Neville Grusd

04 – D – 1
Call to Order

04 – D – 2
Report of Internal Controls Review

Mr. Hoops introduced Messrs. Blum and Zachter, CPA partners of the firm Loeb & Troper, who presented the findings of their review of the Society’s internal controls.

Messrs. Blum and Zachter began by giving an overview of the process by which the firm conducted the review, and then went through their findings in the following areas:

1. Cash disbursements
2. Cash receipts
3. Payroll
4. Contracted services
5. Investments
6. Membership dues including dues revenues, receivables and deferrals
7. Acquisition of property and equipment and recording of annual provision of depreciation
8. Compliance with donor restrictions for temporarily and permanently restricted funds
9. Education fees and related receivables
10. Publications
11. Chapter activities
12. Allocation of expenses to program and administrative areas
13. Controls over computer access to the general ledger and financial reporting system

Messrs. Blum and Zachter reported that overall, they found the internal controls of the Society to be working as established, and they reviewed with the committee several suggested areas of improvement as noted in the report. Staff agreed with the suggestions which emanated from the review and committee discussion.

Mr. Hoops noted that the internal controls review report would be given to the full Board at its April meeting, along with management’s response to the report, and that Messrs. Blum and Zachter would be attending that meeting to answer Board member questions.

Mr. Love moved, and Ms. Napoleon-Hudson seconded, a motion to accept the internal controls review report. The motion passed unanimously. Ms. Kirby and Mr. Rubin did not participate in the vote.

04 – D – 2
Amended 2004-2005 Budget

The Executive Committee discussed the proposed 2004-2005 Society and FAE budget, which had been reviewed and amended by the Finance Committee in conformance with the Executive Committee’s prior direction to remove certain initiatives so as to ensure a balanced budget.

Mr. Bloom then led the committee through the budget. After discussion, Mr. Kearney moved, and Mr. Riley seconded, a motion to recommend that the Board approve the proposed 2004-2005 budget. The motion passed unanimously. Ms. Kirby and Mr. Rubin did not participate in the vote.

There being no further business, Mr. Bloom moved to adjourn the meeting, and Ms. Napoleon-Hudson seconded the motion. There being no objections, the meeting adjourned at 10:17 a.m.
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