Barry Melancon speaks on behalf of all the CPAs, CGMAs across this great land who have had it up to here [bridge of nose] with Congress' inability to accomplish anything other than naming post offices:
“CPAs in communities large and small and from coast to coast are increasingly troubled by the government’s inability to come to grips with this economic calamity-in-the-making,” said AICPA President and CEO Barry Melancon, CPA, CGMA. “Knowing what’s at stake, three quarters of those taking part in our survey (76 percent) are sending a clear message to federal policy makers to deal with our debt crisis without delay. Fiscal responsibility is essential to our country’s economic sustainability.”
If it gets to the point where CPAs, CGMAs have forgotten about their busy season anxiety, you'll really know we're in trouble.
Talk about a blow. Everyone here at GC soiled themselves after finding out this piece of news.
The mother of all auditors, the General Accountability Office, released its FY 2009 Financial Report for the U.S. Government last week and things are, shall we say, typical. How typical? How about things are such a mess that the GAO can’t render an opinion on the consolidated financial statements?
“The U.S. Government Accountability Office (GAO) could not render an opinion on the consolidated financial statements of the federal government (other than the Statement of Social Insurance) because of widespread material internal control weaknesses and other limitations.”
That’s from the press release and while we were expecting a shitshow spread amongst all the agencies of the government, it’s due to the weaknesses in four agencies: the Defense Department, Homeland Security, State Department, and NASA.
Here’s the full rundown on the agencies from the report:
For one of the 69 reviews the GAO performed, the audit report cited eight significant deficiencies in the contractor’s accounting system but since the contractor wasn’t really cool with that, the auditors dropped five of the [significant deficiencies] and recommended that the other three be “improved without additional work”.
So this really, really, really does come as a surprise. It is good to know that the GAO — never shy on tooting its own horn — is still out there earning it’s “taxpayer watchdog” badge.
At 256 pages, this thing is a beast. We’re plowing through it to find the more interesting tidbits where we can and if you’re on cruise control today, take a gander for yourself to see your tax dollars at work.
2010. What a year, amiright? It got off to a bit of a rough start after our facelift but as the year went on, things stayed interesting…most of the time. Anyway, since most of you aren’t getting Jack Squat done this week, let’s take a look back at the year that was.
1. Compensation – Shocking revelation here, we realize but – YES! – it’s true, red about most in 2010. After two years of disappointment, the Big 4 and the aspiring “Bigs” (Grant Thornton, BDO, McGladrey) all returned to merit increases and bonuses this year. PwC shot out of the gate with Ernst & Young keeping pace while KPMG remained steady but slightly behind. Deloitte, lagging behind, made a late charge with the announcement of a mid-year adjustment, which may or may not have set off a rash spreading amongst the other firms to provide bonuses throughout their fiscal year-ends. Was it a successful 2010 on the compensation front? Some say “yes,” some say “no,” but there’s little doubt about what keeps your attention.
2. PwC Email Hottiegate – Unless you were in a coma during the second week of November, you were aware of the email that listed the top 10, errr 13, new female associates that came out of PwC in Ireland. The gents who passed around the list weren’t so concerned with using work email to give the ladies the Letterman treatment and the Irish brass didn’t take too kindly to the “tradition.” This story dominated our pages for a few days and the last we knew, a total of five employees had been suspended, the women weren’t planning on lawsuits and Adrienne gave her point of view (as a member of the fairer sex).
5. Large firm vs. Small firm – An anonymous reader submitted an essay on the main differences between life in the Big 4 (and aspiring Bigs) life and that of the lives working in the smaller firms. Most have wondered what life would be like in their bizarro public accounting existence and some have actually lived it. There are pros and cons to each but life at the small firm is decidedly different.
6. An auditor’s life:
7. Layoffs – 2010 saw fewer mass layoffs than the past couple of years but that doesn’t mean there weren’t spots of cuts here and there. Most notably were the nationwide cuts at McGladrey as well as the 500 cuts made by PwC in Florida. Grant Thornton was busy slimming down its exposure in smaller markets but layoffs were not always part of the “transition” as practices were often sold or employees were giving the opportunity to transfer. And last but not least, we learned that Deloitte claimed “our bad” on their cuts from May 2009.
9. PwC Houston Happy Hour – The team happy hour. Typically a festive event filled with free booze, laughs and the occasional awkward advance. The latter allegedly took form of a partner towards an associate this past summer in PwC’s Houston office that resulted in a odd pick-up line, a sloppy kiss (our vision) and then a knuckle sand. The latest we heard was there were multiple associates approached, the partner-in-question was still with the firm and that the associate(s) involved were shipped off to other engagements. So all is well in H-town. PwC never returned our calls, emails or singing telegrams on this story.
10. Accounting Career Drama – One of the most popular series on GC is the career advice that we throw out here and there. Everything from trying to quit nicely during busy season to defection amongst Big 4 firms to explaining why your fantasy football roster is constantly on your computer screen. We’re here to help you get through the purgatory that is your time on Earth so if you’ve got a problem and want advice, email us at advice@goingconcern.com.
If we missed any of your favorites, feel free to recall your fondest memories on this here site. As we head into the new year, here’s a friendly reminder of how to get in touch with us:
2010. What a year, amiright? It got off to a bit of a rough start after