Minutes
The
meeting was called to order at 10:10 A.M.
Required
Auditor Communications
Mr.
Benjamin of Goldstein Golub Kessler LLP (GGK) distributed
the Audited Consolidated Financial Statements Draft for
the fiscal year ended May 31, 2007. He informed the Committee
that this is the final year-end audit of the Society by
GGK as their contract is at an end. He indicated the audit
field work has been completed and that there are no changes
to the draft financial statements submitted by management;
and no changes of accounting policy. The draft management
letter is not ready to be discussed at this time.
Mr.
Benjamin addressed two areas with regard to the timely completion
of the audit. The first is that certain items were not completed
within the same timeframe as in years past, and this caused
some of the audit work to begin later due to there being
a new Controller. The second is a repeated comment that
Chapter bank reconciliations were not completed on time.
Management noted that steps would be taken in the upcoming
fiscal year to ensure that the Chapters work was completed
in a more timely manner.
Mr.
Benjamin indicated that there are a few open items such
as the investment confirmation and the issuance of the management
letter. He expressed his intention to render an unqualified
opinion
Audited
Financial Statements - Draft
Mr.
Banerjee went through a PowerPoint presentation of the Draft
Audited Financial Statements to the Committee members. During
his presentation Committee members raised the following
issues:
Mr.
Hendler inquired about the issues in last year’s management
letter, and it was noted that they have been resolved. He
also requested clarification of what is included in Advocacy,
and Mr. Banerjee explained that this Strategic Goal is comprised
of those programs that promote the interests of the members
such as developing legislation, impacting public policy
and increasing recruitment.
Chair
Levine inquired about increases in several expense accounts.
Mr. Banerjee explained the additional legal expense is due
to a specific unforeseen event. The increase in Ethics allocated
expenses over the prior year is due to the hiring of a full
time Quality Assurance Manager – Ethics. Education
expense increased due to increased number of seminars and
conferences. Lou Grumet noted that the trade shows are not
a viable endeavor and will be eliminated in the upcoming
fiscal years.
Mr.
Jaffe also noted he would like the investment philosophy
of the Society and FAE to be more proactive as opposed to
conservative.
Some
changes that will take place in the upcoming fiscal year
include the merger of the Benevolent Fund with FAE to fund
more scholarships. One-hundred thousand dollars will remain
in the Fund to aid any CPAs who ask for such assistance.
Lou Grumet noted that there is a resolution in the executive
committee to eliminate the FAE accumulated deficit of $577,000.
There
was a discussion as to whether the PAC audit should be included
in the consolidated audit. Mr. Grumet explained that several
years ago, the Society was advised to keep the PAC audit
separate. However, Grumet noted that he will inquire whether
its audit could be can be consolidated into the other entities’
audit in the upcoming year.
It
was noted that outstanding accounts receivable will be sent
to collections. In answer to a committee member’s
question, Mr. Banerjee noted that the Other Accounts Receivable
category refers to the rent of AICHE and miscellaneous items.
Mr.
Benjamin noted the draft financial statements will be revised
to reflect subsequent changes.
Chair
Levine requested the committee reconvene for the approval
of the audit via a teleconference call by the end of the
week. A revised draft with adjustments including notes will
be furnished.
Other
Business
Chair
Levine called for and executive session.
Next
Meeting
The
Committee scheduled a conference call for Thursday August
23, 2007 to further discuss the audited financial statements.
With
no further business to be discussed, the meeting was adjourned
at 11:24 AM.
Respectfully
submitted by Omar Sable and Suvro C.K. Banerjee
