Author: GoingConcern

Job of the Day: Fannie Mae Needs a Financial Reporting Manager

Thumbnail image for Need_a_job.jpgFannie Mae is looking for an experienced professional to fill a Financial Reporting Manager position in its Washington, D.C. office.

This person will be responsible for managing a team tasked with compiling and reviewing accurate financial reports for both internal and external purposes.

Qualifications include 6 – 8 years experience either with an audit or financial services background. A CPA license is required.


Company: Fannie Mae

Title: Financial Reporting Manager

Location: Washington, D.C.

Description: Manage a team engaged in compiling, reviewing, and/or transmitting accurate financial results internally to the firm points of contact or externally to regulatory bodies (e.g., FHFA, SEC) for inclusion in board reports, news releases, and public financial reporting. Hire, manage, train, develop, and evaluate staff. Develop, implement, document, and ensure adherence to practices and procedures. Participate in or lead special projects.

Responsibilities: Manage daily team activities related to accounting, control, and financial reporting for responsible areas. Ensure that monthly, quarterly, and annual financial reporting is accurate, timely, and based upon internal and external reporting requirements; Plan, review, and/or support preparation of internal and external reports, journal entries, account reconciliations, tables, and schedules; Review, establish, and monitor financial controls. Identify opportunities to streamline and automate. Improve efficiencies to reduce costs; Document accounting procedures. Complete necessary testing and remediation; Provide customer service by responding to inquiries and requests from internal and external customers. Advise senior management regarding business, internal programs, and activities as they relate to financial reporting matters; Support senior management and new business initiatives; Coordinate and administer assignments, monitor team progress, and maintain schedules; Develop team members and provide ongoing professional guidance and direction.

Qualifications/Skills: Bachelor’s Degree or Equivalent required; 6-8 years of related experience; CPA;
Access and SQL knowledge; Audit background; Financial services industry experience; Strong people manager.

See the entire description over at the GC Career Center and visit the main page for all your job search needs.

FERF Survey: Audit Fees Down, Big 4 Still Dominate Public Company Filers

This story is republished from CFOZone, where you’ll find news, analysis and professional networking tools for finance executives.

It looks like audit fees are stabilizing.

The 150 publicly-held companies responding to a recent survey paid an average of $4.8 million in audit fees in 2009, down 2.4 percent from the total shelled out by these respondents the prior fiscal year.

The 197 privately-held companies responding to the survey paid an average of $291,200, roughly even with the prior year.

Drilling further down, the survey found that total audit fees for 83 large accelerated filers-those with market capitalizations over $700 million–averaged $7.8 million, 3.6 percent less than what they paid the prior year. What’s more, this average of $7.8 million was possibly skewed to the high side this year due to the total audit fees reported by the 19 respondents from companies with more than $25 billion in annual revenues.


On the other hand, the average audit fees paid by the 22 non-accelerated filers were $579,900, 3.3 percent more than what they paid in the prior year.

These are some of the highlights of a newly-released annual report from Financial Executives Research Foundation (FERF), the research affiliate of Financial Executives International. It stresses that the averages reported in this year’s Audit Fee Survey are not comparable to those reported in the 2009 survey because this year’s respondents are not necessarily the same as last year’s respondents. In fact, FEI stresses that this year’s average was skewed slightly higher due to representation from more companies with revenues of $25 billion or more.

The survey also found that the total number of audit hours averaged 21,458 for all public companies, and-not surprisingly–was directly proportional to both the size of the company and to the number of legal entities comprising the company. Of the 19 respondents from companies with more than $25 billion in annual revenues, the total hours averaged 108,571.

The average hourly audit rate was $218 for all public companies–$186 for nonaccelerated filers and $220 for the large accelerated filers. Surprisingly, the survey found that the lowest hourly rate ($110) and the highest hourly rate ($400) were both reported by large accelerated filers. It said the $110 rate was reported by a large multi-national consumer goods distributor and the $400 rate was reported by a large multi-national financial services firm.

Other interesting findings:

• 88 percent of public company respondents used Big 4 audit firms compared to 36 percent of private companies.

• After the Big 4, Grant Thornton was mentioned by four respondents and BDO and McGladrey were both mentioned once.

• 21 of the 197 private companies plan to switch auditors, compared to only 7 of the 150 public company respondents. Service issues and fees were key reasons for both groups.

• Just 16 of the 150 public companies indicated that their auditors broke out the cost of the Section 404 attestation.

Rough Year at KV Pharmaceutical Continues as Chairman, CFO Quit

This story is republished from CFOZone, where you’ll find news, analysis and professional networking tools for finance executives.

There’s no shortage of drama at KV Pharmaceutical. Last week Chairman Terry Hatfield, Stephen Stamp, who was named CFO April 13, and board member John Sampson quit, citing “serious concerns” about newly elected board members and senior management.

The previous week, immediately following the company’s annual meeting, the newly elected board ousted interim President and CEO David Van Vilet, who had been in charge since December 2008.

The St. Louis-based company has not named a new CFO.


It also said it is looking for a CEO with extensive pharmaceutical experience. For now, Gregory Divis will be interim president and CEO, while continuing as president of Ther-Rx, the company’s branded pharmaceutical subsidiary.

In their resignation letters, Hatfield and Sampson said they had “serious concerns regarding the ability of the newly constituted board and senior management to provide the required independent oversight of KV’s business during this critical time in the company’s history.”

They noted that only three of the board’s seven nominees for board seats were elected at the annual meeting. The remaining elected members were candidates proposed by shareholders. Among those re-elected to the board was Marc Hermelin, son of the founder, who was ousted as CEO in 2008. Also re-elected was David Hermelin, the son of Marc Hermelin, and a former director of corporate strategy who retained his seat. David Hermelin was among the board’s nominees, Marc was not.

The year has been tumultuous. In February, KV agreed to a $25.8 million settlement with the United States Justice Department. Officials with the company’s subsidiary, Ethex Corp. pleaded guilty to two felony counts of criminal fraud for failing to report it was manufacturing oversized tablets that could be harmful to patients, (some had double the advertised dosage of medicine). In March the company fired 289 employees, or 42 percent of its staff, to lower operating costs.

However, the company’s board still found the cash to pay themselves a hefty raise. According to a recent SEC filing, the board was paid $116,000 in 2009, a $60,000 raise while the company was involved in massive layoffs.

Earlier this month KV closed the sale of the assets of Particle Dynamics for $24.6 million, plus up to an additional $5.5 million in potential earn-out payments over the next four years.

In a prepared statement the company said the board’s primary focus is two-fold: to continue to work with the Food and Drug Administration to reinstate KV to Good Manufacturing Practice compliance, and to continue to explore a variety of financial alternatives as a means to strengthen the company’s cash position.

The company could not be reached for comment.

Job of the Day: Sterling Stamos Needs a Financial Analyst

Private investment firm Sterling Stamos needs an experienced professional to join its Finance team in their newly established Charlotte, North Carolina office.

Candidates should have a minimum of three years experience with a CPA preferred but not required.


Company: Sterling Stamos

Title: Analyst, Finance

Location: Charlotte, NC

Description: This position will perform a range of portfolio management and monitoring duties to ensure client deliverables are met and investment portfolio risk is mitigated.

Responsibilities: Input and analyze private equity fund and portfolio company finance data into models that drive valuation and other quantitative analysis. Perform a broad and complex range of private equity fund and portfolio level analysis, modeling and reporting. Must demonstrate a strong knowledge of finance, accounting and private equity practices and be able to independently analyze and interpret financial statements

Qualifications/Skills: B.A./B.S. degree in Accounting, Finance, or related discipline; Minimum 3 years relevant work experience; CPA preferred but not required; Experience supporting a transaction-based or portfolio monitoring business within the financial services industry.

See the entire description over at the GC Career Center and visit the main page for all your job search needs.

Job of the Day: J.P. Morgan Needs a Tax Manager

J.P. Morgan is looking for an experienced tax professional who has experience with registered investments companies (“RIC”) to fill a Tax Manager position in its Boston office.

The position requires a seven to ten years of RIC tax experience, with five years managerial experience and a CPA or MST is required. Big 4 experience is preferred.


Company: J.P. Morgan

Title: Tax Manager

Location: Boston, MA

Qualifications/Skills: BS in Accountancy or Finance is required, CPA or MST is required; Seven to Ten Years of RIC Tax experience required. Minimum of Five years of managerial experience required. Big four tax accounting experience or service provider experience is preferred.

See the entire description over at the GC Career Center and visit the main page for all your job search needs.

Will Small Business Support Obama on Alternative Energy?

This story is republished from CFOZone, where you’ll find news, analysis and professional networking tools for finance executives.

Looks like President Obama could have an unexpected ally in his push for alternative forms of energy: small business.

That, at least, is the conclusion of a study of 800 small business owners and their attitudes towards clean-energy policies conducted by several groups, including Small Business Majority, a small-business advocacy organization.

The study found that most small-business owners support having a clean-energy policy and think the right moves can jumpstart the economy and create jobs.


Specifically, 50 percent back clean energy and climate legislation that would “limit pollution, invest in clean-energy sources and encourage companies to use and develop clean-energy sources” and “put a price on carbon emissions from energy sources like coal and oil, so companies would have to pay if they release these emissions into the air.” And 61 percent feel that moving the country to adopt new, alternative forms of energy is a viable way to restart economic growth.

That’s in spite of the fact that nearly two-thirds think a new energy and climate policy would increase their costs–quite something, considering the really small size of most of the respondents, 79 percent of whom have five or fewer employees.

Still, the majority also would be more likely to support new legislation if they received government incentives to help reduce the costs of introducing energy-efficiency improvements. For example, 62 percent would support a bill if it included interest-free loans for upgrades. Fifty-two percent would be more likely to back legislation if they received grants or subsidies for energy improvements and if they had access to free training or consultation on how to profit from the emerging clean-energy industry.

Of course, other studies have come up with notably different conclusions. Early this year, for example, the National Federation of Independent Business (NFIB) found that 66 percent of small-business owners and managers oppose a federal cap-and-trade system.

But if Small Business Majority is correct, then, if he plays his cards right, Obama might wind up with significant small-business support at a time when he’s going to need it badly.

Job of the Day: Nuveen Investments Needs a Manager of Financial Reporting

Nuveen Investments is looking for an experienced accounting professional to oversee the financial reporting function in Chicago.

Candidates need at least 5 years experience in public accounting, a CPA is required and financial services experience is a plus.


Company: Nuveen Investments

Title: Manager – Financial Reporting

Location: Chicago, IL

Responsibilities: Responsible for the financial reporting of financial statements and footnotes, including fair value disclosures as well as the interpretation of updates to authoritative accounting literature and their interpretation to the company’s financial statements and footnotes; Month end close; Various account reconciliations
Assist with external audit; Perform benefit plan audits.

Qualifications/Skills: Bachelor’s degree in Accounting required; CPA required; 5 – 7 years accounting/finance experience, including public accounting experience; Financial services experience a plus.

See the entire description over at the GC Career Center and visit the main page for all your job search needs.

Cautionary Tales: Enterprise Software Edition

A few weeks ago, I was talking about CRM (Customer Relationship Management) software. Essentially, CRM should help a company (as Dennis Howlett – business software blogger put it), “sell more stuff.”

I don’t have a problem with that result. We can argue all day long abo really “needed” as opposed to “pushed”. That’s a philosophical debate, indeed, it’s a MORALISTIC debate. In Obama’s address to the USA (re: BP oil sands) he prayed for a “hand to guide us.” Was he talking about the hand of god, or the invisible hand? … But I digress.

My point about CRM was much less lofty. CRM systems are simply about attempting to know your customer. How much data can we collate and analyze in order to maximize our value proposition? Or, if you’re a cynic – how can we, as Homer Simpson would say, “cram one more salty treat into America’s already bloated snack hole?”


Sidenote: Back in the heyday of the SUV craze, there was a great interview on 60 Minutes with some analyst/pundit who described the motivation that seemed to underlie the populating of these beasts. He described it as “reptilian.” The term stuck with me and I find it helpful to think about in around any purchasing decision of consequence. A well executed CRM can create a veritable “Jurassic Park” of suckers if that is what one is so inclined to create. Although, it doesn’t have to be that way. It doesn’t have to be evil.

My point this week though is less about CRM per se and more about what happens when an enterprise software implementation goes awry. A different kind of evil. There have been two big stories recently detailing lawsuits being leveled against firms who had been contracted to install an enterprise system and had allegedly failed to deliver on the contract.

In one case, EDS (now owned by Hewlett Packard) just agreed to pay British Sky Broadcasting $460 million for a failed CRM implementation. This was from a project undertaken in the year 2000 and abandoned two years later. The settlement is four times the value of the budgeted project cost.

In a second case, Marin County, CA is suing Deloitte Consulting for an alleged failure in rolling out an ERP (Enterprise Resource Planning) system. Marin County is seeking $30 million. Their contention is that Deloitte didn’t have the technical skills on the software in question. That’s an important point. This type of technical skill is of the “use it or lose it” variety.

So, is that the answer? When a software implementation goes awry, you sue everyone? Well, sometimes.

You see, buying an enterprise software system isn’t like buying a vehicle. You can’t just hand the wheel over to your reptilian brain and pray for the invisible hand to hook up financing and you’re on your way.

There’s work involved, normally a third party, that is paid to configure the software and integrate it into your organization’s existing infrastructure. In a complex business model, the process of defining and integrating all the business rules, data flows, and connections can be daunting… sometimes, impossible. Failure, unfortunately, is always an option.

These recent examples deal with alleged failures on the part of the third party implementers, but failures can occur anywhere within “hell’s half-acre.”

I’ve seen examples where it was clearly a management failure to provide project leadership that created an implementation failure. The example I am thinking about resulted in the company taking a $2 million dollar charge then having to start over. When I went to see them, it looked like they were heading right back down the same road. Making the same mistakes. Me? I can’t help someone who doesn’t want to be helped.

Some folks point to Saas products as a way to alleviate these nightmare scenarios. If only it was that easy. Wherever a business has an existing IT architecture, there is the possibility of an integration problem (assuming you want integrated systems which I have to believe that you’ll want). There is another company I can think of who, when I met them, had been working for at least 6 months on an integration with a Saas ERP system and their back office. For a number of reasons, it really just didn’t seem like it was going to work. And the red flag for me was that the CFO and the Director of Finance had vastly different views as to how the project was going.

These are just a couple examples I can name from my own experiences and I’m not even in the software implementation game!

The moral of the story is know the statement of work inside out. Understand the terms of the contract. Technical skills are finite. Be very clear on the desired outcomes.

And beware of the reptilian brain.

Geoff Devereux as been active in Vancouver’s technology start-up community for the past 5 years. Prior to getting lured into tech start-ups, Geoff worked in various fields including a 5 year stint in a tax accounting firm. You can see more of his posts for GC here.

Job of the Day: Bloomberg Needs a Technical Revenue Analyst

Bloomberg is looking for an experienced accountant to join its Revenue Operations Team in a Technical Revenue Analyst role.

Key responsibilities include technical reporting for the closing process, implementing procedural and assisting with external audits.

Candidates need 3 to 5 years experience, CPA is a plus and knowledge of SQL server required.


Company: Bloomberg

Title: Technical Revenue Analyst

Location: New York, NY

Description: This position is responsible for playing a contributing role in all aspects required of the Revenue Operations Team. Key responsibilities include technical reporting for the month close process, ad hoc analysis involving complex system data pulls incorporating analytical insight, automating reporting capabilities, revenue and variance analysis, implementing procedural and operational controls, assisting with the interim and annual external financial audits as needed, and responding to sales/senior management requests.

Responsibilities: Accounting, Reporting & Internal Controls Expertise – Demonstrates appropriate understanding / working knowledge of accounting principles and internal controls, and applies them (as required for the position held) to provide objective, timely, and accurate financial information to meet / exceed regulatory and legislative requirements and to help drive business results; Works to ensure compliance of all financial requirements and reporting are met for all products, countries and policies; Ability to document, control, review, and improve policy and procedures as well as departmental tasks to enhance for efficiency and effectiveness.

Financial Analytics Expertise – Demonstrates insightful use of financial analysis techniques, tools, and concepts, to provide practical counsel to business area partners and management in order to drive business results.

Process & Systems Expertise – Understands and facilitates the integration of business processes, people, and relevant technology, in order to identify, configure, and communicate useful information, and to provide practical business leadership to drive business decision making across the company; Identifies non-value added processes within the department and seeks solutions; Effectively makes decisions on more complex issues, giving consideration to relevant costs, benefits and risks; Demonstrates the initiative to drive change and influence others across the organization in support of the company’s goals and objectives; Ensures achievement of desired results by making appropriate recommendations and providing appropriate financial leadership through completion.

Qualifications/Skills: Bachelors in Business Administration (Finance, Accounting, Computer Programming); CPA a plus; 3 – 5 years experience with demonstrated performance assisting/supporting a department; Knowledge of SQL server (version 2000 or higher) required; Knowledge of procedural controls and data validation techniques required; Ability to determine technical requirements for a project given a business request required; Strong MS Excel skills required; SAP/Business Warehouse knowledge a plus; Financial reporting experience a plus; Financial modeling expertise a plus.

See the entire description over at the GC Career Center and visit the main page for all your job search needs.

The Fed’s Report on Small Business and Credit Card Reform Fails to Impress

This story is republished from CFOZone, where you’ll find news, analysis and professional networking tools for finance executives.

When Congress voted not to cover small businesses under the credit card reform bill last year, they asked the Federal Reserve to study the issue and report back in May. A few weeks late, the Fed recently came out with its report.

Those who support not giving small businesses with 50 or fewer employees the same protections provided to consumers claim the findings support their view.

But the real bottom line is this: The findings aren’t conclusive either way.


That’s not to say the report doesn’t present a few definite opinions about the Credit Card Accountability Responsibility and Disclosure Act. (Yes, the acronym is CARD).

For example, it supports extending the standardization of disclosure rules about account terms to small business, saying it would help companies compare credit card plan costs.

It also opposes limiting bank’s ability to adjust interest rates. The thinking is that it’s more difficult for banks to assess the riskiness of small business borrowers than consumers. Plus small companies tend to need more credit. As a result, curbing the ability to raise rates “may lead to higher initial interest rates, which would harm those firms that borrow on small-business credit cards.”

So that sounds pretty definitive. It isn’t. The bill provides “substantive” protections against certain practices, from raising interest rates to charging penalties. But, the report barely touches on the rest of the bill, such as provisions that limit fees and the ability to tinker with payment deadlines.

Perhaps, in a rush to meet their deadline, or not miss it too badly, the Fed simply didn’t have time to get to the rest of the bill. But it means that they failed to provide a conclusive, comprehensive direction to Congress.

And by focusing on just one or two provisions, they created the false impression that they’ve really weighed in on the bill—thereby giving the bank lobby bogus ammunition with which to declare victory.

In fact, while bank lobbyists were ecstatic about the interest rate recommendation, not every bank is on board. Bank of America recently announced that it would give small businesses the same protections consumers get under the bill. According to Bloomberg/BusinessWeek, a spokesperson said that the move won’t hurt its ability to extend credit.