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Jay M. Goldstone, the City's chief operating officer and head bean counter, on Thursday relented and said he would reopen the 2005 City audit and clearly state how much in illegal benefits the pension system had paid out in excess of Internal Revenue Service limits. Councilmember Donna Frye and City Attorney Michael Aguirre had complained that the reference in the recently-released 2005 audit was not specific enough. Some $8.2 million in benefits above IRS limits had been paid to 102 City employees.Initially, Goldstone said he would just put a letter to that effect with the 2005 report. Now he will put the specifics in the statement. In his Thursday memo to the audit committee, Goldstone, trying to save face, noted the "lack of materiality and negligible value" of the restatement to the financial markets. Says Frye, "If it's so immaterial and negligible, why would Jay Goldstone decide to reopen the 2005 [financial statement]? Frankly, it may turn out that there will be other disclosures that need to be clarified."
Jay M. Goldstone, the City's chief operating officer and head bean counter, on Thursday relented and said he would reopen the 2005 City audit and clearly state how much in illegal benefits the pension system had paid out in excess of Internal Revenue Service limits. Councilmember Donna Frye and City Attorney Michael Aguirre had complained that the reference in the recently-released 2005 audit was not specific enough. Some $8.2 million in benefits above IRS limits had been paid to 102 City employees.Initially, Goldstone said he would just put a letter to that effect with the 2005 report. Now he will put the specifics in the statement. In his Thursday memo to the audit committee, Goldstone, trying to save face, noted the "lack of materiality and negligible value" of the restatement to the financial markets. Says Frye, "If it's so immaterial and negligible, why would Jay Goldstone decide to reopen the 2005 [financial statement]? Frankly, it may turn out that there will be other disclosures that need to be clarified."