EC09 - F - 0
Call to Order

EC09 – F– 1
Minutes

a. (see August 18, 2009, Executive Committee Minutes)

a. Code of Conduct Task Force

This matter was discussed in the previous meeting.

b. Review of Draft of Agreed-Upon Procedures

c. FAE Update

Mr. Moynihan asked Mr. Schmelkin to provide an update on the Foundation for Accounting Education (FAE). Mr. Schmelkin reported that during the first three months of fiscal year 2009 (June 1 to August 31), FAE generated $121,700 less revenue from conferences and seminars than it did during the same months in the prior fiscal year. This was attributed to lower attendance. He noted, however, that $168,500 from un-used POP revenue was deferred on August 31, 2009, positively offsetting this figure. The net effect on FAE’s bottom line was therefore $46,800, which was ahead of the prior year. Mr. Schmelkin added that industry course attendance was expected to increase between now and December, due to the CPE requirements instituted under the state’s new accountancy law. He stated that FAE was therefore well on track for a good year.

d. Town Hall Meeting Schedule

Mr. Moynihan referred members to the Town Hall Meeting Schedule, which was provided in the agenda materials. He noted that the first meeting was scheduled to take place on September 10, 2009, in the Southern Tier chapter.

e. Quality Matters Update

See agenda item EC09-E-2 a.

f. Endorsement of Ernest A. Almonte for GAO Position

Mr. Moynihan reported that Ernest A. Almonte, CPA, currently serving as the AICPA’s Chairman and the state of Rhode Island’s Auditor General, was in consideration for the position of Chief of the Government Accounting Office (GAO) and that we had sent a letter of endorsement.

g. Board Vacancy

Mr. Moynihan noted that there was a NYSSCPA Board vacancy due to the death of Director Thomas Boyd.

h. Review of 2009 Leadership Conference

Mr. Moynihan stated that he had received extremely positive feedback about the 2009 Leadership Conference and its venue, the Turning Stone Resort and Casino in Verona, New York. see agenda item EC09-F-3b for the Executive Committee’s consideration of the 2010 Leadership Conference venue.

a. Quality Enhancement Policy Committee

President-elect Wood reported that the Quality Enhancement Policy Committee was developing a white paper examining the public’s and CPA’s perceptions of quality in the CPA profession, with a focus on bridging the “gap” between these perceptions. She noted that the first section of the paper would focus on audits.

b. 2010 Leadership Conference

Ms. Wood echoed Mr. Moynihan’s earlier comments regarding the overall satisfaction of participants with the Turning Stone Resort and Casino, which hosted the 2009 Leadership Conference. She proposed that the conference return to the same facility in 2010 and 2011. She noted that a two year contract would be ideal, as it would allow for greater negotiating power as well as a lower overall cost. She also noted that the selection of the Turning stone for two years would help offset cancellation damages imposed on FAE, which recently cancelled a contract with the Turning stone for its fall trade show.

Mr. Lesser moved to support continued negotiations with the Turning Stone for a contract to host the 2010 and 2011 NYSSCPA Leadership Conference. Ms. Jensen seconded the motion. The motion passed unanimously with no abstention.

a. Chapters

Vice President Wei stated that committees and chapters needed a bridge to facilitate communication. Mr. Wei reported that during a conference call of chapter presidents on August 26, a number of ideas were discussed in furtherance of this objective including increasing chapter representation on statewide committees and vice versa.

b. Committees

Vice President Lesser reported that to date, most committees had already held their respective organizational meetings to kick off the committee year. Mr. Lesser stated that additional new committee initiatives were in the works with the goal of getting more members involved in committees and to facilitate more communication with chapters. He noted that the Chair of the Anti-Money Laundering Committee would be participating in the next conference call of chapter presidents. He also noted that an upcoming schedule of committee “open houses” would be published in The Trusted Professional.

c. Society Comments

Vice President Stubbs reported that there was a comment paper currently in process on the topic of engagement letters. He noted that the commentary process was on pace with the prior year.

Since the May 2009 Executive Committee meeting, the following comment letters had been submitted:

• 8/25/09 - Comments on an exposure draft of a proposed statement on auditing standards on external confirmations. This proposed SAS would supersede SAS 67, and represents a redrafting to apply the Auditing Standards Board’s clarity drafting conventions and to converge with International Standards on Auditing.pcaob0905.pdf. Prepared by the Auditing Standards Committee, chaired by Mr. Robert N. Waxman. Principal drafters were Messrs. Robert W. Berliner and Stephen P. Tuffy, and Ms. Anna Zubets.
• 8/19/09 - Comments to the Financial Crimes Enforcement Network (FinCEN) of the Treasury Department on FinCEN’s proposal to include mutual funds within the general definition of ‘‘financial institution’’ in rules implementing the Bank Secrecy Act. Prepared by the Anti-Money Laundering and Counter Terrorist Financing Committee, chaired by Mr. Robert L. Goecks. Principal drafters were Messrs. Robert L. Goecks and Alan W. Greenfield, Ms. Linda Silvestri, and Mr. Richard M. Morris (Advisor).
• 8/7/09 - Comments on the IASB’s exposure draft of proposals to improve the derecognition requirements for financial instruments in IAS 39 and enhance disclosure requirements regarding an entity’s exposure to the risks of transferred financial assets. Prepared by the International Accounting and Auditing Committee, chaired by Mr. William M. Stocker III. Principal drafters were Messrs. Kenneth W. Bosin, Richard C. Jones, and Michael R. McMurtry.
• 7/28/09 - Comments on an exposure draft of a set of proposed Statements on Standards for Accounting and Review Services: Proposed SSARS, Framework and Objectives for Performing and Reporting on Compilation and Review Engagements; Proposed SSARS, Compilation of Financial Statements; and Proposed SSARS, Review of Financial Statements. Prepared by the Accounting and Review Services Committee, chaired by Mr. Jay H. Goldberg. Principal drafters were Messrs. Michael J. Aroyo, Jay H. Goldberg, Joseph A. Maffia, and Ira M. Talbi.
• 7/27/09 - Comments to the SEC on proposed amendments to the custody rule under the Investment Advisers Act of 1940. The amendments, among other things, would require registered investment advisers that have custody of client funds or securities to undergo an annual surprise examination by an independent public accountant to verify client funds and securities. Prepared by the SEC Practice Committee and Investment Companies Committee, chaired by Messrs. Anthony S. Chan and Peter L. Berlant, respectively. Principal drafters were Messrs. Anthony S. Chan, Peter L. Berlant, and Robert E. Sohr.
• 7/17/09 - Comments on an exposure draft of a proposed Statement on Auditing Standards on subsequent events. This proposed SAS would supersede SASs 1 and 58 and AU sections 530, 560, and 561, and represents a redrafting to apply the Auditing Standards Board’s clarity drafting conventions and to converge with International Standards on Auditing. Prepared by the Auditing Standards Committee, chaired by Mr. Robert N. Waxman. Principal drafters were Messrs. Robert W. Berliner, Fred R. Goldstein, and Richard T. Van Osten, and Ms. Jan C. Herringer.
• 7/16/09 - Comments on a discussion paper of a joint FASB and IASB project, the objective of which is to create a common standard on lease accounting to ensure that the assets and liabilities arising from lease contracts are recognized in the statement of financial position. Prepared by the Financial Accounting Standards Committee, chaired by Mr. Mark Mycio. Principal drafters were Messrs. Abraham E. Haspel and Edward P. Ichart.
• 7/2/09 - Comments on FASB’s proposed FSP 157-g that would amend FASB Statement No. 157, Fair Value Measurements, to provide application guidance for estimating the fair value of investments in investment companies that have calculated net asset value per share in accordance with the AICPA Audit and Accounting Guide, Investment Companies. Prepared by the Financial Accounting Standards Committee, chaired by Mr. Mark Mycio. Principal drafters were Mr. J. Roger Donohue, Ms. Sharon Sabba Fierstein, Mr. Mark Mycio, and Mr. Robert M. Rollmann.
• 6/25/09 - A response to an invitation to comment from the New York State Department of Taxation and Finance regarding the implementation and administration of the Metropolitan Commuter Transportation Mobility Tax (MCTMT). Prepared by the New York, Multistate and Local Taxation Committee, chaired by Mr. Wayne K. Berkowitz. Principal drafters were Messrs. Wayne K. Berkowitz, Steven J. Eller, Barry H. Horowitz, and Adam Lambert.
• 6/18/09 - Comments on a discussion paper of a joint FASB and IASB project, the objective of which is to clarify the principles for recognizing revenue and create a joint revenue recognition standard for U.S. GAAP and IFRS that companies can apply across various industries and transactions. Prepared by the Financial Accounting Standards and International Accounting and Auditing Committees, chaired by Mr. Mark Mycio and Mr. William M. Stocker III, respectively. Principal drafters were Mr. Deepak Doshi, Ms. Jo Ann Golden, Mr. Fred R. Goldstein, and Mr. Richard C. Jones.
• 6/3/09 - Comments on an exposure draft of a proposed statement on auditing standards on initial audit engagements, including reaudits ? opening balances. This proposed SAS would supersede SAS No. 84, Communications Between Predecessor and Successor Auditors, and represents a redrafting of SAS No. 84 to apply the Auditing Standards Board’s clarity drafting conventions and to converge with International Standards on Auditing. Prepared by the Auditing Standards Committee, chaired by Mr. Robert N. Waxman. Principal drafters were Messrs. Mark Mycio and Lawrence E. Nalitt.
• 6/3/09 - Comments on an exposure draft of a proposed statement on auditing standards that would supersede SAS No. 54, Illegal Acts by Clients, and represents the inclusion of comments by the Auditing Standards Board’s clarity drafting conventions and convergence with International Standards on Auditing. Prepared by the Auditing Standards Committee, chaired by Mr. Robert N. Waxman. Principal drafter was Mr. Robert N. Waxman.
• 5/29/09 - Comments on an exposure draft of a proposed statement on auditing standards on audit sampling. This proposed SAS represents the redrafting of SAS No. 39, Audit Sampling, to apply the Auditing Standards Board’s clarity drafting conventions and to converge with International Standards on Auditing. Prepared by the Auditing Standards Committee, chaired by Mr. Robert N. Waxman. Principal drafters were Messrs. Neal B. Hitzig, Julian E. Jacoby, and Paul D. Warner.
• 5/29/09 - Comments to the AICPA and Canadian Institute of Chartered Accountants (CICA) on their exposure draft of generally accepted privacy principles designed to be used as an operational framework to manage privacy risks. Prepared by the Technology Assurance Committee, chaired by Mr. Bruce I. Sussman. Principal drafters were Messrs. Yigal Rechtman and Bruce I. Sussman.
• 5/27/09 - Response to the NYS IAC request that constituents provide comments on five questions pertaining to the impact of FASB Statement No.158 to consolidated fiscal report providers. Prepared by the Not-for-Profit Organizations Committee, chaired by Mr. Mr. Derek Flanagan. Principal drafters were Mr. Ian J. Benjamin, Mr. Allen L. Fetterman, Mr. Derek Flanagan, Mr. Howard Lorch, Ms. Beatrix McKane, Mr. Brian O’Reilly, and Mr. David Rottkamp.
• 5/19/09 - Comments on an exposure draft of a proposed statement on auditing standards on consideration of fraud in a financial statement audit. This proposed SAS represents the redrafting of SAS No. 99 to apply the Auditing Standards Board’s clarity drafting conventions and to converge with International Standards on Auditing. Prepared by the Auditing Standards Committee, chaired by Mr. Robert N. Waxman. Principal drafters were Mr. Robert W. Berliner, Ms. Sharon M. Campbell, Mr. Vincent Gaudiuso, Mr. Mark Springer, and Ms. Anna Zubets.

a. Nominating Process Update

Mr. Falbo reported that 15 valid petitions had been filed for the nine member-nominated positions on the nominating committee. As a result an election would be held. In addition, the Board will designate the final two members to the nominating committee at its September meeting. Mr. Falbo noted that there was a good cross-section of candidates.

b. Financial Statements for One Month Ended June 30, 2009

Mr. Falbo then requested that the presentment of the June 2009 financial statements be left for a future meeting. After some discussion, it was agreed to postpone the report of the June 2009 financial statements to a future date. .

a. Legislative and Regulatory Update

Mr. Grumet stated that the New York State Board of Regents adopted emergency regulations at its June 23 meeting to implement the state’s accountancy reform law by its July 26 effective date. The new regulations revise CPE, firm registration, education, use of title, competency and experience requirements for licensure. They also provide new rules for commission or fee collecting, cross-border practice and, for the first time in the state’s history, define the skills and competencies of the CPA license holder. Any CPA who performs the skills and competencies as defined in the new regulations must register with the State Education Department and earn continuing professional education credits. Mr. Grumet stated that a new major regulation would require 1,000 hours over five years to sign off on an audit. .He added that emergency quality review regulations were not yet fully completed. Mr. Moynihan stated that mobility issues and enhanced peer review standards, were points of contention with the AICPA.

b. Association Management System Update

Mr. Schmelkin provided an update on the implementation of the new Aptify association management system. He explained that a number of specific system terms are used differently in the Society’s current system and Aptify’s. Until these differences were reconciled, staff experienced some problems in identifying a number of features that required customized modifications from the baseline features in the “off the shelf” Aptify application.

Mr. Schmelkin explained that a version of the new system was already installed and was in a testing environment on a dedicated server, in the Society’s Computer room, and that Aptify system technicians from several places in the US and Toronto, Canada were already were using PC Connect to interact with the test system. Mr. Schmelkin explained that creating proper data mapping was critical to project success and currently occupies a good deal of NYSSCPA staff time.

Mr. Schmelkin reminded Executive Committee members that the New Jersey Society had recently completed their conversion to Aptify, which was running since May and that the Ohio Society had just started its implementation process a month before New York.

Mr. Schmelkin concluded by stating that vendor support had also been helpful.

c. Dues Update

Mr. Grumet reported on the status of membership dues and indicated that receipts were only 2% behind the same time period last year. He noted that such a small discrepancy was a good membership sign considering the current state of the economy.

d. FAE/Benevolent Fund Proposed Merger

The matter was deferred to a future meeting.

e. Review of NYSSCPA Administrative Procedures

Mr. Grumet stated that negotiations were stalled with the landlord over increasing the NYSCCPA’s office space. Mr. Grumet stated the landlord was being unrealistic considering the current real estate glut in New York. As a result, negotiations have come to a halt. The current lease expires in August 2013 .

Mr. Moynihan moved to adjourn the meeting for a break. Mr. Lesser seconded the motion. The motion passed unanimously without abstention.

Mr. Falbo moved to enter into executive session and Mr. Meinberg seconded the motion. The motion passed and the committee entered into executive session.

An Executive Session was held. No resolutions resulted.

Following the executive session, Ms. Wood moved to adjourn the meeting and Mr. Adair seconded the motion. The motion passed unanimously and the meeting adjourned at 2:45 p.m.