Tens of millions of dollars in accruals and magical reversals of accruals across quarters to manage earnings. If things look too good to be true, they are...
This started when the finance team has been replaced throughout the BG and in corporate accounting.
Auditing at 3M is and always has been superficial and does not dig deep. The auditors are inexperienced, in many cases, incompetent. The new thing is to “negotiate “ audit ratings. A quid pro quo playbook. Im doing u a favor so dont forget that in the future. Our audit head is a egomaniacal disaster and failure who has promoted his incompetent reports to positions of unquestioning obedience. The board gives the optics of concern when they really are mesmerized by our cfo. The audit guy is shamelessly self promoting. He could not have imagined what he has gotten. There is no questioning. All these characters will be long gone when the SEC comes knocking.
Look at the historical results vs. analysts since MP came along, now part of the series of beats is warning ahead of weakness, but in many of those quarters when things are going well, charges start to flow in late in the quarter. "adjustments" to items only corporate has access to (think legal, tax, executive bonus pools, leases on planes) that are negative adjustments, but 3M still "beats" earnings. Now look what happens when things are weakening, "corporate pushout" of tens of millions of dollars of benefit that has been held back all year. Gains on assets. It never used to be like this. You are not allowed to question any adjustments that are happening, and there is so much $$$ more running through "sponsored" lines. There is rampant deviations from so-called global financial standards for allocations that it allows money to be pooled and managed. This is the GE way.
A few VP, EVP figures did make some stock sell offs before the August layoffs. Both had direct involvement with knowing the layoffs were coming.
P&L has always been an issue and it came to light further in system transformation projects. Teams didn’t want to spend time fixing it up front so others are correcting on the “back end” of processes. What else is being corrected, who knows. The audit trails are probably a mess.
The auditors frequently call out issues but as an auditing partner you can’t force change. You can only advise. The reports go up to CEO, CFO, Board, etc.
Unfortunately, unethical conduct is common in the business world, and thus CFOs and other senior finance professionals must face up to the threat of fraud against their organization—and possibly in the finance department.
These statements are scurrilous and without foundation.
Former 3M here, and P&L owner. Everybody knew accounting was not accurate. I wanted to know where my money was going in my P&L. The more I dug into it, the more I was told to not worry about it. So I'm not surprised to hear actual fraud going on. Disgusting company
This is a rubbish fabrication. By someone who hopefully got laid off. Good riddance to fake news spreaders.
And how would someone like you know this fact? Unless you were directly involved.
I agree. The implications would have to involve many levels and I seriously doubt anything like what was described actually occurred.
This is a serious allegation. External auditors look at all of these accruals and transactions. 3M has a lot of issues but this is highly unlikely.
If you are a whistle-blower, you are protected by law and will get a reward for this. Like someone said, call the SEC asap.
If you have evidence, I suggest getting in touch with the SEC whistleblowers hotline.
If true, you can get 30% of the fine they levy on 3M.
What is the source of these allegations? Be specific please.