Latest news with #MossAdams
Yahoo
12-06-2025
- Business
- Yahoo
Will audit report serve as 'road map' for City of Lodi?
Jun. 12—Lodi City Councilwoman Lisa Craig-Hensley said a lot of the issues presented in a recent internal review report relate to best practices. The council on Tuesday received the presentation from Moss Adams, LLP during a special meeting. The report, which was completed in January, focused on assessing key controls for protecting city assets and resources, as well as timely processing and reporting of financial information. "There are a number of instances that truly reflect our continuing concern for lack of staffing to do some of the work (described in the report)," Craig-Hensley said. "There were certain sections that said 'get caught up, bring in some temp staff.' If we need temp staff to work 200 hours to do some of this, we need to get that done." Some of the firm's recommendations include implementing a fraud, waste and abuse hotline; establishing an internal audit function; assessing staffing levels; assessing the necessity of fleet vehicles and dispose of vehicles that are no longer needed; and strengthening the CAL-Card use and review process, among others. Craig said she favored the implementation of an investment committee or finance committee to oversee investment strategies and decisions, as suggested in the report. Currently, the city's investments are overseen by one employee, which Moss Adams said can pose several risks, including lack of diversification, limited perspective and reliance on individual judgment. An investment committee would be comprised of individuals with diverse expertise, including finance, risk management, and relevant industry knowledge, the firm said. If the city does not have sufficient knowledge to self-manage its investments, the firm suggested that it should consider contracting with a third-party fiduciary. Craig also said the city needs to comply with city ordinance 3.20, which states a purchasing officer be appointed by the city manager and have general oversight of purchasing functions. Lodi Chamber of Commerce president and CEO JP Doucette said the report was an important step in tackling the challenges facing the city's financial operations. He said Moss Adams not only delivered confirmation that there were financial issues at City Hall, but a "road map" of steps to correct weaknesses in the organization's structure. "This is the kind of transparency and accountability we expect from the city," he said. "It's the implementation that matters now. These (recommendations) aren't optional. These are critical controls that any business or nonprofit operating in Lodi would be expected to have in place." In its report, Moss Adams also found that the city does not have a mechanism in place for reporting potential fraud, waste or abuse, which creates the risk that potentially suspicious activities may not be investigated or resolved. This may lead to potential misappropriation of assets, fraudulent financial reporting, or other related activities, the firm said. A hotline would offer employees, residents and vendors a confidential avenue to report suspicious activities or concerns in a timely manner, which would allow the city to respond and address the concerns, the firm said. In addition, the firm said a hotline would enhance transparency, encourage accountability and foster a culture of integrity in the city. Moss Adams added the lack of an internal audit function can result in less oversight, which can lead to undetected errors, mismanagement or fraudulent activities within departments. The firm suggested the city outline the scope and objectives of an internal audit function, and create a comprehensive plan that prioritizes high-risk areas and establishes a schedule for regular internal audits of various departments and functions. The city should also identify qualified resources to carry out the internal audit function, either through recruitment or outsourcing to a qualified firm, and regularly assess its effectiveness and make adjustments as necessary to improve its impact on departmental and operations, the firm said. To view the entire document, visit The council also approved an amendment to a contract with Meyers Nave of Sacramento for legal services related to employment matters and investigations. According to Tuesday's agenda, the council approved allocating $50,000 to make the total contract $260,000. Craig-Hensley said the additional funding was related to work involving public records requests due the the city's lack of staffing and ability to fulfill requests from the community.
Yahoo
10-06-2025
- Business
- Yahoo
Council to receive results of internal audit
Jun. 10—In early April, Lodi City Manager Scott Carney made public claims about widespread credit card fraud at city hall, and now a recent internal controls review has determined that some misuse has occurred, although to what extent is remains unknown. The City of Lodi contracted Moss Adams, LLP to perform an evaluation of its internal controls framework in September, and the Lodi City Council will receive a report on the document during a special meeting Tuesday afternoon. The report, which was completed in January, focused on assessing internal controls for protecting city assets and resources, as well as timely processing and reporting of financial information. Some of the firm's recommendations include implementing a fraud, waste and abuse hotline; establishing an internal audit function; assessing staffing levels; assessing the necessity of fleet vehicles and dispose of vehicles that are no longer needed; and strengthening credit card use and review process, among others. In its report, Moss Adams found that city employees had been using CAL-Cards for inappropriate personal purchases, which constitutes potential fraud and abuse and demonstrates a lack of a controlled purchasing environment, the firm said. Based on interviews with staff, multiple departments said employees might use their personal credit cards for small transactions rather than the CAL-Card, and they subsequently file for reimbursement through the city Using personal credit cards instead of city credit cards violates use policy, the firm said, results in non-compliance issues and gives the city less oversight over the purchasing process. In addition, using personal credit cards could subject the city to inappropriate or fraudulent purchases, and creates inefficiencies as there is a higher volume of employee reimbursement requests, the firm said. The report suggested the city implement pre-approval processes for certain types of purchases, set transaction limits on CAL-Cards that would restrict the amount that can be spent in a single purchase or within a month, and conduct regular audits of CAL-Card transactions to identify any patterns of misuse. The firm also suggested ensuring goods purchased with CAL-Cards are shipped to a city address to secure purchases, and to review and update its use policy to appropriate use of the cards. To address employees' using personal credit cards for small transactions instead CAL-Cards, it was recommended the city establish clear guidelines that detail when personal cards should not be used and the preferred methods of payment for city-related expenses. In addition, it was recommended the city provide annual training sessions emphasizing the importance of adhering to purchasing policies and the potential issues associated with using personal cards. During an April 1 special meeting, Carney made reference to personnel matters being investigated by city staff while accusing the city clerk and city attorney of editing staff reports without his knowledge or approval in a non-agendized statement. Carney was placed on leave days later. The Brown Act forbids city staff and elected officials from discussing personnel matters that are not placed on an agenda. The council will also be discussing potential litigation from Carney and his attorneys during closed session Tuesday. In its report, Moss Adams also found that the city does not have a mechanism in place for reporting potential fraud, waste or abuse, which creates the risk that potentially suspicious activities may not be investigated or resolved. This may lead to potential misappropriation of assets, fraudulent financial reporting, or other related activities, the firm said. A hotline would offer employees, residents and vendors a confidential avenue to report suspicious activities or concerns in a timely manner, which would allow the city to respond and address the concerns, the firm said. In addition, the firm said a hotline would enhance transparency, encourage accountability and foster a culture of integrity in the city. Moss Adams added the lack of an internal audit function can result in less oversight, which can lead to undetected errors, mismanagement or fraudulent activities within departments. The firm suggested the city outline the scope and objectives of an internal audit function, and create a comprehensive plan that prioritizes high-risk areas and establishes a schedule for regular internal audits of various departments and functions. The city should also identify qualified resources to carry out the internal audit function, either through recruitment or outsourcing to a qualified firm, and regularly assess its effectiveness and make adjustments as necessary to improve its impact on departmental and operations, the firm said. To view the entire document, visit Tuesday's meeting begins at 3:30 p.m. at Carnegie Forum, 315 W. Pine St. It will also be livestreamed at
Yahoo
10-06-2025
- Business
- Yahoo
Does Baker Tilly's merger signal a public accounting mid-market power shift? Trial Balance
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. The Trial Balance is weekly preview of stories, stats and events to help you prepare. Baker Tilly and Moss Adams closed their merger in June, forming the sixth-largest accounting and advisory firm and the largest backed by private equity in the U.S. The company will operate under the Baker Tilly brand. In a recent interview with Business Insider, former CEOs Jeff Ferro and Eric Miles detailed the merger, their long-term growth plans and how PE backing is helping them scale to meet evolving client demands. Miles, the former CEO of Moss Adams, who will succeed Ferro as CEO of Baker Tilly at year-end, said the firms are responding to a clear shift in client expectations. 'The needs of the mid-market are evolving,' he told BI. 'Firms have to be bigger and more capable to stay competitive.' Ferro said he hopes the firm doubles revenue to $6 billion in five years, crediting the possibility of that scale to new technology and their private capital. The move places the company just outside the coveted Big Four ranking, as the combined firm brought in over $3 billion in annual revenue last year and includes 11,500 employees. While Baker Tilly has traditionally served clients across the East and Midwest, Moss Adams brings a dominant West Coast clientele market. For CFOs, the geographic blend and expanded advisory offerings may create a stronger alternative to historically pricey Big Four services, especially for mid-market finance leaders seeking cost-effective services. The deal also reflects a broader trend: While not directly tied to individual transactions, the tax advantages PE firms receive through mechanisms like the carried interest loophole could help fuel their ability to back large-scale mergers, especially in cash-generating service sectors like accounting. Baker Tilly's 2024 stake sale to Hellman & Friedman and Valeas Capital gave the firm the capital to boost its M&A strategy and invest heavily in AI, automation and the growing trend of fixed-cost service offerings. For finance chiefs, the merger could signal a shift in public accounting dynamics. PE backing often means faster innovation and improved service packages, but it also raises questions around pricing models, partner accountability and the long-term stability of the firm itself. Traditional partner-run firms, a model that is facing challenges of its own, typically offer continuity and institutional knowledge and longevity, while PE-backed firms may be more focused on growth metrics and scalability. Here's a list of important market events slated for the week ahead. Monday, June 9 Wholesale inventories, April Tuesday, June 10 NFIB optimism index, May Wednesday, June 11 Consumer price index, May Core CPI, May Monthly U.S. federal budget, May Thursday, June 12 Initial jobless claims, week of June 7 Producer price index, May Core PPI, May Friday, June 13 Consumer sentiment (preliminary), June This week, will publish a Q&A with Irina Berkon, CFO of Metallicus, a technology company that builds compliant and regulation-abiding cryptocurrency banking tools for traditional financial institutions. After speaking at Consensus 2025, Berkon shares her experience speaking as a CFO at a large conference, how she believes cryptocurrency and blockchain technology are not taking a backseat to AI, her relationship with CEO and cryptocurrency 'pioneer' Marshall Hayner, keeping cryptocurrency on the balance sheet and more.
Yahoo
07-06-2025
- Business
- Yahoo
Former rivals Baker Tilly and Moss Adams just merged as private equity reshapes accounting. Their CEOs explain why they did the deal.
Baker Tilly and Moss Adams have merged to create the sixth-largest advisory CPA firm in the US. "We just added a bunch of arrows into our quiver," Jeff Ferro, CEO of Baker Tilly, told Business Insider. The deal marks a major shift for the mid-market landscape, which is being heavily influenced by private equity. Baker Tilly and Moss Adams merged this week in a deal that marks another shake-up for mid-market consulting firms and emphasizes the role being played by private equity in US accounting. The two firms, which are both in the tier below the Big Four, have a combined annual revenue of over $3 billion. By joining forces, they've catapulted themselves above BDO, Grant Thornton US, and CLA to become the 6th largest accounting firm by revenue in the US. The move brings together 11,500 employees into one firm that will keep the Baker Tilly name and be an independent member firm in the Baker Tilly International network. In a joint interview, the two CEOs of the merged firms told Business Insider that the move is mutually strategic and will help them navigate the challenges facing the mid-market. "We just added a bunch of arrows into our quiver," said Jeff Ferro, CEO of Baker Tilly. The deal also offers an insight into how private equity is reshaping the industry in the US. In 2024, Baker Tilly sold a stake to the private investment groups Hellman & Friedman (H&F) and Valeas, in the second-largest deal in the sector at the time. Baker Tilly is now, thanks to the merger, the largest firm in the industry to be partly owned by private-equity investors. It's a trend that is redefining the culture and business model of traditional accounting firms. Firms have typically paid out profits to equity partners, who also get a vote on how they are run. Private equity offers an influx of capital to help firms evolve their technology and data, but requires firms to divest the control historically promised to partners, shaking up their culture. Ferro told BI that Baker Tilly's strategic plan had been to grow through acquisition, and was a key part of what H&F bought into when they signed the deal. H&F will also make a "meaningful additional strategic investment in the business" as part of this transaction. "Our chances of executing our strategy were good, and now I think they're great," said Ferro. Combining firms also created strategic advances in geographic reach — Moss Adams is West Coast-focused, while Baker Tilly mostly covers the East, central, and has some international clients. The two firms bring specific industry strengths to the table and different tools and service capabilities to offer clients, Ferro said. "I see us being a $6 billion revenue organization in five years," Ferro said, which would mean doubling their current combined revenues. "It's quite a win," agreed Eric Miles, the former CEO of Moss Adams, who will take over from Ferro as CEO of Baker Tilly when Ferro retires at the end of the year. The needs of the mid-market client base are changing, and they require more scale and breadth of services than they used to, he said. At the same time, the firms themselves are seeing increasing demand for true fixed costs like training and development, and AI. Those kinds of pressures require large organizations to scale to be competitive, he said. Neither firm had to do the merger, Miles said, "But we had this strategic lens on it, saying, 'how can we be stronger? What's going to be required to be a leading competitive firm in the future?'" "The partnership with Baker-Tilly helped us meet all those long-term strategic objectives, which helps us not only deal with these forces, but get out in front and lead in the market," Miles said. Have a tip? Contact this reporter via email at pthompson@ or Signal at Polly_Thompson.89. Use a personal email address and a nonwork device; here's our guide to sharing information securely. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
07-06-2025
- Business
- Business Insider
Former rivals Baker Tilly and Moss Adams just merged as private equity reshapes accounting. Their CEOs explain why they did the deal.
Baker Tilly and Moss Adams merged this week in a deal that marks another shake-up for mid-market consulting firms and emphasizes the role being played by private equity in US accounting. The two firms, which are both in the tier below the Big Four, have a combined annual revenue of over $3 billion. By joining forces, they've catapulted themselves above BDO, Grant Thornton US, and CLA to become the 6th largest accounting firm by revenue in the US. The move brings together 11,500 employees into one firm that will keep the Baker Tilly name and be an independent member firm in the Baker Tilly International network. In a joint interview, the two CEOs of the merged firms told Business Insider that the move is mutually strategic and will help them navigate the challenges facing the mid-market. "We just added a bunch of arrows into our quiver," said Jeff Ferro, CEO of Baker Tilly. The deal also offers an insight into how private equity is reshaping the industry in the US. In 2024, Baker Tilly sold a stake to the private investment groups Hellman & Friedman (H&F) and Valeas, in the second-largest deal in the sector at the time. Baker Tilly is now, thanks to the merger, the largest firm in the industry to be partly owned by private-equity investors. It's a trend that is redefining the culture and business model of traditional accounting firms. Firms have typically paid out profits to equity partners, who also get a vote on how they are run. Private equity offers an influx of capital to help firms evolve their technology and data, but requires firms to divest the control historically promised to partners, shaking up their culture. Ferro told BI that Baker Tilly's strategic plan had been to grow through acquisition, and was a key part of what H&F bought into when they signed the deal. H&F will also make a "meaningful additional strategic investment in the business" as part of this transaction. "Our chances of executing our strategy were good, and now I think they're great," said Ferro. A merger that expands the firms' reach Combining firms also created strategic advances in geographic reach — Moss Adams is West Coast-focused, while Baker Tilly mostly covers the East, central, and has some international clients. The two firms bring specific industry strengths to the table and different tools and service capabilities to offer clients, Ferro said. "I see us being a $6 billion revenue organization in five years," Ferro said, which would mean doubling their current combined revenues. "It's quite a win," agreed Eric Miles, the former CEO of Moss Adams, who will take over from Ferro as CEO of Baker Tilly when Ferro retires at the end of the year. The needs of the mid-market client base are changing, and they require more scale and breadth of services than they used to, he said. At the same time, the firms themselves are seeing increasing demand for true fixed costs like training and development, and AI. Those kinds of pressures require large organizations to scale to be competitive, he said. Neither firm had to do the merger, Miles said, "But we had this strategic lens on it, saying, 'how can we be stronger? What's going to be required to be a leading competitive firm in the future?'" "The partnership with Baker-Tilly helped us meet all those long-term strategic objectives, which helps us not only deal with these forces, but get out in front and lead in the market," Miles said.
