Fall 2023

IN THIS ISSUE:

SUCCESS IN A NUTSHELL: WHO’S COUNTING?

SERVICE AND INNOVATION PAY OFF FOR ANDERSEN & SONS SHELLING

Founder and Principal Brent Morrison discusses the growing shortage of qualified accountants and the keys to attracting and retaining qualified professionals.

THE MORRISON SOLUTION Our experts provide insight on each of Morrison’s service lines: Business and Accounting Advisory, People Solutions, and Grants.

GETTING TO KNOW SUSANNA STEFFEN Learn more about Morrison’s fabulous Business Administrator, Susanna Steffen!

MORRISON SNAPSHOTS Check out some of our highlights from this past season. We’ve been busy!

CLIENT CORNER There is always something new happening, so catch up on the latest news from our clients.

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The Andersen family has farmed prunes, walnuts, and cattle just north of Chico, in the small Northern California town of Vina, since 1904. Four generations later, they’re still going strong with a focus on providing excellent service and support to growers, partners, colleagues, consumers, and the community. In the modern farming era, with family-owned and operated farms becoming increasingly uncommon, Andersen & Sons takes great pride in being a completely “family-owned and operated” American farm.

While the family has been in business for nearly 120 years, in many ways the organization is just getting started.

With significant growth over the past five years, Mike and Pat knew that they needed to make some equally significant moves toward increased professionalization of the organization.

This included adding a new large, state-of-the-art plant and warehouse buildings, additional packaging lines with industry leading equipment, and bringing on the personnel to help to carry the organization into the future.

Not long after graduating from California State University, Chico, Mike and Pat - the brothers (and “Sons”) now leading Andersen & Sons - developed a business plan that would carry the organization forward and has grown them into what is now one of the most successful nut growing, shelling, processing, and marketing companies in the west.

Initially the brothers sought to add a Chief Financial Officer to help with the increased growth in operations and scale.

While there was significant interest in the CFO role from around the country, one candidate rose to the top. Someone who is a well-known individual in the agricultural communities and in the greater Chico area: Gregg Kelley, former Silicon Valley executive, consultant, and president/CEO of California Olive Ranch. Given Gregg’s background and unique experience in both finance and operations, the Andersens decided that bringing Gregg on as chief operating officer would make the best use of his experience as it pertained to the overall needs of the organization.

With attention to detail and commitment to creating and cultivating meaningful and lasting industry relationships, Andersen & Sons is constantly looking for new opportunities. This has led to adding new products, building new facilities, increasing international sales, and entering contracts with the country’s leading retailers. Little did Mike and Pat, nor anyone else, know that the organization’s humble beginnings would eventually turn into what it is today.

Upon starting with Andersen, the new COO got right to work, helping to create C ONT INUE D ON INSIDE RIGHT PANEL

NEWSLETTER | FALL 2023

THE MORRISON SOLUTION No organization is without challenges. That’s no secret, but what can be a puzzle is how best to master them.

If you are looking for qualified accounting and finance assistance, please ask how we might serve.

That question is the driving force behind our business. We can’t help with everything (yet), but we keenly focus on three challenging areas facing many organizations.

PEOPLE

BUSINESS & ACCOUNTING ADVISORY (B&A): Morrison’s Business and Accounting Advisory Service (B&A) team has provided accounting and financial oversight assistance since 2002. This includes day-to-day accounting; preparation of financial reports for executive management and boards of directors; developing financial and cash flow projections; overseeing and assisting with preparation for financial audits; establishing and managing financial controls; and advising executive leadership on key finance and accounting issues, among other key services.

Whether it is an unexpected vacancy, ongoing assistance, or a critical project, Morrison can be an effective, cost efficient solution.

Our staff of professionals have served in many critical roles, including CEO, CFO, COO, Controller, Assistant Controller, Auditor, and many others. Among others things, our B&A team can help with: • Audit Preparation • Interim/Outsource Accounting & Finance Needs • Organizational Restructure and Finance Optimization • Budgets & Financial Planning, Including Banking Relationships • Internal Controls & Compliance • Business Plans & Feasibility Studies Furthermore, as we employ our team full-time rather than using independent contractors, and have a depth and breadth of experience across multiple team members, we can ensure that we have full availability to meet your needs. With our deep bench of experienced individuals, services would not be interrupted by turnover, vacation leave, etc., enabling us to provide you the stability you need.

SOLUTIONS: The focus of Morrison’s People Solutions service line is in its name – People, the most critical component of any organization. While true, people can also pose an organization’s most significant challenges. It’s not simply a matter of having enough people in place, but having the right people in your organization doing the right thing(s) moving in the right direction.

This is where Morrison’s People Solutions team can help, with a focus on our three main People services: Executive Recruitment, Strategic Planning, and Organizational Development.

Since 2006, Morrison’s People Solutions service has successfully placed hundreds of high-level professionals including Presidents, CEOs, CFOs, COOs, Vice Presidents, Executive Directors, Directors, Managers, Controllers, and others. In addition to helping recruit critical talent, we also provide support to ensure organizations are strategically planning for a successful future.

These strategic planning efforts can lead to identifying the need for improvements in workplace culture, leadership development, training, team building, and change management. These all fall under the

umbrella of organizational development.

While known for these services in the Food, Agriculture, and Manufacturing industries, we also serve non-profits, colleges and universities, financial institutions, healthcare, municipalities, and others. Ultimately, if your organization has a people-related problem, we can likely provide a solution.

GRANTS: Grants, like many government programs, can seem puzzling and contradictory.

Morrison’s Grants team consists of six grant writing and administration experts who identify and assess federal and state grant programs to advise potential applicants as to their eligibility and likely competitiveness. Those include programs available through USDA, California Department of Food and Agriculture and other state agricultural departments, U.S. Department of Energy, California Energy Commission, and many others.

Morrison serves clients around the nation with strategic grant guidance and outstanding writing to deliver competitive applications that align with both the granting agency’s priorities and our client’s operational goals. Leveraging the expertise of our in-house B&A advisory team, Morrison is also able to prepare any required financial projections, business plans, and feasibility studies, such as for the Value-Added Producer Grant and the Fertilizer Production Expansion Program. This capability has contributed to our 90+ percent success rates in those programs. Altogether, the Morrison grants team has worked with approximately 50 different grant programs since 2002, submitting nearly 400 grant applications resulting in over $250 million in funding.

Morrison can also support clients beyond the application stage with grant administration services to ensure accurate and timely submission of reimbursement requests, progress reports, and sub-recipient payments. In some cases, our administrative fees can be written into the grant proposal.

We have been honored and blessed to serve hundreds of clients across the nation. If we might be able to help or if you have any questions, please let us know at office@ morrisonco.net or (530) 893-4764.

WHO’S COUNTING?

FROM STAFF ACCOUNTANTS TO CFOS, TALENT IS GETTING SCARCE If you have tried to hire or outsource accounting or finance help lately, it will come as no shock that qualified people are hard to find. What might be a surprise is the depth of the problem and how it is impacting organizations of all sizes.

A Dec. 19, 2022 Wall Street Journal article reported that a whopping 87% of respondents to a Robert Half survey of over 1,500 managers find it increasingly difficult to secure the needed talent for general accounting, financial reporting, and financial planning and analysis positions.

The most recent Trends report, issued biennially by the American Institute of Certified Public Accountants (AICPA), shows a continued decline in the number of accounting bachelor’s and master ’s graduates, down 4.4% for the most recent annual period measured.

In contrast, not long ago, the number of accounting graduates rose between the 2000 - 2001 and 2011 - 2012 years by an impressive 47.2%. Further, the number of candidates completing the final section of the CPA exam declined by 30% between 2016 and 2021.

Just the title of a July 11, 2023 Wall Street Journal article is alarming: “The Accountant Shortage Is Showing Up in Financial Statements: Advance Auto Parts and others have cited a lack of skilled accounting personnel for material weaknesses in their financial-reporting controls, a key predictor of restatements.” For organizations required to have audits (e.g., for their bank), auditors rely on internal accounting controls to some extent to determine the reasonableness of financial statements. If there are material weaknesses in controls and procedures, the auditors may have to do more extensive (and expensive) substantive testing, release a

qualified or adverse audit opinion, or, horror of horrors, issue a disclaimer. These scenarios are apparently happening with increasing frequency.

Internal control weaknesses are nothing new; what is new is the growing trend of it being due to the largescale lack of qualified personnel.

And it’s not just companies that need audits feeling the hurt; insufficient internal controls can lead to lack of compliance with bank covenants, material reporting errors, undiscovered fraud, and more. We’ve seen some doozies.

So what to do? Certain functions might be outsourced, depending on the time and qualifications needed. But for attracting and retaining qualified employees in this challenging environment, I think of the following as the “Big Three”:

CULTURE: This warrants a deeper look than we can give it here, but there are some basics. Seek a mutual respect of both work and personal needs. Examine whether there is a team orientation or prickly internal competition, and if personal achievements are acknowledged. Are communications open, or is rumor the main channel? Is it OK to admit mistakes, or does that just get someone in trouble? And of increasing importance, is there a quick and appropriate response to expressed, legitimate complaints or concerns?

WORK MODEL: We increasingly find that accounting and other professionals want an offsite or hybrid work option, and flexibility in work schedules. The pandemic pushed that along and forced employers to accommodate it whether they wanted to or not. Now that they don’t have to, many (such as Tesla) are trying to bring people back in – and

employees are pushing back. For example, a survey of executives at U.S. financial services institutions released in August 2023 by Deloitte found that 66% of respondents who either work from home or have a hybrid schedule would quit their job if required to return to the office five days a week. You need some structure in the workday but be careful where you draw the lines. Dolly warned us about 9 to 5 way back in 1980 and it is still true today.

COMPENSATION: Well, duh. This is just basic supply and demand economics, and it has tilted in favor of supply. Make sure you understand the market for the education, experience, and responsibilities you need.

With focuses on outsourced accounting, recruiting, and cultural and organizational development, Morrison has assisted many organizations with the realities of the job market for accountants and others. There’s more, but a focus on the “Big Three” will give an organization significant advantages in meeting accounting and other needs in this tight market.

ABOUT THE AUTHOR

Founder and Principal Brent Morrison founded Morrison in 2002. He has served in processing, agribusiness, distribution, manufacturing, and other companies as an executive and advisor since 1981.

Brent oversees Morrison strategy and implementation, infrastructure development, and both provides and oversees services to Morrison clients.

He brings special expertise in business planning, strategy, management, and financial analysis. To get in touch with Brent visit www.morrisonco.net/contact.

SUCCESS IN A NUTSHELL, CONTINUED

new processes and streamline operations, while also increasing overall employee engagement and well-being. The impact has been felt immediately.

With Mike and Pat providing overall leadership and direction to the organization and Gregg leading day-today operations, Andersen & Sons is poised to take an organization that has already been incredibly successful to a whole new level.

Consumer packaged goods (CPG) is a growing and promising segment for Andersen & Sons. With experienced leadership and a new state-of-theart plant allowing for everything to be under one roof, a renewed excitement for

the future is currently underway at Andersen & Sons.

While there has been a lot of innovation at Andersen & Sons, there are also some touching nods to the past, including a product line dedicated to Mike and Pat’s late mother, Glenda. The CPG line, known as Glenda’s Farmhouse, offers packaged walnuts, pistachios, pecans, almonds, and cashews.

Andersen & Sons has long been known for doing what they say they will do and treating others the way that they would want to be treated. These will always be staples in the organization’s approach to doing business.

It’s not every day that we come across an organization that has been in business for well over a century. That doesn’t happen without having the right mix of hard work, integrity, and looking to the past for what has been successful. This is exactly the recipe that has helped Andersen & Sons get to where they are today. Add a dash of curiosity, creativity, and innovation and you have a recipe for success that is guaranteed to keep the organization going strong into the future.

If the first 120 years of business are any indication for what’s still to come, Andersen & Sons would appear to have quite a bright future ahead of it!

MOR R ISO N S NA PS H T S

PASTA ON THE PLAZA The Boys & Girls Clubs of the North Valley held their 14th Annual Pasta on the Plaza, presented by California Olive Ranch. The pasta-bilities were endless, as was the all-you-can-eat spaghetti dinner! The Morrison team was proud to support this

amazing

organization

by

both

volunteering with the antipasto skewer assembly and joining in the festivities afterwards!

The

fundraiser

directly

supports the non-profit's Chico Campus, which serves over 500 youth annually.

Morrison Principal Ana Klein with Wells Fargo Relationship Manager Amber Neimeyer

Morrison Bookkeeping & Support Services Provider Michelle Genova with HYPE Executive Director April Mason

CALIFORNIA AGRIBUSINESS SUMMIT Morrison Principal Ana Klein attended

MICHELLE GENOVA HELPS WITH NEW ORGANIZATION IN OKLAHOMA

the California Agribusiness Summit event

Henryetta Young Professional Entrepreneurs

in Sacramento, California, where Moss

(HYPE) serves to provide ways for new, young

Adams

AGR

Partners

business owners to work together to expand

explore

matters

their businesses and help the community.

impacting agribusiness. The event included

Executive Director April Mason and Morrison’s

presentations from industry professionals

Michelle Genova, associate director for HYPE,

including keynote speaker Dr. Michael

founded and introduced the organization this

Swanson (Wells Fargo chief agricultural

year during a monthly Chamber of Commerce

economist),

and

partnered

Wells

Fargo

with to

acquisition

meeting in Henryetta, Oklahoma. HYPE also

panel, Ag Council updates, family estate

held a launch event as it sought out members,

discussion, and current consumer trends

along with new and fresh ideas to help promote

updates.

the city. Way to go, Michelle!

a

merger

and

JEFF BOIAN PRESENTS AT CALIFORNIA CENTER FOR COOPERATIVE DEVELOPMENT CONFERENCE Morrison’s People Solutions Manager Jeff Boian attended the 2023 California Center for Cooperative Development Conference in San Jose, California, presenting on strategies to increase employee engagement and member satisfaction. The discussion included a focus on strategic thinking, differentiation, and long-term success.

TEAM MEMBER PROFILE

GETTING TO KNOW

SUSANNA STEFFEN

Q&A WITH SUSANNA WHAT IS YOUR FAVORITE TRADITION OR HOLIDAY?

Ever since we were kids, my mom would take my younger sister and I to the Nutcracker ballet around Christmas and it has been our annual holiday tradition ever since. In more recent years, my niece Amelia has started to join us, which has been really special.

WHAT IS YOUR FAVORITE MOVIE?

Overboard. Kurt Russell and Goldie Hawn are magic in that movie.

WHERE WOULD YOU LIKE TO TRAVEL?

Susanna Steffen is responsible for Morrison’s business and office administration including managing key vendor relations, banking, and office administration. Susanna coordinates Morrison’s marketing and internet presence, working closely with our team and our creative design and marketing consultants.

Susanna brings over 10 years’ experience in business administration and customer service.

Prior to joining Morrison, she worked as an administrative coordinator at Northwest Lineman College, an educational institution that provides safety and certification training

for the power delivery, natural gas, and telecommunications industries. There she assisted with advanced training courses, coordinating elective registrations, working with vendors, and facilitating processes in career planning and strategy. Susanna has previous administrative experience working for a behavioral health clinic, insurance agency, and security company.

Susanna is a graduate of Butte Community College where she earned an associate’s degree in Social and Behavioral Studies. She attended Humboldt State University where she studied Child Development.

The places on the top of my list right now are France, Greece, and Italy. I would also love to visit New Zealand and see the filming locations of “The Lord of the Rings” and “The Hobbit” movies.

WHAT ARE YOUR FAVORITE PLACES IN THE WORLD?

The house that I grew up in in Durham (California), Disneyland, and Fern Canyon.

WHAT IS ON YOUR BUCKET LIST?

Learning how to speak French, seeing the Eiffel Tower, and finally going to Walt Disney World.

WHAT IS YOUR FAVORITE BOOK? “The Glass Castle”

WHO IS SOMEONE THAT YOU REALLY ADMIRE?

My amazing and beautiful mom, Cindy.

She is the kindest, most loving person I have ever known and I look up to her in so many ways. Sometimes I don’t even think she realizes how much she’s always doing for everybody else because it always comes very natural to her to take care of others. She is truly the most selfless person. She has always been there for me and my four siblings and set such an amazing example for us growing up and still does to this day.

She and my wonderful dad, Tom, have been married for 43 years and I feel so incredibly blessed to have them as my parents.

IF YOU COULD GO BACK IN TIME, WHAT DECADE WOULD YOU TRAVEL TO AND WHY?

The 1950s. I feel like there are many things to be said about that time, especially when it came to traditional values. Even though it was just 70 years ago, much has changed since then. It would be like stepping into a whole different world.

1385 Ridgewood Drive Chico, CA 95973 5 3 0 - 8 9 3 - 4 7 6 4 • W W W. M O R R I S O N CO. N E T

BUSINESS & ACCOUNTING ADVISORY • PEOPLE SOLUTIONS • FOLLOW US

C L I E N T CORNER The Morrison Client Corner is a regular feature of our newsletter.

If you’re a client of ours, we’d love to stay up to date with what is going

Here, you’ll find updates on what a number of our clients are up to,

on within your organization and invite you to share your highlights

their achievements and milestones, and the generally great things

in this space. Feel free to send any press releases, newsletters, or

happening in their companies or organizations.

happenings to Susanna at ssteffen@morrisonco.net.

CONGRESSIONAL WINE CAUCUS WELCOMES SONOMA COUNTY VINEYARD WORKERS

Thirty-one Sonoma County vineyard workers visited the U.S. Capitol in July, welcomed by Congressional Representatives Nancy Pelosi and Mike Thompson. The trip was the culmination of the Sonoma County Grape Growers Foundation’s firstof-its-kind Leadership Academy, which focuses on advancing the skills needed for vineyard employees to be promoted into leadership roles within their organization or their community.

Executive Director Karissa Kruse said the trip was a life-changing experience for many attendees.

THE RENEWAL CENTER OPENS ITS DOORS

The Renewal Center, a project of The Jesus Center, focused on homelessness, hosted its open house this summer in Chico, California! The Morrison Team had the pleasure of touring the center, which includes 14 family micro-units, space for group and individual therapies, flexible classroom group work space, and much more. We are excited about the lives that will be touched and the impact it will have on our community. We also enjoyed playing a small part in making beds and getting the Renewal Center ready for its grand opening!

PAT ANDERSEN NAMED CHAIR OF BOARD OF WESTERN AGRICULTURAL PROCESSORS ASSOCIATION

The Western Agricultural Processors Association (WAPA) announced its new Officers for the Board of Directors, appointing Pat Andersen of Andersen & Sons as its new chair of the board. WAPA is governed by a 15 member Board of Directors and was formed in 2009 to provide comprehensive representation on legislative and regulatory issues and FIRST CLASS M hands-on environmental and safety U.S. POSTAG PAID services for hullers and processors of CHICO, CA California grown tree nuts. We are so PERMIT NO proud of Pat and his contributions to the industry!

WELCOME NEW CLIENTS

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NEWSLETTER | FALL 2023