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– E – 1
Audit
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Mr.
Lifson asked Ian Benjamin, GGK Audit Partner, to present
his report. Mr. Benjamin noted that substantially all audit
work was complete and that the audited financials and information
contained in the management letter were substantially the
same as that presented and summarized at the Executive Committee
on August 20, 2007. He said that there were no significant
findings.
Mr.
Banerjee then gave a brief presentation, noting that there
were no differences between the financials presented at
the August 20, 2007, Executive Committee meeting and the
audited financials.
Mr.
Piluso asked for clarification regarding several points
raised in management’s response to the management
letter. During the discussion, the following clarifications
were noted:
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During the next audit, the Board, Executive Committee
and FAE Trustees would receive the year-end financials
in the external format, and this would be reflected in
management’s response.
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Management’s response would be revised to reflect
that efforts to merge the Benevolent Fund into FAE could
resume, presuming that the NYSSCPA Board approved in September
the Executive Committee’s recommendation that FAE’s
structural deficit be eliminated as of fiscal year end
2007.
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Management’s response would be revised to reflect
that the Governance Subcommittee would present a draft
policy on writing off receivable balances from related
parties to the Board of Directors for approval at the
September meeting.
An Executive
Committee member inquired as to the status of the reconciliation
statement relating to an approximately $300,000 negative
change in net assets between the April and May financial
statements. Mr. Banerjee responded that the narrative was
currently being drafted but that the numerical data had
been gathered. He said that the assets in May were greater
than April because the former month reflected more FAE and
chapter activity. He noted, however, that much of the activity
from the chapters had actually occurred over prior months
and was accrued after the April statements were issued.
A discussion ensued with respect to the timeliness of chapter
reconciliation submissions to the accounting staff. It was
noted that this had been an issue mentioned during the last
two audits. Mr. Banerjee noted that while the accounting
staff would continue to offer to perform the reconciliations
on behalf of the delinquent chapters, management would also
complete outstanding reconciliations in February as noted
the management letter when there is little chapter activity.
Ms.
Kinsella moved to recommend full Board approval of the audited
consolidated financials and management letter at its September
19, 2007 meeting. Mr. Piluso seconded the motion. The motion
passed unanimously.
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