MBA Insider: A Day In The Life August 8, 2007, 12:49PM EST

Managing Indigenous Assets

Southeast Alaska alum Vic Scarano weighs in on his responsibilities as CFO of an Alaska Native Claims Settlement Act corporation

Vic Scarano
Chief Financial Officer
Goldbelt
University of Alaska Southeast
MBA class of 2006

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The company that I work for is an Alaska Native Claims Settlement Act (ANCSA) urban corporation. I came to Goldbelt in Juneau in May, 2007, after having been the chief financial officer for Shee Atiká in Sitka, Ala., for five years. Prior to that, I was the CFO for the local community hospital. Recently, I attended the University of Alaska Southeast and received an MBA in July, 2006.

Goldbelt is a for-profit corporation just like any other, except its beginnings are rooted in the settlement offered in the early 1970s by the U.S. Congress to the indigenous peoples of Alaska as a means to provide some compensation for their land claims. In essence, we manage the assets of the native Alaskans who make up the shareholder base. Even though the organization resides in a small Alaskan town, it is extremely complex in its makeup and activities, which definitely challenged me in the beginning. Even though Goldbelt is an ANCSA urban corporation like Shee Atiká, they have significantly different operations. Goldbelt runs tourism activities and has several small companies that do business with the federal government.

Jack-of-All-Trades

My current responsibilities are as diverse as the administration team. Business development, risk management, short-term investment, real estate projects, budgeting, etc. Wasn't it easier when you just did one thing?

A typical day at work goes like this:

6:30 a.m.—I get in the office and boot up my computer with one hand while pushing the press down on the coffee pot with the other. I check voice mail, e-mail, and prepare for the day.

7:30 a.m.—I meet with the chief executive and vice-president of operations to discuss real estate development to support a large-scale commercial/industrial project. There is conflict, as always, with various entities, so we try to focus on what opportunity lies within or outside of that conflict.

8 a.m.—Get back to putting together an application for a Small Business Administration 8(a) organization in the D.C. area. We have identified an opportunity with partners to contract with the government to further diversify our book of offerings.

10:30 a.m.—Calls with insurance agents, 401(k) providers, Web developers, and lenders. I started this job a couple of months ago, and we are moving forward with opportunities to diminish cash outflows and reduce overall costs, as well as providing better options for employee retirement. It consumes an enormous amount of energy and effort. CFO is just another term for jack-of-all-trades.

Noon—Lunchtime. Run across the street to the gym. I run into my wife, and we work out together for about 45 minutes. Then, back to work.

1 p.m.—Property walk-throughs with the VP of operations. Ruptured water mains, cable replacements, elevators, painting—our operations managers have their hands full. It never ends.

3 p.m.—In the office again. I design a new financial packet for our board of directors. I review the financials and write the narrative, afterward discussing any variance outliers with operational managers.

5:30 p.m.—Back to the gym. This is great therapy, so I am multitasking by getting in both better physical and mental shape! It is difficult to burn calories sitting on my third point of contact, hence the need to workout. Preaching to the choir…right?

7 p.m.—Head home to check my e-mail, do some yard work, have dinner, and visit with my wife, who is a controller for an ANCSA village corporation and a fellow MBA graduate. Bed by 11 p.m. and up again by 5 a.m.

Complex Tax Issues

I had worked with the CEO of Goldbelt while I was the CFO for a boat builder/tour operator in Sitka. The CFO position was advertised in the paper, and I gave Gary, my boss, a call. ANCSA corporations try very hard to fill all of their positions with shareholders, but at times they must look elsewhere. I got the call, and the rest is history.

Many of the decisions we make on a regular basis are related to tax issues and real estate development. ANCSA is a specialized area related to tax. In terms of my B-school education, it would have been helpful to have taken more tax classes, thus enabling us to be less reliant on consultants, although it's not practical to be completely independent because of the complexity of these issues.

Part of the settlement was real estate related. Native Alaskans, much like their American Indian counterparts, have a close bond with their land, and it is our charge to find opportunity to maximize return while not selling any of the acreage—or at least replacing sold land with land that has more intrinsic cultural value to our shareholders. Classes ranging from small-business development, entrepreneurship, real estate development, and tax law associated to real estate would definitely provide more tools in the toolbox of an ANCSA CFO.

The Value of an MBA

I would not say that I necessarily needed an MBA to get the job, since I did not have one when I was hired. The benefit, though, is networking and tools to diversify your skill set. Also, many direct and indirect partners want the assurance of a qualified managerial team, and the MBA is one of the generic markers of such.

Education, experience, creativity, and a great work ethic are the best ways to get your foot in the door. These are complex organizations that literally put everything on the table and look anywhere for opportunities to grow assets to the benefit of our shareholders. ANCSA corporations have the capacity for being patient while waiting for the right opportunity or moving swiftly to capture alpha.

Scarano is chief financial officer of Goldbelt, and a member of the University of Alaska Southeast's MBA class of 2006.