“Even in Washington, where we throw around trillions of dollars as if they were Hershey’s Kisses at Halloween, these numbers take your breath away.”
~ Howard Gleckman, editor of TaxVox, on the numbers in President Obama’s 2011 budget.
“Even in Washington, where we throw around trillions of dollars as if they were Hershey’s Kisses at Halloween, these numbers take your breath away.”
~ Howard Gleckman, editor of TaxVox, on the numbers in President Obama’s 2011 budget.
We don’t envy anyone working at the GAO. Telling Congress how badly they spend money and then telling the whole world about it (even though no one listens) sounds like a pretty thankless job.
So the fact that the GAO gave itself an “A” on its performance review shouldn’t come as a surprise to anyone. Who else was going to the give them the performance review? Plus if you’re regularly known as the “Taxpayer’s Best Friend” then we think you can be trusted with the honor system.
In fiscal year 2009, GAO met or exceeded all of its performance targets by, for example, identifying $43 billion in financial benefits–a return of $80 for every dollar GAO spent–and over 1,300 improvements in laws and government programs and operations. The rate at which GAO’s recommendations were implemented by federal agencies or the Congress was 80 percent, and over two-thirds of the products issued contained recommendations. During fiscal year 2009, the GAO met or exceeded all of its performance targets and made recommendations that resulted in “over 1,300 improvements in laws and government programs and operations.
To be perfectly honest, that does sound pretty damn impressive. Trying to make any sense of the ins and outs of the federal government isn’t something that we would wish upon our worst enemy.
If you’re still skeptical of the GAO stellarness, you’ll be happy to know that it was recently ranked #2 in the best places to work in the federal government. Now before you dismiss this silver medal, this isn’t some hack job put out by Fortune; this is something that is only issued every two years, by the Partnership for Public Service. We’re not saying that it would be difficult to rank so high on such a list but it’s got to be worth something.
Summary of GAO’s Performance and Financial Information Fiscal Year 2009 [GAO.gov]
Best_Places_to_Work_2009
We received a request from a young reader who got an email for their start date this summer and now needs some help picking a subgroup.
“ I am trying to decide between pass-throughs, C-Corps, and Consulting/research/writing.“
Personally, our take is to remember some of the people that recruited you. If you felt like you would enjoy working with a particular person that you met during that process, start there. Shoot them an email asking them about the practice that they work in, what the work is like, what are the pros, cons, etc. Chances are they’ve spent time in other practices, so you ask for their opinion on those as well.
Since there are plenty of seasoned Big 4 tax gurus out there, help the soon-to-be new associate out. Advice along the lines of, “You’re screwed, they all suck,” and “Stay in school as long as you can, the real world is a bitch,” while grounded in some truth, is not what your future associates are requesting.
We’ve received multiple tips informing us that Grant Thornton’s Greensboro, North Carolina office will be closing in the spring after busy season has ended.
Greensboro has approximately 35 professionals in all three service lines although our sources indicate that many tax professionals were laid off late last year in anticipation of the closure. Greensboro currently functions as a satellite of the Charlotte office which houses the support professionals.
What’s not known at this time is whether the office will become virtual, similar to the setup that Ernst & Young arranged for its Greensboro office other whether it will be an outright closure.
We contacted Grant Thornton for comment and had not heard back from them at the time of this posting.
If you’re familiar with the situation in Greensboro and have more information, get in touch with us. We’ll continue to keep you updated as we learn more.
Moody’s needs a senior internal auditor to help keep their internal controls tip-top.
The position requires 3 to 5 years of experience and requires some both domestic and international. Check out more details for this position after the jump.
Company: Moody’s
Title: Senior Internal Auditor
Location: New York
Minimum experience: 3 years
Responsibilities: Plan and execute financial, operational and SOX audits of Moody’s ratings and analytics businesses in accordance with the internal audit plan and departmental & the Institute of Internal Auditors standards; Develop a complete understanding of Moody’s ratings and analytics business, current accounting, compliance and operating policies; Assist Internal Audit management with defining and updating the annual and long-range internal audit programs based on associated financial, operating and compliance risks;
Execute internal audits with the following responsibilities: Plan and communicate the detailed audit scope; Supervise & develop staff auditors; Oversee 3rd party internal audit professionals; Ensure timely completion of audits; Communicate all aspects of audit results / findings timely from the closing meeting to the final audit report; Assist with updating Internal Audit policies and procedures based on changes within the profession.
Qualifications: Bachelor’s degree in Accounting with approximately 3-5 years experience; A combination of Big 4 Accounting firm and private industry experience is preferred; CPA required; Ideal candidate will have an understanding and experience of a global organization and a strong knowledge of GAAP; Ability to travel 20% (domestic & international); Proficiency in financial system is a must – PeopleSoft Financials highly desirable.
See the entire description over at the GC Career Center and visit the main page for all your job search needs.
I’ve long wanted to track down VeraSage’s Ron Baker and pick his brilliant brain; at last, JDA had the opportunity to steal a few minutes with the man credited for killing the billable hour.
In his 15-some years crusading against the ridiculous measurement of “time” as a performance gauge, Ron has made quite a few steps in the right direction. Seven to ten percent of 90,000 firms have moved away from time sheets and toward “value pricing”, with 1,000 or so firms eliminating the billable hour completely. While he admits it’ll be a cold day in hell when the Big 4 follow suit, he’s encouraged by the momentum.
“There is a change and it is coming from customers,” he says, “[unfortunately] the billable hour has survived many recessions.” The rigid “that’s how it’s always been” structure of public accounting, specifically, doesn’t seem to be taking the idea well. “They’d rather be precisely wrong than approximately right,” he says of major accounting firms trapped in the billable hour vice.
Encouraging value pricing in pay structures is a slow process, he says, equating the movement to that of Germ Theory in the 1800s. It was hundreds of years from the time “contact contagion” was theorized to the time it was generally accepted in medicine and eliminating the antiquated pricing structure of employee incentive won’t go down without a fight either.
Billed as “a think tank dedicated to promulgating and teaching Value Pricing, Customer Economics, and Human Capital Development to professionals and businesses around the world,” VeriSage seeks not to revolutionize business but improve it.
“You don’t let your surgeons pierce ears,” says Baker, meaning value pricing implies a company’s best soldiers will be dispatched to serve their respective battalions. In simpler terms, employees are paid results, not for how long they’re sitting in a chair. And in an uncertain economic environment, aren’t results what matter above all else? I’m not sure it could be much simpler.
Baker knows he’s got his work cut out for him but yours truly is 100% behind the idea. As a person who can tear up in one hour what five people can’t even accomplish in two, I get it. Boy do I get it.
Lucky for those who choose to accept what Ron is selling, he’s also a brilliant business mind. Knowing that Michelle Golden may have potentially criticized his website, he chose instead to hire her as a consultant. Genius! (Disclaimer: JDA loves Michelle Golden and isn’t just saying that because she doesn’t want to get torn up on her website – her “Accounting Blog list” is the most comprehensive I’ve ever seen.) She sits on their Board so she gets it. Excellent!
Want more JDA? Check out all of her posts for Going Concern here.
Of course! It didn’t even occur to us that Florida CFO Alex Sink would be far too busy running for Governor to oversee the new CFO Depot. Accordingly, as is the rage in politics these days, there will be a Office Supply Czar to overlook this little treasure of savings.
Not only does the video below inform us of this new critical position in the Florida government, the exact number of paper clips that were counted is made known: 402,419.
When you think about it, the appointment of a czar is a natural progression in the bureaucracy. If there is a specific problem (e.g. an overabundance of paper clips) appointing one individua to get on the problem like stink on a monkey is the best way to address said problem. The creation of a committee, while tempting, has run its course. Why appoint a team of 10 – 12 individuals to talk about a problem when you can get one person (with the appropriate qualifications) to make the solving of the problem their sole purpose for being on Earth?
Avi Dan is President & CEO of Avidan Strategies, a New York based consultancy specialized in advising professional service companies on marketing and business development. Mr. Dan was previously a board member with two leading advertising agencies and managed another.
CPAs have made great strides in the art and science of sales and marketing in recent years but the profession still has a long way to go in adopting robust business development practice. Many firms barely weathered the storm of 2009, but a celebration may be premature. 2010 is likely to be as tough, and perhaps even tougher as clients cut back on expenses. Smart firms are reviewing their marketing plans and planning ways to generate new business in a weak economy.
That is the first step – make sure that you have an effective and comprehensive plan, including cost projections, strategies and person responsible for each. Here is a twelve point checklist for an effective sales plan:
• Cultivating business from current clients is the low hanging fruit. They are already pre-disposed toward you. Just ask them for more business.
• Even resumptions from formerly-lost clients should be considered especially if the loss was not performance relation but for objective reasons, such as a merger.
• Emphasize cross-selling in your firm by getting all senior team members involved in the sales effort and make sure that client/industry knowledge is shared effectively.
• Public speaking on specific topics related to your target prospects. Good old-fashioned word of mouth is still the best new client leads. “Cascade” the speeches into white papers and articles to expand their impact.
• Simply asking clients for referrals of specific types of prospects/assignments among their friends and professional collegues.
• Qualify prospects before investing time with them. Be selective about setting up an appointment on the initial contact and determine valuation of prospect relationship to assess if they are worth pursuing.
• Consider replacing less profitable, time consuming, and unappreciative clients with clients that are a better fit with your objectives as a firm.
• Conduct a “gap analysis” and focus on specific targeted niches: high quality, profitable prospects, and develop a case as to why your experience and expertise is relevant.
• Focus on growth industry with good long-term potential of growth.
• Use relationships with spheres of influence: referrals by attorneys and bankers who reach across companies.
• Use the right people for marketing and prospecting. Not every one is comfortable selling.
• Focus relentlessly on relationship building: aggressive involvement in trade associations and the community; conduct seminars for clients and prospects; cultivate the press including the prospect’s trade press.
To be really successful, you must sell your services. You must generate leads and convert them into paying clients. And the recent Great Recession calls for a significant rethinking of sales and marketing strategies.
While the market for professional services continues to grow, so does the number of firms and individuals competing for that business. In other words, to really succeed means to differentiate yourself from others.
In Alaska news that doesn’t involve Sarah Palin, it emerged late last week that PwC lost the personal records of 77,000 public employees and retirees who participated in the State’s Public Employees Retirement System and the Teachers Retirement System in 2003 – 2004.
Alaska had engaged P. Dubs as expert witnesses in a lawsuit against its former actuary Mercer and turned the data over to the firm for analysis during the discovery process. PwC discovered that the data vanished in December and PwC notified the state last week (nobody wants to share bad news during the holidays).
PwC has accepted responsibility for the whole mess and has agreed to pay for identity theft protection, credit monitoring, and security freezes (if necessary) for the 77,000 employees affected. The firm will also reimburse any losses suffered by any of the participants.
The firm must have realized that there was little upside to disclaiming responsibility, as this would inevitably lead to a sentence in a Sarah Palin speech that involved PwC opposing God, guns, and regular Americans. Populist rancor would ensue and the firm would be run out of Alaska within a week (give or take).
This is the second SNAFU for PwC in the last month. The firm issued a press release on January 15th announcing that someone was sending bogus PwC checks to random people advising them that they had been selected to be secret shoppers. It’s not clear as to whether this is a sign of the wheels coming off or simply bad luck. We’ll keep you informed of any additional slip-ups.
State Acts Promptly to Safeguard Alaskans Against Potential Identity Theft [State of Alaska Department of Law]
• Obama Offers $3.8 Trillion Budget With Focus on Boosting Jobs [Bloomberg]
The $3.8 trillion budget calls for an additional $100 billion in stimulus spending and would increase the federal deficit to $1.6 trillion. “The $1.6 trillion deficit forecast for the current year represents 10.6 percent of the U.S. gross domestic product, making it the biggest by that measure since World War II, according to administration figures.”
The most impressive part is that the WH blew all the other forecasts out of the water, “The White House deficit projection exceeds other forecasts. The Congressional Budget Office has forecast this year’s shortfall at $1.35 trillion. The median of 39 analysts survey by Bloomberg News is for $1.37 trillion this year and $1.10 trillion next year.” Look! We’re going to dig the hole way deeper than anyone thinks!
As we mentioned last week, the spending freezes that will dig us out of said hole that were proposed last week would aim to cut that deficit to less than $1.3 trillion in 2011 and $828 billion in 2012; just in time for the election.
• Leaders in Davos Admit Drop in Trust [DealBook]
After all the chocolate, blondes, and awkward interviews, the other thing that is pretty obvious is that no one knows what the hell is going to happen, “the one certainty seemed to be continued uncertainty.” It’s nice to be confident about something.
Plus, everyone pretty much agrees that if you’ve got even a sliver of power in government or business, you are not to be trusted. Ordinarily this wouldn’t be a news flash, what with the near financial apocalypse and all but Tim Flynn said we were moving towards the green light of trust. Is this not the case? Did TF just figure, “I’m out of here, I’ll just say whatever I feel like.”? One can’t help but wonder if he’s shooting from the hip a little bit. Oh well; all in all, good times. Good Davos times. See you next year (right?)!
• The Top Five Tax Accounting Blogs [FINS]
For those of you that are inclined towards the tax side of the house, FINS presents its top five picks for wonky tax goodness that you should be reading if you’re not already. TaxProf Blog, The Tax Policy Blog and Don’t Mess with Taxes are three that we are intimately familiar and a couple we just discovered: Tax Watch and A Taxing Matter.
“High speed and commuter rail are a key part of growing our economy here in Florida, and today’s announcement couldn’t come at a more important time for our state”
~ Alex Sink, Chief Financial Officer for the State of Florida and cost-saving guru on her state receiving $1.25 billion in federal funding for a high speed rail system.
He’s not really sure how much is debt (Jim, it’s a metric asston) is being restructured but Quigs believes that Dubai will come out of it a-okay.
Black holes aside, Quigs also wants to see global accounting standards which puts him firmly in the camp with the other half of Jim-squared and Knight of Accounting David Tweedie.
We’re not sure when this interview was done but could someone get JQ a cup of coffee or something? The guy seems a little stiff. Plus, no red light/green light of trust from Fox Business? They have got to start getting more creative over there.