Minutes of:

Executive Committee Meeting

Date & Time:

Tuesday, November 13, 2001, 12:21 p.m. to 5:00 p.m.

Location:

NYSSCPA Offices, 530 Fifth Avenue

Presiding Officer:

Nancy Newman-Limata, President

Executive Committee Members Present:

Louis Grumet, Executive Director

* by phone

Executive Committee Members Absent:

Arthur Bloom

Others Present:

Rona Cherno

Ian Benjamin

Ernest Markezin

James A. Woehlke

• Volunteers were continuing to staff the help desk at 110 Maiden Lane.
• Calls were continuing to come in from victims through the NYSSCPA volunteer help line.
• A task force led by Board of Directors member Franklin Federmann was developing policies and procedures for volunteer assistance.
• Joint efforts with other volunteer organizations were allowing NYSSCPA volunteers to meet with victims that are not assisted through the help desk or hotline number.

Ms. Barry noted that the Mid-Hudson chapter is looking to provide free tax services to victims and members of the Armed Services. The idea is based on a similar project done during the Gulf War. Discussion ensued. By consensus, the Executive Committee agreed to encourage the Mid-Hudson chapter to go forward with this idea, providing whatever staff support is necessary.

William Pape, the associate director of member services, presented the membership report, which included 596 new members, 118 reinstatements, 156 resignations, 3 terminations, and 139 deaths. These changes reflected a total membership of 30,093 as of November 13, 2001. Mr. Ian Nelson moved, with Mr. Frank Aquilino seconding, approval of the Membership Report. The motion carried unanimously.

Mr. Pape reported that approximately 2,800 members had not yet paid their fiscal-year 2001-2002 dues. The Society will engage a firm to directly solicit these delinquent members, who will receive their final notice to pay their dues by the end of this month.

The Member Services department ordered new membership cards to be distributed to all members. Ms. Lapidus moved and Ms. Fierstein seconded a motion that starting next year, membership cards will only be distributed to new members and not the full membership. Following a discussion the motion unanimously passed.

Ms. Newman-Limata asked Society legal counsel Woehlke to brief the Committee on the request for approval of a safe-harbor election for the 2002 401(k) plan year. He explained that for the 1998, 1999, and 2000 plan years a number of senior staff had been unable to make maximum contributions to the 401(k) plan due to the anti-discrimination tests done on such plans. This could be remedied by making a safe harbor election, which had the effect of 100% vesting all staff in a portion of their employer contributions. He noted that Ms. Chambers estimates this would have a cost of significantly under $10,000 to the Society. Mr. Hatfield moved and Mr. Frank seconded a motion to authorize the making of a safe harbor election for the NYSSCPA 401(k) Plan effective for the 2002 plan year and applicable to that portion of the employer contribution attributable to the 50%-employer matching contribution. The motion passed unanimously.

A discussion immediately ensued regarding the 2002 401(k) plan contribution formula. Mr. Hatfield then moved and Mr. Frank seconded a motion that the Society continue the contribution formula used since the inception of the plan, i.e. an employer contribution equal to (1) three percent of each participant’s salary, plus (2) a matching contribution of one-half of the voluntary contribution made by the participant; provided that under no circumstances will the total contribution made by the employer exceed eight percent of any participant’s salary. For example, if a participant contributes twelve percent of his or her salary, the employer will contribute three percent of salary plus a matching contribution of five percent of salary. After extensive discussion, the motion passed unanimously.

a. Mediation and Arbitration Committee Committee Action Plan

Ms. Fierstein, Society Secretary and chair of the Committee on Committee Operations, presented a committee action plan (CAP) for the Mediation and Arbitration Committee which had been approved by COCO and referred to the Executive Committee for final approval. She explained that while ordinarily CAP approvals are routine matters for COCO, in this case the CAP would replace a scope written for the committee dating back to the mid-1990s which reserved significant authority to the Executive Committee. After some discussion, the Executive Committee grew concerned that they were being asked to approve the CAP before all the committee's rules and procedures were drafted.

Upon motion by Mr. Nelson, which was seconded by Mr. Aquilino, the Committee unanimously deferred consideration of approval of the proposed CAP until such time as the rules and procedures of the Mediation and Arbitration Committee are revised.

b. Adjusted Committee Calendar

Ms. Fierstein then submitted a proposal from the Committee on Committee Operations to adjust the committee year from June 1 through May 31 to September 1 through August 31 beginning September 1 of 2003. By consensus, the Executive Committee decided to refer the proposed calendar adjustment to the Board of Directors for further action.

Mr. McCoy briefed the Executive Committee on the status of the Society-sponsored accounting bill currently before the legislature in Albany. The bill is not moving forward in the legislature, and the Society is working on possible amendments.

Noting the New York legislature’s focus on the disaster recovery, Mr. McCoy told the committee that the legislation probably will not move forward during this session. Mr. Grumet added that the Board may well want to reconsider the unified bill approach taken with the current proposal and instead seek piecemeal passage of the UAA as has been done in many other states.