Minutes
The
meeting
was called to order at 11:05 A.M.
Consolidated
Financial Statements
Mr.
Edward Martin distributed handouts, and gave a presentation
that included highlights of the audit. Ms. Julie Floch led
the group through the draft audited financial statements:
A.
Consolidated Statements of Financial Position - Ms.
Floch noted an increase in Deferred member dues. Mr. Louis
Grumet explained the dues invoices were mailed out two weeks
earlier in 2002 than in 2001. Mr. Allen Fetterman asked
what the distinction was between “Short-term investments”
and “Cash and cash equivalents”, and suggested
that the caption be changed to read “Cash”.
It was decided that since the short-term investments included
a small amount of cash, the captions should remain as they
are. Mr. Fetterman also asked why Accounts receivable, net
had decreased. Ms. Lynn Chambers explained that for the
past year, an aged CPA Journal receivable listing
is reviewed each month. Depending on how old the invoice
is, one of several steps is taken, culminating in the write-off
of a receivable and submission to the collection agency.
Mr. Michael McNee expressed concern about the increased
Net assets deficit, and stated there should be a note to
address this problem. Staff agreed to draft a “Note
L” to discuss the steps taken in the coming year to
reduce the deficit.
B.
Consolidated Statements of Activities - Ms. Floch
noted changes in certain program areas between the two
fiscal years. There was general discussion on whether
the audit format was used in management’s interim
financial statements. This step has been taken as of June
2002, with implementation of a program budget. Mr. Grumet
discussed the theory behind implementing program tracking,
and tying the financial results to key areas as indicated
in strategic planning sessions. It was decided to change
two captions. Mr. Grumet and the group discussed the recent
decline in registration revenue, as well as the increase
that has occurred in the last two months. During a discussion
of expenses, the auditors noted an open audit item concerning
the difference in expense recorded as Educational activities
and Management and general from 2001 to 2002. A discussion
was held on Note L, which explained a change in accounting
for deferred contributions. Due to the insignificant amounts
involved, it was decided not to revise prior years’
Net assets.
C.
Consolidated Statements of Cash Flows - Mr. Fetterman
requested one wording change.
D.
Notes to Consolidated Financial Statements - Wording
changes were made to several areas in the notes, especially
in the areas of Property & Equipment (within Notes
A2 and D).
Management
Letter
Consideration
1 – Interim Financial Statements – Ms. Floch
agreed to restructure the comment, and staff will expand
the response.
Consideration
2 – Accounting for Missing Checks - Mr. David
Haar explained the circumstances behind this. A report will
be sent to the auditors showing that this has been taken
care of.
Consideration
3 – Chapter Bank Reconciliations - Staff agreed
to expand the response.
Consideration
4 – Disaster Recovery Plan - Mr. Martin expanded
on the consideration.
Consideration
5 - Conflict-of-Interests Policy – Mr. Martin
discussed the recommendation.
Other
Audit Issues
Based
upon a request from Mr. Raymond Nowicki, Eisner performed
a test on Committee Reimbursements. Although some exceptions
were found, testing showed no material deficiencies in enforcing
the company’s reimbursement policies.
Approval
of Minutes
A
motion was made to approve minutes from the June 17, 2002
meeting. Motion was made by Ronald Benjamin, seconded by
Mr. McNee, and passed unanimously.
Other
Business
The
committee met separately with both the auditors and management.
At 1:20 PM, the committee went into an executive session.
There
being no further business, the meeting was adjourned at
1:25 PM.
