Pr Communication Memo

PR Communication Memo

Kelly Garner

COM/530

September 15, 2014

Mrs. Gloria Davis

Memorandum

TO: Stephanie Cottrell, Manager

FROM: Kelly Garner, CPA

SUBJECT: PR Communication – CFO Resignation

DATE: September 15, 2014

Overview

This memo will outline what forms and communications UTHealth is legally required to prepare, and to discuss the value of public communication. It will examine the balance between calming external stakeholders and the ethics of providing the U.S. Securities and Exchange Commission (SEC) with the requested documentation. Lastly, the memo will explain how the perception of the press release will affect public opinion.

Legal Requirements

Publically traded companies have a legal requirement to file a “current report” to “the SEC to announce major events that the shareholders should” be knowledgeable (U.S. Securities and Exchange Commission, 2014). “Item 5.02 of Form 8-K, requires companies to” provide updates on any corporate governance and management changes within four business days from the date of the specific event (U.S. Securities and Exchange Commission, 2014). In response to the sudden resignation of Kevin Dillon, Chief Financial Officer (CFO), a crisis management strategy must be implemented. 

Value of Public Communication

Effective communication is critical in establishing and maintaining positive work relations as well as in enhancing client satisfaction. Potential investors must be made aware of any information that may influence their decision to buy, sell, or hold stock with the company.  

Ethical Consideration

The SEC is investigating UT Health’s accounting practices due to discrepancies. The issue seems to concern revenue recognition.

UTHealth President Giuseppe N. Colasurdo, MD was informed of the discrepancies by SEC. He is uncertain as to how internal controls failed. It is unsure if Kevin Dillon’s sudden departure is directly related to this investigation.

It was vital that the...