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Governance
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Minutes
of:
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Executive
Committee Meeting
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Date &
Time:
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Tuesday,
February 12, 2002, 9:10 a.m. to 1:05 p.m.
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Location:
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NYSSCPA
Offices, 530 Fifth Avenue
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Presiding
Officer:
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Nancy
Newman-Limata, President
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Executive
Committee Members Present:
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Jo Ann
Golden, President-Elect
Kevin
J. McCoy, Vice President
Sharon
S. Fierstein, Secretary
Frank
J. Aquilino, Treasurer
Arthur
Bloom
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Peter
H. Frank
Stephen
F. Langowski
Carol
C. Lapidus
Ian M.
Nelson
Louis
Grumet, Executive Director
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Executive
Committee Members Absent:
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G. William
Hatfield, Vice President
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Others
Present:
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Vincent
Love
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Staff
Present:
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Joanne
Barry
Lynn Chambers
David
Cho
Ernest
Markezin
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William
Pape
Alan Schmelkin
James
A. Woehlke
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MINUTES
02
– B – 0
Call to Order
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Ms.
Newman-Limata noted that a quorum was present and called the
meeting to order at 9:10 a.m. |
02 –
B – 1
Approval of Minutes November 13, 2001 Meeting, November
19, 2001 Conference Call, and January 29, 2002 Conference Call
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Ms. Newman-Limata
asked if there were any corrections to the draft minutes for
the November 13, 2001 meeting or the November 19, 2001 conference
call. Hearing no objection, she declared the minutes approved
as distributed. Approval of the January 29, 2002, conference
call minutes was deferred to the next Executive Committee meeting. |
02 –
B – 2
President’s Report
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a.
Senate Hearings
Ms. Newman-Limata
briefed the Committee regarding the Society’s testimony
at the February 6 hearing before the State Senate Higher Education
Committee. She commended the three members who testified on
behalf of the society, former Society president Marilyn Pendergast
and former Professional Ethics Committee chairs Allen Fetterman
and Vincent Love.
b.
World Trade Center Recovery Program
Ms. Newman-Limata
updated the Committee on the WTC volunteer effort. The NYSSCPA
help desk established near ground zero has been closed due
to a drop-off in those seeking assistance. Staff estimated
that the Society had spent approximately $24,000 on the recovery
program, including staff time.
c.
NYSSCPA Comment Letters
Ms. Newman-Limata
reported on the following recent comment letters issued by
the Society:
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An exchange of letters with the Journal of Accountancy regarding
an article titled “Differences in Quality Among Audit
Firms”
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Comments from the Financial Accounting Standards Committee
to the AICPA regarding the Proposed Statement of Position
titled Capitalization of Certain Costs Related to Property,
Plant, and Equipment
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Comments from the Government Accounting and Auditing Committee
to the Government Acounting Standards Board regarding the
GASB Exposure Draft titled The Financial Reporting Entity
– Affiliated Organizations
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Comments from the Financial Accounting Standards Committee
to the Financial Accounting Standards Board regarding the
FASB Exposure Draft titled Rescission of FASB Statements
No. 4, 44, and 64 and Technical Corrections
d.
Nominating Committee Update
Ms. Newman-Limata
noted that the Nominating Committee had completed its report,
a copy of which was circulated to the Executive Committee.
She congratulated Ms. Lapidus and Messrs. Nelson and Langowski,
all of whom had been nominated for vice president positions
and Mr. Aquilino who had been renominated to serve as treasurer.
e.
Strategic Planning Task Force
Ms. Newman-Limata
updated the Committee on the results of the most recent strategic
planning session from the Board’s February 2 conference
call.
f.
Real Estate Task Force
Ms. Newman-Limata
briefed the Committee on the current status of the Society’s
search for new office space.
g.
Relations with State Board for Public Accountancy
Ms. Newman-Limata
reported on the Society’s improved relations with the
State Board for Public Accountancy.
h.
Cooperation with SSNI and SSLLC
Ms. Newman-Limata
reported that SSNI has still not submitted a contract for
the Society to review.
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02 –
B – 3
Executive Director’s Report
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a.
Chapter Newsletters
Mr. Grumet reported
that 13 chapters now want to publish their newsletters in
The Trusted Professional, while the Nassau, Suffolk, Buffalo
and Westchester chapters still plan to print and mail their
own. The amount the Society has budgeted for the newsletters
of these four chapters has been capped, based on the amount
it would cost the Society to print and mail these newsletters
centrally. The Society is also allowing these four chapters
to seek outside advertising to help defray the cost of producing
newsletters.
b. Update
on Staffing
Mr. Grumet reported
that the Society terminated six employees in January due to
budget and financial reasons.
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02 –
B – 4
Membership Report
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William
Pape, the associate director of member services, reported
that approximately 1,530 members had not yet paid their fiscal-year
2001-2002 dues. This figure is down from 3,600 members with
dues outstanding in September 2001. He will recommend at the
March 2002, Board of Directors meeting that the members with
outstanding dues be terminated.
Mr. Pape
reported that he has received 275 new applications for membership,
85 of which stemmed from a letter sent to nonmember CPAs in
New York by Ms. Newman-Limata wishing them a Happy New Year.
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02 –
B – 5
Approval of Global Accounting and Auditing Committee
CAP
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Ms.
Fierstein, chair of the Committee on Committee Operations,
reported that as many as twenty-one members have expressed
an interest in forming a Global Accounting and Auditing Committee.
COCO, therefore, was recommending the formation of such committee.
Mr. Bloom
moved and Ms. Lapidus seconded a motion that the Committee
accept the recommendation of the Committee on Committee Operations
to establish the Global Accounting and Auditing Committee.
The motion was unanimously approved.
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02 –
B – 6
Proposal of Membership Committee for Member-Get-A-Member
Campaign
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Ms.
Lapidus, chair of the Membership Committee, briefed the Committee
on a proposal to attract new associate members other than
students and CPA candidates. The campaign would reward each
recruiting member with a certificate to attend an 8-hour FAE
seminar or conference for each recruited associate member
other than a student or CPA candidate who joins the Society
between April and August 2002.
Mr. Frank
moved and Mr. McCoy seconded a motion to proceed with the
proposed campaign. The motion passed with Mss. Fierstein and
Golden opposed.
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02 –
B – 7
Report of the Finance Committee
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a.
FAE Financial Statements – January 31, 2002
Ms. Chambers
briefed the Committee on the FAE financial statements as of
January 31, 2002, which showed a loss in the Foundation for
the eight-month period of $916,782.
b.
NYSSCPA Financial Statements – January 31, 2002
Ms. Chambers
briefed the Committee on the NYSSCPA financial statements
as of January 31, 2002, which showed a year-to-date loss from
the Society of $123,404.
c.
Proposed 2002-2003 Budget
Ms. Chambers
briefed the Committee on the proposed 2002-2003 NYSSCPA budget.
The Committee made a number of recommendations and asked the
staff to submit a revised budget that incorporates the budgeted
numbers ultimately proposed by the FAE trustees. The Committee
will review the revised budget before the March 19 Board of
Director’s meeting. The Committee agreed to meet on
Tuesday, March 5 at 2:00 p.m. to discuss the revised budget,
if it is unable to resolve the matter via conference call
before that time.
d.
Proposed Dues Restructuring
Ms. Chambers
and Mr. Pape briefed the Committee on the revised dues schedule
being proposed by the Finance Committee. The most significant
change in the proposed schedule is the elimination of the
dues differentials for members in industry, education and
government and a reduction in dues for the first three years
of membership or certification. Ms. Golden moved and Ms. Lapidus
seconded a motion to accept the revised dues structure. The
motion was unanimously approved. The Committee directed the
staff to simplify the presentation of the dues structure on
the dues invoices.
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02 –
B – 8
Report of COCO
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Ms. Fierstein
reported that the Committee on Committee Operations recommended
that the Professional Liability Insurance Task Force should
be formally recognized as a committee. Ms. Golden moved and
Mr. Bloom seconded a motion to adopt the proposal to change
the Professional Liability Insurance Task Force into the Professional
Liability Insurance Committee. The motion was unanimously approved.
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02 –
B – 9
Approval of Revised Society-Sponsored Mediation Program
Rules
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Vincent
Love, vice-chair of the Mediation and Arbitration Committee
(MAC), briefed the Committee on the MAC’s proposed NYSSCPA
mediation rules and procedures. Ms. Fierstein moved and Mr.
Nelson seconded a motion to approve the proposed rules, subject
to their being revised to clarify that mediators proposed by
the committee chair or the committee must have either received
formal training or prior experience as a mediator. The motion
carried unanimously. |
02 –
B – 10
Executive Session – Update on Legal Issues
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The Committee
deferred this item until the next Executive Committee meeting. |
02 –
B – 11
Adjournment
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Ms. Newman-Limata
asked if there were any further business to come before the
meeting. There being none, the meeting adjourned at 1:05 p.m. |
Respectfully
submitted,
Sharon S. Fierstein
Secretary
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