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Testifying before the House Financial Services Committee on behalf of the profession, AICPA President and CEO Barry C. Melancon backs reforms—including creating a new private-sector regulatory board—to restore investors’ confidence in the nation’s financial reporting system. And Chairman James G. Castellano, with other leaders of the profession, urges the Senate Banking Committee to support measures that would enhance audit quality and make corporations accountable for issuing accurate financial reports and being truthful with auditors. Meanwhile, FASB Chairman Edmund L. Jenkins addresses the prospect of greater government oversight of the standard-setting process in a position paper, The FASB’s Role in Serving the Public: A Response to the Enron Collapse (www.fasb.org), reiterating the importance to investors and the U.S. capital markets of preserving the board’s role as an independent, private-sector standard setter not subject to the political pressures a government body—such as the SEC—faces.

The Treasury Department’s Office of Thrift Supervision (OTS) advises savings associations to consult it before they consider transferring to an external entity their high-risk assets—such as nonperforming loans—when the bank retains significant credit risk related to those assets and simultaneously provides considerable funding to the receiving entity (www.ots.treas.gov/docs/25156.pdf). In order to remove troublesome assets from their balance sheets, the watchdog agency says, some banks have executed such transactions and inappropriately accounted for them as sales.

The Federal Accounting Standards Advisory Board requests comments on the following exposure drafts (www.fasab.gov/exposure.htm): Elimination of the Category National Defense Property, Plant and Equipment (responses due by May 20), Target Audience and Qualitative Characteristics for the Consolidated Financial Report of the United States Government (responses due by June 30) and Selected Standards for the Consolidated Financial Report of the United States Government (responses due by June 30).

Most consumers worry that corporations mishandle their personal information, says a Harris Interactive survey the AICPA and Ernst & Young LLP jointly commissioned to help practitioners better understand privacy risks their clients and employers face. Eighty-four percent of respondents supported requiring companies to obtain independent verification they follow their stated privacy policies. According to the study, Privacy On and Off the Internet: What Consumers Want (www.aicpa.org/assurance/webtrust/what.htm), consumers’ top three concerns are corporations’ unapproved sharing of their personal information with other companies, insufficient security for business transactions and the potential theft of confidential data.

The GAO releases the results of a study (www.gao.gov/cgi-bin/getrpt?GAO-02-302) it recently conducted to determine whether the SEC’s logistic capabilities are keeping pace with the rapid increase in filings, applications and examinations that make up its workload. While the GAO praised the commission’s record of achievement, it nevertheless found that ongoing SEC staff shortages delayed oversight processes—hampering corporate competitiveness and impairing market efficiency. To cope with these challenges, the GAO says, the commission should determine its regulatory priorities and focus all available resources on solving its staff recruiting and retention problems. In general, the SEC concurred with these findings and recommendations.

James M. Williams, a senior partner at Ernst & Young LLP, will begin a five-year term as a member of GASB, effective July 1. He succeeds Edward M. Klasny, who departs the board after 10 years of service. Williams was a member of the AICPA government accounting and auditing committee and government technical standards subcommittee. (www.gasb.org/news/nr012102.html)

Ian Ball becomes CEO of the International Federation of Accountants (IFAC), reflecting the group’s increased focus on international accounting standards for governments. Previously, he had served as controller of New Zealand’s treasury and had chaired IFAC’s public-sector committee, launching a project to develop a set of authoritative financial reporting standards for governments worldwide. (www.ifac.org/News/LastestReleases.tmpl?NID=101414648579497)

The 16th World Congress of Accountants will take place in Hong Kong’s Convention and Exhibition Centre November 18–21, 2002 (www.wcoa2002.com). The Hong Kong Society of Accountants and the International Federation of Accountants are organizing the gathering, which they expect will attract accounting and business leaders from around the world.

The AICPA issues a resource guide, Regaining Financial Balance (http://ftp.aicpa.org/public/download/members/div/news/Sept_11_Info_Kit.pdf), with practical financial advice for victims of the September 11 terrorist attacks. Among the topics it addresses are restoring household financial stability; obtaining death, disability and other benefits; dealing with tax and estate settlement issues; and selecting qualified financial advisers.

The Social Security Administration (SSA) raises to $11,280 from $10,680 the amount employed beneficiaries under 65 years of age can make without a $1 reduction in retirement benefits for every $2 they earn (www.ssa.gov/retire2/whileworking.htm). For beneficiaries turning 65 in 2002, the SSA will withhold $1 of benefits for every $3 they earn above $30,000 until the month of their birthday. Those 65 and older can earn an unlimited amount without a reduction in benefits.

The Clearinghouse for Volunteer Accounting Services, a California nonprofit agency, helps small, low-budget nonprofit organizations locate accountants willing to provide pro bono services and is expanding its operations to serve other parts of the country. Interested CPAs can register at the agency’s Web site (www.cvas-usa.org).