Accounting
SEC charges Entergy Corporation with internal accounting controls violations
The Securities and Exchange Commission today settled charges with Entergy Corporation for failing to maintain internal accounting controls to ensure that its surplus materials and supplies were accurately recorded in accordance with generally accepted accounting principles.
From mid-2018 to the present, the Louisiana-based utility company included materials and supplies at their average costs as an asset on its balance sheets, according to the SEC’s complaint. During this same time, however, Entergy employees and management consultants allegedly informed the company that this asset included a substantial amount of potential surplus, including aged materials and supplies in excess of anticipated future use or exceeding the maximum stocking levels.
The SEC claims that Entergy failed to establish a comprehensive process to review these materials supplies to identify surplus, remeasure it and record any differences between its average cost and remeasured cost as an expense, in accordance with GAAP.
“Internal accounting controls serve as a front-line defense in ensuring the accuracy and reliability of financial statements,” Sanjay Wadhwa, acting director of the SEC’s Division of Enforcement, said in a
Without admitting or denying the findings, Entergy agreed to the entry of a final judgement, subject to court approval, which includes being permanently enjoined from violating Sections 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934, paying a $12 million civil penalty and implementing an independent consultant’s recommended improvements to its internal accounting controls.
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Employment rose by a stronger than expected 228,000 jobs in March, although the unemployment rate inched up one-tenth of a point to 4.2%, the U.S. Bureau of Labor Statistics reported Friday.
Despite the mostly upbeat jobs report, the stock markets nevertheless plunged amid widespread concern over the
The professional and business services sector added 3,000 jobs, but lost 700 jobs in accounting, tax preparation, payroll and bookkeeping services. The biggest job gains occurred in health care, social assistance, transportation and warehousing. Employment also grew in the retail trade industry, in part due to the return of workers from a strike in the food and beverage industry. But federal government employment declined by 4,000 in March, after a loss of 10,000 in February, amid job cuts ordered by the Elon Musk-led Department of Government Efficiency. However, the Internal Revenue Service is
Average hourly earnings rose in March by 9 cents, or 0.3%, to $36.00. Over the past 12 months, average hourly earnings have increased 3.8%.
Trump boasted about the jobs report in an all-caps
Congressional Democrats disagreed. “Unemployment is rising, and this seems to be the last report buoyed by Democrats’ blockbuster job creation,” said House Ways and Means Committee ranking member Richard Neal, D-Massachusetts, in a statement. “Recession odds are getting higher by the day as Trump plagues our economy with the largest tax hike in decades. Wages would need to skyrocket for the people to weather Trump’s higher prices and needless uncertainty. This report doesn’t yet reflect the dangerous firings of thousands of public servants or the layoffs that started hours after he announced the Trump Tariff Tax. This administration is ruling through the lens of billionaires — sacrificing workers’ paychecks, destroying trillions of dollars in savings and retirement wealth, readying
Economists are predicting fallout from the historic tariff increases announced by Trump. “We now have more clarity on the trade policy following ‘Liberation Day’ on April 2,” wrote Appcast chief economist Andrew Flowers. “The average effective tariff rate is now above the level set by the Smoot-Hawley tariffs in 1930. This is one of the largest changes to economic and global trade policy since President Nixon’s decision to move away from the gold standard more than 50 years ago. The impending fallout from retaliatory tariffs from our trading partners across Europe and Asia will radically shift employment growth across manufacturing, retail and construction as consumer goods prices rise.”
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