The Detroit Riverfront Conservancy's interim CEO is shepherding a top-to-bottom review after its fraud crisis, looking to preserve the prominent nonprofit's integrity while bringing in new eyes to prevent future wrongdoing.
The big picture: This is the second part of Axios Detroit's interview with the conservancy's new leader, Ryan Sullivan, who took the helm this May after a $40 million embezzlement scandal left the organization unsteady financially with key projects already underway.
Driving the news: Sullivan introduced a "Four Ps" leadership framework this summer in response to the scandal: prosecute, preserve, protect and prosper .
- "It enhances our ability to hold people accountable — most notably myself — to make sure we are delivering against those key strategic initiatives," he says.
State of play: As part of a broader review of the conservancy's operations under the "protect" framework, the conservancy is carefully examining all expenditures and service providers to pinpoint areas for improving efficiency and costs, Sullivan and conservancy spokesperson Marc Pasco tell Axios. "Everything is up for evaluation and consideration," Sullivan notes.
- The conservancy has implemented changes to reduce expenses "without affecting the experience of people on the riverfront," Sullivan explains. The process has been deliberate, with no hasty decisions.
Detroit Riverfront Conservancy interim CEO Ryan Sullivan. Photo: Courtesy of the conservancy.
Case in point: One adjustment has been the addition of Georgia-based Quatrro Business Support Services, led by Paul Trulik, a prominent name in nonprofit finance in Metro Detroit, to serve as an outsourced chief financial officer and accounting operation.
- Accounting firm PwC and law firm Honigman have also been leading an internal investigation.
- The nonprofit also has a board task force reviewing its corporate governance, with assistance from outside groups, to ensure a fraud crisis doesn't happen again. The conservancy plans to share what it learns.
Zoom in: Axios reported last month that the conservancy is in the process of selecting a new auditor after 17 years with Detroit-based George Johnson & Co.
- "Clearly, a new auditor is, if not the highest priority, one of them," Sullivan says. The new choice has not yet been announced.
Yes, but: Sullivan declines to disclose details on the ongoing expenditure and vendor evaluation process.
Separately, the conservancy is striving to "preserve" the riverfront parks, attractions and events that it manages despite the ongoing challenges. Sullivan says this summer was a success in that regard.
- Reading & Rhythm on the Riverfront , a six-week summer children's program that featured readings by local celebrities and community leaders, had 2,800 participants.
- The twice-weekly Detroit Riverwalkers get-together, geared toward older adults, attracted more than 2,000 people throughout the summer.
What they're saying: "The riverfront was open all summer long," Sullivan says. "There was no interruption to service and there was no detrimental impact to anyone's experience on the riverfront, which I think is just a tremendous testament to the team that is here."
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