CliftonLarsonAllen Audit report Nevada PERS

Fraudulent CPA firm Auditing Nevada PERS since 2008

Written By: Cort Arlint, Esq., CPA, MBA

Nevada PERS’ independent audit firm CliftonLarsonAllen LLP to pay $35 Million for their role in the embezzlement. With over 28 billion dollars in trust for Nevada workers at stake and having the same auditor since 2008, how can Nevadans rely on CliftonLarsonAllen’s audit opinion.

While reviewing PERS’ financials I researched their independent auditing firm CliftonLarsonAllen LLP.  Turns out last year the audit firm settled for $35 million in a lawsuit for their role in a controller’s 20 year, $50 million dollar embezzlement scheme while they were the city’s independent audit firm since 1988.  During some years of the embezzlement the controller Rita Crundwell was taking more than half of the city’s revenue.  The city had to have pay and hiring freezes for city workers because of the lack of funds.  The firm was also performing the bookkeeping and personal tax returns of Rita Crundwell.

Independent audit firms perform procedures to verify an entity’s financial statements are correct and then issue an opinion on whether they are fairly stated.  In the 2013 PERS report CliftonLarsonAllen stated “In our opinion, the financial statements present fairly, in all material respects, the financial position of the system…  But how much value is their opinion when they are involved in a scheme to take money away from the citizens and put it in the hands of the criminal and help them cover it up by doing their bookkeeping and taxes?

Unfortunately this brings back memories of Enron where the accounting firm Arthur Andersen collapsed virtually overnight because of their involvement in the audits of Enron.  No one would hire the firm because of their association with the scandal.  When I called the PERS office they didn’t even know about their auditor’s involvement in the Dixon embezzlement.

Upon election to Nevada Controller I would immediately advocate changing PERS’ independent auditor and conduct an internal audit of the 28 billion dollars in trust to insure the integrity of the financials.

Reference Articles:

http://www.startribune.com/business/226068071.html

http://www.forbes.com/sites/francinemckenna/2013/06/05/the-madoff-of-munis/2/

http://www.accountingtoday.com/news/CliftonLarsonAllen-Pay-Settle-City-Lawsuit-68235-1.html

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