Minutes
0)
Call to Order
President Newman-Limata called the meeting to order at 10:06
a.m.
1)
Approval of Minutes
President
Newman-Limata called for a discussion of the minutes of
the meeting held on September 20, 2002. Ms. Golden asked
that the minutes be corrected to reflect that her title
is President-elect. President Newman-Limata asked that the
last paragraph on the third page of the minutes be edited
to reflect that she requested a study be done to analyze
the overall cost of the POP program. Ms. Golden moved and
Ms. Doran seconded a motion to approve the minutes as corrected.
Following discussion, the motion was unanimously approved
with the corrections noted.
2)
Review of FAE Operations
President
Newman-Limata asked staff to give a report on FAE operations.
a)
Financial Statements and Variance Analysis
Mr.
Schmelkin and Ms. Chambers reported on the financial statements,
noting that FAE is about 20 percent ahead of last year for
the six-month period ending November 30, 2002. Mr. Schmelkin
noted higher attendance figures for the summer events than
for the same period last year. FAE is reporting lower expenses
of $371, 000 compared to the prior year, with allocated
expenses decreasing by about $347,000 and direct expenses
decreasing by about $25,000. FAE this year offered fewer
programs, so there was a resulting decrease in fixed costs.
Ms.
Chambers noted that FAE had a remarkable turnaround and
was about $1 million ahead of last year, pointing out that
last year’s loss was $1.4 million. Because of the
greatly improved cash position, FAE returned $341,000 of
the interfund account balance to the Society. Ms. Chambers
also pointed out that this is the first year that FAE was
budgeted on a line-by-line and program-by-program basis,
which she expects to result in more accurate budgeting for
next year.
President
Newman-Limata asked if FAE had figures on the number of
chapter members attending chapter conferences that also
attend other FAE programs. Mr. Schmelkin said FAE had figures
on members who took full-day courses, but had no figures
for short courses. Mr. Schmelkin said he would have statistics
on every full-day event for the next Trustee’s meeting.
b)
Attendance Figures for the Period September through November,
2002
Mr.
Schmelkin reported that 3,100 registrants signed up for
courses in the second quarter this year, reflecting more
than a 20 percent increase in enrollment compared to 2,550
for the preceding year’s second quarter. Fewer course
cancellations affected 299 registrants, compared to 533
the year before. Mr. Schmelkin attributed this decrease
in cancellations, in part, to FAE offering fewer course
choices, focusing on offering popular courses rather than
marginal courses. However, he warned that if FAE continues
to ignore marginal courses, outside vendors may enter the
market and offer these courses instead.
Ms.
Golden recommended that an “anticipated cancellations”
line be added to the budget.
c)
POP Program sales as of November 30, 2002
Mr.
Schmelkin reported that the POP discount program, the “early
bird discount”, had helped fuel increased POP sales,
which from September to November, 2002, equaled 335 booklets
for total POP sales of $459,000, compared with the entire
prior year’s POP sales of 585 books totaling $823,000.
3)
Pricing Model for Chapter CPE Events
The
Trustees considered a proposal to allow flat-rate pricing
of chapter CPE events or to continue the current per registrant
pricing. A discussion ensued, during which the Trustees
asked staff to determine the true minimum cost of developing
chapter events. Chapters would be presented with a choice
of paying the minimum cost to FAE and running all other
aspects of the event themselves. Chapters that lack the
time or prefer FAE to develop and run an entire course would
have the option to pay a full rate. The trustees asked that
pricing be presented in three tiers: courses with attendance
of 50 or below, between 51 and 100, and above 100 attendees;
or at different natural breakpoints based on actual course
registration patterns.
4)
Planning for 2003-2004
a)
Review of Education Section of NYSCPA Strategic Plan
The
Trustees reviewed the education portion of the NYSSCPA Strategic
Plan and revised the statements under the Objectives. The
first bullet of Objective (1)(e) was edited to read: “Provide
the most current information in the auditing, attestation,
and accounting field.” The third bullet was edited
to read: “Provide the most current information in
consulting advisory services.” An extra bullet statement
was added: “Provide the Most Current information for
practice management including peer review.” With these
changes the Trustees approved the Strategic Plan’s
Education Section by consensus.
b)
Suffolk – 2003 Young CPA Symposium
Ms.
Golden reported that the Young CPA Symposium, held this
year in Syracuse was well received and that Rockland and
Suffolk had both lobbied to hold the Young CPA event in
their respective chapters for 2003. A compromise was reached
where Suffolk would host the event on July 24-25, 2003,
and Rockland would host the event in 2004.
c)
“FAE University”
Mr.
Hoops reported that an idea for a multi-day FAE CPE conference
was discussed at this year’s NYSSCPA officer chapter
visitations. Like multi-day programs held in the past, the
“FAE University” would be held in an academic
setting and run three parallel tracts, 24 CPE hours in accounting,
24 hours in auditing, and 24 hours in taxation. Three separate
venues – Syracuse, New Paltz, Long Island –are
presently being planned for the Summer 2003 programs so
members throughout the state can be served with the program.
d)
Chapter Representatives Meeting
Mr.
Schmelkin reported that a meeting with chapter educational
representatives would be held on Friday, December 20 at
the Desmond Hotel in Albany. The meeting would be conducted
so FAE has a better sense of the venues, type of programs,
and courses for the 2003-04 FAE season. Mr. Schmelkin noted
that this meeting would also be an opportunity for chapters
to highlight what they like about FAE programs and to discuss
other education issues. The meeting would also be an opportunity
for FAE to find new instructors and hotel locations that
FAE can use in the future.
e)
Course Calendar and Budget
i.
Preliminary Efforts – Mr. Schmelkin reported that
FAE staff is putting together a course calendar for the
2003-04 season. He estimated 350 seminars during the summer
and approximately 150 days for next fall.
ii. Timetable and target dates – Dates for future
courses are currently being examined.
iii. Preparations for Finance Committee meetings January
17 and January 24 – Mr. Schmelkin noted that a proposed
budget for 2003-04 will be ready and sent to the Trustees
at least one week before the next FAE meeting.
5)
Sponsorship of FAE Events
Citing
an inability to attract quality speakers because little
or no honoraria is offered, the Entertainment and Sports
Committee submitted a proposal for sponsorships of the committee’s
annual conference. The money gathered from sponsors would
be used to pay outside speakers. The sponsorships proposed
would include (i) title sponsors with keynote speaker, (ii)
supporting sponsors for the luncheon with a luncheon speaker,
(iii) supporting sponsors for the cocktail reception, and
(iv) other supporting sponsors. Under the proposal, each
sponsor would be provided with a mailing list, get their
name in the conference brochure, and would be allowed to
display signage at the conference.
Mr. Riley moved to modify the sponsorship proposal to make
it a one-step procedure for cocktail reception sponsorships
only. Ms. Fierstein seconded. Following discussion, the
Trustees unanimously approved the motion.
The
Trustees removed the mailing list provision from the proposal.
The Trustees were also concerned with allowing sponsors
of conference content which might allow the perception that
FAE supports these sponsors. Credit to organizations’
“hosting” food was acceptable, but credit to
sponsors for content was not. The Trustees also changed
the term “sponsor” and “sponsoring”
to “host” and “hosting”.
6)
Status Report on In-Firm Training and Course Development
and Pricing Model
After
introducing Monte Kaplan, the manager of in-firm CPE sales,
Mr. Schmelkin presented the proposed in-firm pricing structure,
listing prices for various group sizes using different lecturers
and compared the prices to those charged by the AICPA for
in-firm courses. The Trustees adjusted the proposed prices
to remain competitive with the AICPA’s pricing structure
and approved the revised pricing model by consensus.
7)
Conflict of Interest Policy
Mr.
Woehlke briefed the committee on the progress of the conflict-of-interest
task force. The task force held an introductory telephone
call then met on November 18. NYSSCPA staff is presently
drafting a revised policy based on that meeting. According
to President Newman-Limata, a member of the task force,
it is looking at setting up policies for officers and Board
members (including chapter officers), NYSSCPA and FAE employees,
and committee chairs.
8)
Technology Task Force Update
The
Trustees discussed CD-ROM and Webcast courses and considered
working with vendors in producing these products. Suggested
uses for these products include in-firm training and ethics
courses for Society members who work or reside in other
states.
9)
Next Meeting – January 15, 2003
The
Trustees scheduled their next meeting for January 15, 2003,
at 9:00 a.m. (Subsequently, the meeting was changed to January
14, 2003 at 10:00 and notice duly sent out via email.)
10)
Other Matters
Scholarship
Program – Ms. Golden moved and Ms. Doran seconded
that, due to lower investments stemming from the current
state of the economy, the scholarship fund can use some
of the principal invested to fund the scholarship during
lean years to continue providing about 40 scholarships per
year. The motion passed unanimously.
11)
Executive Session
The
Trustees entered executive session.
12)
Adjournment
President
Newman-Limata asked if there was any further business to
be addressed at the meeting. There being none, the meeting
adjourned at 2:45 p.m.
Respectfully
submitted,
Jeffrey R. Hoops
Secretary
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