Youth Service Agency Prepares For Disclosure to State and Federal Officials of Billing Problems

A youth agency with a history of administrative controversies became aware that its previous administration incorrectly billed federal and state government programs, possibly by tens of millions of dollars, and retained PCI to help announce the discovery. PCI reviewed the situation and, finding that all the facts were not in, pressed for a thorough review and counseled against immediate disclosure until the scope of the problem was ascertained.

PCI assisted its client in taking control of its story and, once all of the facts were in, manage the announcement, while also being prepared for premature disclosure. It was essential that the disclosure and resulting media coverage separate the new administration from the old and strongly convey that the agency and its executives were committed to transparency and good business practices.

Stand-by statements were created and PCI worked with spokespersons on messages and presentation. The story became much smaller when it was determined the inaccurate billing was a fifth of initial estimates and that it was likely the government agencies would not take legal action since the client would take prompt action to repay them.

The client informed the appropriate government agencies about the over billing and its intention to pay. When media learned of the situation from a government source, client spokespersons were prepared. Coverage was accurate but not sensational and government spokespersons were brief. The story became, essentially, a one-day item that reported the facts and included the client’s messages. Some coverage actually commended the client for addressing the problems of the past administration and moving forward.