EC07 – C – 0
Call to Order

EC07 – C – 1
Minutes

a. Approval of Minutes of May 17, 2007, Executive Committee Meeting

Mr. Lifson asked if there were any comments or corrections to the draft minutes of the May 17, 2007, Executive Committee meeting. There being none, Mr. Piluso moved to approve the minutes as presented, and Mr. Falbo seconded the motion. The motion passed unanimously with all those new to the Executive Committee abstaining.

b. Minutes of June 1, 2007, Board of Directors Meeting for Information Only

Mr. Lifson referred Executive Committee members to the draft minutes of the June 1, 2007, Board of Directors meeting, which were distributed with the agenda for information only.

a. AICPA Update

President Lifson gave a brief update on the AICPA, noting that a major issue of consideration for the organization was peer review transparency.

b. FAE Update

Mr. Lifson asked Executive Committee member Gail Kinsella, who had served as the Foundation for Accounting Education (FAE) President during the 2006-2007 fiscal year, to provide the FAE update.

Ms. Kinsella reported on FAE activities over the prior fiscal year including its curriculum committee, governance structure, and member feedback on CPE programs. She noted that the FAE Board of Trustees would be holding its very first open meeting at the annual leadership conference in July. She encouraged Executive Committee members to attend the open meeting.

c. 2007 Leadership Conference

Mr. Lifson reviewed the schedule for the 2007 Leadership Conference at the Gideon Putnam Resort in Saratoga, New York, including:

1) Open Meetings
2) Board Orientation Meetings
3) Expectation Gaps
4) Committees and Chapters
5) Other activities, including an offsite reception and dinner at the Saratoga National Golf Club.

The committee then discussed at length expectation gaps in the areas of auditing and accounting, tax and education.

d. Appointments to Operations Division Committees and Board Subcommittees

Mr. Lifson referred committee members to the 2007-2008 operations division committee roster in the agenda packet.

a. Quality Enhancement Policy Committee

President-elect Fierstein reported on the agenda for the upcoming Quality Enhancement Policy Committee (QEPC) meeting.

a. Report on Chapters

Vice Presidents Barnickel and Lauchert reported on their respective attendance at recent chapter organization meetings. President Lifson requested that Ms. Barnickel and Mr. Lauchert later provide him with bullet pointed items of importance covered at their respective chapter meetings.

b. Recent Society Comments

Vice President Torres reported that one comment letter was currently pending review and approval and that one, prepared by the Auditing Standards and Procedures Committee, was released on June 11. The latter, Comments to AICPA on Auditing Standards Board’s March 20, 2007 Discussion Paper, Improving the Clarity of ASB Standards, was principally drafted by Robert Berliner.

a. Committees Update

Secretary Ellis reflected upon his past year as Secretary working with Society committees and expressed that he was looking forward to his second year in that role.

b. Nominating Process Update

Secretary Ellis noted that the nominating process would soon be underway.

a. Legislative Update

Mr. Grumet briefed the Executive Committee on developments regarding proposed legislation in Albany.

b. Health Department Update

Mr. Grumet briefed the Executive Committee on issues relating to Medicaid cost reports prepared by CPAs in New York.

c. Dues Update

Mr. Grumet reported that 60% of membership dues invoiced in April had been received to date.

d. COAP Update

Mr. Grumet reported on the FAE COAP program. He noted that 350 students were participating.

e. Member Benefits Program

Mr. Grumet referred the Executive Committee to the agenda materials for a member benefits update.

f. Trade Show Update

Ms. Barry reported on the FAE trade show, which was held in May. She noted that plans for the 2008 show were underway and that staff was looking at ways to increase show traffic by running a number of select FAE conferences concurrently with the show at the Hilton.

Checkpoint HR representatives Pete Nahaczewski, Partner, and Michelle Moylan, Human Resources Specialist, gave a presentation on Checkpoint HR’s human resources information system. The Society had recently downsized its human resources department and contracted with Checkpoint HR to provide an online human resources platform and related consulting services. A question and answer session followed the presentation.

The Membership Report as of June 14, 2007 included 133 new members (including 67 CPA candidate and 40 student associate members), 13 reinstatements, 43 resignations and 24 deaths. These changes reflected a total membership of 28,897 as compared with 29,306 at approximately the same time the previous year.

Mr. Piluso moved to approve the Membership Report, and Mr. Ellis seconded the motion. After discussion, the motion passed unanimously.

The Executive Committee reviewed and discussed the report of the Bylaws Task Force.

Mr. Piluso moved to accept the report, subject to the following changes:

1. The Society’s Secretary and Treasurer positions should be merged into a new Secretary/Treasurer position
2. The number of Vice Presidents should be increased from three to four; and
3. The receipt in due course of changes to Bylaws Article XII, Professional Conduct and Disciplinary Proceedings, after consideration by the QEPC and further action by the Executive Committee at a follow up meeting to be held at the call of the President via conference call.