US food service company Performance Food Group has delayed release of its fourth quarter and year end results following anonymous allegations about accounting practices at one of its subsidiaries.
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“The company recently received anonymous allegations questioning certain accounting practices at one of its Broadline operating subsidiaries,” it said in a statement. “The company’s audit committee immediately began investigating these allegations and retained independent counsel, who also retained an independent accounting firm, to assist the audit committee in reviewing these allegations.”
The company was then told by staff of the Securities and Exchange Commission that it had opened an informal enquiry into the allegations, as well as an allegation that the company’s Broadline operating subsidiaries “may have made improper intercompany transfers of inventory to avoid internally established reserve requirements for aged inventory.”
“The audit committee has been conducting a thorough investigation into these allegations which is substantially complete, but some work remains to be done,” it said. The independent auditor had also not completed work on the audit committee’s investigation and had, therefore, not completed work on the company’s 2004 results.
“We anticipate releasing our fourth quarter and year end earnings in the near future, following completion of the audit committee’s investigation and KPMG’s audit work with respect to the results of the audit committee investigation,” said Robert C. Sledd, chairman and chief executive officer.
Performance Food Group, based in Richmond Virginia, distributes food and food-related products to some 48,000 restaurants, hotels, cafeterias, schools, healthcare facilities and other institutions.
