Going Concern

Career Center

Job of the Day: Deutsche Bank Needs a Principal Auditor – Assistant Vice President

GoingConcern
April 22, 2010

Deutsche Bank is looking for an experienced auditor to join their Group Audit Legal, Risk and Captial team. The primary role of this position will focus on the Credit Risk Management, Market Risk Management and Treasury functions.

The position is located in New York and requires a strong finance/accounting background with 5 to 8 years experience.

Company: Deutsche Bank

Title: Principal Auditor – AVP

Location: New York, NY

Description: The role is for a Principal Auditor for the Group Audit LRC (Legal, Risk and Capital) team which covers the following functions: Risk Management (Credit, Market, and Operational), Corporate Security and Business Continuity (CSBC), Treasury & Capital Management, Legal and Compliance. The primary focus of this role will be on Credit Risk Management, Market Risk Management and Treasury.

Responsibilities: Successful implementation of risk-based audits both regionally and globally, with audit work that is appropriately risk assessed and aligned to the LRC audit strategy; Undertakes audit assignments and may review audit work completed by other team members and drafts audit reports for review by LRC Audit management, identifying and escalating issues and recommending audit ratings for approval by the PAM and Chief Auditor. Presenting and agreeing key findings with Client management; Contributes to dynamic planning through business monitoring of the areas of their responsibility; Demonstrates understanding of the client’s business; Facilitates issue tracking and validates closure of issues; Continues to develop technical expertise relevant to LRC and Group Audit, including market and regulatory developments; Enhance team’s position as a center of excellence for LRC related activities and Issues; Assists with training for Group Audit, prepares updates for GA Senior Management and provides on-going advice to Client management.

Qualifications: The candidate will ideally have an Audit background, however those with considerable experience in Risk would also be considered. Five to eight years of relevant experience is desired. He/she should have knowledge and experience with financial services products and operations, and an understanding of the regulatory framework for DB. Detailed technical knowledge of valuation techniques and risk modelling are considered a plus; He/she will have a strong academic background in finance or accounting; Advanced knowledge of Microsoft Office products, and experience using flowcharting applications. Experience with CAATs is also a plus.

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

Small Business

PwC Report: Venture Capital Activity in New York Jumps While Silicon Valley Sees a Slide

GoingConcern
April 22, 2010

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

Silicon Valley is still central headquarters for venture capital activity in the US. But it looks like the New York City area is trying to play catch up.

A new report shows an increase in the region both in the amount of startup funding and the number of deals for two consecutive quarters, while activity in Silicon Valley dropped.

The report, from PricewaterhouseCoopers and the National Venture Capital Association, found that financing for companies in and around the Big Apple increased to $566 million in the first quarter. That was an 18.9 percent rise from the previous quarter, also a 34 percent year-over-year increase. A total of 75 firms received money in the first quarter, up 13.6 percent.

In Silicon Valley the story was very different. Investment dollars and numbers still won out over New York, of course. But the trend was down. Total funding of $1.5 billion in the first quarter represented a 21.4 percent drop from the fourth quarter 2009, while the number of deals fell 24.6 percent over the same period.

Overall share of VC money also rose in New York and fell in Silicon Valley. In New York, it reached 12 percent, up from 9.2 percent in the fourth quarter 2009, compared to 32.3 percent for Silicon Valley, down from 37.5 percent.

This New York- area investment growth reflects recent efforts by venture capitalists and the New York City government to rev up funding.

A few examples:

Last spring, New York law firm Lowenstein Sandler started First Growth Venture Network, which provides mentoring for newbie CEOs from venture capital firms, angels and more-seasoned executives.

Last fall, they announced the first 15 CEO mentees. Late last year, seven successful entrepreneurs launched the Founder Collective to make $50,000 to $1 million investments in very early-stage ventures in New York, as well as the Boston area.

In early 2009, NYC Seed, a partnership of venture capital, non-profits and universities, made its first investments in several seed-stage ventures.

Last week, I wrote about trends in angel investing and noted that such financing provides more money for startups than venture capital. Still, although VCs invest in a small percentage of all new companies, they do support enterprises with potential to become real powerhouses. So, the New York area economy clearly benefits both in the short and long-term from this financing activity.

Although it’s doubtful these firms will ever match the contribution in tax dollars and jobs provided by Wall Street.

News

Grant Thornton Employees Can Expect Handwritten Thank You Notes Any Day Now

Caleb Newquist
April 22, 2010

It’s been awhile since we shared some of Stephen Chipman’s blog musings (mostly because we were too busy watching dust accumulate) but he was probably saving the more interesting stuff for post-April 15th.

“Interesting” obviously being a relative term but in his latest epic, he was not short on praise for those of you that remain with the firm:

Having just passed April 15, the first words I want you to read are “Thank you!” As we move through our busiest season, I continue to be impressed by the long hours, personal sacrifices and collaboration I read about in my e-mail, on our home page and by special letters and words of praise and thanks from our clients. As I’ve met with clients recently, one after another client executive raves about our people. It’s customary in the firm to say that clients rave about “our service,” but what they’re referring to is “you.” They are raving about each of you. The individuals for whom you work and with whom you have formed strong relationships based on excellence and trust are taking the time to tell me how valuable you have been to their respective businesses. Every time you show up, speak up and stay up late, you are demonstrating our global values: collaboration, leadership, excellence, agility, respect and responsibility. You are making a difference.

In case you missed it, your mere ability to drag yourself out of bed every morning, get to work at a decent hour, manage to utter a coherent sentence, and sacrificing your own health by depriving yourself of sleep you are making a difference. Your clients have noticed this by way of your wrinkled clothes, scuffed shoes, that expanding paunch, and your the all around zombie-esque qualities you exhibited every day during busy season (never mind this was all done for very little money).

And because of all those raving clients, Steve-o sent a little nudge to GT partners to make sure that they know, that you know, that they appreciate it because as it stands, they’re not doing that bang-up of a job:

Thank you.

These two simple words make a profound difference.

Feedback from the Voice Your Experience survey indicated that we need to continue to improve how we recognize our people. Interestingly, research shows recognition is not only about money and that a personal acknowledgement is especially powerful in motivating people to achieve exceptional results.

Please use the enclosed stationary to write your people notes of appreciation. By modeling this behavior, you play a key role in perpetuating a spirit of acknowledgement that benefits both our people and our business.

As always, thank you for all you do to make a difference every day.

/s/ Stephen

Okay people, illegible thank you notes (on extra-special stationary!) should be coming your way. Gratitude by way of money is cold and impersonal anyway.

Deloitte Playing Superhero to Group Hoping to Buy Manchester United

Adrienne Gonzalez
April 22, 2010

Let’s stop digging E&Y for five minutes and talk about Deloitte trying to sex itself up as tax advisory coaches to the group hoping to purchase Manchester United.

Guardian:

Deloitte, which has worked hard to build up its sporting credentials with its annual audits of football’s finances and consultancy work for a host of clubs, is understood to have become the latest big financial hitter to become associated with the Red Knights, the would-be buyers of Manchester United, in an advisory capacity.

Alongside Freshfields, which is supplying legal expertise, and Nomura, the Japanese investment bank that has been responsible for contacting all the 40 or so wealthy individuals who expressed concrete interest in the plan, Deloitte is believed to have been supplying advice on tax structures and how to structure any bid most efficiently.

Yeeeeeeeeeeah I can see it now, “casual football Friday” memos circulated around Deloitte’s UK offices about appropriate garb for the field and some hokey “We Are the World” sing-a-long at the end when Manchester United kicks whomever’s ass (I don’t watch the stuff). Excellent.

In the spirit of not discriminating when ripping on the Big 4, this Deloitte flick nearly brought me to tears. Maybe it was the faux hawk or the overgrown baby beard. Perhaps it was the fucking cape. You decide.

The Green Dot FTW!

Accounting News Roundup: Schapiro Says Timing of Goldman Suit Not Political; Old Madoff Stomping Grounds Close to Foreclosure; IRS Launches Inquiry into Florida GOP Credit Card Spending | 04.22.10

Caleb Newquist
April 22, 2010

SEC Chairman: No Heads Up on Goldman Lawsuit [WSJ]
Mary Schapiro would like everyone to know that just because they laid the smackdown on Goldman Sachs last Friday instead of, say, last year is that A) she’s still new at this job and B) the SEC does (and most certainly does not) what it wants when it wants. Even if it is an election year, the POTUS and his agenda have nothing to do with it.

“I started this job 15 months ago, in the wake of a serious financial crisis and with the view that the SEC must regulate Wall Street and vigorously enforce the securities laws. We will neither bring cases, nor refrain from bringing them, because of the political consequences. We will be governed always and only by the facts and the law.”

Lipstick on the collar [NYP]
The Post is reporting that the Lipstick Building, where Bernie Madoff had his North Pole offices is sliding ever closer to foreclosure. The report states that the Royal Bank of Canada is looking to get rid of its $210 million mortgage on 885 Third Ave.

“[T]he Lipstick Building’s problems are the direct result of having been purchased at the height of the property boom. RBC’s $210 million loan was provided as part of a complex financing structure used by Israel’s Metropolitan Real Estate Investors — led by Haim Revah and Jacob Abikzer — to pay $648.5 million for the property in 2007.”

Feds launch inquiry into Florida GOP credit-card expenses [Miami Herald]
The IRS is poking around the credit card activity by some Florida Republicans including the leading contender for its U.S. Senate, Marco Rubio. The IRS has opened a “preliminary inquiry” to determine if there is enough evidence to launch a formal investigation.

The Miami Herald and St. Petersburg Times both obtained credit card statements of Mr Rubio that reportedly include, “repairs to the family minivan, grocery bills, plane tickets for his wife, and purchases from retailers ranging from a wine store near his home to Apple’s on-line store. Rubio also charged the party for dozens of meals during the annual lawmaking session in Tallahassee, even though he received taxpayer subsidies for his meals.”

Mr Rubio insists that there “absolutely nothing to this,” and that “We don’t believe it’s income,” which sounds like some famous last words prior to a full blown IRS investigation.

Quote of the Day

Harry Markopolos Knows What to Do About Off-Balance Sheet Accounting

Caleb Newquist
April 22, 2010

“[E]liminate all use of off-balance sheet accounting–for any use whatsoever. Everything must be on balance sheet.”

~ Harry Markopolos, on one aspect of financial reform.

Nonviolent Measures Prevail in Case Involving Phony IRS Agent

Caleb Newquist
April 22, 2010

You could make the assumption that since Sherry Lynn Vertoch was merely posing as an IRS agent that the hoteliers didn’t have any cause to take any violent action. Had she actually been an IRS agent we probably could have expected some sort of shooting, bombing, plane-crashing or torture performed for the sake of American tradition.

A woman who racked up two years of unpaid lodging in Novato while posing as a federal tax agent was granted probation by a federal judge Tuesday and ordered to pay $55,000 to the hotel owners.Sherry Lynn Vertoch pleaded guilty in February to impersonating a federal officer. Chief U.S. District Judge Vaughn Walker in San Francisco accepted a recommendation by federal prosecutors and Vertoch’s lawyer to place her on supervised probation for five years rather than sending her to prison.

Fake IRS agent told to pay $55,000 hotel bill [SF Chronicle]

CFOs

Has Florida CFO Alex Sink Watched Scarface Too Many Times?

Caleb Newquist
April 22, 2010

It’s been a while since we shared some cost saving ingenuity from Florida’s CFO–cum-Gubernatorial candidate, Alex Sink. However, this time we learn how she managed to spend some of those savings.

According to the Politics blog of the South Florida Sun-Sentinel, CFO Sink’s Department of Financial Services has “purchased 182 assault rifles – costing $255,000, according to Sink’s office – in the last two years.” When you Google “assault rifle” one of the first links takes you to this.

A spokesman for the wannabe Guv made it plain for those GOP haters (who are all of a sudden against guns?) trying to block Sink from purchasing more BFGs:

The rifles are necessary to protect fraud investigators who deal with “dangerous people,” said spokesman Kevin Cate – arsonists, sophisticated car insurance fraudsters, money launderers. If Republican legislators are taking a shot at Sink with the assault-weapon purchasing ban, “that’s a shot at officer security,” Cate said.

Sink said: “I rely on my law enforcement people to evaluate what the risks are and what they need. I’m going to do everything possible to protect them.”

Look. We’ve got no doubt that some white-collar criminals are dangerous but this seems a tad ridiculous.

On the other hand, since it is South Florida and basically anything can happen (including 10 – 26% returns on arbitraging groceries) perhaps this type of firepower is necessary.

Bonus Watch ’10: Are Deloitte Partners Getting More Generous to Keep the Peace?

Caleb Newquist
April 21, 2010

Here we are, it’s April, and most of you are happy to be bored (relatively) at work for the first time in months. Now that your brain isn’t saturated with numbers and/or what you’ll eating at your desk, you may be weighing your options. As we’ve mentioned, Big 4 partners are expecting this and naturally they want to keep their top performers. How best can they do this? Bribery of course!

And at Deloitte, this method seems to be gaining steam. An accountant close to the situation gave us the rundown on the recognition programs at the firm:

• Applause Awards (whenever)
• Outstanding Performance Awards (whenever)
• Merit Bonuses (annual)

For the most part AAs ($100 to $500 – tax adjusted) and OPAs ($500 to $5,000 – non-tax adjusted) were frozen for the last 2 years; with MBs only being processed for 1s and sometimes 2s (we’re rated on a scale of 1 to 5 – 1 being the best, 5 the worst – with typically 5% 1s, 10% 2s, 80% 3s, 5% 4s and 5s).

Now that you have the background, there’s this:

Based upon what I’ve been hearing very recently, strong performers have been getting [Applause Awards] for $100 in the NE [Advisory] practice. In some limited instances, partners have also hinted at more money coming their way (seemingly in the [Outstanding Performance] realm). Seems like the partners are noticing that people, especially performers, are getting antsy; and are trying to keep the peace until compensations are adjusted in September…

Well! Good to see that Deloitte partners are taking their firm’s advice (combo of #2 and #5). This could work out well for those of you that are rockstars at Deloitte (and are easily swayed by monetary reward) but for the other 80% that fall into the unexceptional categories, you may just have the longer ladder to look forward to.

Earlier:
KPMG Reinstating “Standing Ovation” Bonus Awards

Announcements

Thanks to This Week’s Advertisers

GoingConcern
April 21, 2010

A quick word of thanks to this week’s advertisers on Going Concern:

• Bisk Education

• Delta

• Sunshine Suites

If you’re interested in advertising on Going Concern, email us at advertising@breakingmedia.com.

Thanks!

Cuomo: Espada’s Looting of Nonprofit ‘Reprehensible’

Adrienne Gonzalez
April 21, 2010

In the largest nonprofit fraud case we’ve ever seen, State Senator Pedro Espada, Jr is getting it from NY Attorney General Andrew Cuomo for perpetrating a $14 million scam using his non-profit as an ATM. Ouch.

Soundview Comprehensive Community Development Corp., a Bronx-based health care non-profit, appears to be little more than a vehicle for Espada’s extravagant lifestyle and Cuomo doesn’t find any of it to be entertainment.

“Siphoning money from a charity would be egregious under any circumstances, but the fact that this was orchestrated by the State Senate Majority Leader makes it especially reprehensible,” Cuomo said in a statement.

Espada’s charity allegedly paid $100,000 for campaign literature, $80,000 on meals for Espada (including $20,000 for sushi – one of JDA’s weaknesses but hey, at least I pay for my own), vacations for the family and $2,500 a month for a co-op rental in the Bronx in which Espada supposedly lives. Double ouch.

If you’re into that sort of thing, you can check out the summons from the AG’s office here.

To date, Cuomo’s complaint is merely a civil one but he has left the door wide open for criminal charges against Espada and 19 others, including family members installed on the charity’s board. Taking a page from the Crazy Eddie fraud handbook, I see.

Espada also allegedly used the nonprofit’s corporate credit card to cover up to $450,000 in expenses that he’s now admitted may have been personal. Snicker snicker, everyone knows the corporate card should only be used for personal expenses if one is trying to fund an affair and hoping the wife doesn’t find out. Duh.

Because being a nonprofit looting Senate majority leader is hard work, Espada took the first 14 weeks of the year off and charged the paid leave to – you guessed it – Soundview. Since its board is packed with friends and family, they approved a $75,000 payout for personal expenses associated with this respite in a lump-sum payment at the beginning of the year.

Espada has responded by claiming Cuomo’s accusations amount to little more than a “witch hunt” meant to advance the AG’s political career. Whatevs.

Meanwhile, Espada’s Senate homies are praying for him. For $14 million bucks, he needs all the Hail Marys he can get, especially since the FBI and IRS raided the clinic this morning. Good luck with that.

KPMG
News

KPMG Got Fired by North American Savings Bank After Six Months on the Job

Caleb Newquist
April 21, 2010

Technically, if you count the days (based on the 8-K) it’s less than six months.

The reason? Without getting too wonky, it appears NASB wasn’t thrilled that KPMG challenged their valuation method of a real estate investment, Central Platte Holdings, LLC.

Klynveld had been engaged to audit the September 30, 2010 financial statements of NASB but things managed to get confrontational right off the bat as KPMG raised questions about the Company’s valuation methodology of Central Platte in its first quarter review.

This must have made NASB a little uncomfortable since KPMG’s methods might not paint as rosy as a picture and could have resulted in a restatement. Per the 8-K, “KPMG also informed the Company that if the investment was determined to be impaired, evidence existed which indicated that such impairment may have occurred in a prior period.”

Obviously the mere idea of a restatement was completely unacceptable for NASB but when KPMG requested that the Company engagement a third party appraisal, they really freaked. Either the bank didn’t want to pay for said third party’s services, or they were worried that the appraisal would show that Central Platte wasn’t worth squat.

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