Audit, Compliance and Risk Blog

Persons over 40 years old form a protected class under the Age Discrimination in Employment Act (ADEA) of 1967. Although separate from Title VII of the Civil Rights Act of 1964, ADEA provides protections similar to those preventing discrimination based on sex, race and religion. It applies to each employer “engaged in commerce who has twenty or more employees for each working day in each of twenty or more calendar weeks in the current or preceding calendar year.” It is administered by the Equal Employment Opportunity Commission (EEOC), which promulgates regulations and guidelines similar to those for Title VII and the Americans with Disabilities Act.

PSD Rules Rescinded In Part

Recent court decisions rescind portions of EPA Clean Air Act rules governing Prevention of Serious Deterioration (PSD) and renewable fuels. For example, in October 2010, EPA adopted rules allowing for significant impact levels (SILs) and significant monitoring concentrations (SMCs) for sources of PM-2.5. However, in January of this year the D.C. Circuit upheld most elements of the 2012 standards, but vacated and remanded provisions establishing and applying projections of cellulosic biofuel use. American Petroleum Institute v. EPA, ___ F.3d ___ (D.C. Cir. 2013).

Organizations with a well-established ISO 14001 Environmental Management System (EMS) are discovering a new advantage as the issue of “social responsibility” becomes more widespread throughout business communities. EMS managers are finding that techniques and methodology from their EMS can be used to identify and prioritize social responsibility issues and efficiently integrate them into their organization. Furthermore, managers building an EMS system are able to develop it in concert with social responsibility initiatives.

On May 28 Walmart bundled guilty pleas in a number of pending federal cases alleging environmental compliance violations at some of the company’s 4600+ stores in the U.S.  These arose because Walmart had not implemented a corporate hazardous waste management program until January 2006, leaving locations to manage—or mismanage—such wastes.

As mentioned in my September 2012 blog article, “Possible New Lease Accounting Rule—An Update,” a new proposal for lease accounting was likely to “hit the streets” sometime in 2013. Sure enough, a new proposal was issued on May 16, 2013. This proposal was issued jointly by the U.S. accounting standard-setter, the Financial Accounting Standards Board (FASB), and the International Accounting Standards Board (IASB), which issues accounting standards that are used by many companies in countries outside the United States. The two boards are striving to conform their accounting principles and this lease project is one example of that effort.

In 1990, the Americans with Disabilities Act (ADA) was enacted to protect the employment rights and opportunities of people with disabilities, and ensure their access to public services and accommodation. In September 2008, the ADA Amendments Act of 2008 repudiated several U.S. Supreme Court decisions interpreting ADA narrowly, and provided additional clarifications intended to ensure the broad availability of ADA’s protections. The U.S. Equal Employment Opportunities Commission (EEOC) develops and applies employer standards, facilitates lawsuits by aggrieved employees, and can enforce ADA directly by filing its own lawsuits.

In an effort to widen the safety net for all workers OSHA has recently issued several policy documents affecting both temporary workers and those employed at worksites not subject to collective bargaining agreements. To this end, effective April 29, 2013, OSHA compliance  policy instructs inspectors to determine whether temporary workers are present in a workplace, and to evaluate whether those workers are exposed to workplace hazards without adequate training and/or equipment. (OSHA, 29 CFR 1903.8, 1903.11, Interpretation (2/21/13))

Ensure Your Facility Meets Final EPA New Source Performance Standards for CISWI Units

On February 7, the Environmental Protection Agency (EPA) issued a final rule (78 FR 9112) amending the new source performance standards for commercial and industrial solid waste incineration units. This action sets forth the agency’s final decision on a number of issues for which it granted reconsideration of the final rule titled “Standards of Performance for New Stationary Sources and Emissions Guidelines for Existing Sources: Commercial and Industrial Solid Waste Incineration Units” (CISWI rule) that was issued in March 2011. The final rule establishes effective dates for the standards and makes various technical corrections to clarify definitions, references, applicability, and compliance issues.

The latest regulator to establish a formal policy offering companies incentives to self-police is the Public Company Accounting Oversight Board (PCAOB), which regulates the accountants that audit the books for public companies and broker-dealers and help prepare their periodic reports.  On April 24, PCAOB issued its “Policy Statement on Extraordinary Cooperation in Connection with Board Investigations.”  This Policy Statement formalizes guidance to auditors, explaining how PCAOB’s inspection and enforcement personnel view regulated entities’ willingness to go beyond mere compliance, by taking steps such as:

The accounting standard-setter for companies in the United States, the Financial Accounting Standards Board (FASB) is celebrating its 40th anniversary this year—and for all 40 years of the FASB’s existence, I have been practicing as a certified public accountant (CPA), both in public and industry accounting. I currently author this blog and work on a consulting basis with companies to help them understand the accounting rules as well as the way in which they are developed and issued by the FASB and other standard-setters. From this perspective, I will provide a mix of historical facts and some of my own personal views on the development of U.S. accounting rules.