Professor Elam

Accounting & Investing Info for San Antonio A & M

recent posts

about

  • Professor Elam

    This Month at San Antonio Institute of internal AuditorsI at ten

    Thursday July 18, 2013

    I attended the IIA monthly meeting this week. The cheif internal auditor from Rackspace, the CIty of San Antonio, and one other organization took questions from the audience. 

    My question regarded the necessity of certifications upon being hired. The City Auditor, wihtout consulting any notes, reamrked that of the 19 on this staff, 15 had a certification. He noted that to be promoted one had to pass either 

    CPA

    CIA

    Certified Fraud Examiner CFE

    or Certified Infomrantion System Auditor CISA

    The other two Auditors replied that it was 'highly recommended' that one begin obtaining certifications. I also noted that all three of these fellows each  have multiple certifications. 

    So there you go, I know I sound like  a broken record on this topic but this is a great example of what I hve been saying in class.

  • Professor Elam

    Profile of a Toastmaster Meeting

    Wed July 17, 2013

    Here is the agenda for an upcoming Toastmaster Meeting at Southwest Research. As you can see things are quite organized and  run on time. Our TAMUSA Toastmaster group has attended other meetings here in town to get a feel and advice on how to do this in a first class manner. Thanks to Ruben Medrano for sending this to me. I have added a category to this blog for TAMUSA Toastmasters so you can quickly to go all the posts on that subject. 

    Slick Talkers

    Club 8772

    The mission of a Toastmaster Club is to provide a mutually supportive and positive learning environment in which every member has the opportunity to develop communication and leadership skills, which in turn foster self-confidence and personal growth.

    Time*
    Role / Agenda Item for July 19, 2013
    Member
    11:30AM
    11:33AM
    President Calls Meeting to Order
    Invocation / Pledge Welcome Guests
    Chris Bemben
    11:33AM
    11:35AM
    Invocation
    The invocation, usually an inspirational thought, is an optional part of club meetings. It is usually delivered by a designated club member at the beginning of the meeting, and is sometimes combined with or replaced by the pledge and/or the thought of the day.
    Jana Halverson
    11:35AM
    11:38AM
    Toastmaster
    The Toastmaster opens the meeting and introduces the other roles. Today's theme is TBD
    Chris Bemben
    –
    Joke Master
    Provide a prepared short humorous moment at the beginning of the meeting.
    Alana Woods, DTM
    –
    Word Master
    Provide a word for speakers to use during the meeting. Count the number of times the word is used and not who used it. When called upon during the evaluation portion of the meeting, report on use of the word.
    Cameron Monroe
    –
    Trivia
    Provide a short predentation on either some topic related to Toastmasters or to the theme of the day
    David Vickers, ACB
    –
    Vote Counter
    Collect and count votes
    Alana Woods, DTM
    11:38AM
    11:45AM
    Speaker #1
    David Vickers, ACB
    11:45AM
    11:52AM
    Speaker #2

    Manual / Speech / Time: Other Manual or Non Manual Speech
    Custom Speech (5 to 7 min)

    Speech Title: TBD
    Kwok H. Lai
    –
    Backup Speaker
    Ready to speak if needed, Plan to be a speaker at the next meeting if not needed at this one.
    Jana Halverson
    11:52AM
    12:12PM
    Table Topics
    Impromptu speaking. The Table Topics master calls upon several members to deliver 1-2 minute talks on a topic announced right before the member is chosen.
    Veronica Trejo
    12:12PM
    12:15PM
    Evaluator #1
    Evaluates speaker #1.
    Carol Clark
    12:15PM
    12:18PM
    Evaluator #2
    Evaluates speaker #2.
    Laura Vela, CC
    12:18PM
    12:23PM
    General Evaluator
    Evaluates the meeting in whole.
    David Halverson
    12:23PM
    12:24PM
    Timer
    Keeps the time of each role and reports times.
    Cameron Monroe
    12:24PM
    12:26PM
    Grammarian
    Evaluates the usage of grammar and acts as the "ah counter".
    Eva Carpenter, CC/ALB
    12:26PM
    12:27PM
    Ah Counter
    Note whenever speakers use "ah", "um", "er" or other filler words. Use the clicker or the bell to let the speakers know when they have used one of these filler words. When called on during the evaluation portion, report on the use of the filler words during the meeting.
    Eva Carpenter, CC/ALB
    12:27PM
    12:30PM
    Toastmaster Closes Meeting
    The Toastmaster returns once more to close the meeting and give some final words about the meeting.
    Chris Bemben

     

  • Professor Elam

    Petroleum Accountants’ Scholarship, APA certification

    Tuesday July 16, 2013

    Today I attended a meeting of the Petroleum Accountants Society of San Antonio PSSA.

    You will recall I announced that this group is offering 5 – $1,000 scholarships for accounting students interested in this field. The group has grown from less than 30 to over 70 in the last few years. 

    You will recall that I mentioned there would probably not be near as many applicants for the scholarship in that they announced it over the summer with an August 15 deadline. Sure enough, even though the announcement was sent ot half a dozen different universities, only ONE PERSON HAS APPLIED!  Here at TAMUSA I know of only one person that has asked for an application.

    AS I SAID IN CLASS, IF YOU DO NOT APPLY YOU CANNOT POSSIBLY BE SELECTED !

    Please e mail me for an application. I will leave some printed applications as well at the College of Business desk with Cynthia and Renee this Thursday. 

    All student who have been in my classes are aware of my emphasizing the importance of obtaining a certification. Sure enough there is a Accredited Petroleum Accountant Certification Program. APA.

    However I see the hurdle to  qualify is  incredibly high. One has to have

    an accounting degree -reasonable

    five years experience in petroleum industry accounting – this seems onerous as the person is likely doing pretty much the same thing for five years, ie one really has one year experience repeated five times

    and one must be a CPA – well in that case why bother, this should be the other way around, allowing someone who is NOT a cpa but who knows this field to qualify, 

    So not an alternative for our students but 

    I would think many of you should be applying for the scholarship. 

    One more thing,  of three people I visited with today at their meeting, none had a business card. 

    Do not let this happen to you, have cards printed and put them everywhere, in our back pack, book bag, car, desk at home, purse, pockets of frequently worn jackets, etc. 

     

     

  • Professor Elam

    Too Many Lawyers, Perusing the WSJ

    Tuesday July 16 2013

    Let's take a look at today's WSJ for a sample of what it tells us about what is going on.

    Yesterday the op ed columns warned of a  coming disaster in disability payments, too many on disability. And another column suggested individuals would be able to sue the government over required health insurance as the government arbitrarily changed the date for business coverage. 

    Today Brett Stephens former Editor of the Jerusalem Post, refers to Secy of State John Kerry as a fool on a fool's errand dealing with Palestine, no fudging on his opinion!

    The  retreat from Law Schools continues. 

    Regional Hamline Regional Law School in St. Paul has seen its enrollment drop 55% since 2010, now only 100 in the entering class. Seton Hall in Newark cut its enrollment 43%. These are huge adjustments. What's the deal?

    In my lifetime the practice of law and the idea that law school was some sort of gilded quest for greatness took hold in the 1970s. Numerous movies and television series held the study of law out to be both difficult and supremely reward, something never suggested about accounting. Lawyers were portrayed as larger than life heroes, always fighting for the underdog. 1973's The Paper Chase won John Houseman an Oscar for his portrayal of the tough Harvard Law Professor, it became a tv series for several years. 

    And so tens of thousands of liberal arts majors, with no particular job prospects in sociology and such, went to law school. College discovered this to be a wonderful source of revenue. No Labs, no expensive electronic equipment, just a blackboard and a lawyer in front of students. Schools raised money from law firms, built fancy buildings, and then, there were lots more lawyers than demand. Today computers can scan documents for potential erros while many law grads work by the hour. Now law school grads are suing law schools over false promises of job prospects. 

    There is a great demand for accountants as that field continues to expand. In addition the difficulty of the CPA exam versus the Bar exam acts as a gatekeeper for the profession. 

    I previously reported that here in Texas the pass rate on the last Bar Exam went from a high of 95% for Baylor graduates to a low of 66% for Texas Southern Graduates. Now contrast that with the fact that the highest pass rate on part of the CPA exam is 66%, and usually only UT Austin and College Station A & M hit that level. Most regional school grads score under 50%. And the failure to properly prepare with resulting horrible results has turns many away from further pursuing CPA status. 

    On Page A 3 more and more students are seeking Certificates at Community Colleges rather than degrees. That is a shorter route to employment. Quick now, if you were an employer would you hire

    someone certified in MSFT Office

    Or someone with an anthropology degree, just wondering…

    On page A6 Boards are snapping up female CFOs, one notes that SARBOX really increased the demand for diversity on Boards. 

    Finally on page D3 the Torres brothers, aged 60, are quite successful pickle ball players. This game is played with a large whiffle ball on a shortened tennis court, well it sounds better than tennis to me!

     

  • Professor Elam

    Dr. Deming Would Be Proud of These Companies

    Wednesday July 10, 2013

    Yesterday I received an e mail from Discount Tire that my Yokahama 235 x 40 x 18x on my Cobalt SS were due for a free rotation. Sure enough, their computer correctly guessed I had logged another six thousand miles since my last rotation. So I scheduled an appointment for this morning at 8:45, they suggested I
    Screen Shot 2013-07-10 at 10.36.20 AM arrive ten minutes early. I took them up on that idea and arrived about 8:25. There was a comfortable chair, fresh real coffee, and the latest issue of Road and Track (what a concept a car magazine at a tire store) to read. I brought along the last three issues of the Wall Street Journal to prepare for writing my newspaper column as well later this morning . They immediately got to work both rotating and re balancing all four tires. bingo, at 8 48 I pulled out of the lot, job done. the attendant set the tires at 35 psi since as he noted I had arrived with them warm and they looked like needing a bit more air given the wear. I purchased the tires their as Yokahoma apparently had a deal with Discount offering an incredible 45,000 miles on such a performance tire. 

    On the way back the wife had requested one of her favorite guilty pleasures, a breakfast on a bun meal
    Screen Shot 2013-07-10 at 10.31.17 AMdeal from Whataburger. I am puzzled as to why Whataburger has not, like McDonalds risen to the Starbucks challenge. MCD now offers up scale coffees at MCD rather than Starbuck prices. It has note dented Starbuck's sales but has no doubt helped MCD. At any rate, the gal was pronto ready at the register, promptly delivered the orange juice, and then the bagged meal. Note that Whataburger hides the condiments behind the counter. One is offered a choice of them when the meal is delivered. This is classic good cost control via managerial accounting. No wasting of salt, pepper, or catsup by the customer. I also read the CEO has little interest in simply exapnding the number of stores just for growth alone, smart guy. 

    I hope that your exposure to ACCT 3314 this summer has made you more aware of such customer innovations. If you end up with your own business, plan on impelmenting some managerial cost ideas for success. 

  • Professor Elam

    Steinway sells to Kohlberg for $4358 million

    Tuesday July 2 2013

    Storied Steinway Musical Instruments is going private in a $35 a share bid by private equity Steinway. 

    Screen Shot 2013-07-02 at 8.05.52 AM

    Here i s graph of LVB dating aback to pre crash levels of 2008. Note this is the highest price it has 

    traded at since then. Typically a buy out requires higher than existing price by the buyer. Key Statistics for LVB are here.

    Questions for class discussion

    1. Why is Kohlberg buying now?  For perspective in forming your answer, here is a 14 year chart of LVB.

    Screen Shot 2013-07-02 at 8.19.05 AM

    2. What do you see among the statistics that would attract your buying interest?

    3. Are there other qualitative reasons to buy LVB?  What is the difference between a quantitative and a qualitative reason? Should that influence the buyer?

    We are studying Equity in ACCT 3310 and Analysis in ACCT 3314, that makes this a great instructional moment and another reason you should be reading financial blogs and the Wall Street Journal. 

  • Professor Elam

    The Arts Elective at TAMUSA

    Weekend June 30 2013

    Okay okay, you guessed it, there is no fine arts elective at TAMUSA, and that's a shame. My interest in photography has prompted a reading of Art History. What one learns is thar art is a reflection of a society's mechanical and scientific progress, as well as its views of the world. To wit, Egyptian art was two dimensional, about what you get when handing a crayon to an eight year old. Romans and Greeks exhibited a considerably more advanced civilization with t three dimensional look to its sculpture. 

    At any rate, it is regrettable that we do not have a way to expose students to the art available in San Antonio. 

    The McNay is surely the artistic gem of the City. Built around Marion Koogler's 10,000 sf Alamo Heights Home, it is the scene of many weddings for its photogenic grounds and architecture. A current exhibit
    Screen Shot 2013-06-30 at 12.30.27 PM regards the photography behind Norman Rockwell's paintings. Rockwell original used live models but they were unable to hold poses for lengthy periods. Realizing he painted real people not models, he shifted gears. He recruited friends and neighbors for photo sessions. He worked with several well known photographers. After an hour of posing he usually had the shots he needed. The exhibit shows many of the photos of those ordinary folks, juxtaposed with the final painting. 

    At right is the famous painting, The Runaway. A policeman and the soda jerk are listening intently to the small boy's story. We can assume the policeman will get the boy back home, and that the soda jerk provided a needed milk shake. 

    As you can see the final result was much like the photograph on its left. 

     

     

     

    Screen Shot 2013-06-30 at 12.42.39 PMThe Witte Museum, further south on Broadway from the McNay which is actually on the Old Austin Highway east of Broadway, is more of a history than art museum. But this week I will be checking out Texas Impressionism:  Branding with Brushstroke and Color 1885 – 1935. It seems Texas artists like Louis Griffith were following the same impressionist path as Monet and Renior in France at this time. Griffith's painting at left  is Tranquil Afternoon done in 1929. 

    We will be providing updates on the San Antonio culture scene, which is much more advanced than most realize. We suggest you check out both the Rockwell and Impressionist exhibits. 

  • Professor Elam

    Scott London-I Never Asked for Money

    Weekend July 1 2013

    The WSJ has an interview with Scott London on page B1 this weekend. What a fool!

    He traded inside information to Bryan Shaw, a jewelry dealer friend in trouble. Shaw made $1.27 M in illegal trading and has pleaded guilty. Shrewd Scott London received $60,000 in cash, a $12,000 Rolex watch ,and other gifts. Mind you a KPMG partner in London's position makes $400-$500,000 a year base salary.

    London cold get 20 years but is expected to get less under sentencing guidelines. 

  • Professor Elam

    Seniors and Obamacare

    Weekend July 1 2013

    Since 2000 I have had cataract urgery in both eyes. A pioneering breakthrough a  few decades back, now this is commonplace. I have also had retinal detachment surgery , yes in each eye. Happily this has been much improved it worked well for me. If it does not work well, one goes blind. 

    As a result this opthamologist's views on Obamacare  were of great interest to me. Our students have parents and grand parents who are likely to be affected. I suggest you watch this interview.  

    All of which is to say, if the government denies your parents eye care, are you ready to help them pay for it?

  • Professor Elam

    Skilling Sentence Reduction

    thursday June 27 2013

    Jeff Skilling finally got his sentence reduced to 14 years, he has served six so far. At least that means he does not spend life in jail. This article compares his sentence with others in the Enron  affair, he was apparently punished for asking for a trial.  Read the article to see what I mean.

    Incredibly Richard Fuld paid himself $300 Million for his last year at Lehman. It then blew up with sub prime moretgages. Fuld was not even charged with anything and walks free today. Was Skilling's crime any worse?

    this will be a good topic for the ethics class next spring.