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On not piling into the family station wagon…

Borland Software (BORL) has had a pretty busy week, with 8 different SEC filings so far this week and it’s stiill only Thursday. Among the news items was the company regaining its compliance with Nasdaq after filing it belated 10-K earlier this week and yesterday’s news that it was cutting 300 jobs.

But it was the belated 10-K filed on Tuesday that really caught my interest. There was an interesting disclosure on weak material controls, primarily involving third-party vendors. Here’s how the company described it in the filing:

As a result of the control deficiency, an employee was able to override controls and have contractor invoices sent directly to the services organization and, further, failed to forward those invoices to the accounts payable department in a timely fashion. As a consequence, these invoices were not reflected in our financial statements for the three and nine month periods ended September 30, 2005, and our cost of service revenue was understated.

There was also an interesting disclosure about the families of top executives taking vacations on the company dime. Though the dollar figures weren’t all that large — former CEO Dale Fuller spent the most — the fact that the company not only paid for the vacations, but gave each executive a gross-up to cover the taxes seemed a bit over-the-top. There was also an interesting first-time disclosure about the company paying over $400K for a golf-club membership that Fuller and former COO Scott Arnold used. That membership has been passed on to Tod Nielsen, who took over as CEO back in November.

One final note about Borland: back in November when Nielsen took over, I posted this about Borland. At the time, the stock was trading at around $6.50 a share. Since then, the stock has lost more than 20% of its value. Just consider it more evidence that some of these smaller things — the reason why cops stop people for a broken tail-light — are often indicative of more serious problems.