outcomes
• Clear communications with the new/onboarding staff of our mission and how we will support them
• Constant monitoring of strategies and milestones met/unmet
• What are some of the tripwires that the program director needs to be able to monitor should the company move forward? How will that measurement occur?
• The Director would need to set specific timeline for follow up with direct program staff to ensure that milestones are being met
• Immediate changes when we see that we are not meeting goals. What changes need to be made? Who else can assist? Constantly using critical thinking skills and making changes and adjustments.
• Monitor income and expenses closely so we do not overspend or be underpaid– especially in early days of contract.
• How can you negotiate this contract to mitigate as much risk as possible?
• Can we have a longer timeline to implement? Or –can we get initial months of contract to be paid upfront? Can we delay timeframe for when we get paid on milestones vs. direct payment?
• Make sure we are comfortable with the metrics. Are those reasonable metrics—since prior service provider could not succeed. How can we change the metrics that will be successful?
Additional Questions:
• Get feedback from previous/current participants. What worked for them? What didn’t?
• What are our projected costs for overhead/staffing/office spaces/etc.?
• Total anticipated income from the project? What do we need to break even--and what will we do if we do not meet metrics and do not have income from contract as planned?
• What is the specific payment for each metric?
• What were the past performance measurements and how much did the previous provider receive and what were their losses?
Scenario #2: Fraud, Control and Compliance
• Was a fraud committed? Are there any compliance issues?
Since we do not have the contract available, it is difficult to say if fraud was committed or if there were compliance issues. There are certainly “red flags” in some of these behaviors. The City Agency may be non-compliant if they have not been meeting with us according to terms of our contract. Does our contract state they will meet at certain timeframes? Do we know what the terms of the contract were regarding what expenses can be covered/paid?
• What were the risks involved with this contract?
We certainly are placed at great financial and reputational risk due to this contract. We are unsure of the business practices – and are not receiving payments timely due to improper coding. If we are not able to successfully perform the tasks outlined in our contract—we are at risk of this becoming a reputational risk when looking for other contracts. We now are aligned with a company that allows/support inappropriate and potentially fraudulent business practices.
• How could you have mitigated them?
We should have investigated and gotten more information on why would we provide a service/program that is also being provided by another not-for-profit? Did we not investigate the City Agency’s reputation and business practices prior to going into an agreement with them? Asking more questions about reputation and quality of services would be key to mitigating potential risks.
• What specific controls should we have implemented?
We should have specifically had controls in place when there was non-payment of services. Is there a way to add additional “late fees” that would assist with those billing issues?
Make sure that we have additional contact people that we can discuss concerns about billing and potential inappropriate behavior with. Those initial concerns of high-cost dinners and gifts would have been an immediate red flag to be brought to light. In addition, having clear guidance/rules/regulations regarding allowable costs is needed.
• Are there any lessons learned?
Going forward, we would want to ensure that we have as much information about a potential combination agency as possible. What is their reputation? Are they currently on solid financial background? What is their history?
We definitely needed to have more specific expectations and guidelines built into the contract that would cover any potential billing issues and define allowed expenses.
• What are the major (obvious and not so obvious) risks of this contract?
• Financial & business risks-if previous team was unable to meet milestones/metrics—may be risky to take on
• Reputational Risk—if we are unable to meet metrics—puts our reputation at risk for future contracts
• Tight timeline for implementation that could impact success puts us at business risk. Do we have current staffing and supports to handle taking on a tight timeline?
• What should be done early to ensure that the contract does not fail?
• Immediate connection with other programs within Fedcap that are similar to discuss how to implement
• Contacts/meetings with area business connections/stakeholders for support
• Assign experienced staff who are already familiar with services to lead/provide guidance and support
• Have clearly defined goals and outcomes
• Clear communications with the new/onboarding staff of our mission and how we will support them
• Constant monitoring of strategies and milestones met/unmet
• What are some of the tripwires that the program director needs to be able to monitor should the company move forward? How will that measurement occur?
• The Director would need to set specific timeline for follow up with direct program staff to ensure that milestones are being met
• Immediate changes when we see that we are not meeting goals. What changes need to be made? Who else can assist? Constantly using critical thinking skills and making changes and adjustments.
• Monitor income and expenses closely so we do not overspend or be underpaid– especially in early days of contract.
• How can you negotiate this contract to mitigate as much risk as possible?
• Can we have a longer timeline to implement? Or –can we get initial months of contract to be paid upfront? Can we delay timeframe for when we get paid on milestones vs. direct payment?
• Make sure we are comfortable with the metrics. Are those reasonable metrics—since prior service provider could not succeed. How can we change the metrics that will be successful?
Additional Questions:
• Get feedback from previous/current participants. What worked for them? What didn’t?
• What are our projected costs for overhead/staffing/office spaces/etc.?
• Total anticipated income from the project? What do we need to break even--and what will we do if we do not meet metrics and do not have income from contract as planned?
• What is the specific payment for each metric?
• What were the past performance measurements and how much did the previous provider receive and what were their losses?
Scenario #2: Fraud, Control and Compliance
• Was a fraud committed? Are there any compliance issues?
Since we do not have the contract available, it is difficult to say if fraud was committed or if there were compliance issues. There are certainly “red flags” in some of these behaviors. The City Agency may be non-compliant if they have not been meeting with us according to terms of our contract. Does our contract state they will meet at certain timeframes? Do we know what the terms of the contract were regarding what expenses can be covered/paid?
• What were the risks involved with this contract?
We certainly are placed at great financial and reputational risk due to this contract. We are unsure of the business practices – and are not receiving payments timely due to improper coding. If we are not able to successfully perform the tasks outlined in our contract—we are at risk of this becoming a reputational risk when looking for other contracts. We now are aligned with a company that allows/support inappropriate and potentially fraudulent business practices.
• How could you have mitigated them?
We should have investigated and gotten more information on why would we provide a service/program that is also being provided by another not-for-profit? Did we not investigate the City Agency’s reputation and business practices prior to going into an agreement with them? Asking more questions about reputation and quality of services would be key to mitigating potential risks.
• What specific controls should we have implemented?
We should have specifically had controls in place when there was non-payment of services. Is there a way to add additional “late fees” that would assist with those billing issues?
Make sure that we have additional contact people that we can discuss concerns about billing and potential inappropriate behavior with. Those initial concerns of high-cost dinners and gifts would have been an immediate red flag to be brought to light. In addition, having clear guidance/rules/regulations regarding allowable costs is needed.
• Are there any lessons learned?
Going forward, we would want to ensure that we have as much information about a potential combination agency as possible. What is their reputation? Are they currently on solid financial background? What is their history?
We definitely needed to have more specific expectations and guidelines built into the contract that would cover any potential billing issues and define allowed expenses.