In the `Most Ironic' Category. . . . Bankrupt California County Gets Awards for Financial Reporting

By 1994, Bloomberg Business News | St Louis Post-Dispatch (MO), December 29, 1994 | Go to article overview

In the `Most Ironic' Category. . . . Bankrupt California County Gets Awards for Financial Reporting


1994, Bloomberg Business News, St Louis Post-Dispatch (MO)


Guess which local municipality won awards from the Government Finance Officers Association for excellence in financial reporting 16 straight years?

It's the same one that's the owner of an Award of Recognition from the National Federation of Municipal Analysts for its commitment to the kind of disclosure requirements that analysts like best.

Need a hint? It's also the place where the county treasurer had to resign after losing $2 billion making bad bets on interest rates, jeopardizing county services and the jobs of county workers.

Yes, folks, it's Orange County, Calif., site of the nation's largest municipal bankruptcy, where one wall in the reception area at Orange County auditor-controller Steven Lewis' office is covered with plaques attesting to the county's rectitude in matters of financial disclosure.

The award-bedecked office was a strangely discordant background when Lewis was served with lawsuits by a process server last week.

Still, neither the organizations that bestowed the awards nor the accountants who certified the financial statements admit to any sense of incongruity over the county's sterling financial reports and its dismal financial performance. In fact, the county probably will win the finance officers' association award again this year, if the county's accountants ever finish their audit.

Auditor KPMG Peat Marwick suspended its work on the county's audit for the fiscal year that ended June 30 this year and it may not finish it until June 30 next year, said KPMG spokesman Kevin Kelly. That's acceptable under the rules published by the Governmental Accounting Standards Board, a privately funded accounting standard-setting agency based in Norwalk, Conn. Governments aren't required to publish their financial results quarterly, the way companies are. Once a year is enough, and they can wait a year to prepare them.

Kelly said that even though an audit is supposed to look at what happened in the past, the audit of Orange County's 1994 fiscal year has been suspended because of things that have happened since the fiscal year ended: namely, the county's filing for bankruptcy protection under Chapter 9 of the Bankruptcy Code.

"The audit has been suspended in light of the bankruptcy," Kelly said. "They have not been able to give us completed financial statements."

Lewis didn't return phone calls seeking comment.

The finance association gave its Certificate of Achievement for Excellence in Financial Reporting to 2,078 of the 2,168 governments that applied for it in 1992, said Steven Gauthier, technical director for the group. The award has been given since 1946.

After a while it becomes a rubber stamp. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • A full archive of books and articles related to this one
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

In the `Most Ironic' Category. . . . Bankrupt California County Gets Awards for Financial Reporting
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.