The National Taxpayers Union Foundation issued a report Friday saying that federal credit programs are costing taxpayers tens of billions of dollars more than estimated because the federal government isn’t using fair value accounting for loans.

The report says that In FY 2025, total federal credit assistance is projected to amount to $1.9 trillion in new direct loans and loan guarantees from 129 different federal programs. Much of this comes through mortgage guarantee programs, student loans, as well as commercial loans and consumer loans. 

Using the federal government’s standard accounting method under the Federal Credit Reform Act the subsidy cost estimate amounts to $2.4 billion. However, the conservative advocacy group contends the FCRA accounting method greatly understates the actual costs of federal credit programs by assuming that federal credit activities are as low-risk as government bonds. It said the Treasury rates are low-risk because they’re backed by the government, but federal credit programs depend on people and businesses actually paying back their loans. 

Sarah Silbiger/Bloomberg

A more realistic fair-value method that accounts for market risk would incorporate a premium that reflects the additional compensation an investor would require to bear the risk, the report argues. The fair-value method would estimate the true cost of these programs at $65.2 billion, or $62.7 billion more than the FCRA estimate. 

“By adopting fair-value accounting standards, lawmakers can better evaluate the fiscal risks associated with these programs,” NTUF researchers Demian Brady and Nicholas Huff wrote in the report. “This may help ensure taxpayers are not forced to bear as much of a burden from risky ventures funded by federal loans.”

The Public Company Accounting Oversight Board today settled a disciplinary order sanctioning  a Chinese firm for repeatedly violating PCAOB rules and failing to cooperate with the board’s investigation. 

The PCAOB found that JTC Fair Song CPA Firm, located in Shenzhen, China, repeatedly failed to make required filings. First, the firm repeatedly failed to timely report the participants in its issuer audits on PCAOB Form AP, violating PCAOB Rule 3211, Auditor Reporting of Certain Audit Participants. Second, the firm failed to timely file its annual reports on PCAOB Form 2 in 2021, 2022 and 2023, violating Rule 2201, Time for Filing of Annual Report. 

The firm also failed to cooperate with the PCAOB’s Division of Enforcement and Investigations by refusing to produce documents and information.

“All registered firms must comply with PCAOB reporting requirements, which are designed to provide the PCAOB, investors and other stakeholders with important information,” PCAOB chair Erica Williams said in a statement. “When firms don’t comply, the PCAOB will use the tools at our disposal to hold them accountable to fulfill our investor-protector mission.”

Without admitting or denying the findings, JTC Fair Song CPA Firm settled with the PCAOB and consented to a disciplinary order censuring the firm and revoking the firm’s registration. The board accepted the firm’s settlement offer, which does not require it to pay a civil money penalty. The PCAOB would have imposed a $50,000 penalty if it had not taken the firm’s financial resources into consideration.

“Today’s order should serve as a stark reminder that firms must cooperate with the Board’s investigatory process,” Robert Rice, director of the PCAOB’s Division of Enforcement and Investigations, said in a statement. “Cooperation with the Board’s processes is a bedrock principle under our rules and standards and is not optional.”

As the conversation around diversity, equity and inclusion continues to evolve, many accounting firms find themselves in a complex dance where the music occasionally skips a beat due to recent legislative actions in states like Florida, Texas and Utah. While these states have opted to cut back on DEI education, the corporate world has been slow to raise its voice, leaving DEI leaders to juggle the impacts of landmark rulings, like the U.S. Supreme Court’s take on affirmative action.

In today’s often-mercurial environment, DEI professionals can face apathy or active resistance, a reality highlighted by a Harvard Business Review article that discusses the burnout rates and high turnover affecting DEI professionals. The emotional toll of maintaining a positive stance in the face of challenges can be profound. Research often suggests that working in DEI roles is not for the faint of heart. These advocates are expected to maintain positive emotions and atmosphere, even when they encounter negativity. This challenge can be especially intense for women and people of color, who already deal with extra layers of expectations and pressures due to societal biases.

The costs of DEI burnout

Most leaders in the DEI space only last about three years. This short tenure highlights just how taxing the emotional and physical demands can be in this line of work. According to the Journal of Organizational Behavior, emotional labor, or the need to fabricate positive feelings and suppress negative ones, can lead to burnout and reduced job satisfaction, especially in roles where employees must continually advocate for underrepresented groups. This is exacerbated by corporate display rules, which dictate how emotions should be shown, placing an additional burden on DEI leaders to manage their feelings while promoting inclusivity. This “surface acting” — masking your true emotions — often leads to emotional exhaustion and eventually, burnout. 

The odds are often stacked against our DEI leaders, making retention a significant challenge and hurdle for sustainable policies. To help these teams overcome internal obstacles like stereotypes, resistance and other societal pressures, firms should invest in frameworks that align with their DEI goals and provide support to their leaders. 

Essential support strategies for DEI leaders

Here are three key pillars that accounting firm leaders can use to effectively support and retain DEI professionals:

1. Strong advocacy and resource allocation: To support DEI efforts meaningfully, firms should cultivate strong internal advocates who understand the long-term nature of this work. They must also invest in resources — financial and otherwise — that allow DEI leaders to implement effective programs. Engaging firm leadership as champions of these initiatives can amplify DEI efforts across all levels of the organization.
2. The learning and effectiveness paradigm: Research from Harvard Business School suggests that organizations with a “learning-and-effectiveness” DEI approach see better results than those that merely check boxes. This model values employees for their unique identities and encourages the integration of DEI values into all processes, from hiring to decision-making. For accounting firms, this approach can help shift the focus from compliance to true inclusivity, which is essential for long-term growth and employee satisfaction.
3. Supportive flexibility: Providing flexibility, such as offering paid time off for DEI-related responsibilities or recognition for their contributions in performance reviews, can go a long way in helping these leaders focus on creating and implementing broader goals.

Practical strategies for alleviating DEI stress

DEI professionals are often an “army of one,” responsible for maintaining firmwide inclusivity goals. To manage the emotional weight of this work, consider these quick strategies to improve morale and reduce burnout.

1. Celebrate milestones and wins: Recognizing even small achievements can boost morale. Studies show that marking milestones can have a significant impact on motivation and job satisfaction. Regularly reviewing DEI metrics to track and celebrate progress helps to maintain momentum and commitment, creating a cycle of positive reinforcement for DEI efforts.
2. Encourage participation in DEI events: A strong network is essential for any professional, and this is especially true for DEI leaders. Events and industry connections provide fresh perspectives and insights that can inform DEI strategies. They also offer valuable opportunities to connect with others who understand the unique challenges of DEI work, helping professionals feel less isolated in their roles.
3. Encourage emotional health: DEI work is emotionally taxing, and professionals need to establish boundaries for their mental well-being. Accounting firms can actively support DEI leaders by fostering a workplace culture that respects boundaries, promotes self-care and provides opportunities for delegation. A well-resourced DEI team can better handle the pressures of the role, ensuring a sustainable impact on firm culture.

Moving forward: A balanced approach to DEI

The journey toward inclusivity may be challenging, but the benefits are clear: a robust DEI strategy isn’t just good for employee morale — it’s essential for attracting and retaining talent. In fact, the vast majority of job seekers consider diversity an important factor when evaluating companies and job offers. A recent Glassdoor survey asked more than 4,000 employees or job seekers how important corporate investment in diversity, equity and inclusion is to them when considering a new job. Not surprisingly, 77% of Gen Z men and 76% of Gen Z women said it was somewhat or very important. But older workers felt similarly. In fact, both millennial men and women felt even more strongly about it, at 79%. Even Gen X (69% of men and 76% of women) and Boomers (56% of men and 70% of women) felt it was either somewhat or very important. So while news reports may posit that people care less about DEI in the workplace, the vast majority consider it important. 

Creating a work environment that genuinely promotes diversity, equity and inclusion not only improves employee engagement but also contributes to innovation, job satisfaction and, ultimately, a stronger bottom line. Accounting firms that invest in DEI — especially in supportive structures for DEI professionals — are more likely to create a workplace where employees feel safe, respected and empowered, which is critical when competing for talent in today’s shrinking pool.

By acknowledging the challenges DEI leaders face and providing them with the resources, autonomy and support they need, accounting firms can cultivate an inclusive culture that attracts and retains diverse talent. As external pressures continue to shape the DEI landscape, firms that proactively support DEI efforts — and the employees leading the charge — will be better equipped to navigate these challenges, building a resilient, adaptable workplace where employees thrive.