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Ten Points About : the New Global Accounting Standards

By TONY GABINETTI, CPA

1. The International Accounting Standards Board (IASB) was created in 2001 to develop an international set of accounting standards known as the International Financial Reporting Standards (IFRS).

2. In May 2008, the American Institute of CPAs Council approved the International Financial Reporting Standards (IFRS) as a recognized standard-setter for financial reporting. More than 100 other countries have adopted IFRS as the global standard.
3. In July 2009, the IASB issued IFRS designed for use by small and medium-sized entities (SMEs). IFRS for SMEs are not intended to be used by not-for-profit organizations or governmental agencies.
4. Small and medium-sized entities (SMEs) in the scope of the standard include entities that publish general-purpose financial statements for external users and do not have public accountability.

5. One projected timeline estimates that IFRS could be mandatory in the U.S. with a staggered adoption period of 2015-18.

6. Once fully adopted, International Financial Reporting Standards will replace U.S. Generally Accepted Accounting Principals (GAAP) as the basis for financial reporting.
7. U.S. GAAP, IFRS, and IFRS for SMEs are similar, with basic accounting concepts such as comparability, going concern, and materiality.
8. U.S. GAAP, IFRS, and IFRS for SMEs are different, with certain accounting and reporting treatments. A few of these differences are the treatment of LIFO inventory costing, goodwill carrying value, impairments and write-downs, research and development costs, and borrowing costs for self-constructed assets.
9. IFRS reporting is considered simpler and more ‘principles-based’ than the ‘rules-based’ GAAP financial reporting, which may better meet the needs of financial-statement users. The change in reporting may have implications on an entity’s accounting, taxes, financing, as well as processes and controls.

10. While full convergence from GAAP to IFRS reporting standards is years away, companies should speak with their accounting advisors to determine their requirements for adopting the new standards.

Tony Gabinetti, CPA is a senior audit manager at Meyers Brothers Kalicka, P.C. in Holyoke; (413) 536-8510.

Departments

The following is a compilation of recent lawsuits involving area businesses and organizations. These are strictly allegations that have yet to be proven in a court of law. Readers are advised to contact the parties listed, or the court, for more information concerning the individual claims.

FRANKLIN SUPERIOR COURT

New England Broach Company Inc. v. Clarke Industrial Sales
Allegation: Non-payment of goods sold and delivered: $55,679
Filed: 5/20/10

GREENFIELD DISTRICT COURT

Donald Graves, LLC v. Bennett Construction Company Inc.
Allegation: Non-payment of services rendered: $9,140.43
Filed: 5/11/10

HAMPDEN SUPERIOR COURT

James Concannon v. Gentle Movers
Allegation: Breach of contract for moving and storage services: $200,000
Filed: 5/24/10

Kathy Crowley v. Pride Fuels Inc.
Allegation: Employment discrimination: $25,000+
Filed: 5/14/10

Naismith, LLC v. GFI Investments III Springfield Inc., John Deliso, and Steven E. Goodman
Allegation: Breach of contract and failure to pay: $1,804,368
Filed: 5/20/10

Sovereign Bank v. Travel Escapes Inc.
Allegation: Default on promissory note: $13,628.87
Filed: 5/12/10

Western New England Renal Transplant Associates, P.C. v. GE Healthcare Strategic Sourcing Corp.
Allegation: Breach of contract for billing services: $4,000,000+
Filed: 5/17/10

HAMPSHIRE SUPERIOR COURT

Reikka Simula v. Almadan Inc.
Allegation: Employment discrimination based on age: $72,000
Filed: 6/3/10

HOLYOKE DISTRICT COURT

F.W. Webb Co. v. Welch Plumbing and Gary F. Welch
Allegation: Non-payment of goods sold and delivered: $7,967.17
Filed: 4/27/10

Graphic Enterprises Inc. v. Berkshire Westwood Graphics Group Inc.
Allegation: Non-payment on judgment: $16,334.50
Filed: 4/30/10

PALMER DISTRICT COURT

Barbara Loveling v. Joe Deans All Customs
Allegation: Breach of contract to restore Pontiac Firebird: $10,599.50
Filed: 5/25/10

SPRINGFIELD DISTRICT COURT

Comcast Spotlight Inc. v. Allied Career School
Allegation: Non-payment of advertising services rendered: $23,825.39
Filed: 5/11/10

Comcast Spotlight Inc. v. Goldcrafters Exchange
Allegation: Non-payment on advertising services rendered: $5,085.93
Filed: 5/14/10

Competitive Kitchen Designs Inc. v. Serge Construction
Allegation: Non-payment of goods sold and delivered: $5,747.98
Filed: 5/5/10

Fairway Wholesale Corp. v. Chartier’s General Carpentry
Allegation: Non-payment of goods sold and delivered: $2,654.43
Filed: 5/12/10

J.P. Noonan Transportation Inc. v. Quaboag Transfer Inc.
Allegation: Non-payment on judgment: $6,475.73
Filed: 5/12/10

WESTFIELD DISTRICT COURT

Absolute Fire Protection Inc. v. Sahil Hospitality Corp.
Allegation: Non-payment of services rendered: $8,101.45
Filed: 4/30/10

Departments

ACCGS
www.myonlinechamber.com
(413) 787-1555

June 28: WRC 7th Annual Golf Tournament, 10 a.m. to 6 p.m., hosted by Crestview Country Club, Agawam. Call the chamber for more information.

July 6: Springfield Chamber of Commerce Board of Directors Meeting, 12 noon to 1 p.m., TD Bank Conference Center, Springfield.

July 9: ACCGS Legislative Steering Committee, 8 to 9 a.m., TD Bank Conference Center, Springfield.

July 15: ACCGS Board of Directors Meeting, 8 to 9 a.m., TD Bank Conference Center, Springfield.

July 21: ERC Board of Directors Meeting, 8 to 9 a.m., the Gardens of Wilbraham, Community Room, Wilbraham.

July 21: Diplomats’ Meeting, 4 to 5 p.m., EDC Conference Room, Springfield.

July 26: ACCGS Golf Tournament, all day, Springfield Country Club, Springfield. Cost: $160 per player or $640 for a foursome.

July 27: WRC Board of Directors Meeting, 8 to 9 a.m., Captain Leonard House, Agawam.

Young Professional
Society of Greater Springfield
www.springfieldyps.com   

July 15: Third Thursday, hosted by The Delaney House, Holyoke.

Amherst Area
Chamber of Commerce
www.amherstarea.com

June 23: After Five New Member Reception, 5 to 7 p.m., recognizing J.F. Conlon & Associates; Prudential Sawicki Real Estate; Ziomek & Ziomek; Blair, Cutting & Smith Insurance. Sponsored by Whirlwind Fine Garden Design, the Center for Extended Care, and Greenfield Savings Bank. Cost: $5 for members, $10 for non-members.

Chicopee Area
Chamber of Commerce
www.chicopeechamber.org
(413) 594-2101

July 15: Red Sox Bus Trip to Fenway Park vs. Texas Rangers, 7:10 p.m. Cost: $105 per person includes ticket to the game, round-trip bus fare, and tip for the driver. Call the chamber for more information or to purchase tickets.

Franklin County
Chamber of Commerce
www.franklincc.org
(413) 773-5463

See chamber’s Web site for information on upcoming events.

Greater Easthampton
Chamber of Commerce
www.easthamptonchamber.org
(413) 527-9414

July 14: Networking by Night Business Card Exchange, “Water Ski Show Night,” 5 to 7 p.m., hosted by Oxbow Water Ski Show Team, 100 Old Springfield Road, Northampton. Sponsored by Bay State Gas. Gala water-ski show, door prizes, hors d’ouevres, host beer and wine. Cost: $5 for members, $15 for non-members.

July 30: 26th annual Greater Easthampton Chamber of Commerce Golf Tourney, 9 a.m. shotgun start, scramble. Hosted by Southampton Country Club, Southampton. Major sponsor: Easthampton Savings Bank. Golf with cart, lunch, dinner, gift, contests. Cost: $100 per person or $400 for a foursome. Win a Buick Hole-in-One sponsored by Cernak Buick. Win $10,000 Hole-in-One sponsored by Finck & Perras Insurance.

Greater Holyoke
Chamber of Commerce
www.holycham.com
(413) 534-3376
See chamber’s Web site for information on upcoming events.

Greater Northampton
Chamber of Commerce
www.explorenorthampton.com  
(413) 584-1900

July 7: [email protected], 5 to 7 p.m., Seth Mias Catering at Northampton Country Club. Cost: $10 for members

Northampton Area
Young Professional Society
www.thenayp.com
(413) 584-1900

July 11: NAYP Party with a Purpose Family Day, 1 to 5 p.m., Look Memorial Park, Willow Brook Shelter. Cookout, games, and fun. Cost: $5 for NAYP members, $10 for guests, $2 for children.

Quaboag Hills
Chamber of Commerce
www.qvcc.biz
(413) 283-2418
See chamber’s Web site for information on upcoming events.

South Hadley/Granby
Chamber of Commerce
www.shchamber.com
(413) 532-6451

July 19: 7th Annual Amherst Area Chamber of Commerce Golf Tournament, hosted by Hickory Ridge Country Club, benefiting Amherst Regional High School business-education programs. Registration and putting contest at 11 a.m., light lunch at 12:30 p.m., shotgun start, scramble format, dinner reception and raffle at 5:30 p.m. Cost:  $125 per person or $500 for a foursome.

Three Rivers
Chamber of Commerce
www.threeriverschamber.org
(413) 283-6425
See chamber’s Web site for information on upcoming events.

Greater Westfield
Chamber of Commerce
www.westfieldbiz.org
(413) 568-1618
See chamber’s Web site for information on upcoming events.

Departments

The following building permits were issued during the month of June 2010.

AGAWAM

Edward O’Leary
200 Silver St.
$35,000 — Construction of 819 square feet of office space

Robert Germano
13 Maple St.
$15,000 – Renovations to barber shop

AMHERST

Kappa Kappa Gamma Inc.
15 Washburn Terrace
$25,000 — New roof

Pioneer Valley Living Care
1 Spencer Dr.
$15,000 — Convert covered porch into new sunroom

Servicenet Inc.
364 Southeast St.
$26,000 — Construct addition

CHICOPEE

Aldenville Credit Union
34 Valier Ave.
$8,700 — Re-shingle roof

Griffith Road LTD Partnership
300 Griffith Road
$175,000 — Alterations to interior for new lab and office area

LeClerc Properties
52 Julia Ave.
$10,000 — Install new siding, windows, and doors

Pioneer Cold Storage
149 Plainfield St.
$65,000 — Repair roof from wind damage

EASTHAMPTON

Autumn Properties
422 Main St.
$47,500 — Complete interior build out for bank

CFN Properties, LLC
10 O’Neill St.
$12,000 — Construct interior partitions and new lavatory

HADLEY

Matt Massingell
42 West St.
$7,500 — Renovations

HOLYOKE

Holyoke Mall Company, L.P.
50 Holyoke St.
$22,000 — Remodel existing Kay Jewelers store

LUDLOW

Site Acquisitions
1 State St.
$15,000 — Replace cell tower panels

NORTHAMPTON

Claire & Mario Aniello
98 Main St.
$58,000 – Renovate second and third floor for yoga studio

Massachusetts Audubon Society
127 Combs Road
$51,000 — Installation of ground-mounted solar array

Pomeroy Terrace, LLC
90 Pomeroy Terrace
$28,000 — New bathroom and deck

Ron Finnessey
229 Elm St.
$12,500 — Interior renovations

 

SOUTH HADLEY

E-Ink
7 Gaylord St.
$34,000 — Renovations

Mt. Holyoke College
50 College St.
$10,000 — New decking

Riverboat Village
River Lodge Road
$23,500 — New roof on unit #1

SOUTHWICK

Rite Aid Drug Store
605 Juniper Lane
$7,000 — Replace heating and AC roof units

SPRINGFIELD

Baystate Dental PC
1795 Main St.
$81,000 — Interior renovations

Colebrook Partners, LLC
511 E. Columbus Ave.
$82,000 — Reconfiguration of non-load-bearing partitions

Flores Development, LLC
2718 Main St.
$782,000 — Full remodel of Building C

Herbert Bar
40-42 Acorn St.
$8,500 — Repair front porches

Mercy Medical Center
271 Carew St.
$15,000 — New changing rooms for the radiology department

River Street Spirits Inc.
276 Cottage St.
$21,000 — Change of use from bank to liquor store

Ronald McDonald House
34 Chapin Street Terrace
$12,000 — Siding

Springfield Housing Authority
100 Ashley St.
$120,931 — Construction of new maintenance building

Springfield Housing Authority
347 Central St.
$136,000 — Construction of new maintenance building

WESTFIELD

Frank Demarinis
217 Root Road
$175,000 — Renovations to existing building for a new daycare

Paul Dion
Airport Dr.
$15,000 — Construction of an office in a hangar

WEST SPRINGFIELD

FiberMark
70 Front St.
$84,000 — Renovate space into office/lab area

Pride Limited Partnership
1967 Riverdale St.
$6,000 — Reoccupy existing retail space for the sale of exercise equipment

Russian Pentecostal Church of Hope
407 Park St.
$25,000 — Exterior renovations, including a roof

Triad, LLC
83 Verdugo St.
$15,000 — Exterior renovations

Building Permits Departments

The following building permits were issued during the month of June 2010.

AGAWAM

Edward O’Leary
200 Silver St.
$35,000 — Construction of 819 square feet of office space

Robert Germano
13 Maple St.
$15,000 – Renovations to barber shop

AMHERST

Kappa Kappa Gamma Inc.
15 Washburn Terrace
$25,000 — New roof

Pioneer Valley Living Care
1 Spencer Dr.
$15,000 — Convert covered porch into new sunroom

Servicenet Inc.
364 Southeast St.
$26,000 — Construct addition

CHICOPEE

Aldenville Credit Union
34 Valier Ave.
$8,700 — Re-shingle roof

Griffith Road LTD Partnership
300 Griffith Road
$175,000 — Alterations to interior for new lab and office area

LeClerc Properties
52 Julia Ave.
$10,000 — Install new siding, windows, and doors

Pioneer Cold Storage
149 Plainfield St.
$65,000 — Repair roof from wind damage

EASTHAMPTON

Autumn Properties
422 Main St.
$47,500 — Complete interior build out for bank

CFN Properties, LLC
10 O’Neill St.
$12,000 — Construct interior partitions and new lavatory

HADLEY

Matt Massingell
42 West St.
$7,500 — Renovations

HOLYOKE

Holyoke Mall Company, L.P.
50 Holyoke St.
$22,000 — Remodel existing Kay Jewelers store

LUDLOW

Site Acquisitions
1 State St.
$15,000 — Replace cell tower panels

NORTHAMPTON

Claire & Mario Aniello
98 Main St.
$58,000 – Renovate second and third floor for yoga studio

Massachusetts Audubon Society
127 Combs Road
$51,000 — Installation of ground-mounted solar array

Pomeroy Terrace, LLC
90 Pomeroy Terrace
$28,000 — New bathroom and deck

Ron Finnessey
229 Elm St.
$12,500 — Interior renovations

SOUTH HADLEY

E-Ink
7 Gaylord St.
$34,000 — Renovations

Mt. Holyoke College
50 College St.
$10,000 — New decking

Riverboat Village
River Lodge Road
$23,500 — New roof on unit #1

SOUTHWICK

Rite Aid Drug Store
605 Juniper Lane
$7,000 — Replace heating and AC roof units

SPRINGFIELD

Baystate Dental PC
1795 Main St.
$81,000 — Interior renovations

Colebrook Partners, LLC
511 E. Columbus Ave.
$82,000 — Reconfiguration of non-load-bearing partitions

Flores Development, LLC
2718 Main St.
$782,000 — Full remodel of Building C

Herbert Bar
40-42 Acorn St.
$8,500 — Repair front porches

Mercy Medical Center
271 Carew St.
$15,000 — New changing rooms for the radiology department

River Street Spirits Inc.
276 Cottage St.
$21,000 — Change of use from bank to liquor store

Ronald McDonald House
34 Chapin Street Terrace
$12,000 — Siding

Springfield Housing Authority
100 Ashley St.
$120,931 — Construction of new maintenance building

Springfield Housing Authority
347 Central St.
$136,000 — Construction of new maintenance building

WESTFIELD

Frank Demarinis
217 Root Road
$175,000 — Renovations to existing building for a new daycare

Paul Dion
Airport Dr.
$15,000 — Construction of an office in a hangar

WEST SPRINGFIELD

FiberMark
70 Front St.
$84,000 — Renovate space into office/lab area

Pride Limited Partnership
1967 Riverdale St.
$6,000 — Reoccupy existing retail space for the sale of exercise equipment

Russian Pentecostal Church of Hope
407 Park St.
$25,000 — Exterior renovations, including a roof

Triad, LLC
83 Verdugo St.
$15,000 — Exterior renovations

Departments

Cutting the Ribbon

Daniel R. Zivkovich, executive director of the Mass. Municipal Police Training Committee, addresses the audience at the ribbon-cutting ceremony for the Western Mass. Municipal Police Training Academy on the campus of Springfield Technical Community College. The newly renovated building, formerly known as the West Arsenal of Springfield Armory, is the oldest standing building in Springfield, dating from 1808. The western regional academy provides training for police recruits and veteran officers from 107 Western Mass. communities.


Martini Magic

Max’s Tavern in Springfield was the site of Martini Magic, an event to help raise funds for Ronald McDonald House. More than 200 people turned out on June 10 to sample designer martinis, all for a good cause. Over the past six years, Martini Magic has raised more than $75,000 for Ronald McDonald House. Clockwise, from below right: Joan Shultz, president-elect of the board of directors of Ronald McDonald House, and board member Rick Katsanos; from left, Tina Varnat, with Max’s Catering Group; Dee Cady-Derose, principal and CEO of Foley Connelly; Chris Connelly, principal and president of Foley Connelly; and Sarah Peix, compliance manager for Health New England; Todd Goodrich, left, vice president of Sales for Sullivan & Co., and Rob Schroeder, vice president of Logistics for International Paper.


Reading Between the Lines

BusinessWest Editor George O’Brien reads to fourth graders at the Warner School in Springfield as part of the Linked to Libraries program. Founded by Susan Jaye-Kaplan and Janet Crimmins, Linked to Libraries collects books and donates them to the libraries of area elementary schools, day-care centers, YMCAs, and other nonprofit agencies. In addition to filling library shelves, the program features read-aloud sessions that provide lessons in vocabulary, stress the importance of reading, and help make people in the business community (like O’Brien) aware of the challenges facing area schools. Each student who participated in the read-aloud was given a book to take home.


Announcing AMICCON

Ellen Bemben, one of the founders of an event called AMICCON — the Advanced Manufacturing and Innovation Competition & Conference — addresses attendees at a large press gathering on June 4 at Pioneer Packaging in Chicopee to announce the Sept. 23 conference. AMICCON will focus on six key manufacturing niches — plastics and advanced materials, precision machining, paper and packaging, electronics, ‘green’/clean technology, and medical devices — and has been designed to help area manufacturers make connections with one another and become aware of all that is produced in the Springfield-Hartford corridor. The conference will take place at the MassMutual Center. For more information or to register, visit www.amiccon.com.


Getting a Lift

Balise Motor Sales in West Springfield recently put an exclamation mark on its partnership with the Automotive Technology Department at Springfield Technical Community College with the donation of $25,000 for the purchase of a state-of-the-art Hunter vehicle alignment lift. The equipment introduces students to real-world diagnostic equipment to better prepare them for their careers in automotive technology, said Ray Sbriscia, chairman of the Automotive Technology Department. Seen here, from left, are Steven Mitus, executive vice president of Balise Motor Sales and treasurer of the STCC Foundation; Michael Balise, vice president of Balise Motor Sales; Sbriscia; and Michel Oleksak, executive vice president of Berkshire Bank and president of the STCC Foundation.

Departments

Travelers Recognizes Sumner & Toner Agency

LONGMEADOW — The Sumner & Toner Insurance Agency was recently recognized by Travelers as one of 20 agencies in the country to receive its prestigious Insurance Agency of the Year Award. Firms are chosen based on their goals for long-term profitable growth, dedication to high-quality customer service, and commitment to Travelers. “The Sumner & Toner Insurance Agency demonstrates the highest level of motivation and commitment,” said Greg Toczydlowski, president of personal insurance for Travelers, in a prepared statement. Toczydlowski added that Travelers “truly values” the partnership they’ve developed with the local firm. Established in 1933, Sumner & Toner Insurance Agency is an independent provider of comprehensive auto, home, professional liability, and life insurance. In 2008, partners Warren Sumner and Bill Toner created a dual father-and-son family business with sons Bud Sumner and Jack Toner. The next generation of Sumner & Toner, they say, serve as the company’s sales representatives and are helping to lead the company into the 21st century.

MMWEC Redesigns Public Web Site

LUDLOW — The Mass. Municipal Wholesale Electric Co. (MMWEC) has redesigned its public Web site with the goal of bringing greater efficiency to its Web-site management and improving content to online visitors. The Web site, www.mmwec.org, provides a “fresh and sophisticated look” at MMWEC’s history, programs, and services as well as recent news, financial reports, and information about energy assets and renewable-energy initiatives, according to MMWEC CEO Ronald C. DeCurzio. The site also features improved navigation and a search function, making it simpler for visitors to find specific information that is enhanced with graphic detail. The new site is updated using a customized content-management system, giving authorized individuals the ability to update and publish Web pages as needed from any location with Internet access. In addition, the site is search-engine-optimized to direct more users to the site based on their search-engine queries. MMWEC is a nonprofit, public corporation and political subdivision of the Commonwealth of Massachusetts that provides a variety of power-supply, financial, risk-management, and other services to the state’s consumer-owned, municipal utilities.

STCC, Balise Create Partnership for Students

SPRINGFIELD — Balise Motor Sales recently donated $25,000 toward the purchase of a state-of-the-art Hunter vehicle-alignment lift for the Automotive Technology Department at Springfield Technical Community College (STCC). The lift will introduce students to real-world diagnostic equipment to better prepare them for their careers in automotive technology, according to Raymond Sbriscia, chairman of the Automotive Technology Department. Sbriscia noted that the lift will be an integral part of the education and training students receive. The college also has a relationship with the Hunter Engineering Co., the manufacturer of the lift and other automotive-repair equipment. Hunter uses the STCC facility as a training and demonstration center for repair companies throughout the region and neighboring states. In return, STCC receives the latest, highest-quality equipment in the industry. Michael Balise, vice president, noted that Balise Motor Sales is always in need of talented automotive technicians who have computer and electronics training in addition to the traditional mechanical training. During the first year at STCC, students work mostly in the lab, diagnosing and fixing problems. At the end of the first year, students receive a certificate of completion. Students can then either join the workforce or continue on to the second year of study and receive an associate’s degree in automotive technology. Only 22 students are accepted into a new class, so the competition is “fierce,” according to STCC officials.

“Hackman” Retires after 48 Years

EAST LONGMEADOW — Lee “Hackman” Breton recently retired from LENOX after a 48-year career that started out on the manufacturing floor. In 1962, Breton was credited with manufacturing the first bi-metal reciprocating saw blade entirely by hand. His career took a dramatic change in 1981 when the LENOX sales team asked him if he thought he could cut a car in half with the new Hackmaster hacksaw blades to show off their superior strength and durability. He accepted and met this challenge, which turned out to be the first of hundreds of car cuts — earning him his nickname. From that day forward, being Hackman became his full-time job. Over the years, Breton traveled the world as Hackman, demonstrating the strength and durability of LENOX Tools by cutting more than 500 cars and other items, including an oil tank truck, cargo plane, boxcar, house, armored car, and even a bus at Super Bowl XXXIIII in 1999. Rich Mathews, vice president of marketing and new business for LENOX, noted that Breton exemplified the LENOX brand with his trademark car cuts, and was always willing and able to help out the company with anything and everything. “He will forever be considered a great employee as well as the best ambassador for the LENOX brand that we ever could ask for,” said Mathews. Breton’s last day at LENOX was May 28.

Café Lebanon Celebrates 10 Years in Business

SPRINGFIELD — Nadim Kashouh, owner of Café Lebanon, recently invited customers and friends to a complimentary 10-year celebration extravaganza at the 1390 Main St. restaurant to thank everyone for their patronage over the years. Kashouh serves Lebanese and Mediterranean cuisine in what he calls “an elegant, yet relaxed atmosphere.” Café Lebanon also offers catering for weddings; showers; anniversary, birthday, and graduation parties; bereavement gatherings; holiday events; business meetings; and corporate events. Kashouh maintains a second Café Lebanon restaurant in the center of East Longmeadow at 60 Shaker Road.

Departments

SPHS Lays Off 135

SPRINGFIELD — Citing severe economic challenges in the first several months of 2010, the Sisters of Providence Health System (SPHS) has eliminated 135 full-time-equivalent positions across the system. “Like most health systems and hospitals in the region, state, and nation, SPHS is experiencing a decline in patient volume and continuing challenges with reimbursement levels that, for some services, do not adequately cover the cost of providing care,” according to an SPHS statement. “Factors such as increased health insurance deductibles and co-pays, coupled with general concern regarding the economy, appear to be causing a delay of non-urgent medical care and health services that is influencing this downward trend in volume,” the statement continues. “Without proactive changes in operations, SPHS would incur a projected budget shortfall of $14 million for 2010. Specific to Mercy Medical Center, year-to-date volume reflects that discharges are 8% below budget, and outpatient volume is 7% below budget.” The most significant impact of the layoffs will be on inpatient support staffing responsibilities at Mercy, due to the elimination of 63 patient care technician positions. This change will allow the retention of bedside, licensed nursing staff and allow nurse-patient ratios to remain at current, planned levels, “but will not impact care quality or patient safety,” the health system asserts. In addition to the elimination of positions at Mercy and across SPHS, including administrative positions, several other cost-saving measures are being taken to help improve the health system’s financial performance. For example, the overall salary increase program for 2010 is being suspended, and the internal employee referral bonus program is being discontinued. Other initiatives to help improve the system’s fiscal outlook include the renegotiation of service and vendor contracts at lower rates, the sublease of unused space in off-campus locations, and revenue-enhancement opportunities such as an increase in grant funding. “We deeply regret that the reduction of jobs is necessary,” said Dr. William Bithoney, interim president and CEO of SPHS. “The decision to make these changes has been difficult and the subject of a lengthy discernment process. Several potential alternatives were evaluated. However, we believe the course of action selected is the best for patients, residents, and clients, and for continuity of the SPHS mission. These changes reflect good stewardship and prudent management that will focus resources on the most important aspects of high-quality patient care. Providing high-quality care remains our focus and primary concern. Our clinical and nursing standards remain unchanged, and we continue to provide those we serve with the highest-quality care.”

Survey: Hiring Outlook in U.S. Gains Momentum

MILWAUKEE — U.S. employers anticipate favorable hiring plans for the third quarter of 2010, marking three straight quarters of positive survey findings, according to the seasonally adjusted results of the latest Manpower Employment Outlook Survey, conducted quarterly by Manpower Inc. Employers provided a seasonally adjusted outlook of +6%, up from -2% during the same period last year. According to the survey, 98% of U.S. states have a positive hiring outlook, and 95 of the nation’s 100 largest metropolitan statistical areas have a positive outlook for the third quarter. Of the more than 18,000 employers surveyed, 18% anticipate an increase in staff levels in their third-quarter hiring plans, while 8% expect a decrease in payrolls, resulting in a net employment outlook of +10%. When seasonally adjusted, the net employment outlook becomes +6%. More than two-thirds of employers (70%) expect no change in their hiring plans. The final 4% of employers indicate that they are undecided about their hiring intentions. Employers in 11 of the 13 industry sectors surveyed have a positive outlook for the third quarter: leisure and hospitality, +20%; mining, +17%; professional and business services, +15%; wholesale and retail trade, +15%; nondurable goods manufacturing, +12%; financial activities, +11%; information, +10%; durable-goods manufacturing, +9%; transportation and utilities, +9%; construction, +8%; and other services, +8%. The July-September outlook is -2% for two of the surveyed sectors — education and health services and government. Compared to one year ago, surveyed employers in all four U.S. geographic regions anticipate hiring increases. Employers in the Northeast have the brightest hiring intentions, with a net employment outlook of +9%. When adjusting for seasonal variations, Midwest employers report the strongest shift for the third quarter of 2010, with a considerable increase in confidence year-over-year and a slight increase quarter-over-quarter. Compared to the second quarter of 2010, employment prospects are stable in the Northeast and South, while slightly slackening in the West. The net employment outlook is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting the percentage of employers expecting a decrease in hiring activity.

Federalization of SHA Sites Yields $15M Impact

SPRINGFIELD — The Springfield Housing Authority (SHA) recently announced the federalization of the Robinson Gardens, Reed Village, and Duggan Park developments, which will lead to more than $15 million in improvements to bring them up to HUD standards. Contracts have been bid and awarded to several local companies for design services, construction supervision, and physical improvements. Funding sources for the new construction include $1.8 million awarded to the SHA under the American Recovery and Reinvestment Act and $13.1 million awarded to the SHA by the Commonwealth of Massachusetts Division of Housing and Community Development. During a recent press conference, Richard A. Walega, HUD’s New England regional director, noted that Springfield led the commonwealth in converting state projects into federal developments. “That’s a win for today’s tenants and a win for preserving affordable housing for future generations,” said Walega. The SHA is the third-largest housing authority in Massachusetts, with more than 2,300 housing units spread over 27 sites.

National Jobless Claims Fall

WASHINGTON — In the week ending June 5, the advance figure for seasonally adjusted initial jobless claims nationwide was 456,000, a decrease of 3,000 from the previous week’s revised figure of 459,000. The four-week moving average was 463,000, an increase of 2,500 from the previous week’s revised average of 460,500. The advance seasonally adjusted insured unemployment rate was 3.5% for the week ending May 29, a decrease of 0.2% from the prior week’s revised rate of 3.7%. The advance number for seasonally adjusted insured unemployment during the week ending May 29 was 4,462,000, a decrease of 255,000 from the preceding week’s revised level of 4,717,000.

State: May Revenues Strong, but $70 Million Below Benchmark

BOSTON — The state Department of Revenue (DOR) recently released its May revenue report showing a monthly collection of $1.573 billion, which was $292 million better than a year ago but insufficient to make up for all of the revenue loss experienced in April due to the filing extension to May 11. As a result, with one month left before the close of the fiscal year June 30, year-to-date collections are $70 million below the benchmark. DOR Commissioner Navjeet K. Bal noted that personal income-tax withholding and 2010 estimated payments, as well as sales and use tax and corporate collections, all of which are good indicators of a continued economic turnaround, were above the benchmark. Bal added that shortfalls for the combined April/May period in payments with 2009 returns and extensions probably reflect a decline in capital gains due to past economic performance, which caused the overall year-to-date below-benchmark performance.

Departments

Michael Seward has joined Prudential Sawicki Real Estate in Amherst. He has been a Real Estate Agent since 2003 and a Real Estate Broker since 2005.

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Emily Bryant has been promoted to Director of Sales at the Hampton Inn Springfield-South in Enfield, Conn.

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Margaret A. Wheeler has joined the Law Practice of Attorneys Joseph P. Curran and Dan H. Berger. Wheeler has been an Immigration Attorney since 1997.

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Alice E. Pizzi has joined the management employment law firm of Sullivan, Hayes & Quinn in Springfield.

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David G. Ahearn has joined Greenfield Cooperative Bank as Vice President for Commercial Loans.

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Paul Nicolai has been named to the Executive Committee of the Western Mass. Economic Development Council Board of Directors. He is President of the Nicolai Law Group in Springfield.

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The WFCR Foundation announced the following:
• Marc Berman has been named President of the Board;
• Paul Friedmann has joined the board as a Director;
• Michael Miller has joined the board as a Director;
• James V. Staros has joined the board as a Director;
• Eva Thompson has joined the board as a Director; and
• Sarah Tanner has joined the board as an Adviser.

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The Landmark Companies announced the following:
• Christopher Woods has joined the Wilbraham office;
• Nancy Hunt has joined the Wilbraham office;
• Ela Gomes has joined the Ludlow office;
• Elizabeth DeGray has joined the Ludlow office; and
• Gina Gelineau has joined the Dot Lortie-Springfield office.

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W. F. Young Inc. of East Longmeadow announced the following
• Molly H. O’Brien has been named Advertising Supervisor, Equine Health Care Products. She will be responsible for the creation, execution, and media placement for Absorbine horse-care products, as well as the Equine America brand. She will also collaborate with the company’s advertising agency and creative team to implement strategic branding and creative execution to promote the company’s equine products throughout the world; and
• Vicki Evans has been promoted to Vice President, Controller.

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Michael J. Roy, Esq. has joined Easthampton Savings Bank as the Compliance Officer. He will be responsible for overseeing the bank’s compliance program. His responsibilities will include implementing, amending, or creating compliance policies and assisting with federal and state regulator compliance exams. Roy will also function as the in-house expert for all applicable federal and state banking laws and regulations.

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Chicopee Savings Bank announced the following:
• Cidalia Inacio has joined the organization as the Senior Vice President of Retail Banking;
• Alyse Ramalho has joined the organization as the Senior Vice President of Retail Lending; and
• Henry Downey has joined the organization as an Assistant Vice President of Commercial Lending.

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Susan Dixon, M.D. has been appointed to the medical staff at the Brattleboro Retreat in Brattleboro, Vt. Dixon is board-certified in child and adolescent psychiatry and will spend the majority of her clinical time working with adolescent inpatients.

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Bertram W. Gardner IV, AIA, of Caolo & Bieniek Associates Inc. in Chicopee, recently was granted reciprocity as an Architect by the Commonwealth of Massachusetts. Gardner is also a licensed Architect in New Jersey.

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The Home Builders Assoc. of Mass. announced the following:
• Walter Tomala Jr. will serve as President of the organization from now through 2011;
• John DeShazo will serve as President-Elect of the organization;
• Michael McDowell will serve as Senior Vice President of the organization;
• Christopher Lund will serve as Vice President of the organization;
• Dwight Thompson will serve as Treasurer of the organization; and
• Robin Ward will serve as Secretary of the organization.

Departments

40 Under Forty Gala

June 24: BusinessWest will celebrate its 40 Under Forty Class of 2010 at the Log Cabin Banquet & Meeting House with a gala to begin at 5 p.m. The event, which has become a spring tradition in Western Mass., will feature fine food, entertainment, and special presentations of the Class of 2010. Tickets for the event are $60. To order tickets or for more information, call (413) 781-8600, ext. 10, or e-mail [email protected].

The Coming Demographic Storm

June 30: The 2010 census statistics will prove it out over the next few years, but Kenneth W. Gronbach already knows what the stats will mean to America. A demographic storm of epic proportions is upon us, and if America’s businesses, regardless of size, are ready, they can plan for amazing success. But if they are not ready, they could be washed away in the giant generational wave. Gronbach, a gifted public speaker and a nationally recognized expert in the field of demography and generational marketing, will be the keynote speaker at the noon luncheon for the Advertising Club of Western Mass. at Longmeadow Country Club. Gronbach makes the science of the census results and shifting demography come alive with real-life examples that make it relevant to today’s culture, business climate, and economy. His presentation is based on the effects of shifting demography. He is an accomplished author with a new, bestselling book, The Age Curve: How to Profit from the Coming Demographic Storm. The demographic landscape in the U.S. is made up a series of waves that are about 20 years in duration. It would follow that business will rise and fall according to the critical mass of customers heading toward it. What is different about this wave is the extraordinary amount of population it includes compared to the past two generations. Businesses will enjoy extraordinary success if they are prepared and in front of the wave. Ad Club members are invited to bring a business associate and join the Ad Club for this presentation and network with the top advertising, marketing, and design talents in Western Mass. To make a luncheon reservation, contact the Ad Club at (413) 736-2582, or online at www.adclubwm.org. The cost for the luncheon is $25 for members, $35 for future members, and $15 for students.

Construction Course

July 14: The Home Builders & Remodelers Assoc. of Western Mass. will sponsor a six-session course starting July 14 to help individuals prepare for the Massachusetts Construction Supervisor’s Licensing Exam. Sessions are planned at the Home Builders & Remodelers Assoc. headquarters at 240 Cadwell Dr. in Springfield for six Wednesdays from 5:30 to 8:30 p.m. The exam is authorized by the State Board of Building Regulations and Standards and administered by Thomson Prometric. Registration forms to enroll for the exam will be distributed at the first session of the program. The fee is $250 for members of the Home Builders Assoc. of Western Mass. and $350 for non-members. All course participants must bring the 7th edition of the One & Two Family Dwelling Building Code book and the 7th edition of the Basic Building Code book to each class and to the open-book examination. There is an additional charge to order the code books through the association. For more information or to register, contact Sandra Doucette at (413) 733-3126.

Advanced Manufacturing Competition & Conference

Sept. 23: The first highly concentrated, cluster-centric, regional manufacturing conference of its kind will be held at the MassMutual Center in Springfield. The event, called the Advanced Manufacturing and Innovation Competition & Conference (AMICCON), is being staged in response to growing recognition among area manufacturers and supply-chain members that there is an urgent need to find and meet one another. “AMICCON was formed to identify who’s here in manufacturing, expose them to OEMs (original equipment manufacturers) and procurement, and to make these introductions,” said co-founder Ellen Bemben. “The ultimate goal is to be the advanced-manufacturing region in the U.S., where exotic manufacturing, such as micro, nano, and precision, meet higher specifications and tighter tolerances, and short runs are the norm.” Industry sectors to be represented at the event will include plastics and advanced materials, precision machining, paper and packaging, electronics, ‘green’/clean technology, and medical devices. Business opportunities in defense and aerospace will also be highlighted at the event. OEMs and their supply chains are being invited personally to participate. “AMICCON is also a new consortium on innovation that also delivers manufacturers to innovators and new markets in order to cause new business,” said Gary Gasperack, vice president and general manager (retired) of the Spalding Division of Russell Corp. “We are very excited about introducing it to our region.” The Mass. Export Center has already produced two programs for AMICCON: an “Export Experts Panel,” and a seminar, “International Traffic in Arms Regulations for Defense and Aerospace Export.”