September 23, 2004
Need for Sarbanes-Oxley in other Organizations too?
The San Diego Employees Retirement Systems (SDCERS) really needs a dose of SOX. What a disgrace that publicly held companies are vilified but yet those organizations managing pension funds just run "open loop" without controls. Let's face it, this is not the first instance of this. If SOX is good enough for the greatest financial markets in the world, maybe it is good enough for any organization who has a idiciuary responsiblity.
See this excerpt from an article about the SDCERS woes:
Fitch Places $307MM San Diego, CA Debt on Rating Watch Negative
Sept. 23, 2004--Fitch places San Diego, CA's 'AA' rating on $52.2 million in general obligation bonds and 'AA-' rating on $254.6 million in bonds backed by city lease rental payments on Rating Watch Negative. The action reflects concern over deficiencies in decision-making and management of the city's pension system and related disclosure, as detailed in a report released last week. The issuers and issues affected are detailed below.
Fitch's viewpoint stems from a report done by the law firm Vinson & Elkins L.L.P and released last week. Earlier this year, the city hired the firm to review the by then well publicized problems in the San Diego Employees Retirement Systems (SDCERS) and related securities disclosure. Fitch believes that the city's credit quality could deteriorate further if the practices that enabled the granting of costly pension benefits without adequate and timely funding continue. Fitch is troubled by many findings in the report, particularly the number and levels of individuals and entities agreeing or acquiescing to poor financial planning and inadequate disclosure, as it is characterized in the report. Fitch's concern and Rating Watch action is in keeping with its emphasis on effective management as a key credit quality component."
For the complete article see: http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040923005444&newsLang=en
To see complete information on Issues Central Sarbanes-Oxley Compliance Playbook(tm) see www.issuescentral.com
See this excerpt from an article about the SDCERS woes:
Fitch Places $307MM San Diego, CA Debt on Rating Watch Negative
Sept. 23, 2004--Fitch places San Diego, CA's 'AA' rating on $52.2 million in general obligation bonds and 'AA-' rating on $254.6 million in bonds backed by city lease rental payments on Rating Watch Negative. The action reflects concern over deficiencies in decision-making and management of the city's pension system and related disclosure, as detailed in a report released last week. The issuers and issues affected are detailed below.
Fitch's viewpoint stems from a report done by the law firm Vinson & Elkins L.L.P and released last week. Earlier this year, the city hired the firm to review the by then well publicized problems in the San Diego Employees Retirement Systems (SDCERS) and related securities disclosure. Fitch believes that the city's credit quality could deteriorate further if the practices that enabled the granting of costly pension benefits without adequate and timely funding continue. Fitch is troubled by many findings in the report, particularly the number and levels of individuals and entities agreeing or acquiescing to poor financial planning and inadequate disclosure, as it is characterized in the report. Fitch's concern and Rating Watch action is in keeping with its emphasis on effective management as a key credit quality component."
For the complete article see: http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040923005444&newsLang=en
To see complete information on Issues Central Sarbanes-Oxley Compliance Playbook(tm) see www.issuescentral.com
