Category: News

Dennis Kozlowski Would Like to Know Why More People Aren’t Outraged About These Epic Tyco Parties

A couple of weeks ago we told you about fired Tyco accountant Jeff Weist who wasn’t really into, among other things, mermaid greeters and costumed wenches. Whether or not he’s not a fan of starfish bikinis wasn’t the issue, it was the principle of the matter.

You see, some Tyco executives got into a bit of trouble back in the day for some accounting fraud but the kicker was the footage of a four-day “Roman orgy” rager in Sardinia. The jury didn’t have much problem throwing the book at former CEO Dennis Kozlowski and former CFO Mark Swartz after concluding that awesome party = crooked execs. Weist figured the company didn’t really need more trouble so he raised a fuss over the expenses for another epic bash that was being planned for execs in the Bahamas.


FOX Business Network’s Neil Cavuto got wind of this and had Weist on his program only to do most of the talking. When Weist was able to squeeze a word in, he didn’t exactly come across as a fun-loving guy but more like your typical accountant that would probably frown on these types of shenanigans. Nevertheless, Weist was given the boot and that has caused a bit of stir – specifically, Weist filing suit against Tyco.

Anyway, a guy that knows a little something about awesome parties – Dennis Kozlowski – caught Cavuto’s little program and felt obligated to write a letter (a copy follows in the following pages) expressing his disappointment.

Koz writes, “As I write this letter in my 6′ x 9′ cell jail cell, all I can muster in response to your show is ‘My, how things have changed.’ “

Right! Like, how on Earth can you justify stingray feedings? COME ON. You want sexy men and women running around in togas, that’s understandable. You just raid your linen closet and you’re good to go. But can you believe someone would throw a corporate bash in the Western Hemisphere? Shameful.

He goes on to hem and haw that if it wasn’t for some idiot deciding to tape his little bash in Sardinia, which was later shown to 12 Manhattan jurors, he wouldn’t even be in this predicament. Further, DK would like to know where the outrage is re: the mermaids, wenches, tattoo artists, bonuses and so forth, “With the Tyco extravaganza where employees were paid ‘bonuses’ to attend, you have to ask where is the outrage?”

Well? Outrage? Anyone? The man is in a prison upstate and he can’t hear you!



Talking Social Media With the New Jersey Society of CPAs

From the very first day we swapped our totally unprofessional Twitter account for one with less F-words and started finding accountants to follow, we have been constantly impressed with the concentration of accounting folks in social media. But in the constantly-evolving world of Internet communication, there are always a few bright spots that stand out as ahead of the curve, and the New Jersey Society of CPAs’ communications strategy sets itself apart as one such bright spot.

We were able to get a few moments with NJSCPA’s Don Meyer to discuss their strategy, successes and the drive behind their major social media push of the last three years. Operating with three goals in mind – driving member retention through a greater level of engagement for current meorking and learning opportunities for current members; supporting existing membership acquisition programs – the NJSCPA has learned to use the power of blogs and social networking to reach potential, new and long-time Society members as well as CPA exam candidates across the country. Turns out that we got way more insight into the NJSCPA social media brain than we can share here and were terribly impressed by their varying campaigns, daring strategy and dedication to delivering information.


AG: First things first: let’s talk about your social media campaigns. What sort of things are you heavily involved in and why?

DM: We launched our first blog, NJSCPA Exam Cram, about three years ago to help guide student members and exam candidates through the exam process. We’ve been on Facebook for almost two years and have attracted more than 1,800 fans. We developed our page to maintain contact with student members who sometimes change mailing addresses and emails following graduation, but we now find that the page is a valuable source of professional and Society information for members in all age groups. Our LinkedIn group, launched almost two years ago, serves much the same purpose, providing information for our members and a place for them to connect. We jumped into Twitter about a year ago. We currently have more than 700 people following us. Our Twitter page is linked to our news blog, CPA Observation Post. We use those tools to provide daily professional and Society updates, but we also use Twitter and the blog to help NJ accounting firms promote themselves.

AG: Is there anything you’ve tried that hasn’t worked out as well as you’d hoped?

DM: We tried a financial literacy blog, but we couldn’t generate much interest. I think there may be too much competition out there and we couldn’t find the right niche. Our financial literacy Facebook and Twitter pages have not taken off as quickly as we had hoped.

AG: Anything that really surprised you when it comes to social media?

DM: I was not a believer in Twitter before we started using it extensively last year. Now I think it’s my favorite social media site. I think it’s a great tool for disseminating news and information quickly and easily. I’m also surprised how successful our Facebook advertising has been. I was skeptical that anyone on Facebook would click on ads promoting our page, but it’s played a key role in helping us promote our presence.

AG: The NJSCPA Exam Cram blog has been around for awhile (we noticed it quite some time ago) and seems to get a great response. Can you tell us more about how this came about and how you select exam candidates to participate? Do you follow them after they’ve successfully completed the exam?

DM: Many of us involved in the Society’s student outreach programs have never taken the exam, so we felt we needed to get the perspective from aspiring CPAs who had experienced the ups and downs. This way if a student or candidate asked us a non-technical exam question (e.g. in what order should I take each section, how should I study, how do you feel when you fail one part of the exam, etc.) we could refer them to the blog. We started out with one blogger but soon discovered that work and personal commitments would preclude any blogger from posting as often as we would like. So we gradually added more bloggers. At the moment, we have five CPA Exam candidate bloggers and one staff person blogger, Janice Amatucci. We don’t have a set procedure for how we pick our bloggers. We ask student members who have been involved with the Society through one of our various student programs or simply ask for volunteers via email or at events. The first five bloggers all passed the CPA Exam and continue to contribute to the NJSCPA by writing articles, serving as team leaders at student events or attending other Society events. To date, we’ve attracted more than 72,000 pageviews.

You can find the NJSCPA all over the place online here.

NASBA Gives Its Accounting License Library a Makeover

For those of you that aren’t already aware, we implore you to check out NASBA’s incredibly useful Accounting Licensing Library – a comprehensive, continually-updated database that can help future CPAs find a state in which to be licensed and offers accounting firms access to important state data to assist in their efforts across state lines. In other words, the tool’s main goal is to facilitate mobility by bringing all 55 jurisdictions together in one easy-to-use area while offering a one-stop shop for those considering CPA licensure.

We recently got a chance to chat with NASBA General Counsel and Director of Business Development Maria Caldwell about the new ALL.


The new ALL tool features a new section for accounting students, an enhanced state requirement comparison research tool and expanded product information. The refreshed ALL website offers the same features and benefits as the previous site in a more user-friendly format. Users can find detailed licensing information and even use their research tool to determine if their educational requirements meet any state’s licensure requirements without having to click through each state board’s website individually. This is huge for candidates and for NASBA, as it allows them to spend more time dealing with candidate issues and less time pointing candidates in the right direction.

The birth of the ALL actually began within NASBA four years ago as they wanted a single resource for internal use that would take each state board’s requirements and aggregate them into one place. “There really wasn’t one source to go to and look up all these different rules, so that was the impetus for putting the tool together,” Caldwell told us. “We wanted to offer it to firms at first but once it was out there we realized there were several different audiences using it. Students use it as a licensing tool and international candidates use it as well.”

With over 700 candidates accessing the tool per year (before the makeover) and a significant leap in CPA exam applications since the first whispers of an economic downturn in 2008, interest in the tool and CPA licensure does not appear to be waning any time soon.

Beyond the licensure aspect of the tool, the ALL gives both individuals and firms a way to improve their own economic outlooks by reaching across state lines to find clients. “In this kind of environment, the firms are looking to neighboring states if their state is suffering from a lack of business,” Caldwell said. The tool allows for mobility without firms wasting countless hours combing through state requirements and allows CPAs in a specialty practice to meet the needs of clients who may be in areas that lack qualified accountants who offer their specialized services.

As the CPA exam prepares to go international, NASBA is counting on increased interest in not only the ALL but the all-important CPA designation. Let’s face it, not every industry can say it has weathered the economic downturn as well as CPAs have and passing the exam is still considered a prestigious accomplishment across the globe.

Great job, NASBA, we definitely approve!

What Would the Nonprofit Sector and Community Solutions Act Accomplish?

Representative Betty McCollum is upset that small businesses have the Small Business Administration but nonprofits don’t get a Nonprofit Administration to evaluate, build and monitor the capacity of America’s vital nonprofits. She believes nonprofits are an invisible but vital part to the economy and overlooked by Washington, DC except when it comes to tax issues.

She writes in the Hill:

This legislation represents a significant step toward creating a more effective partnership between the federal government and the nonprofit sector. H.R. 5533 establishes a new United States Council on the Nonprofit Sector. The Council will be a forum for leaders of nonprofits, foundations, businesses and government to discuss strategies for strengthening the nonprofit sector. The bill also creates an Inter-agency Working Group on the Nonprofit Sector. This group will ensure that high-level representatives from cabinet agencies and other key agencies coordinate and improve federal policies pertaining to nonprofit organizations. Finally, the legislation directs Federal agencies to collect and publish better data on nonprofits AND to support research that will lead to smarter Federal policy.

The goals of the Nonprofit Sector and Community Solutions Act are to build a stronger nonprofit sector, craft smarter federal policy, and create more vibrant communities in every state across the country.

Listen, we love working groups as much as the next cube-dweller but haven’t yet seen a copy of the Bill so can’t say either way at this point. What we do know is that the nonprofit sector is large enough to be in need of some help beyond whatever pestering they get from our friends at the IRS.

According to a 2009 Congressional Research Service report, nonprofits (mostly charities) make up over 5% of U.S. GDP. Charitable organizations are estimated to employ more than 7% of the U.S. workforce, while the broader nonprofit sector is estimated to employ 10% of the U.S. workforce. In 2009, nonprofits filing form 990s with the IRS reported approximately $1.4 billion in revenue and nearly $2.6 billion in assets.

Those numbers do not include the estimated 215,000 charities who have neglected (or completely blown off) their 990 responsibilities.

Update: Ms McCollum’s office was kind enough to get in touch and provide us with more information and a direct link to the Bill. We look forward to seeing how this works out.

More Than a Few People Didn’t Heed the ABA’s Advice re: “Fair Value Sucks” Letters to the FASB

Just last week we mentioned the American Bankers Association and its efforts to undermine the FASB’s latest fair value proposal that, in the ABA’s mind, could bring down civilization as we know it.

Because of this danger, the ABA encouraged “investors” through email and on its website to write individual letters to the FASB, expressing their displeasure with the worst idea in the modern history of double-entry accounting. We say “investors” because the ABA not-so-subtly asked everyone (i.e. who felt the overwhelming urge to write Bob Herz & Co.) to refer to themselves as such.

Further, the ABA provided a template of a letter to send to the Board for the “investors,” however, it did warn to resist using the example as their own because A) this is far too important and telling the FASB that fair value pains you in the deepness of your soul and takes food out of your children’s mouths will be a far more effective narrative; and B) the FASB hates form letters. HATES. So much so that Bob Herz rips up all his gold stars that he gives for the constructive letters he receives and then your unoriginal ass gets negative points.

The group urges investors to “write your own letter — the FASB does not appreciate ‘form’ letters, and often discounts them in their analyses.”

Simple enough, right? Well, maybe. But In his column today, Jonathan Weil gives an example of one ABA soldier that wasn’t very good at following instructions:

Among the letter writers was Terry L. Stevens of Francesville, Indiana, who identified himself as a bank investor, as the ABA had suggested. He didn’t mention that he also is chief financial officer and executive vice president of Alliance Bank, a closely held lender in Francesville with $270 million of assets.

“As a bank investor, of utmost importance to me regarding the banks in which I own stock is their financial position, and transparent financial reporting is key in order for me to make investment decisions,” Stevens’ letter said. “With this in mind, I am writing to express my deep concerns and opposition to the portion of the proposal that requires all financial instruments to be marked to market.”

Stevens didn’t write those words himself. He copied them verbatim from a sample letter the ABA posted on its Web page. So, too, did a bunch of other bankers who submitted comment letters to the FASB opposing its proposal, notwithstanding the ABA’s warning that they shouldn’t do cut-and-paste jobs.

This had to be a mistake, right? This is far too important of an issue to the banks of this country that a mishap like this could just happen. Bankers are responsible people that take this stuff very seriously and would never risk going through the motions just to serve at the whims of their lobby’s voice…would they?

Stevens told me he didn’t have time to write his own letter from scratch. “The points that I grabbed out of their paragraphs did a good job of explaining how I felt about the situation,” he said.

Oh.

Stealth Bankers Bomb as Anti-Reform Crusaders [Jonathan Weil/Bloomberg]

Job of the Day: AllianceBernstein Needs a Senior Auditor

AllianceBernstein is looking for an experienced auditor to join its internal department in New York.

Ideal candidates have a minimum of five years experience with exposure to alternative investment products. Advanced degree or certifications are preferred.


Company: AllianceBernstein

Title: Senior Audit Associate

Location: New York

Description: We are seeking a seeking a Senior Audit Associate with strong business and/or audit experience in Alternative Investments to join our Internal Audit Department. This position is an opportunity for experienced professionals to join a dynamic team to deliver value added audit services.

Responsibilities: Assist Audit Management in carrying out the annual audit plan; Assess the accuracy and adequacy of financial information and the Company’s internal control structure; Assist Audit Management in accomplishing certain administrative tasks; Supervise and work with junior auditors; Through continuous monitoring, keep current as to the development of relevant industry, regulatory and corporate matters that may affect the Internal Audit Department’s audit scope.

Skills: Our ideal candidate will have 5 to 10 years of broad capital markets experience with an emphasis in alternative investment products and services. College degree required. Advanced degree and/or certification preferred. Candidates should have demonstrated leadership capability, strong team work capabilities, solid written and oral communication skills and excellent, analytical skills. Candidates must have the ability to interact with all levels of management; Knowledge of the buy-side investment management business is a plus. Prior audit experience is preferred, but not required. Candidates should demonstrate a firm grasp and good working knowledge of the suite of Alternative Investment products and services including: Hedge Funds – direct investments and Fund of Hedge Funds.

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

Accountant Claims That She Has Trouble Controlling the Volume of Her Voice

This is understandable. We know a few people that have been accused of being “angry” when, in fact, they are just being “loud.”

Negros Occidental Provincial Accountant Merly Fortu denied on Sunday that she acted with arrogance and hostility when she met with the elected provincial government officials on July 1.

Fortu, who faced administrative charges for grave misconduct and gross insubordination for allegedly shouting at elected provincial government officials during the meeting, explained that her normal speaking voice was “a little bit louder” than others.

It is similar (albeit the opposite) to having shy/asshole confusion.

Job of the Day: J.P. Morgan Needs a Fund Accounting Analyst

J.P. Morgan is looking for an experienced accounting to fill a fund accounting analyst position in its Dallas location.

Qualifications include a bachelors degree and five years experience


Company: J.P. Morgan

Title: Fund Accounting Analyst

Location: Dallas, TX

Qualifications: Bachelor degree required, degree preference is Finance, Accounting or Economics; 5 years experience in the banking industry, preferably in financial accounting operations 3 yrs securities industry knowledge including dividends, principal & interest, corporate actions and trading activity; Proven managerial experience – 1 – 3 years; Advanced knowledge of account reconciliation processes; Strong analytical, prioritization, organizational and time management skills; Strong multi-tasking and negotiation skills; Strong communication skills, both oral and written; Excellent customer service skills with attention to detail; PC literacy with proficiency in MS Word, Excel and MS AccessCapable of assisting others in research and reconciliation tasks; Team player with the ability to work productively within a group and maintain a high degree of independence.

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

One McGladrey Office Opts to Celebrate the Rebranding with a Cult-like Ritual

Leftovers of the freakishly repulsive cake that McGladrey rolled out for its rebranding was apparently not shared with other offices because the crew in Phoenix/Las Vegas took it upon themselves to come up with another method of celebration.

“After we returned from brand champion training in Orlando, the three of us met to brainstorm for ideas to make our local brand launch fun and memorable. We wanted to focus on more than just the launch. We wanted employees to know that a brand launch is only successful if the brand becomes part of everything they do.”

What exactly was the idea? Another cake? A surprise appearance by Natalie Gulbis? Keeping your jobs?


No, the creative minds in Phoenix/Vegas decided that gathering everyone together and asking them to drink blue Kool-Aid™ was the best way to show everyone that they are in this together. DO OR DIE.

“Asking employees to ‘drink the McGladrey Kool-aid’ sends the message that we all need to be in this together,” says ——. “And there’s no opting out if we’re going to make this effort a success.”

Pardon what is about to follow but…WHAT. THE. FUCK? Forget about the literal manifestation of a corporate metaphor, which is all sorts of lame (no on is schlepping an 800 lb. gorilla into HQ, are they?). Ever heard of Jonestown? Aren’t we all just a little too trusting with this “drink this” attitude? “Hey, just drink this Dixie cup that’s full of what we say is blue Kool-Aid™ because it will bring us all together.”

And you know how they got a lot of people to get on board with this? FREE T-SHIRTS!

“As an added incentive, employees who drank McGladrey Kool-aid from a Dixie cup received their very ownMcGladrey t-shirt.”

All we can say is, don’t walk but run away.

7-9-10 Drinking the Koolaid Article-2

Fired Tyco Accountant Claims That the Company Is Still Throwing Ridiculously Awesome Parties

[caption id="attachment_13953" align="alignright" width="260" caption="Not a legitimate business expense?"][/caption]

Remeber Tyco? Dennis Kozlowski. Mark Swartz. Roman orgy parties. It sounded like a hoot. Too bad the law got in the way.

Koz and Swartz may be locked up but that doesn’t mean the good times at Tyco had to end!

An accounting manager at Tyco Electronics claims that he was ‘coercively’ fired for taking issue with “Tyco’s exorbitant bashes for its CEO Thomas Lynch and other top executives ‘were almost identical to parties for which Tyco’s former CEO [Dennis Kozlowski] was criminally charged and convicted.’ ”

What kind of party expenses you ask? Run-of-the-mill stuff like ‘mermaid greeters’ and ‘costumed pirates/wenches.’

It doesn’t hurt to have a little eye candy at a company bash, amiright? And maybe Jeffrey Weist was okay with the scantily clad roaming hotties and really just took exception with the $2,350 for the tattoo artist (tatts included!) and limbo and fire dancers, $2,500 for chair covers and sashes and the $1,000 hotel rooms.


Whatever lavish (read: kick-ass) expense it was that turned out to be the straw that broke the stuffy accountant’s back, Jeff Wiest not letting this happen:

The complaint adds: “This requested payment seemed particularly inappropriate from a morale aspect, coming in the midst of continued downsizing pressure, and seemed contradictory in that this one party equated to approximately seven positions for one year in the accounts payable function managed by Wiest,” according to the complaint.

Wiest says that despite his objections, “it was decided to go ahead with the event, to treat the proportionate share of the party as income, and to ‘gross-up’ the bonuses to the employees involved. In other words, the company would pay each highly paid employee an additional amount of cash beyond the value of the trip in order to cover his/her tax liability.”

This approach brought “the total cost of the event to approximately a half million dollars,” according to the complaint.

He claims that each high-ranking Tyco employee was awarded up to $7,500 per person, or $15,000 per couple, as additional “income,” for attending the party. All of the 30 employees who attended were receiving salaries of more than $102,000, Wiest says. He adds that 23 of them took their wives.

And they got paid to go! What is going on at Tyco? Other than it’s the best place to work EVER.

Back to Wiest. For taking high road, Weist alleges that Tyco turned the screws back on him:

In response to his repeated questioning of these extravaganzas, Wiest says, Tyco began an “investigation” of him. This led to bogus accusations that he had made sexually oriented comments, Wiest says.

“Examples given included a comment to an employee going on a honeymoon cruise to not stay on the ship the whole time; a comment about his wife’s hormone issues during her pregnancy being difficult for him, and a comment regarding the uses of improved flexibility from working out. It is noteworthy that the hormone comment would have been several years old, as Wiest’s child was born in 2006,” the complaint states.

He claims Tyco also raised questions about a decade-old brief relationship he had had with a California-based Tyco employee, and baseball tickets that Wiest had been given by a superior.

Jesus. If they would have just invited him to the party, we probably wouldn’t have to go through all this.

Same Old Tricks at Tyco, Accountant Says [Courthouse News Service]

McGladrey to Give Money to Another non-Natalie Gulbis Golfer

Hell, they did even go with another woman. They figured making Davis Love III the third dude golfer to be sponsored by McGladrey was the best route.

Although no terms were disclosed on DL-cubed’s deal, we’re guessing it’s a decent deal, not Phil Mickelson money mind you, but he won’t be starving either.


And DL3 is pretty flippin’ pleased to be the third amigos, “Following the great work McGladrey has done with the Davis Love Foundation, it was a natural progression for me to join Team McGladrey and proudly support their brand in the way they’ve supported my Foundation. It was great to kick off my new sponsorship with McGladrey in style with a good showing at the U.S. Open, and I look forward to continued success on and off the course as a member of Team McGladrey.”

Likewise, C.E Andrews is pumped to have a 3rd join the team “Davis and the rest of our Team McGladrey Foursome demonstrate the values of integrity, excellence, understanding and teamwork – values that mirror our company’s approach to serving and understanding our clients.”

[caption id="attachment_13910" align="alignright" width="260" caption="All alone in the boys club."][/caption]

Unfortch for all of us, D Love stayed on script and didn’t mention Natalie Gulbis specifically which just reeks of a “bros before hoes” mentality. If McGladrey wants to sponsor a boys club, that’s their business but you can’t tell us that adding another lady on the team wouldn’t have worked just as well, if not better. Oh well. We’re sure Natalie will enjoy watching the three dudes ice each other at the joint appearances.

McGladrey Inks Deal with PGA TOUR Veteran Davis Love III, Makes Team McGladrey a Foursome [McGladrey]