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Restoring financial rigor in a subsidiary after an audit

Focus on a subsidiary of a large group

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Background

WITH ALMOST NONEXISTENT FINANCIAL OVERSIGHT, THE AUDITOR OF A LARGE GROUP DEMANDED THAT THE ACCOUNTS OF ONE OF ITS SUBSIDIARIES BE PUT IN ORDER.

 

The auditor of a large group raised concerns about the financial statements of a subsidiary. The financial oversight of one of the group’s subsidiaries was insufficient or even non-existent.

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Despite the small size of the subsidiary, it was essential to avoid a qualified auditor’s report for the subsidiary. The subsidiary operated on a project basis, but each project manager worked somewhat blindly, with little visibility on costs, profits, and needs. This led to provisioning for nonexistent charges, failing to close completed projects, and other issues. The auditor therefore demanded that the accounts for the 15 most important projects of the subsidiary be put in order for the closure of the current financial year.

The parent company called on Altesia to assess the financial maturity of its subsidiary and restore budgetary orthodoxy.

 

 

Our Approach

When Chiara Roelens, the financial controller assigned by Altesia, joined the subsidiary on December 1, 2023, the stakes were high: the year’s accounts had to be validated by March 31, 2024.

 

To meet this tight deadline, she quickly defined an action plan focusing on the company’s 15 largest projects, in close collaboration with the group and the auditor.

  • Diagnostic and Initial Assessment

    To establish a clear diagnosis, Chiara began by interviewing each project manager and thoroughly analyzing project budgets and timesheets, comparing them to actual results. Her findings revealed a lack of budgetary methodology: some projects showed negative margins, and several Excel files were either incomplete or contained incorrect formulas.


    She then created a comprehensive file consolidating the initial budgets, verified actuals, forecasts, and final results — a major cleanup effort that laid the groundwork for sound financial management.

  • Building a Financial Culture

    Beyond the technical analysis, Chiara faced a deeper challenge: instilling a financial culture within the subsidiary and standardizing financial practices among project managers. Many had never been required to manage or control budgets rigorously, making this a sensitive, human-centered mission.


    Her soft skills proved essential in building trust and engagement, ensuring financial control became a shared responsibility rather than a constraint.

  • Convincing Leadership and Driving Change

    To anchor these new practices, Chiara organized demonstrations and presentations to the subsidiary’s leadership, including the CEO and CFO, illustrating the tangible benefits of regular financial planning and budget monitoring.


    Through clear communication and practical examples, she successfully showcased the strategic value of financial discipline, helping the subsidiary take a major step toward greater transparency and efficiency.

Altesia_Chiara Roelens

Results

By March 31, 2024, Chiara was able to close the group’s 2023 accounts. Not only did she manage to make the accounts of the 15 largest projects of the design office coherent, but also those of all other projects.

She also ensured the handover of the procedure documentation to the incoming controller, whether mandated by Altesia or found within the group, to ensure continuity of service.

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Chiara succeeded in convincing the CEO, CFO, and project managers of the necessity of maintaining financial discipline. She developed a methodology so that project managers could track their budgets and update them according to project progress and encountered challenges. From now on, they must report monthly and revise their forecasts if necessary. Chiara has established financial follow-up meetings for projects, as well as a procedure for closing projects.