The Kentucky CPA Journal

KyCPA member spotlight

My CPA journey

Issue 1
February 25, 2022

By Melissa Marvel, CPA
President/CEO, Zoom Group

My father and grandfather are the inspiration behind why I studied accounting. Both successful businessmen, self-employed and a controller for a global manufacturing company, respectively. My pursuit of being a CPA was to make them proud and in some way to thank them for their belief in me.

What made me choose to work as a CPA for a nonprofit?  Early in my career, I was fortunate to work for a wide array of businesses, from Fortune 100, to government, to privately held to public. During this journey, what I discovered about myself were my strengths, my top three:

1. Achiever
2. Restorative
3. Altruistic

I found “purpose” in my work to be the most rewarding.

Thus, when Kosair Charities came about early in my career, I took great pride in creating effective policies, procedures and operational efficiencies. These improvements increased the amount of funding available for children and families who desperately needed medical care or provide funds for organizations that met the needs of fragile children.

It has been said, “If you do something you love, you’ll never work a day in your life.”

What is the most surprising thing I have learned about nonprofit accounting?  What makes nonprofit accounting unique?  Ironically, both most surprising and frustrating is the perception (communicated through others) of a nonprofit.  The perception is that leading/operating a nonprofit – is easy, and with prayer, all will be provided for – regardless of the cash flow being negative year over year. Or comments about working for a nonprofit is noble work, yet less than impressive than if one were operating a for-profit entity. Let’s be clear – “Perception” is what I found surprising – no judgment.

The reality is that for nonprofit/for-profit to be successful, each must operate utilizing the same principles and, in most instances, beyond the nonprofit accounting (fund accounting) the main difference is tax status.  

Getting back to doing something that one loves and never working a day in your life. 

In 2015, I was brought onboard with Zoom Group, as a CFO consultant, to assist its Board of Directors and staff, as the organization struggled with lost funding and attempting to secure new leadership. After a few months of working directly with the Board and staff, learning the mission and the individuals the organization supported, I believed I could use my professional skills and make a difference, and with the insistence from my mother, I threw my resume into the mix to be considered for the CEO position.

The first few years of my journey, leading up to the pandemic, were not easy. Prior to my consulting days, Zoom Group had lost significant funding. Immediate with my hire, much work was required, reorganization, rebuilding and heavy lifting throughout the organization was required. In 2019, the hard work began to pay off, the organization was turning the fiscal corner the organization’s future looking promising.

That’s where the pandemic, early 2020, ties in and the Commonwealth’s Governor mandated closure of our programs.  

During this Pandemic pause:

• All programs suspended – no billing, lost revenue, thousands per week
• Program locations closed
• 25+ year vocational program partnerships jeopardized – Employers, essential industries, with contracts needed fulfillment, including COVID-19 testing kits shipped and laundry operations for hospitals
• Staff reassigned. Without vocational programs running, staff, including the CEO, leadership and Direct Support Professionals [DSPs], did the work, met the obligations for the commercial and federal contracts and saved the contracts, while managing regulatory obligations, audits and regulatory reviews
• Secured COVID-19 funding – EIDL, PPP #1, PPP#2 and currently seeking ERTC
• Moved forward with the planned renovation and program expansion approved prior to the pandemic
• And added new lines of business, SupportWorks (behavioral therapies), LifeStyleZ (residential housing) and RideWorks (transportation) all developed to emerge from COVID strong

Today, while COVID variants challenge everyone, clients are returning, work is restarting, programs are poised to fully resume and expand. 

This story may emulate similar stories of others, for-profit or nonprofit, during the pandemic – yet the outcome may vary due to the financial skill set of the leadership team. 

For this article, the question was asked, how does a nonprofit finance department differ from a for-profit, depending upon the size of the nonprofit, that answer will vary.  Just keep in mind, strong internal controls and segregation of duties, are always best practices.

And, for Zoom Group, what does the accounting department look like?  For a nonprofit in Louisville, it is unique. In 2017, we became one of four founding member agencies in a nonprofit shared services back-office entity, ImpactV, LLC. In addition to having a CPA at the helm of Zoom Group, Zoom’s investment in this shared-service model afforded Zoom and its partners a financial department with increased financial knowledge and expertise, with such, securing pandemic funds, such as EIDL and PPP, were swift and successful.

So, what accounting career advice may be shared?  For me, that’s complex, especially coming from a “once upon a time Federal IRS agent” – perhaps, at best, seek a CPA career that you find personally rewarding, one that enriches your life, challenges you to grow, personally and professionally, in ways that you find meaningful and a culture that values you both as a professional and as a human being. Maybe that’s the altruism gleaning through but stay the course, for yourself, as it can and does exist.

In closing, certainly, being a CPA, having a financial mindset, has been exceptionally helpful in leading Zoom Group through a pandemic and financial rollercoaster. Yet, more importantly, it is most appropriate to thank my leadership team and Board of Directors, for their unwavering commitment to our mission and support of the staff, respectively. Leading through a pandemic is not done in isolation – but with the support and trust of many. I am proud of Zoom Group staff, Board and to be a CPA.