audit committee report

At Leslie Fay, John J. Pomerantz, the son of the company's founder, remains chairman and chief executive, although an audit committee report said he "did not understand" certain financial information.

The board's major decision was its agreement with an audit committee report that Mr. Ladner should declare an additional $398,000 in personal income for 2002 through this year for goods and services provided to him by the university.

In a separate announcement not related to the audit committee report, Cendant said that it would file its much-anticipated restated financial statements in late September to reflect changes requested by the Securities and Exchange Commission about when the company should book revenue for its individual memberships.