0) Call to Order

President Golden called the meeting to order at 3:06.pm.

1) Review of Financial Statements

Ms. Chambers briefed the committee on details of the financial statements for the period ending October 31, 2003. Cash equivalents were $3.7 million, which was noted to be $700K over last year and $1 million over the year before. Revenue was $48K less than budgeted because, while realized and unrealized gain was $33K, only $5,000 was received from chapter CPE revenue, compared to the $42K budgeted, and rental income was down $43K from the budgeted figures because of the loss of several customers. Total expenses were under budget for each of the three goals. The total expenses of the Advocacy Goal were under budget by $86K, and the total expenses of the Professional Competency Goal were under budget by $316K.

2) Discussion of Scholarship Fund – Benevolent Fund

Ms. Golden briefed the committee on the current benevolent fund proposal to change its purpose to provide scholarships and made the proposal that FAE transfer the funds in its Scholarship Fund to the new organization so scholarships can be more effectively administered by one organization dedicated to that purpose.

Mr. Riley raised concern over transferring assets to an unrelated non-profit entity, not under the control of the Trustees. Mr. Riley moved and Ms. Persoff seconded that FAE investigate how to best transfer the assets of its scholarship fund to continue its benefit and insulate FAE from liability. The motion passed unanimously.

3) Course Development for 2004-05

a. Industry Topics

Mr. Schmelkin updated the Trustees on the course development in Industry topics. Citing the feeling that FAE has not done enough to serve the industry members, and the pending legislation in Albany that may require CPAs in industry to take CPE, Mr. Schmelkin said there is additional impetus to take a look at industry curriculum for this year. Since Ms. Fierstein and Mr. Strangis were not in attendance, Mr. Kaplan briefed the Trustees on the work of the committee on CPE curriculum for industry. The committee identified four basic areas: Personal Attributes, Leadership Qualities, Broad Business Perspective, and Functional Specialties. Mr. Schmelkin informed the Trustees that based on the areas identified by the committee, FAE is developing courses in these four competency areas.

Mr. Schmelkin also noted that the successful September SEC conference sold out at 255 people, about 100 ahead of budget. . Mr. Schmelkin predicted that based on the strength of the conference, along with a favorable variance as of August 31, 2003, that FAE is positioned well for the balance of the year.

b. Other Topic – FAE Office Move

Ms. Golden noted that the NYSSCPA Board of Directors has voted to move NYSSCPA’s offices in 2004 to a new location. Mr. Riley moved, Mr. Hoops seconded that FAE relocate its offices to the same site. The motion passed unanimously.

Mr. Grumet update the Trustees that the location at the top of the list being considered is at 34th Street and Park Avenue, and that FAE should be settled in its new office space by the start of the 2004 summer CPE season.

4) FAE Support for Chapter CPE Events

Mr. Schmelkin informed the committee that certain chapters have contracted directly with some commercial CPE providers and speakers who go through firms in the chapter areas to offer non-FAE, non-chapter CPE courses. Mr. Schmelkin is concerned about selective cherry-picking of FAE’s statewide market, creating significant disparate pricing between FAE and the chapters. He urged the Trustees to take a stand that chapter’s cannot have outside commercial vendors. Thee Board agreed with the position and directed Mr. Schmelkin to develop a written policy for FAE on the subject, which the Trustees will examine and vote upon.