Case Study: Stabilizing Financial Operations and Leadership at a Private University

A private university in the Mid-Atlantic region faced mounting financial and operational pressures that threatened its long-term sustainability. Over the preceding decade, enrollment had declined nearly 15%, with the COVID-19 pandemic accelerating revenue losses. Rising operating expenses and recurring deficits forced university leadership to make difficult decisions, including the closure of 12 undergraduate and five graduate programs, a reduction in senior administrative positions, and significant workforce reductions.

While necessary to address the institution’s financial challenges, these changes created additional strain across finance and human resources. Following several leadership departures, the university engaged the team now operating as Smith + Howard to provide immediate operational support, guide organizational restructuring, and recruit permanent financial leadership. The multidisciplinary engagement brought together Finance + Accounting, Human Capital, and Executive Search + Recruiting expertise to stabilize essential functions while helping the institution build a more sustainable future.

The Challenge

Financial instability, organizational restructuring, and critical leadership vacancies created urgent operational needs across the university.

By the end of fiscal year 2023, the university had experienced operating deficits over three consecutive fiscal years. Although its administration and board of trustees had taken proactive steps to reduce expenses, the resulting organizational changes placed considerable pressure on departments already managing complex financial and administrative responsibilities.

The finance department needed immediate leadership to stabilize operations, complete a time-sensitive external audit, and strengthen budgeting and financial controls. Meeting the institution’s bond requirements was particularly important, as delays or noncompliance could result in financial penalties.

At the same time, the human resources department was navigating the effects of a significant reduction in workforce, limited leadership capacity, outdated processes, and pressing employee relations and compliance needs. Critical deadlines, including annual open enrollment and an overdue retirement plan audit, added to the urgency.

Beyond addressing immediate operational challenges, the university needed to recruit a permanent Vice President of Finance and Administration capable of guiding its financial recovery and supporting long-term institutional planning.

Our Approach

Smith + Howard brought together experienced finance, HR, and executive recruiting professionals to address immediate operational pressures while strengthening the university’s long-term leadership and processes.

Financial Stabilization and Compliance

An interim Head of Finance consultant stepped in to provide immediate leadership and stabilize the university’s finance function. Working closely with department staff and the institution’s external audit firm, the consultant helped complete the external audit under tight deadlines, enabling the university to meet its bond requirements and avoid associated penalties.

To strengthen financial management, the engagement focused on stabilizing cash flow, implementing departmental budgets, and establishing expenditure approval procedures to reduce unbudgeted spending. The consultant also developed a comprehensive financial policies and procedures manual to provide clearer guidance and consistency across accounting activities.

These improvements helped restore discipline to day-to-day financial operations while providing leadership with a stronger foundation for managing the university’s financial position.

HR Realignment and Leadership Support

Following significant workforce reductions, the university’s HR department faced limited leadership capacity, underutilized technology, employee relations challenges, and critical administrative deadlines. Interim HR leadership provided immediate support to stabilize operations, address urgent priorities, and guide organizational realignment.

A key focus was improving the use of the university’s existing Human Resource Information System (HRIS), which had not been fully implemented. The team supported the system’s reimplementation, streamlined processes, and consolidated more than 500 unique job titles into fewer than 100, creating a more consistent job classification structure across departments.

The engagement also supported completion of annual open enrollment for more than 500 employees, including benefits rate research, funding approvals, and payroll changes. The team helped address an overdue retirement plan audit and strengthened essential HR processes related to compliance, employee relations, and benefits administration.

To support longer-term continuity, the team assisted with the transition to permanent HR leadership and recruited two additional staff members to rebuild departmental capacity.

Executive Search for Critical Financial Leadership

Alongside the interim finance and HR support, the Executive Search + Recruiting team launched a national search for a permanent Vice President of Finance and Administration.

The search prioritized candidates with experience spanning both private-sector and nonprofit environments, along with the financial expertise and leadership capabilities needed to navigate the complexities of higher education.

Within 90 days, the team successfully placed a qualified VP of Finance who relocated to accept the position. The appointment provided the university with experienced permanent leadership at a critical point in its financial recovery.