Macy’s Employee Hid $150 Million in Expenses: Full Details
Macy’s recently shared some enlightening details surrounding an incident where an employee intentionally masked over $150 million in expenses. In response, Macy’s has taken significant steps to prevent such occurrences in the future and strengthen their controls.
In the course of an investigation, Macy’s identified a single unidentified accounting employee who was in charge of monitoring small package delivery expenses. This individual intentionally manipulated accounting accrual figures to conceal roughly $151 million in delivery expenses over nearly three years. This revelation came to light last month, causing Macy’s to postpone its quarterly earnings report temporarily while delving into a forensic accounting investigation.
Macy’s CEO, Tony Spring, reassured stakeholders that they have completed their investigation and are bolstering current controls while implementing additional measures to avoid a repeat of this incident. Spring emphasized a strong commitment to corporate governance and ethical conduct throughout the organization.
Fortunately, the investigation determined that the misrepresented accounting data, spanning from the fourth quarter of 2021 to the third quarter of 2024, did not significantly impact Macy’s previously reported financial statements. These deceptive expenses only made up a small fraction of the $4.36 billion allotted for delivery expenditures recognized by Macy’s during this period.
