Case Study
Rye Country Club
CASE STUDY: Rye Country Club-A Municipality Owned Private Golf/Pool Club
LINK TO ARTICLE: https://ryerecord.com/good-news-for-current-and-future-rgc-members/
Fiscal 2013 Lopolito was hired as Interim General Manager to rebound the operations of the Club.
A $6.5 Million Revenue Private Municipality Country Club was experiencing a deficit of over $200 thousand per year for five years running.
Significant Concerns Observed by Lopolito (LHC)
Development Actions Implemented by Lopolito (LHC)
Outcome
LINK TO ARTICLE: https://ryerecord.com/good-news-for-current-and-future-rgc-members/
Fiscal 2013 Lopolito was hired as Interim General Manager to rebound the operations of the Club.
A $6.5 Million Revenue Private Municipality Country Club was experiencing a deficit of over $200 thousand per year for five years running.
Significant Concerns Observed by Lopolito (LHC)
- Insufficient management controls occurring.
- Accounting principles were vague and GL Codes had unrelated disparities in postings, as well as, other budget discrepancies.
- Large money transfers between key managers had no log or receipt accountability.
- RFP procedures were not followed and excessive contractor expenses were evident.
- Fraud by the senior manager was uncovered and became a public, creating challenges to retain current or build new memberships.
- A costly broken underground water line was not discovered for at least two years.
- The “Clubhouse” lost all staff due to the fraud situation and the food and beverage business was closed.
Development Actions Implemented by Lopolito (LHC)
- LHC adjusted accounting practices, created new GL Codes, and created an ongoing build from the bottom up budget process.
- LHC initiated a clear path of internal and external accounting for A/R and A/P.
- LHC reestablished the RFP process and wrote new RFP’s and secured new contracts for; food vendors, pool lifeguards, fire suppression systems, and exterminating services.
- LHC located a broken underground water line that was previously undetected and had cost the Club over $110,000 over two years in water bills.
- LHC hired a new chef and culinary team, created new menus and reopened the Clubhouse for food and beverage service within two months.
Outcome
- Upon final accounting assessment of 2013 financial the City of Rye, NY, announced a $400,000 profit for the Club.