Tag: McGladrey

McGladrey Is Glad to Have McGladrey Back, Says McGladrey Partner

Back in August, we learned that 1040 factory H&R Block was putting RSM McGladrey (aka McGladrey) out to pasture. By all accounts, H&RB was pretty excited to get rid of RSM (aka McGladrey), as the business was a bit of a drag on the rest of the company.

Crain’s reports that the deal finally closed today and at least one McGladrey (aka McGladrey) partner is equally excited to have their old RSM (aka McGladrey) back:

The move means the reunited McGladery, which has 6,500 employees—600 of them in New York—should be better positioned to compete against such industry-leading firms as PriceWaterhouseCoopers and Deloitte. “We are a great alternative to the Big Four,” said Tom Ferreira, who heads McGladrey’s Northeast practice. […] “We’re happy to be independent again, all together under one roof,” he said.

Your loss, H&RB (not aka McGladrey).

Accounting firm escapes from soured H&R Block deal [Crain’s

Comp Watch ’11: Bellyaching By McGladrey Employees Seems to Have Paid Off

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Residents of the blue and green arches got news of their raises (or lack thereof) back in July and the results were mixed. Some we’re pretty happy while others could barely afford to celebrate with their own punch and cake party.

One way or another, the sound of the incessant bitching reached someone of importance in the Great Lakes Region because a tipster passed along the following:

Intended Audience: External Client Service Associates through Directors

You said it – and we listened. During this past performance review our leaders delivered what they thought was a ‘good news’ message about your October 1st salary increase. “The market is flat, business is below plan, your performance is great, and this is really a good increase – all things considered.” And yet, many of you still felt that your hard work and long hours and extra effort was not being recognized.

Now it’s time for us to step up and do what is right – for you! YES – You’re important to us and important to our success. You work hard all year and pull out all of the stops during the ‘busy seasons.’ Interesting phrase, “busy seasons” – we are always busy, and then there are those times when we feel we have delivered more than we even thought we could deliver. To recognize this and thank you for your hard work and commitment to our clients, effective October 16th [Yes, this was three days ago], you will be receiving a base salary increase! These raises are in ADDITION to any October 1st increases which were communicated during the most recent annual review cycle and will show up in your October 31st paycheck. The increases were determined by level and applied consistently across lines of business and geography. Anyone hired on or after May 1, 2011 are at market so no salary adjustment will be made.

There was a great deal of thought that went into the decisions that were made to continue to move salaries in the right direction. We looked at the market and considered how quickly it has moved, we revisited our competitors’ compensation data, compared this to what you are earning and what you could earn in comparable jobs at other accounting firms, and then made a decision to make adjustments so it is even more competitive than before.

You deserve this – and we’re glad you shared your thoughts with us so we could make some changes.

The Great Lakes Management Team

Well, this sets a very dangerous precedent, doesn’t it? Any year too many Mickey G’s employees find themselves slightly dissatisfied with their raises, they’ll simply piss and moan until someone at the adult table gets annoyed enough?

The questions now are 1) What the second raise will be? 2) Will that will satisfy the masses? 3) Would handing out autographed posters of McGladrey-sponsored golfers have solved this whole problem?

Your reactions are welcome below.

*Dustin Bradford.

CFTC Didn’t Think Too Much of McGladrey’s Audit of One World Capital Group

They were so unimpressed with it, in fact, that they are fining the firm $900,000 and partner David Shane $100,000 to settle up.


Mickey G’s issued an unqualified audit opinion for One World Capital Group’s 2006 financial statements and also stated that the company’s internal controls were just fine and dandy. Neither of these things turned out to be true. And when you read the CFTC’s press release, you really have to wonder if anyone was really auditing this company:

[T]he order finds that One World’s 2006 financial statements were materially misstated in various ways including: (1) the 2006 Statement of Financial Condition states that liabilities payable to all customers were over $6.9 million, when in fact information available in One World’s records showed that it may have owed at least $15 million just to forex customers alone, for whom One World served as the counterparty; and (2) the 2006 financial statements materially misstated the nature of One World’s business by failing to reflect that One World served as the counter party to its forex customers for over 90 percent of its business, according to the order.

In addition, McGladrey failed to report material inadequacies in One World’s accounting system and internal accounting controls, including the lack of a customer ledger, and an accounting system that did not properly identify the number of forex customers or the amount of customer liabilities, according to the order. These material inadequacies reasonably could, and did, lead to material misstatements in One World’s 2006 financial statements, the order finds.

No punch and cake for anyone after this fiasco.

[via CFTC]