Horatio Alger Association of Distinguished Americans – Bringing Reliability, Consistency and Sophistication to the Financial Management Process through Outsourced Accounting

(October 20, 2005)

Founded in 1947, the Horatio Alger Association of Distinguished Americans continues to honor the achievements of outstanding individuals in our society who have succeeded in spite of adversity and to encourage young people to pursue their dreams through higher education.

As one of the nation’s largest college financial aid programs, the Horatio Alger National Scholars Program is the only major scholarship effort that specifically assists high school students who have faced and overcome great obstacles. While many aid programs are directed primarily at recognizing academic achievement or leadership potential, the Horatio Alger program also seeks students who have a commitment to use their college degrees in service to others.

The Association brings the “Horatio Alger Heroes” of today together with those of tomorrow by bestowing the Horatio Alger Award each year and by awarding more than $5 million annually in college scholarships to young people. The Association also provides its scholarship recipients with financial aid counseling, internship and job placement assistance.

The Challenge: Turnover in the Accounting Department

The Horatio Alger Association of Distinguished Americans has outsourced all of its financial functions since 1988. Their growth and operational changes has attributed to the financial functions becoming increasingly more complex over the years. The financial statements became more difficult to complete in an efficient and timely manner. Terrence J. Giroux, the Executive Director, decided to look for more sophisticated outside assistance.

To assist the association’s accounting functions, Giroux turned to Halt, Buzas & Powell.

“Initially, more than anything else, we chose HB&P because of their location – their offices are in the same building as ours, one floor down,” explained Giroux.

The Solution: Relief of the Day-to-Day Accounting Pressure and Production of Impeccable Monthly Financial Reports and Analysis

HB&P’s Steve Halt knew that Terry Giroux needed to stabilize Horatio Alger’s accounting and financial management functions quickly, deliver timely and reliable reports to the Board of Directors, and prepare for the annual audit. He also knew that the organization would benefit from a higher level of financial analysis and advice than the previous outsourcing firm was providing. “We were able to transfer all of Horatio Alger’s accounting information on our Great Plains software platform fairly quickly,” said Halt. “In addition to being ideal for non-profit accounting, Great Plains offers the added value of being Internet accessible 24/7, 365 days a year. The Internet accessibility gives our outsourcing clients a high level of comfort, knowing they have direct access to their financial information at any time. Great Plains also has a solid performance track record and great local customer service support in the greater Washington area.”

Halt, Buzas & Powell did more than simply transfer records and develop accurate financial statements. “As we got Horatio Alger’s day-to-day accounting system in order, our management team also developed a customized Financial Policies and Procedures Manual for the organization, which we still follow today, to the letter.

“The manual includes a monthly processing checklist, which ensures that each month all the required accounting functions are completed. It also provides for consistent, organized two-way communications with the client.”

The Result: Professionalism and Stability

Together, Halt, Buzas & Powell’s skilled management team and the superior functionality of the Great Plains software gave Horatio Alger the stable, reliable and sophisticated financial management structure the association needed.

“We are immensely pleased with the professionalism of the HB&P staff,” said Giroux. “They have managed our accounts well and they are always pleasant, personable and proficient. We can obtain assistance regarding accounting issues at any time of the day and interact with them frequently.

“My staff and I no longer need to devote so much time to certain areas of responsibility because these functions are being overseen by HB&P accountants.”

The Bonus: Reduced Operating Costs

Outsourcing its accounting to Halt, Buzas & Powell has resulted in significant cost savings to Horatio Alger. In order to complete all the accounting that HB&P currently handles, Horatio Alger would need to employ 4 or 5 full-time employees. Instead, Horatio Alger does not have any employees that are solely responsible for its accounting functions. Their employees are able to dedicate their time to fulfilling their organization’s mission.

Another Bonus: High Ratings from the Auditors

A big issue for us every year is our audit by KPMG,” Giroux explained. “We have received extremely high ratings by KPMG over the past several years because of the expert management of our accounts by HB&P. Specific examples of their management: HB&P helped the Horatio Alger Association move from issuing paper scholarship checks to the electronic transfer of funds. They now totally manage our scholarship disbursement process. HB&P has also been most helpful when the association has shifted responsibility for the management of its assets with different investment firms.”

About Halt, Buzas & Powell

Halt, Buzas & Powell is more than an accounting firm. Founded in 1969, HB&P is a full-service CPA and Management Consulting firm located in Alexandria, Virginia. Its partners bring more than 80 years collective experience in financial management to each and every client. Their devotion to service, quality and value has led to HB&P being recognized by Washingtonian magazine as one of the Washington area’s top CPA firms for service, and by the Washington Business Journal as one of the Washington area’s top 50 CPA firms for size. For more information call Steve Halt at 703-836-1350 or visit HB&P online at www.cpas4you.com.