[Buickman]

hot off the presses from our newly released Annual Report:

"A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis.

"Based on our assessment, and because of the material weaknesses described above, we have concluded that our internal control over financial reporting was not effective as of December 31, 2007"

G. Richard Wagoner

"In our opinion, because of the effect of the material weaknesses described above on the achievement of the objectives of the control criteria, the Corporation has not maintained effective material control over financial reporting as of December 31, 2007"

Deloitte & Touche LLP

further info available at www.gm.com, or contained within fine print found in 2007 Annual Report.

 

[K-1]

By all means, pore over the books yourself and get their financial house in order, Mr. Accounting Expert. If you can find any global, multi-billion-dollar corporation (hell, even a national, million-dollar company) with entirely clean books and following SEC regulations to a T, let us know, we're standing by. There's a ton of gray area in corporate accounting.

 

[Buickman]

By all means, pore over the books yourself and get their financial house in order, Mr. Accounting Expert. If you can find any global, multi-billion-dollar corporation (hell, even a national, million-dollar company) with entirely clean books and following SEC regulations to a T, let us know, we're standing by. There's a ton of gray area in corporate accounting.

big difference between gray area and MATERIAL WEAKNESS.

 

[mbukukanyau]

There is lots of accounting Jobs at GM, I presume

 

[Buickman]

There is lots of accounting Jobs at GM, I presume

considering that the current Chairman, Red Ink Rick, was the Chief Financial Officer, one would suppose the financials at GM would be impeccable. then again, the man never had an accounting degree. hence the material weaknesses and past accounting scandals.

how did he become CFO and why is he still Chairman with the tens of Billions in losses?

 

[K-1]

considering that the current Chairman, Red Ink Rick, was the Chief Financial Officer, one would suppose the financials at GM would be impeccable. then again, the man never had an accounting degree. hence the material weaknesses and past accounting scandals.

how did he become CFO and why is he still Chairman with the tens of Billions in losses?

As CFO, I bet he prepared every single statement and did all of the accounting for the entire corporation all by himself. They must keep him locked in a room somewhere to get all of that stuff done without any help.

 

[Buickman]

As CFO, I bet he prepared every single statement and did all of the accounting for the entire corporation all by himself. They must keep him locked in a room somewhere to get all of that stuff done without any help.

my point is that he is the one responsible for the results. as CFO for the financials, and as Chairman for the entire corporate performance. he's in charge and the one to be held accountable. of course, at GM, we don't hold people accounatable. that's how we got into this mess and why we will never get out. you don't see that crap with the Japanese.

and it's a shock that gas is $4? executives get paid millions to lead the way. Red Ink Rick has led the way, too bad it's toward bankruptcy.

 

[zete]

Isn't this just Deloitte doing their fiduciary responsibility in pointing out areas where there could be a material affect on the books. The problem with a material weakness isn't that a corporation has one but whether the corporation correctly reacts to one.

Sooner or later every corporation has a material weakness. If it's not dealt with it can become a serious problem. Obviously something changed as of Jan 1 that has caused this material weakness and from the short blurb quoted it appears it's been recognized and actioned.

 

[ghughes]

Dont know the severity of this - there are far too many regs on corps in regards to bookkeeping. Especially with the new OS law.

"how did he become CFO and why is he still Chairman with the tens of Billions in losses?" thats a deep mystery, he should have been bounced earlier. Maybe, no corp. star wanted the job, figured detroit is awful, the job is filled with landmines and doesnt pay enough. Prob. this had something to do with Ricks longevity?

 

[Neanderthal]

As CFO, I bet he prepared every single statement and did all of the accounting for the entire corporation all by himself. They must keep him locked in a room somewhere to get all of that stuff done without any help.

You are correct.

That's why he's so pale.

 

[Buickman]

Isn't this just Deloitte doing their fiduciary responsibility in pointing out areas where there could be a material affect on the books. The problem with a material weakness isn't that a corporation has one but whether the corporation correctly reacts to one.

Sooner or later every corporation has a material weakness. If it's not dealt with it can become a serious problem. Obviously something changed as of Jan 1 that has caused this material weakness and from the short blurb quoted it appears it's been recognized and actioned.

let's see...further info from the annual report

"Material weaknesses previously identified as of December 31,2006 that continue to exist as of December 31,2007:

1. Controls over the period-end financial reporting process were not effective. This has resulted in a significant number and magnitude of out-of-period adjustments to our consolidated financial statements and in previously reported restatements. Specifically, controls were not effective to ensure that significant non-routine transactions, accounting estimates, and other adjustments were appropriately reviewed, analyzed, and monitored by competent accounting staff on a timely basis. Additionally, some of the adjustments that have been recorded relate to account reconciliations not being performed effectively..."

2. Controls to ensure our consolidated financial statements comply with IRS No, 109, "Accounting for Income Taxes" were not effective..."

3. Controls over the accounting for employee benefit arrangements were not effective. We lacked sufficient control procedures as well as adequate involvement of technical accounting resources to ensure that employee benefit arrangements were accounted for properly"

G Richard (Red Ink Rick) Wagoner

see more on page 78 GM 2007 Annual Report

and the band plays on.......

 

[knicker26]

All the accounting jobs were sent to Jamaica.

 

[jkennedy293]

I say we just close the whole corporation down because obviously everyone there is incompetent or involved in criminal accounting matters.

Mind you these are the same accounting rules and regulations that seem to change every year and are so perverse that the IRS themselves don't completely understand them.

 

[Buickman]

I say we just close the whole corporation down because obviously everyone there is incompetent or involved in criminal accounting matters.

Mind you these are the same accounting rules and regulations that seem to change every year and are so perverse that the IRS themselves don't completely understand them.

GM has many wonderful, talented, and dedicated employees who are loyal and hard working. it's the fool hardy idiot at the top who's killing the golden goose. perhaps he wants to bust GM into oblivion so his bankster buddies can privatize the pieces. high gas prices will provide the perfect scape goat. beware...

as to accounting rules, they are made to be followed and if a multi national, multi billion corporation can't do it there is a problem within said corporation. you making excuses for Red Ink Rick doesn't change SEC mandated language disclosed in the fine print. words like material combinations of deficiencies, misstatements, not maintained, not effective. these are very serious concerns and have been going on for years under RIR. you make jokes and light of the situation but if you truly understood the impact of this man's disastrous tenure, you wouldn't be so much of a wise guy. communities are suffering as taxes are lowered and jobs lost. policemen laid off, fire stations shuttered, schools closing, crime rising, families splitting apart. guess you find that funny huh?

 

[hunchman]

GM has many wonderful, talented, and dedicated employees who are loyal and hard working. it's the fool hardy idiot at the top who's killing the golden goose. perhaps he wants to bust GM into oblivion so his bankster buddies can privatize the pieces. high gas prices will provide the perfect scape goat. beware...

as to accounting rules, they are made to be followed and if a multi national, multi billion corporation can't do it there is a problem within said corporation. you making excuses for Red Ink Rick doesn't change SEC mandated language disclosed in the fine print. words like material combinations of deficiencies, misstatements, not maintained, not effective. these are very serious concerns and have been going on for years under RIR. you make jokes and light of the situation but if you truly understood the impact of this man's disastrous tenure, you wouldn't be so much of a wise guy. communities are suffering as taxes are lowered and jobs lost. policemen laid off, fire stations shuttered, schools closing, crime rising, families splitting apart. guess you find that funny huh?

oh my gawd ......FINALLY....someone here who gets it. Thankyou Buickman

 

[sepi]

Financial reporting accuracy at GM has been happening for years. Ole Wagoneer has been on the job for eight years - this is his problem - he should be fired, sued by shareholders for malfeasance, and jailed for criminal complicity in fraud. There is no excuse for this problem to persist year after year.

GM needs to wise up and start acting ethically.

 

[vam29]

Why not get all the facts before rushing to judgement?

 

[Bigbee60]

I'm a CPA and worked for Deloitte on the GM account in the late 80's. I think GM had more control weaknesses then then now.

Material weakness in accouting for Income Taxes? Was GM supposed to have a crystal ball that said they'd have a perfect storm and lose so much that their tax loss credit carryforwards would never be realized? Never in the past has a corporation faced so many large write-offs of deferred credits. My current company has had only one loss in the last ten years and we even had to write-off some deferred tax credits this year given the expected economic environment the next few years.

Part of the problem is Generally Accepted Accounting Principals (GAAP) is so unwieldy that even Deloitte can't interpret it consistently from client to clinet and industry to industry. I wouldn't worry too much as IFRS will replace GAAP for large companies like GM in about three years and level the playing field with other non-US multi-nationals like Siemens, etc.

Deloitte is playing CYA here ... I'm not too worried.

 

[fastball]

Get that axe sharp enough yet, Buickman?

 

[Buickman]

I'm a CPA and worked for Deloitte on the GM account in the late 80's. I think GM had more control weaknesses then then now.

Material weakness in accouting for Income Taxes? Was GM supposed to have a crystal ball that said they'd have a perfect storm and lose so much that their tax loss credit carryforwards would never be realized? Never in the past has a corporation faced so many large write-offs of deferred credits. My current company has had only one loss in the last ten years and we even had to write-off some deferred tax credits this year given the expected economic environment the next few years.

Part of the problem is Generally Accepted Accounting Principals (GAAP) is so unwieldy that even Deloitte can't interpret it consistently from client to clinet and industry to industry. I wouldn't worry too much as IFRS will replace GAAP for large companies like GM in about three years and level the playing field with other non-US multi-nationals like Siemens, etc.

Deloitte is playing CYA here ... I'm not too worried.

Deloitte, the same outfit that was auditor for Parmalat. remember them? the European conglomerate that imploded with a $5 Billion Cayman Island cash account that DID NOT EXIST? we've had the same audit company for over 70 years, hardly the appearance of an arm's length relationship. how about the Jersey car dealer McNamara who burned us for $400 Million in vans which did not exist? where was your beloved Deloitte then?

Deloitte was found guilty of dereliction of duty regarding Adelphia.

before anyone heard of Enron, Just For Feet, a Super Bowl ad running shoe store chain went from a market cap of $700 Million to ZERO in three years with Deloitte's accountants on watch. Deloitte's consulting arm hit the company up for business to fix it's internal control problems. can you say "conflict of interest?" instead of blowing the whistle, they sought additional business.