Minutes
The
meeting was called to order at 3:15 P.M.
Approval
of Minutes
The
minutes of the 6/29/04 meeting were unanimously approved.
Draft
Audited Financials
Mr.
Ian Benjamin of Goldstein, Golub, and Kessler (GGK) discussed
the first section, Required Auditor Communications, containing
the Statement on Auditing Standards (SAS 99).
The
Consolidated Statement of Financial Position was reviewed
by Ms. Lynn Chambers, who explained the variances between
the fiscal years. The committee asked for more information
on the Board Designated Funds. Mr. Louis Grumet discussed
the three-year process of transferring monies each month
to build up a reserve to help fund the upcoming office relocation,
and updated the committee on the progress of the office
move. Mr. Benjamin questioned the unrestricted nature of
the net assets for the Benevolent Fund and New York State
Society CPA PAC. He discussed the concept that separately
they contain temporarily restricted net assets, as determined
by the contributors. A lengthy discussion ensued which included
a comment by Ms. Bonnie Chambers that reclassifying the
two organizations on the face of the statement would cause
reader confusion. A decision was made to list each of the
organizations’ net assets separately.
Ms.
Lynn Chambers discussed the fiscal year changes on the Consolidated
Statement of Activities. Mr. Adam Reiss of GGK noted that
reclassification of membership recruitment expense from
the Advocacy expense line to Governance and administrative
was still an open item. There was discussion of the $2M
elimination entry which appeared on the Consolidating Statement
of Activities, which was the May 31, 2003 interfund balance
between the Society and FAE. The Board voted to net the
payable and receivable, as they represent an amount that
will not be repaid. The committee then discussed eliminating
the budget allocation for fiscal year 2004 from the interfund
balance. It was decided that the $383K approved by the Board
of Directors should also be netted on the two organizations,
with the same practice going forward.
The
Cash Flows and Notes to the Financial Statements were reviewed.
Mr. Warren Ruppel requested certain style changes to the
notes.
Attention
turned to the Management Letter. The committee discussed
current year recommendations, including chapter bank reconciliation
errors, and timely recognition of seminar expenses. It was
agreed that additional verbiage would be included in the
response by management. In addition, previous observations
from the Internal Control report and last years’ management
letter were reviewed.
The
fourth and final section, Summarization of Uncorrected Misstatements,
was discussed.
GGK
agreed to email a revised draft to Ms. Lynn Chambers for
distribution to the committee.
Adjournment
An Executive Session was called and staff was excused. The
meeting was adjourned at 5 PM.
Respectfully
submitted,
David
Haar
Approved 8/13/04
