The notes contained in this post formed the basis for a full article on the day’s events.
I am leaving the old post active for reference, but striking through its content
This is a breaking story. New information will be added as soon as possible. 5:25 PM AST In nearly 3 hours of testimony this afternoon the KPMG senior partnered Ernesto Aponte who responsible for the Puerto Rico on it indicated among other things: The Commonwealth has not provided the necessary “going concern “memorandum required for the audit to proceed. Such a document is required before an auditor can form an opinion, and release an audit. KPMG maintains a spreadsheet called the PBC list for its clients, meaning provided by client. Is a list of documents the client must provide in order for the audit to proceed. There are multiple documents – important documents – still outstanding. Furthermore, some of the provided documents are in draft form. The senior partner wrote a memorandum to file in late 2015 regarding the governor and other ELA officials public comments. There was a long discussion about the importance of trust–or breech of trust–between a client and the auditor, since the auditor must have some trust the statements being made by management. Kpmg witness: “We are evaluating what effect such expressions may have on the 2014 audit” The judge asked the witness directly if he had any knowledge of testimony given before Congress or anywhere else under oath that was incorrect. The witness cited what he seem to regard as the evasion of question by the governor, but did not offer more details When KPMG went to meet with officials from the treasury on November 30, 2015 he was kept waiting for two hours. Although KPMG had recommended that a number of other government officals be present — such as Melba Acosta–nine were The senior partner said that he cannot give an exact date as to when the audit will be complete. Judge Fusté asked: “one month, two months, three months? Answer: “we have provided management a timetable that indicates that from the date we receive the final draft of the financial statements it will take us eight or nine weeks to finish the audit.”
KPMG has not determined whether it will provide audit services to Puerto Rico for 2015. No contract has been signed. KPMG indicated that if it agreed to provide audit services and Puerto Rico signed the contract that it would be for significantly more money given the higher risks