KPMG

KPMG Cancels Christmas Hanukkah Kwanzaa the Holidays in August

8ball.jpgTo round out the year, KPMG is kindly reminding everyone about the SPEND SMART initiatives implemented this year and with just two months to go in the fiscal year, the Radio Station has decided that some additional belt tightening is necessary.
We understand that the email we received will be sent out by each Office Managing Partner to each individual office. We have not received confirmation that employees have received the email. We are reaching out to KPMG for corong>See the Firm’s statement below.
According to the email obtained by GC, Radio Station’s leadership has decided that all offices will suspend this year’s holiday office parties. Instead offices will host “community service events” between Thanksgiving and New Year’s. We find this commendable that the firm wants to give back in this fashion but we imagine some of you probably would probably still like to get your holiday party drink on.
Some other cost cutting measures for August and September include:
Check out the entire text of the email, after the jump


To: All Partners and Employees
From: ANY OMP
Additional SPEND SMART Initiatives
First, I want to thank everyone in the ANY office for following the many SPEND SMART initiatives that the firm has implemented this year. Your compliance with the firm’s travel and meetings policies, as well as careful management of other costs, has enabled the firm to reduce our expenses by hundreds of millions of dollars.
In spite of some indicators that the economy may have hit its lowest point, businesses everywhere are still feeling the impact of the economic crisis, and that includes our firm. And while there are indications that the economy is at the beginning of a recovery, no one can accurately predict how long that will take.
With that in mind, the Operations Committee has identified some short-term cost management initiatives for travel and meetings that–if implemented immediately–can help us begin FY 2010 in a stronger position. Those measures are outlined below and remain in effect until October 1, unless otherwise noted.
During the next two months, the firm will be reviewing all of our Time and Expense policies to align with our cost structure for FY 2010 and beyond. However, we’ve made one decision now that will impact the way we celebrate the holiday season.
Community Service Event
The end of the calendar year is traditionally the time when KPMG offices hold parties to celebrate the holiday season. A great deal of time and planning go into these events and they are a great opportunity for all of us to get together in a festive atmosphere. However, given the impact of the economy on so many people’s livelihoods, people throughout the firm–at all levels–questioned whether there would be other ways we could create this same sense of community during the holiday season while giving back to those in need. After careful thought and consideration, firm leadership has decided that all KPMG offices will suspend this year’s holiday office parties and instead host a community service event between Thanksgiving and the New Year.
You may recall that last year, in lieu of a holiday gift, the firm donated a full week of meals to families in need through an organization called Feeding America. In total, we donated 1.6 million meals in the communities where we live and work.
This is a tremendous way for all of us to come together to help make a meaningful difference for people in need during the holiday season. You’ll be hearing more about this effort and how you can get involved later this fall.
In the meantime, please do all you can to follow the SPEND SMART guidelines we announced in October and the additional initiatives I’ve outlined below.
Meetings and Travel
· Additional Travel Restrictions – Airfare is one of our largest travel expenses. Currently, our policy provides partners and employees with a choice of airlines when traveling. Until October 1, the travel team will book the lowest cost flight for your destination and travel times, regardless of the airline. We also ask that you continue to limit non-client travel as much as possible, and verify the criticality of all international travel.
· Car Service – Until October 1, car service may only be used when a taxi or one’s own car is not available. We also ask that you use taxis for transportation to and from airports, rather than a car service. If taxi service is not available in your city or area, or the cost of using a taxi exceeds that of using a car service, a car may be used. We will continue to honor our car service policy for employees required to work past 8:00 p.m. during winter and 9:00 p.m. in the summer; however, we expect that during August and September the need for this service will be rare. Click here for information about our transportation policy.
· Meal Reimbursements – During August and September, we are putting the following policies in place regarding meal reimbursements:
Lunch – Lunch for partners and employees while traveling will not be reimbursed since this is a meal that one would buy during the workday regardless of location. We will continue to reimburse lunch meetings with clients.
Non-client Meals – During these two months, the firm will not reimburse non-client meals held outside our offices. Meal expenses for those traveling for internal training or meetings are subject to the expense limits allowed by our meal policy. As always, team leaders should use their judgment when ordering meals for groups working overtime.
Cell Phones, PDAs, and Other
· One Mobile Device per Person – Effective August 1, we will no longer reimburse individuals for both a cell phone and a TreoTM or Blackberry®. People who have both devices have the option of adding phone service to their PDA. If you wish to keep both devices, you will be charged the full price of service for one. In addition, per our existing policy, we will deduct $20 a month from everyone using firm-supplied cell phones or PDAs. We also encourage you to review your current plan to determine whether you need all the features to which you’ve subscribed. To learn more about the various mobile plans available to you, please click here.
· Inter-office Mail: Use Scanning and e-Fax – Going forward, we will be looking at ways we can reduce the cost of handling interoffice mail, including the frequency of delivery. In the meantime, we encourage you to make use of all the technology available within the firm to send documents between offices, including scanning documents that can then be e-mailed to colleagues or clients. When scanners are not available, make use of our e-Fax capabilities. Check with your local OneStopOps group to learn more about these services.
In closing, both the ALL partners and I want to thank all of you for your ongoing support of our SPEND SMART initiatives. Your efforts have made a difference and we continue to welcome suggestions to help our office and the firm run more efficiently.
Even more important, we want to thank you for your high-quality service to our clients. We all know that these are difficult times, but that is why our clients are depending on us to deliver our highest standards of service and professionalism.
Thank you for your continued support.
UPDATE, 5:51 pm EST: We reached out to KPMG regarding the Grinchiness and we were provided with this statement:
“Like businesses everywhere, we’re identifying cost-saving opportunities that will provide the most benefit while still allowing us to provide high quality service to our clients.”

Firm Watch: KPMG

KPMG_chair.jpgSo after dissecting opining on sliming P. Dubs and E&Y, we’re moving on to KPMG in round three. We’ll dispense with the pleasantries and get right to the list:
New Century Lawsuit – This is the ball buster for KPMG. A $1 billion lawsuit filed back in April that alleges “grossly negligent audits”. This tale also includes a smoking gun quote from an email sent from New Century engagement partner to a specialist, “As far as I am concerned, we are done. The client thinks we are done. All we are going to do is piss everybody off.” We’re not sure if it’s possible to take that out of context.
Check out the rest of the Radio Station’s list, after the jump


Madoff Exposure – Per D&O Diary, the Radio Station is named as a defendant in at least ten lawsuits as a result of auditing the Madoff feeder funds.
Overtime Lawsuits – Listed as a defendant in five lawuits.
Layoffs, Pay Freezes, etc. – Allegedly, the word that pay was being frozen was slowly leaked from the top on down. Layoffs have been pretty steady for the last twelve months including rounds in November and March in the audit and advisory practices. In addition, the ubiquitous trend of performance rating cuts is in full effect, and we just learned that by the this time last year, audit interns had heard yay or nay on receiving a full time offer. That probably makes for some nervous intoxicated co-eds.
Miscellaneous – Phil Mickelson, the Radio Station’s walking billboard, was a bridesmaid at the U.S. Open for a third fourth fifth time.
Done-zo. Anything else you want to see tacked on? Drop us the dirt at [email protected] and we’ll get it in for the final tab.

KPMG Thinks the Appearance of Independence is Overrated

200px-KPMG.svg.pngThe Radio Station is throwing caution to the wind in the UK, accepting a new arrangement with Rentokil Initial, that brings out the ghosts of accounting scandals past. Under the new agreement, the firm will serve as both the external auditors and take on internal audit work, working alongside the client’s internal audit staff.
Prior to the new agreement with KPMG, Rentokil’s external auditor was PwC and internal audit services were provided by Deloitte.
Last we checked, audit textbooks still state that external auditors are to be independent in fact and appearance but KPMG UK must have got their hands on an edition that was printed in auditor bizarro world.
Rentokil’s KPMG deal raises eyebrows [FT.com]

Rumor of the Day: KPMG Slashing Performance Ratings

Commenter Guest @ 2:39 brought to our attention that the Radio Station is cutting performance ratings circa now. This is a little more salt in the wound after pay freezes were announced slowly leaked. If you’ve had your performance review recently and you got blindsided by a cut rating let us know. Email your tips to [email protected]

The SEC Takes a Trip to India

140px-United_States_Securities_and_Exchange_Commission.pngThe SEC sent a team to India in order to make sure that everything was hunky-dory re: Satyam. The three-member team met with Ashwani Kumar, the Central Bureau of Investigation (CBI) Director, and the Securities and Exchange Board of India (SEBI). The SEC also met with the KPMG team that is responsible for restating Satyam’s balance sheet.
No details were given on any of the meetings but we imagine that the SEC/KPMG meeting went something like this:
SEC Bureaucrat: Hello KPMG India.
KPMG Paper Pusher: Hello SEC America.
SEC: How are things progressing?
KPMG: Oh this is a blast. Restating balance sheets is a dream job. We were just talking about how we wish we could work in the States so we could do stuff like this all the time.
SEC: What do you mean?
KPMG: Well, there seems to be much more fraud and other problems in the United States than here in India so the need for forensic accountants would be extremely high.
SEC: Are you insinuating that the Commission is unable to detect fraud?
KPMG: Well there have been some signficant fraud over there lately that you guys pretty much ignored or missed. Either way, it makes for a high demand for forensic accountants. Plus, we hear that the guy who tried warning you about the Madoff fraud has issues but still won an award.
SEC: This meeting is over. Keep us informed.
Satyam scam: SEC team meets CBI, SEBI, KPMG officials [The Hindu Business Line]

Promotion Watch: KPMG

Forgive us for being a little behind on this, we’re still twisting arms out there:
On July 15th, the Radio Station announced the promotion of 874 new Senior Managers and Managers. This compares to 1,228 that got the bump last year.
Some might say that there were less people up for promotion this year, hence the drop. Others might say “that’s because I got the axe and now live on government cheese”.
Click on the image below for a full-size view of the announcement (please note the crookedness as a sign of authenticity). Anyway, congrats to all the new taskmasters managers at KPMG!
kmpg_memo.gif

SHOCKER: Number of Fraud Cases in the Courts is High

In probably the most shocking news of the day, KPMG’s “fraud barometer” reports that the number of fraud cases in UK courts in the first six months of the year are the highest since the firm started issuing the report, 21 years ago.
Here in the states, the big sexy fraud gets all the attention but there is plenty of small fraud to go around. Plus, the bright side is, we’ve haven’t seen anything yet:

“These figures are bad, but the worst is yet to come,” Hitesh Patel, a partner at KPMG, said. “It will be a number of years before the impact of the recession fully feeds through into the fraud statistics.”

So our advice would be for any of you that are nervous about layoffs, look into getting transferred to the forensic accounting practice. You won’t be out of work any time soon.
Record total of fraud cases in court – and worse to come [FT.com]