Grant Thornton urges aged care boards to be “proactive” in evaluating their businesses during coronavirus crisis

The accounting and advisory firm has warned aged care directors that the Government’s recently announced $444.6 million funding package for providers and relief from prosecution on insolvent trading over the next six months is “not a ‘get out of jail free’ card” for their responsibilities.Grant Thornton’s Financial Advisory Partner, Phil Campbell-Wilson, and National Head of Health & Aged Care, Darrell Price say boards and directors must consider how their actions may be seen when reviewed with 20/20 hindsight in one to two years’ time.They are recommending that boards carry out:

• An independent review of their immediate cash flow requirements. 
• Develop a ‘Business As Usual’ verses COVID-19 cash flow comparison to clearly demonstrate the impacts of the pandemic on what was reasonably expected over the forecast period, without its impacts.
• Use appropriate forecasting to develop a clear action plan to address and minimise the financial impacts that their business experiences as a result of the COVID-19 pandemic.
• Create a clear and decisive stakeholder communication plan to lenders, regulators, suppliers and shareholders.
• Undertake regular reviews of the cash flows and COVID-19 plans throughout the period of the pandemic impact and until BAU is restored in full.

Critically, Phil and Darrell say these are the minimum steps boards should be taking – so there is room to take further action. You can read the full story here.