1) Call to Order

President Maier called the meeting to order at 9:09 am

An 11% response rate, while relatively low, yielded statistically significant results. A comparison of the demographic traits of respondents with overall Society population tracked proportionally across virtually all criteria. In response to President Maier asking for an opinion regarding the response rate Mr. Whorton stated that single-subject surveys tend to elicit responses from those who are most concerned with the issue or service in question. Therefore the results might be considered somewhat biased toward those who are more avid consumers of professional development and perhaps also toward those who value FAE education most highly. Mr. Whorton emphasized that aside from this important caveat, the overall findings have reasonably high levels of statistical significance, which is generally a function of total respondents rather than the response rate.

Mr. Whorton continued, noting that 79% of the respondents rated FAE good or excellent in the ability to provide quality professional development and education opportunities. In respect to networking opportunities, the numbers collapse indicating that content and quality of FAE programs are more important for respondents that socializing. Mr. Schmelkin added that across various state locations and different product lines, FAE scored high, indicating that networking is not a major priority at FAE events.

The biggest surprise, according to Mr. Schmelkin, was that in myriad details contained in more than 40 pages of survey results, 42% of respondents were unfamiliar with the POP program. Mr. Schmelkin’s speculation that some portion of those unfamiliar with POP would be respondents from larger accounting firms prompted agreement from Mr. Martin.

As Mr. Whorton continued his review of the survey, he reported the following:

• over the past year 64% attended accounting courses; 59% - taxation courses and; 48% - auditing courses , the three topics of greatest interest among attendees;
• individuals who do not attend FAE programs in a given year are more inclined to learn through reading and on-line, supporting the conclusion that FAE should consider diversified delivery methods to serve those individuals;
• most learn of FAE events through email, print catalog and on-line catalogs;
• the factors which most influence attendance decisions are relevance of topics to a CPA’s practice areas; convenience of the time of year; and location;
• holding a course in Manhattan will increase likelihood of attendance;
• most respondents generally prefer a full-day program, with half-day programs also viewed favorably. Multi-day programs are too long and programs under 2 hours too short for most individuals.

At this point, President Maier opened the floor to questions. Ms. Cohen asked about the length of on-line programs are. Mr. Kahn replied that they are shorter than most seminars, usually an hour or two, which seems appealing to those who select that from of delivery. Mr. Martin agreed. Ms. Cohen then asked if nonmembers are on FAE mailing lists. Mr. Schmelkin added that thousands of nonmembers are on our mailing lists.. Mr. Kiamie also stated that full-day programs are his preference but, AICPA multi-day programs have appeal to him because of the concurrent sessions.

Mr. Whorton stated that respondents to the survey feel that FAE has a well balanced program and good marketing efforts. He suggested that for the short run, FAE should review the POP “surprises” and distance learning alternatives. Mr. Kahn inquired about pod casts which Mr. Whorton added could be downloaded off website. Ms. Cohen added that this might lower direct participation at programs by younger members. Mr. Whorton countered that there is still a preference for being around others, face to face. Mr. Jaffee asked where people are going elsewhere for their educational needs. Mr. Schmelkin added that some of the other sources cited by respondents being used to satisfy their needs are in fact our vendors i.e.: Surgent McCoy and Nichols Mares CPE. Mr. Jaffee added that we should strengthen efforts to put our FAE brand on these types of events, with Mr. Whorton in agreement.

Mr. Maier encouraged FAE to do more research on distance learning regarding the advantages and if it’s a money maker. He added what are the results analogous to other state society programs. Mr. Schmelkin stated that we were the first and only state society, so far, doing this type of survey. Mr. Whorton added that most states (working with Virginia) are not doing these surveys but at best just program evaluations. Mr. Schmelkin stated that he will bring this up at the AICPA On-Site meeting at the end of February and ask if other state societies are doing surveys and, if so, should he share our results? This was approved by the Board. Mr. Maier added that results of the survey reinforce and validate that we are doing the right thing.

Ms. Cohen suggested that a number of comments reveal that the price is too high. Mr. Whorton explained that people will always complain about something but that doesn’t represent the vast majority. As long as FAE is doing things like POP and offering value and content where attendees can turn that education into more revenue FAE is on the right track. Mr. Schmelkin reminded the Board that beginning in June, 2008, there will be a new staff position to work with continuing on-line training. President Maier suggested that we look at pricing with other organizations; FAE vs. AICPA vs. NAA to get useful data.

The Board thanked Mr. Whorton for his work on the survey and for his presentation at the conference call meeting.

Mr. Schmelkin explained that the next meetings of the Board will take place on April 17, 2008 at 9:00 am at the Society offices and May 14, 2008 at 3:00 pm. He added that the May meeting will likely be by telephone. The FAE Board meeting on July 13, at The Annual Leadership Conference at the Turning Stone Resort will begin at 12:00 noon and end by 2:00 pm.

Mr. Banerjee stated that FAE is experiencing another good year and on pace to exceed the performance of FY 2007, with no contribution to FAE from the Society during the first six months of FY 2008 in keeping with the budget. November 2007 unrestricted net revenue of $188,180K represents a favorable variance to budget of $191,135; and a favorable variance to FY 2007 of $133,046. Course revenue, which represents the single largest source of FAE revenue, has a favorable variance to budget of $87,440 and a favorable variance to FY 2007 of $230,351. Mr. Banerjee added that FAE seminars had a favorable variance to budget of $57,000 and a favorable variance to FY 2007 of $87,000; AICPA has a favorable variance to budget of $53,000 and favorable variance to FY 2007 of $89,000. FAE Conferences showed a favorable variance to budget of $41,000 and a favorable variance to FY 2007 of $40,000 with other vendors showing unfavorable variance to budget of $51,000 and favorable variance to FY 2007 of $95,000. In-firm showed an unfavorable variance to budget of $15,000 and a favorable variance to FY 2007 of $13,000. Chapters showed a favorable variance to budget of $9,000 and an unfavorable variance to FY 2007 of $15,000. Cash and cash equivalents were $1,500,000 compared to $863,000 last fiscal year with investments (restricted) of $1,800,000 compared to $1,600,000 last fiscal year. Accounts payable of $110,000 compared to $186,000 in FY 2007 with accrued expenses of $242,000 compared to $83,000 in FY 2007. Mr. Bloom asked if $32,000 of United Nations (in-firm) is in the budget or not. Mr. Schmelkin stated the particular client was not in budget for repeat business but added that FAE is trying to get them back. Mr. Banerjee noted that this accounted for the largest part of in-firm sales. President Maier asked why we look better in unrestricted than last year. Mr. Banerjee noted that COAP ran a deficit from June –March 2007. President Maier suggested we look at COAP. Mr. Banerjee will send out updated financials. Ms. Cohen made a motion to approve the financial statements. Mr. Martin seconded the motion which was approved unanimously by the Board.

Mr. Martin made a motion to approve the minutes of December 18, 2007 meeting of the Board of Trustees. Mr. Bloom seconded the motion.

With no other issues, Mr. Jaffee made a motion to adjourn and Ms. Cohen seconded the motion. President Maier adjourned the meeting at 11:40 a.m.