my name is jamie cabin and i'm the senior manager with kpmg here to report the 2014 audit plan for kpmgyou have a brief agenda to go through all the topics that we will address today. first we have the audit engagement teams. overall, we have good continuity this year with returning members and several returning team members all the way down to the associate level. we first have the not gaugement audit partner nancy rose who is the responsible partner over all the entities that we have been assigned to and engaged for. thank you. we set a [speaker not understood] and myself are the senior managers responsible for these audits as you see allocated below. we also have brock romano and kenneth dee on as our current review partners. ~ the objective of the audit is to express an opinion as to whether the financial statements prepared by management are fairly presented in conformity with the generally accepted accounting principle standards and the government auditing standards. we perform the audit to provide reasonable but not absolute assurance that the financials of material statement whe

we got a great partner with kpmg. it's a home run. i say west chester and pga, they will say kpmg. that's a lot of letters but it certainly gets kpmg out there. >> we're really excited about this. they have been permitted to advancing and empowering women. this is just a great platform to do something that actually we view as pretty unique. we have an opportunity with the pga of america, lpga, great broadcast partner in nbc and coming together to create a three-pronged initiative here. one is to stage a great women's golf championship. and really through the purse, through the venue, empower women and golf in a different way. but use the tournament itself as a platform to really empower women more broadly. we will hold a women's summit on site at the tournament where we will bring together business, political, sports leading women to really create a venue and an opportunity to network and really pay it forward to that next generation of future women leaders. and then all charitable proceeds from the tournament we will work together wi

subsequently, they were investigating tax fraudsters at andher counting firm, kpmg, try to pressure kpmg to stop paying the attorneys fees for the employees under investigation. they tried to make the company waive its corporate privilege so attorney would waive lien privilege, which is something that corporations had ahind often, and a judge in scathing ruling said that the prosecutors had violated the constitution, violated the constitutional rights of these defendants, and that also led to this rolling back of these prosecutorial powers and techniques, which has led them to really be rendered unable to to investigate people at the higher echelon of corporate america. host: this is peter on our republican line. caller: mr. eisinger, no comment, this was a failure of government basically. i would like to give context to the situation. in the late 1970's during the carter administration, they develop the community reinvestment act, which made fannie and freddie about three percent of their purchases of the prime mortgages. in 1995, there was a lot of pressure on the clinton administratio

scope of work of those departments, financial audits, agreed upon procedures, and examinations that kpmg is responsible for reporting and testing to, and of course here is the applicable financial reporting framework. as i mentioned earlier, that we will follow. in regard to results from prior year in all of these, they are consistent reports with prior year and as carmen indicated, we had a modified opinions and it no significant material deficiencies to report. we also like to disclose in our audit plan presentation public offerings and any instances of which the city may have an offering of exempt securities. in these situations, much as i indicated before, we would be required to perform procedures as were required by the applicable standards and this would also consist of subsequent event procedures in order to be engaged and perform those services. we will not perform procedures to corroborate other information and this would be consistent with the reporting on projections. in regards to our audit timeline and key dates, planning and infill work for the 2014 audit has started here

. >> sidney, as a former kpmg auditor, you probably know more about auditing than i will ever learn. do not know why your company has a material weakness in your control. >> we have recruited a very large number of professional finance and accounting teams. we have more than 30 staff with accounting backgrounds. in fact, if you look at the nasdaq or the chinese companies that initially go public -- everyone has this material weakness. certainly, as a company in a foreign country, we will continue to improve our competency in the u.s. cap. >> i guess it makes it even more concerning that they cannot even check the audits of your auditor. when do you expect the material weakness to be corrected and how can you keep that from happening in the future? >> we have confidence that this material weakness will be lifted in the near future. >> last question about your founder. analysts have expressed concerns that he maintain something like 84% of voting power. how do you assuage those concerns going forward? >> it is very important for an entrepreneurial company to have control over its opera

subsequently, they were investigating tax fraudsters at andher counting firm, kpmg, try to pressure kpmg stop paying the attorneys fees for the employees under investigation. they tried to make the company waive its

we're going to evolve the lpga tournament called the kpmg women's tournament.tate the venue year after year. so in women's golf, there's only five majors, five times where really the whole world pays attention. this one is not only great attention in terms of women's golf, but this is going to create attention and opportunity for women outside as well. >> it's a win, win and double win. >> absolutely. our organization is all about growing the game. for us this is a major statement on our belief in women's golf and really to add more women in the game and more diversity into the game. >> john, if you look at this partnership, where do you want it to go? let's think five years down the line. >> kpmg is committed to advancing and empowering women. i know that's a big agenda item for you as well. we see this as a platform to build a year-round initiative to create and build and develop that nest direction of women leaders. we have a summit built into the tournament on site, at the tournament. we'll attract the leading business, political, sports women and use that

subsequently, they were investigating tax fraudsters at andher counting firm, kpmg, try to pressure kpmgtop paying the attorneys fees for the employees under investigation. they tried to make the company waive its corporate privilege so attorney would waive lien privilege, which is something that corporations had ahind often, and a judge in scathing ruling said that the prosecutors had violated the constitution, violated the constitutional rights of these defendants, and that also led to this rolling back of these prosecutorial powers and techniques, which has led them to really be rendered unable to to investigate people at the higher echelon of corporate america. host: this is peter on our republican line. caller: mr. eisinger, no comment, this was a failure of government basically. i would like to give context to the situation. in the late 1970's during the carter administration, they develop the community reinvestment act, which made fannie and freddie about three percent of their purchases of the prime mortgages. in 1995, there was a lot of pressure on the clinton administration to

according to kpmg. >> they just named us the second most cost-effective place to do business in the united it's a great place to open your business. whether you're a fortune 500 or start-up company. joe, as we mentioned with with this downtown renaissance, we put a lot of time and effort into our start-up company. the entrepreneurs are help to go fulfill the creativity. >> you have had some of the ribs, haven't you? >> i have. >> the montgomery inn. like if you ever drink a little at night, skyline. >> skyline too. >> fly direct in and out of the city. >> yes. >> not always easy. >> what do you mean? >> you can't always get a direct flight. >> it's into kentucky. you can whenever you need one. >> actually, cincinnati is within a 90-minute flight of 50% of the country's population. so we have a lot of direct flights here to new york. i'll help you get there any time you need to. >> we are working on getting more flights at the airport. >> i thought delta's express flights. >> delta still has a minor hub at delta. we're bringing in more flights. but the bigger issue is because -- one of the

kpmg the cio sitting on this panel and so many of the dedicated postal veterans have ably worked withfor many years deserve much credit for this success story that is the partnership between the postal service and the pc postage industry. we believe public-private partnerships are the best path forward is technology innovation becomes increasingly important for the future. having the postal service create its own technology is not the best approach. instead it should provide incentives for industry innovation. this allows customers to pick the best technology solutions for their needs. pc postage provides jobs both in industry and the postal service. every package produced is ultimately delivered by a city or rural letter carrier. growth in pc postage means more packages to deliver more letters to deliver more volumes to serve. thank you for the invitation to testify today. >> thank you mr. weisberg and mr. eidemiller? in my pronouncing that correctly? >> that's correct. he gets mangled quite often. my radio days come back to save me. >> good morning mr. chairman and members of this c