Good morning and welcome back after what I hope was a restful Labor Day. Now you can have a little news as a treat to get you back into work mode on this short week.
Consulting and auditing major Deloitte has rolled out a tough new rule for its senior leadership under which partners and executive directors who skip their annual health check-ups will now face steep penalties. According to a report by Livemint, this move underscores the growing focus of India Inc on employee health and well-being.
According to the report, at a meeting called by its Partners Matters team (which handles HR issues) on Friday evening, Deloitte told its top 1,000 leaders that health compliance is no longer optional. Partners who fail to undergo their annual medical check-up will be fined ₹1 lakh ($1,100 USD) , while executive directors will pay ₹50,000 ($567 USD).
More buyout shops could soon enter the audit sector as firms and investors line up talks with regulators to discuss potential takeovers.
An audit firm approached the Financial Reporting Council in June about potentially changing its capital structure, according to data provided to Financial News in response to a Freedom of Information Act request. An investor approached the FRC in July about a similar change, the data also shows. At least six such moves have been made over the past two years.
Financial Reporting Council = their PCAOB. So all deals are getting run through the regulators before anything’s official, I guess?
A newly released report from RSM Australia is urging companies to pay attention to governance blind spots to catch early warning signs commonly linked to fraud, ethical lapses and other compliance risks.
Based on the findings, the five main signs of a workplace culture at high risk of fraud, corruption or misconduct included a lack of regularly updated fraud and corruption risk assessments, absence of a fraud and corruption control policy, inadequate enforcement of unacceptable conduct, no assigned ownership of fraud and corruption risks, and an ineffective whistleblower program.
“Toxic and dysfunctional workplaces are bad for business and there is a strong link between weak organisational culture and misconduct, fraud and compliance failures,” said Dan Hutchens, a partner in risk advisory.
CFOs are overwhelmingly coming from inside the house, an abrupt shift from last year, reports Fortune:
There’s a dramatic swing toward internal promotions for CFOs, with external hiring of finance chiefs down almost 50%. Data from executive search firm Crist Kolder Associates’s summer 2025 Volatility Report, shared with CFO Daily, which covers data from 667 Fortune 500 and S&P 500 companies, highlights this trend.
Through July 31, only 28% of CFOs were hired externally—a stark contrast to last year’s 10-year high, when 47% of CFO turnovers were filled by candidates from outside the organization.
Illinois has finally released its audited Annual Comprehensive Financial Report (ACFR).
The bad news: It’s for the fiscal year that ended June 30, 2023.
According to the Government Finance Officers Association (GFOA), states should release these reports within 180 days of the fiscal year’s end. Illinois blew past that deadline—releasing its 2023 report a staggering 774 days late, setting a new national record.
The delayed release of Illinois’ 2023 Annual Comprehensive Financial Report (ACFR) left lawmakers and taxpayers without critical financial insights during key budgeting decisions. For instance, without access to audited financial data from the previous two years, Illinois still approved a record $55.2 billion budget for 2026, a $2 billion increase from the prior year. This lack of information risks overlooking hidden liabilities and revenue shortfalls.
Who’s gonna break that record next?
Virginia EMS should be getting better after an audit discovered things were pretty bad, reports local WRIC:
Nearly a year after an internal audit uncovered millions of dollars in fraud and mismanagement at Virginia’s Office of Emergency Medical Services (EMS), state health officials say the issues have been resolved, debts have been paid and new controls are now in place.
The 2024 audit revealed $33 million in unpaid debts and $4 million in fraudulent charges within the EMS office, including funds meant for local rescue squads and trauma hospitals.
Since the audit, the Virginia Department of Health (VDH) has overhauled leadership, implemented stricter procurement rules and restored critical funding to local EMS providers.
See, this is why government audits are a very important part of the social fabric.
Dr. Hickey, who recently retired as a Captain in the U.S. Coast Guard, most recently served as vice provost for academic administration and formerly served as dean of the School of Leadership and Management at the U.S. Coast Guard Academy.
Dr. Hickey has taught courses in financial accounting, managerial accounting, intermediate accounting, cost accounting, and federal budgeting. She is affiliated with the Association of Government Accountants and previously served as a reviewer for the Journal of Accounting Education.
Her research interests are in governmental financial reporting and accounting education.
Dr. Hickey has an MBA with a specialty in finance from Florida Atlantic University, and received her PhD in accounting from West Virginia University. Really makes you feel a bit lazy, doesn’t it?
This guy got promoted at his firm in Indiana and got a whole news story about it and everything. I really love these hyper-local stories, imagine how proud someone’s grandma is to see their baby’s career achievement in the paper? If that sounds like sarcasm I assure you it is not.
CLH, CPAs & Consultants has announced that Wyatt Stacy has been promoted to Senior Accountant in the firm. Wyatt initiated his career with CLH in 2022 as a staff accountant following his graduation from Valparaiso University, where he earned a bachelor’s degree in accounting.
Yeah, we knew. I may or may not have dabbled a bit in Vampire: the Masquerade in high school myself. Congrats, Wyatt!
The Treasury Department has given Axios a first look at the list of 68 jobs that qualify for a new tax deduction under the “no tax on tips” pledge in President Trump’s “big, beautiful bill.” You’re not on it, but you don’t make overtime anyway so it doesn’t matter.
And that’s it for this news brief. If you have a tip, have seen a story we should know about, or just want to talk you are always welcome to email or text with whatever it is, day or night. Why so many of you guys choose weekends to blow up my phone I’ll never know but it’s all good.
SEC Homes In on Lehman, ‘Funds of Funds’ [WSJ]
“The Securities and Exchange Commission’s investigation into the collapse of Lehman Brothers Holdings Inc. is zeroing in on an accounting maneuver used to give the appearance that the company t levels, according to people familiar with the situation.
Agency officials also are probing whether former Lehman executives failed to adequately mark down the value of the huge real-estate portfolio acquired in the securities firm’s takeover of apartment developer Archstone-Smith Trust or to disclose the resulting losses to investors, these people said.
The narrowing probe could move the SEC closer to bringing civil charges related to Lehman’s collapse in September 2008, though a decision doesn’t appear imminent.”
Study Says Directors Favor Themselves, Not Shareholders [FINS]
“A new study found that directors who field whistleblowing claims are likely to discount charges that could threaten their board seats and will assign fewer resources into investigating such claims.
In weighing hypothetical charges, 83 veteran directors at large U.S. corporations said they would allocate 42% fewer resources on average to fraud tips that might ultimately cost them their board seats.”
Dubai World reaches $24.9 billion debt deal [Reuters]
“State-owned conglomerate Dubai World DBWLD.UL on Friday reached a formal deal to restructure around $24.9 billion of liabilities, partly easing recently heightened concerns over the Gulf emirate’s debt woes.
While Dubai World’s agreement with most of its creditors is seen as a positive step for Dubai, the announcement comes just days after a unit of Dubai Holding, the conglomerate owned by Dubai’s ruler, said it will delay repayment on a $555 million loan, the second time it has failed to meet a repayment deadline.”
Huguette Clark’s multi-million-dollar fortune remains in hands of her financial managers [NYDN]
“Millionaire recluse Huguette Clark’s $500 million fortune will remain in the hands of financial managers who are under investigation, a Manhattan judge decided Thursday.
Judge Laura Visitacion-Lewis tossed a request by Clark’s relatives to appoint an independent guardian to oversee her finances and property, including Fifth Avenue’s biggest co-op apartment.
The judge called the family’s concerns about Clark’s health and state of mind “speculative” and “insufficient” to merit wresting control from her lawyer, Wallace Bock, and accountant, Irving Kamsler.”
Control Freak Q&A With Caleb Newquist [Control Freak]
Approva’s Control Freak blog asked me what I liked about being “control freaky.” Check out this post for the answer and more bits of wisdom from Adrienne’s favorite blogger.
Trump Offers to Buy Out Islamic Center Investor [WSJ]
“Mr. El-Gamal, founder of SoHo Properties, is one of eight investors who paid $4.8 million for a building two blocks from the site of the Sept. 11 terrorist attacks.
The statement came following reports that real estate mogul Donald Trump was offering to buy one investor’s stake in the property.
In a letter to Hisham Elzanaty, an Egyptian-born Long Island businessman and a major investor in the project, Mr. Trump offered to buy his stake for 25% more than Mr. Elzanaty paid for it.”
Former GE Unit Executive Says He Was Pushed Out for Questioning Accounting [Bloomberg]
“General Electric Capital Services was sued by a former executive who claims he was forced out for questioning the company’s treatment of an asset.
Edward Gormbley, who worked for GE Capital from 2000 until he quit in September 2009, filed his suit today in state court in Stamford, Connecticut. The complaint also names parent General Electric Co. and its chief executive officer, Jeffrey Immelt.
Gormbley said he was punished for challenging the valuation of silicon-maker Momentive Performance Materials, an investment asset. GE Capital overstated Momentive’s value in December 2008 to improve its own balance sheet, he said. Valuing the asset correctly would have reduced ‘GE Capital’s earnings 100 percent,’ in the fourth quarter that year, according to the complaint.”
Fight for Lehman’s Remains Heats Up [WSJ]
A three-way battle over the remnants of Lehman Brothers Holdings Inc. is coming to a head, as the defunct investment bank’s estate fights with big-name hedge funds and Lehman’s former archrival Goldman Sachs Group Inc. over how to divvy up $61 billion in assets.
10 Things Your Coworkers Won’t Say [SmartMoney]
“Your good attitude makes me hate you,” and “You’re disgusting,” among others.
Oracle replaces CFO as Safra Catz gets the job again [Reuters]
Oracle Corp has replaced its chief financial officer less than three years after he joined the company, tapping its president Safra Catz to do the job. The company said on Monday that CFO Jeffrey Epstein resigned, but did not give a reason. Epstein, who joined Oracle in September 2008, could not immediately be reached for comment. Epstein had little visibility with investors. During quarterly earnings conference calls, it was Catz who read the company’s closely monitored profit forecasts and not Epstein. Epstein reported to Catz and not to Chief Executive Larry Ellison. “The CFO role at Oracle is different from the CFO role at other companies. It’s not as high profile,” said Jefferies & Co analyst Ross MacMillan.
IRS opens audit of Denver medical-marijuana dispensary [DP]
The Internal Revenue Service has opened an audit of a Denver medical-marijuana dispensary, the latest action in what one observer calls a “guerrilla campaign” by the federal government to push back against the cannabis industry. The audit is believed to be the first of its kind in Colorado and follows audits of numerous medical-marijuana dispensaries in California and other states.
Monday Map: State Income Tax Rates [Tax Foundation]
Oregon and Hawaii are your big winners at 11%.
Mergis Group Accounting & Finance Worker Confidence Index Slips Despite Increased Economic Optimism [Mergis Group]
The Accounting and Finance Employee Confidence Index, a measure of overall confidence among U.S. accounting and finance workers, dropped 4.0 points to 52.1 in the first quarter of 2011, according to a recent survey of 3,654 U.S. adults among which 156 are employed in Accounting and Finance commissioned by The Mergis Group®, the professional placement division of SFN Group, Inc. The survey, conducted online by Harris Interactive®, shows that although workers gained confidence in the strength of the economy more workers believe to be fewer jobs available.
Will and Kate Toilet Seats, Condoms Join Tacky London Souvenirs [Bloomberg]
The April 29 royal wedding has flooded London with trinkets, baubles, books and DVDs. The marriage could add as much as 620 million pounds ($1 billion) to the economy in tourism revenue and sales of food and drink, according to Verdict Research, a retail analysis unit of Datamonitor Plc.
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SEC Homes In on Lehman, ‘Funds of Funds’ [