Going Concern

A Lawsuit Seeks To Find Out How Old is Too Old to Become a Partner at PwC

Caleb Newquist
February 18, 2010

[caption id="attachment_3069" align="alignright" width="260" caption="That's a good one Bob but you really shouldn't tell old people jokes"]

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Or any firm for that matter. There’s probably some opinions on this but allegedly at PwC it’s 54 on the low end and if you’re approaching the firm’s mandatory retirement age of 60 then you’re definitely not getting the bump.

The reason we bring it up is that the U.S. Court of Appeals for the District of Columbia Circuit has granted new life to an age discrimination lawsuit against PwC. Two advisory professionals, Harold Schuler and C. Westbrook Murphy’s lawsuit alleges that P. Dubs de-nied their admittance because they were close to the Firm’s mandatory retirement age.

The partner track at accounting firms is a long and tough road the way it is and for partners to allege age discrimination seems like insult to injury.

The DC Circuit ruled that the plaintiffs deserve some closure on whether or not the bigwigs in New York really snubbed them based on their age:

Judge Douglas Ginsburg said a 2008 D.C. Circuit ruling involving Schuler entitled the plaintiffs to a “reasonable inference” that PricewaterhouseCoopers’ decisions not to promote them were made in New York, where the firm is based.

“PwC says (the earlier case) ‘does not control’ because it addressed only PwC’s adoption and maintenance of a discriminatory policy, not the ‘discrete decision’ not to admit (Schuler) to partnership,'” Ginsburg wrote. “To which we say: Pettifoggery and piffle!”

Nice touch, Judge Ginsburg. So this means the case goes back to the district so they can get to the bottom of this.

We left messages at the other firms to find out what their mandatory retirement policies were to get some context on the age issue but so far we haven’t heard anything back. We’ll update you with those if we hear back from anyone.

It’ll be interesting to see how this shakes out since we’re pretty confident that their is no document anywhere at 300 Madison that says Schuler and Murphy were just too old to become partners. If we were to take a wild-ass guess, we’d say that the firm will point to performance reviews, etc. to rationalize the snub even if these guys were rainmakers.

PricewaterhouseCoopers age bias lawsuit revived [Reuters]

Career Center

Job of the Day: BlackRock Needs a Hedge Fund Accountant in Seattle

GoingConcern
February 17, 2010

BlackRock’s Emerald City locale needs someone that’s ready to dive head first into the world of alternative investments.

They are looking for a hedge fund accountant who will be responsible for several duties including preparing financial statements and acting as the liaison for the external auditors and the fund administrator.

Get more details after the jump.

Company: BlackRock

Title: Hedge Fund Accountant

Location: Seattle, WA

Responsibilities: Accounting (GAAP) for several of the firm’s Hedge Fund Products, including monthly valuation procedures; Preparation of monthly, quarterly and annual Financial Statements with supporting documentation (tie outs); Continuous cash reconciliation procedures for Fund investment purposes; Liaise with Funds’ independent auditors and offshore administrator; Communicating performance results to investors and resolving investor’s questions; Custom reporting and projects for investor specific needs; Partnering and Communicating with various internal business units regarding ARS Fund Products and performance data; Group project opportunities related to implementation of new product accounting and operational procedures.

Qualifications: Bachelors Degree in Accounting or Finance or commensurate experience; 1-3 years of relevant accounting work experience. Investment or fund accounting experience is desirable, as is public accounting experience.

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

Busy Season Interns: Don’t Waste Their Time

Caleb Newquist
February 17, 2010

Continuing with the busy season theme, let’s touch on everyone’s favorite coffee jockeys, the interns. This isn’t prime season for interns at accounting firms but we know there are a few lucky (?) teams out there that have an extra set of hands on deck.

Getting serious for two, this time of year, everyone is under pressure to get things done and if you happen to have an intern on your team, they either make your job infinitely easier or they are the bane of your existence. If you fall into the latter category, why is this the case?

It’s pretty easy for you to conclude that the blade of grass tapping you on the shoulder every ten minutes is the person at fault but a lot of times, interns get thrown into bad situations where they end up working for seniors or managers that are so swamped (or helpless) that they can only think about their own workload while there’s a 21 year old that needs something to do (besides looking through menus and making copies).

Since accounting firms put so much effort into recruiting the next wave you’d think that this enthusiasm would spread to teams like the Plague. Unfortch, there are many that see interns as an annoyance during this time of year because, “I have so much work to do and I don’t have time to handhold interns” and we think that’s bullshit.

We’re not saying that there aren’t bad interns out there. And we’re not saying you’re not busy. We know better. But if you gave that intern something meaningful to do instead of whining about how busy you are, they might make your life a speck (or a few) easier.

And interns need hand holding because they’re interns. Don’t forget that up until this point, they’ve been wearing sweats 24/7 and that you used to be just like them. Experienced team members should take this time to utilize them in a meaningful way and not as gofers. If you’re one of those teams that needs a gofer, at least squeeze some meaningful work somewhere so they can learn something and they probably won’t mind the gofering as much.

Yeah, it might take some effort on your part but it’s definitely worth your time to mentor these future associates. If you give them some challenging work now and show them a little bit of appreciation for their efforts, they’ll run through walls for you later.

News

Grant Thornton’s Valentine to Employees Did Not Consist of Heart Candy

Caleb Newquist
February 17, 2010

It’s the middle of February and many of you are somewhere between completely exhausted and death warmed up. This is not lost on blogger extraordinaire Steve Chipman. SC’s weekly info session has been crucial to your survival (even though it’s not meant for all of you). Knowing that his soothing words will only get you so far, he’s taken a different approach this week.

Since it was St. Val’s on Sunday, Chip figured he would mark the day for lovers by boosting your spirits by using the words of GTers less CEO-y than himself.

Today I’d like to offer some inspiration to help us push through busy season. The last year and a half have required so much more from everyone that it’s hard to imagine we can work even harder, but it’s evident that we are everywhere I look.

So what keeps us going? That’s what I was looking for when I reviewed the “I am Grant Thornton” interviews we conducted last fall. We asked a variety of people in different roles, in different offices and at different levels if they felt they made a difference, and, if so, how.

It is hard to imagine that you can work harder, isn’t it? Your spreadsheets are bleeding through your monitors, you’ve ingested far more MSG than is recommended, and your cube farm neighbor (who ordinarily smells funny) is looking hot .

And we weren’t aware of this “I am G to the T” exercise but it sounds stupendous. Who knew your personal experiences would be used at this most crucial time of year? Bet you would have really put some thought into if if you had known your words could possibly have been immortalized on Steve-o’s blog.

Here are some carefully selected examples from SC’s list and our thoughts on each:

“When a client calls me and says, “Can I pick your brain?” it’s so great because (1) they recognize I have a brain” – We agree that it’s nice when your client recognizes that you are of the same species.

“I had a client tell me recently, and I’m quoting, ‘We hire Grant Thornton because you get [stuff] done.’” – That’s Stephen’s edit. This is a family blog, people.

“I make a difference every day because I work here.” – And because my mother said so.

“Every day is a great achievement.” – We agree. Crawling out of bed is tough.

“How do I make a difference? . . . You know, I’m happy.” – God, you’re one of those happy people.

“I’ve worked at the big firms. We are not bigger by any means, but it’s a question of caliber. I knew it from my first day on the job here. We’re just a different caliber of firm.” – We’re not size queens at GT.

Steve-o’s send-off has us begging for more and also causes us to wonder A) who is this homecoming queen? and B) is Chip a Bass or a Tenor?

I’m also proud to say that among our great people are a former homecoming queen and a professional make-up artist. Of equal wonder, one of you found the most surprising thing about coming to Grant Thornton was “that all the partners have great singing voices.”

There’s more where that came from, but this is the firm’s Valentine to you.

Thanks for you!
Stephen

You could do back-to-back busy season now, couldn’t you?

Not-for-Profits

Is Kansas Squeezing Non-profits to Close Its Budget Gap?

Adrienne Gonzalez
February 17, 2010

Kansas has a bit of problem with its tax code, or perhaps the issue at hand is not necessarily Kansas’ broken tax system but the suspicious absence of those all-important tax revenues. Seeking to fill a $416 million budget gap for the FY beginning July 1, it has begun looking at simplifying complicated exemptions but the change could hit already struggling non-profits in the state hard.

NYT:

Lori McMillan, an associate professor of tax law at Washburn University, said the proposal to not grant exemptions to specifically named organizations but rather categories, such as nonprofit and charitable organizations, was a better policy for the state.

”Sometimes it seems that the criterion for an exemption is one’s ability to find a parking place and the committee room,” said Mark Desetti, a lobbyist for the Kansas National Education Association.

Emily Compton, president and CEO of Goodwill Industries of Kansas, said removing the exemption would increase her operating expenses by $40,000. She said the organization also must come up with $125,000 in unemployment tax contributions this spring and the combined increase in expenditures could result in fewer services and employees.

The change would mostly mean Goodwill sacrificing its sales tax exemption but that’s not all that’s on the chopping block.

Also up for debate, a program that would reduce seldom-used tax credits for low-income individuals to buy a home, fund education, or start a business:

John Scott, president of the Interfaith Housing Services Inc. which administers the program in Hutchinson, said the IDA program is budgeted to receive $500,000 worth of 50 percent tax credits each year. For example, if someone invests $100,000 in the program, they receive a $50,000 tax credit.

He said that if the program has to be changed, reducing the amount to $250,000 would be acceptable and still allow it to receive matching grants from other sources.

“We feel this is a win-win compromise. It helps you cut the budget without losing outside revenue, and it does not force us to close the program and possibly cause loss of jobs,” Scott said.

As is, the state exempts $4.2 billion in sales taxes and proposals currently under review by the House Taxation Committee could bring in an additional $196 million – still leaving a $220 million budget gap.

Is Kansas penalizing non-profits is the way to make up the gap? Goodwill Industries claims 83 cents of every dollar generated in its retail stores goes to serving its mission of providing work to individuals in need. Can the government of Kansas claim that level of efficiency when it comes to tax revenues?

Accounting News Roundup: IASC Chair Says Convergence Is Still Happening; Walgreens to Buy Duane Reade; Church Accountant Gets Jail Time | 02.17.10

Caleb Newquist
February 17, 2010

• Convergence plan will ‘facilitate’ possible IFRS adoption [FT]
Apparently the FT piece in yesterday’s Roundup on the IASB throwing its hands up over convergence with the FASB was DEAD WRONG. That is, if you ask the Gerrit Zalm, the Chairman of the Trustees of IASC Foundation. He wrote a letter to the FT telling them that they’re mistaken and that the International Accounting Mavens are super proud of the work they’ve done with the FASB and that they’re pretty sure that Bob Herz and Co. will eventually come around:

I was surprised to read your interpretation of recent enhancements to the governance of the International Accounting Standards Committee (IASC) Foundation (“IASB softens stance on convergence”, February 16), and in particular your assertion that a constitutional emphasis on adoption of International Financial Reporting Standards (IFRS) represents a weakening of the trustees’ support for the ongoing work to converge global accounting standards.

Nothing could be further from the truth. The trustees of the IASC Foundation strongly support the work plan that the International Accounting Standards Board has established with the US Financial Accounting Standards Board, which will reduce the differences between, and improve, IFRS and US standards. By reducing differences and thereby reducing any cost of transition, convergence will “promote and facilitate” the possible adoption of IFRS.

So instead of getting all worked up over the FASB doing its own thing, just sit tight and let the IASB work its magic and we’ll have converged standards before you know it. The whole process is like herding cats on acid, so everyone just cool it.

• Walgreen to Acquire Drugstore Chain Duane Reade [WSJ]
Don’t worry, the Journal is reporting that “nearly ubiquitous” (the “nearly” isn’t necessary) chain will still retain its name in the $1 billion deal. Confusion avoided.

• Former church accountant sentenced to 17 months for theft [Springfield News-Sun]
Have we weeded out all the accountants that steal yet? Diane Maddy stole over $300,000 from her church from January 2003 to December 2006 and in August of 2008 and 2009.

Besides, “WTF lady, who steals from a church?” what caused her to take a break for 18 months and then another break for 12 months? Maybe walking out of a house of worship with huge grips of cash caused her to think twice (three times!)?

Listen up accountants who are thinking it: don’t steal. Just because you have access to money doesn’t make it yours. How many “accountant pleads guilty to theft” stories do we have to read? Now we have church accountants stealing? This is the bottom people.

Quote of the Day

Quote of the Day: Let’s Hope He Doesn’t Mean Bombings at J.P. Morgan | 02.16.01

Caleb Newquist
February 17, 2010

“We’re not Greece but we could end up with their same problems down the road if we don’t get spending under control and start dealing with our structural deficit soon.”

~ David Walker, CEO of the Peter G. Peterson Foundation and former U.S. Comptroller General on the US of A.

News

Breaking: Professor Explains Tax Theory, Accused of Being a Communist

Caleb Newquist
February 17, 2010

Our favorite TaxProf that we never had was quoted in a Wall St. Journal explaining how not only the winnings of Olympic athletes are taxable but also how the fair value of their medals could theoretically be taxable.

Someone read this and took immediate action:

Whether or not TaxProf Caron has a picture of V.I. Lenin in his office is not known but based on where he stands in comparison to our contributor Joe Kristan, we’d say the writer of the letter is misguided. Or Glenn Beck.

Video

Pennsylvania CPAs Insist Accountants Are Funny in New Videos. Which Are Funny

Caleb Newquist
February 17, 2010

The Pennsylvania Institute of CPAs is tired of everyone thinking that accountants are humorless, soulless, number crunching (did we mention green eyeshade wearing?) nerds, so they decided do something about it.

The PICPA has developed two videos to show everyone that not only are CPAs important business advisors, they can be creative and yes, funny. Despite where you fall on the comedic spectrum (Brian Regan, Chris Rock, Lewis Black, Larry the Cable Guy, Seinfeld, whatevs) you’ve got to admit that this is by far the best attempt at plugging the services that CPAs can provide out there. It doesn’t go the emotional route like Grant Thornton’s campaign or just miss the mark completely like BDO. This is purely for comedic value and it’s refreshing.

Granted, the PICPA is a professional association and not a firm so we aren’t expecting any firm to go with a Big Foot parody or 80s drug ads but let’s keep this angle fresh in our minds, shall we, accounting firms?

Gen X Accountants, Here Are Four Ways to Cope with Your Millenial Co-workers

Daniel Braddock
February 17, 2010

Judging by the timing of the comments, it looks like many of you were burning the oil on Sunday; sorry to see that. As always, thank you for your discussion. Picking up where I left off with Generation X, my advice is simple:

Know your competition – With the job market consisting of 80 million Baby Boomers and 78 million Millennials, the 46 million Generation X’ers out there need to realize the statistical battle that lies ahead. Accept the inevitable – you will be working side-by-side with Generations MY regardless of their competency. Sure, they might be “whiny, work-dodging, self-satisfied wimps” as GC commenter champmonkey expressed so eloquently; but it’s only a matter of time before these wimps are pawning work off on to you, Gen X.

Roll up your sleeves – And grab a shovel, community service is here to stay. Entrepreneur.com recently cited a Harvard poll that “found that 61 percent of Millennials feel personally obligated to make a difference in the world, and a full 78 percent believe that companies have a responsibility to join them in this effort.” Your firm’s recent (past five years) attention to community service issues and providing tangible options to employees is not because Scrooge suddenly had a heart – these were direct and purposeful recruiting strategies clothed in heartfelt intentions. I’m not saying this is a negative, quite the opposite. Nonetheless, be prepared for programs like Ernst & Young’s corporate responsibility and KPMG’s Build-a-Bear event to become staples.

Attention to detail – As another commenter on last Thursday’s post noted, multitasking has a primary downside – tasks simply take longer to complete. Although the MY generations are becoming increasingly efficient at multitasking (have you seen them text?!) not enough can be said for being responsible for one’s work and seeing tasks through to their completion. Your bosses know this; your clients know this; you thrive on this. Use this to your advantage and, by all means, beat this habit into the minds of your tweeting/Facebooking subordinates. On the flip side you need to understand that Generation MY is not going to wake up one morning able to burrow through a day’s work without staying connected to the outside world. It is an engrained part of their daily lives that needs to be accepted, not smothered out like a fire.

Get used to hand holding – It’s going to take time for Generations MY to comprehend the essential need for better work, honest ownership of one’s responsibilities, and understanding that “me” in team is a crock. There will have to be acceptance and understanding from both parties. Drop the bogus mindset that “it is what it is” and begin to actively try to get along.

That means you too, Millennials.

Technology

Three Tips for New Accounting Bloggers

Adrienne Gonzalez
February 17, 2010

After a recent GC post on social networking tips for accountants, our friend and superstar social media maven Tom Hood (CEO of the Maryland Association of CPAs, but you should already know that) asked “what about blogs?”

Well, Tom, excellent question! What about blogs?

Blogging for accountants is no different than any other industry and there’s no one template that works for everyone.

With MACPA’s own Bill Sheridan breathing down my neck and stealing my readerbase with quality content (just kidding, Bill) on CPA Success, I imagine our buddy Tom doesn’t need tips on how to start and keep up a great accounting blog. But we aren’t all as new media savvy as Tom Hood and making the decision to blog can be an overwhelming choice if not executed correctly.

Personally, I try to practice a single rule of thumb: to thy own self be true.

While the F-bomb dropping, SEC-cussing-out model may not work for anyone but Jr Deputy Accountant (remember, I’m not a CPA, I just play one on TV), the rule in practice is the same regardless of who is doing the blogging.

So here are a few general hints if you’re an accountant looking to plunge head-first into the exciting world of blogging:

• Find a mentor – This part is easy! Comb through accounting blogs (Michelle Golden has a handy and incredible extensive list of accounting bloggers you can check out if you’re absolutely stumped) to find a “voice” that aligns closely with your own. Reach out to the blog author, connect with other accounting bloggers on Twitter, and express your desires openly to the community.

• Make a commitment – This can often be the hardest part but blogging requires a dedication to fresh content if you are going to be widely read and accepted.

• Find your niche – Accounting bloggers come in all sorts of flavors; non-profit, tax, regulation, technology, auditing, etc. It is important in carving out your corner of the blogosphere to find your voice and embrace the area of expertise you are most passionate about. Ask yourself what moves you as an accountant if you are trying to find out what will inspire you as an accounting writer.

The reality is that no one can tell you what works for you and perhaps you will discover a path that has not yet been taken but should you need a little push in the right direction, trying out these tips should get you there with minimal effort.

The key to sustainable, well-received blogging is a passion for what you are writing about; if you enjoy what you do and want to write about it, that passion will translate for your audience and lead to countless opportunities to express your enthusiasm.

Career Center

Job of the Day: The Association for Financial Professionals Needs a Controller

GoingConcern
February 16, 2010

After taking President’s Day off, the Job of the Day returns with another opportunity with a non-profit organization, this time at the Association for Financial Professionals in Bethesda, Maryland.

They are looking for a Controller that is a CPA with staff management experience.

Get more details after the jump.

Company: Association for Financial Professionals

Title: Controller

Location: Bethesda, MD

Responsibilities: Internal and external financial reporting, making recommendations to existing accounting procedures and the internal control environment, and overseeing the annual audit to include AFP’s international subsidiary organizations.

Qualifications: Along with a demonstrated proficiency in GAAP/SOX/tax knowledge, successful candidates will have prior experience in preparing monthly consolidated financial statements for a multi entity international operation, accounting for foreign currency and intercompany transactions and managing organizational risk programs and initiatives. Proficiency with Great Plains Accounting systems preferred. Staff management experience and a current CPA is required.

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

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