Category: Movies, Entertainment & Media

Sloppy Accountant Steals From Lorne Michaels and Tina Fey


American+Museum+Natural+History+Hosts+Museum+MhOXuAo6hyZl Well, technically he stole from NBC Universal who bankrolls the production of 30 Rock, but Lorne Michaels and Tina Fey helm the show.  I guess, if it has something to do with the creator of Saturday Night Live and the show's former Head Writer, even the embezzlement case must have a bizarre skit flavor.

The media-released facts of this "grand" scam, which yielded the schmuck, formerly employed as an "accountant" on the show, a $13.6K "fortune" in stolen funds, are sketchy (pun is always intended), so I will have to apply my financial forensic expertise and speculate about some of the details. 

The way I see it, he caught on the fact that when expense reports/envelopes are submitted for reimbursement, nobody checks the actual receipts inside.  It is also possible that he was the very person responsible for checking them.  Either way, there were obvious holes in this internal control plot.  So, he decided to pad a few envelopes with fictional expenses, personal use of the business credit card and even altered receipts.  On top of that, he did it stupidly and sloppily: used whiteout to falsify the receipts, faked the NBC Comptroller's initials.  He thought nobody would ever notice. As far as he could see, from his limited to one season and inexperienced point of view (how do these people get employed?), nobody was looking.

Nobody in accounting management did!  Judging by the timing of his employment and arrest, it seems the independent auditors were the ones who discovered the receipts with the whiteout!!!  In a business with big-shot executive producers charging all kinds of perks (limos, flowers and whatnot) to corporate credit cards, the reconciliation of expense accounts is a sensitive area.  That's where diligent auditors would look.  And the SLOPPY WHITEOUT – how can anyone possibly miss that?

So, now he is facing up to 7 years in jail.  That's a year for every $2,000 he stole.  Pretty severe.  However, The Frustrated CFO is the most curious about the consequences of this ordeal for the NBC's Comptroller.   In my book she is ultimately responsible for the lack of proper internal control procedures and the inadequacy of the budget variance analysis.  If those functions were correctly established and executed, this small-time offense, blown out-of-proportion by its show-biz relation, would never have occurred in the first place.  Both her and the arrested one are sorry excuses for accountants.        

What was the perp's self-justification?  Did he think that "it was not fair" for Tina Fey to spend $200 a day in limo charges?  IMDb Pro reports her current 30 Rock salary at $300,000 per episode.  That must've killed him.

However, we are accountants, so let's count.  The show reportedly has 6 million viewers.  That's only in the US and doesn't count reruns or DVD sales. So, on the evening of each episode's airing Tina Fey makes 6 million people laugh and forget their worries.  (Please, appreciate my objectivity here as I personally don't find Tina Fey's comedy funny, intelligent or entertaining.)  And for that she gets paid 5 cents per person.   I think that's reasonable.  Who did that "accountant" make happy?

CFO Folklore: Why Do I Work So Hard?


People are frequently surprised by my dedication to the job.  And I have to admit, my level of commitment, loyalty and work ethics is quite high.  Some even think that I have a stake in the company or am related to one of the owners.  But no, even though a CFO, I am just an employee.  Moreover, I have advanced my career by moving from one company to another about every 5 years.  Hence, any particular company is just another line on my resume.  My compensation is not tied to any volume factor and bonuses are discretionary.  So, why do I work so hard?

I am definitely NOT doing it for the BOSS.  Those who read my posts know that I have deepest respect for entrepreneurial bravery and ingenuity of business owners (even when I address their negative traits as a source of frustration).  And I cannot really complain; most of my bosses have shown a lot of appreciation for my efforts.  But, unfortunately, they are capable to see only the superficial aspects – long hours, multi-tasking, etc.  The quality of the impact I make on their company completely escapes them.  Plus, unlike others, I don't run to report every single achievement.

So, no I am not doing it for the bosses or their recognition.  One can say that the reasons fueling my drive for excellence are selfish.  I do it for myself.  I simply cannot do it differently.  It doesn't matter whether anybody else acknowledges it, if what I do is not up to my own standards, I get extremely disconcerted. 

I have learned this about myself a long time ago – dissatisfaction with my own performance is the biggest source of frustration and anxiety.  So, the choice is simple: either apply your absolute best or suffer the psychological consequences.  That is why I work so hard.  It makes me feel at peace and, yes, proud.   

Few years ago I was flying with my boss to Amsterdam for meetings with our bankers.  I was outlining the important issues I wanted to address and touched on the impressive growth rates we have achieved.  I guess my excitement affected him and he felt compelled to tell me how much he appreciated my hard work.  This is what I  told him, "When I came, the company was doing $40M a year.  It did $80M a year after, $120M a year after that, $160M last year, and I guarantee $200M this year.  Knowing that I was instrumental to that growth is what drives me." 

You say, vanity?  And may be you are right.



 



How Far Can They Push Us?


The post about infringement of freedom in the workplace generated further discussions among my peers. 

Some people actually said that I made them very depressed by putting into words realizations they try to avoid.  I would like to remind these people that the Welcome page of this blog, Reason to Share, clearly expresses my belief that sharing frustration gives us therapeutic relief.

Others felt that my "uplifting" statement that one can always quit was clouded by the suggestion that most CFOs and Controllers cannot afford to do so.  Indeed, I keep talking about how difficult it is to find a CFO/Controller level job nowadays.  That's why I don't suggest quitting without lining something else up or having sufficient funds to keep yourself afloat during the job search.  The truth is, you need to establish an emergency fund anyway – as I always say, there is no such thing as job security for anyone in this new world.

But let me tell you from my own experience, there comes the time when you just know you cannot deal anymore.  You are so frustrated, anxious, depressed, angry and hopeless, you cannot breath.  No matter what you do to get a grip, it feels like your balance is slipping away.  If that's the case, it is time to make your move, because otherwise the suffering is going to destroy you either psychologically, or physically, or both.

I have many stories about people pushed too far and, hopefully, I will be able to tell them here at one or another point.  However, for this particular post I decided to use, as means of a more familiar illustration, a Hollywood classic by Billy Wilder – "The Apartment" (1960). 

The main character (forever great Jack Lemmon) is not a CFO or a Controller, but he is an ambitious person and the gist of the story is very relatable to subordinate employees on all levels.  You see, he really wants to climb the career ladder.  So, he lets the VPs to use his apartment for their extramarital encounters.  He even lays out snacks and liquor for them to enjoy. 

When he allows himself to be convinced by his boss to leave his apartment on  a rainy Christmas Eve, he is angry and frustrated, but he keeps his mouth shut.  And finally he gets that "big promotion" he'd wanted.



Jack's character falls in love with the elevator girl.  He doesn't know that she has been to his apartment with one of his bosses as well.  When the moment of truth finally comes, he feels so overwhelmed, he realizes that he cannot be a doormat anymore.  The time has come to be a human being.



So, gives up his job.  Of course, as in all Hollywood fairy tales, he gets the girl (an adorable Shirley MacLaine) as a reward for his courage.  But it does not matter: rewards or not, everyone has their own threshold of pain tolerance.