NYSSCPA Governance

Minutes

Call to Order	President Maier called the meeting to order at 9:04am
1) Minutes	Mr. Bloom made a motion to approve the Minutes of the November 20, 2007 Meeting of the FAE Board. Ms. Burstein seconded the motion. Mr. Hendler made a motion to amend the minutes as he noted several mistakes which were corrected.
2) Financial Statements for five month period ended 10/31/07	Mr. Schmelkin reported that the October 31, 2007 results were excellent and that FAE is experiencing another very good year, on pace to exceed the exceptional performance of FY 2007. Mr. Maier asked why the financials looked so good. Mr. Grumet stated that FAE ran more AICPA programs. Mr. Schmelkin added that the AICPA has reclaimed it’s position as the eminent supplier of CPE and quality programs. Mr. Grumet went on to add that we have upgraded our own conferences with regard to staff and innovative ideas. Mr. Banerjee added that course revenue is the largest source of FAE revenue. Mr. Schmelkin noted that we have 5-6 conferences scheduled for January 2008 and the December Exempt Organizations Conference is up to 250 registrants, up from 100 just 2 years ago. Mr. Schmelkin cautioned that the SEC Conference could problematic securing speakers and materials. Mr. Grumet stated that at some big conference committees utilize the same speakers from year to year and this becomes tiresome. Mr. Kiamie added that it is tough getting new blood. Mr. Kiamie went on to discuss Chapter conferences content asking if the material is always acceptable by FAE standards. Mr. Schmelkin stated that we work with Mr. Pape and his chapter staff to review Conference Materials to ensure they address the subject areas stipulated in the announcement brochures. Chapter members have the obligation to perform any quality review. Mr. Schmelkin stated that staff works on compliance regarding evaluations, biographies and outlines, but stressed that they not involved in the preparation of outlines. Mr. Grumet added that we “almost” always say yes to the chapters. If a Chapter conference does poorly, the Society will send money to cover the chapter’s meeting expenses. Mr. Schmelkin added that all chapters are now required to have contracts for each event signed by Mr. Grumet after legal department review. Previously each Chapter Treasurer or the program chair would sign, often as individuals, with the concurrent liability. Mr. Maier asked about trade shows. Mr. Grumet was not sure if FAE could run any successful events beyond the current Show planned for May 2008. He said that in the he budget presentation which would follow, there was no provision for a show.
3) Budget for Fiscal year 6/1/08 – 5/31/09	Mr. Banerjee stated that budgeted total gross profit for fiscal year ending May 31, 2009 is $2,614,000 including $1,720,000 from seminars and conferences. Mr. Schmelkin added there is a there is a decline in FAE originated programs due to a natural ‘life cycle” of some programs. Mr. Banerjee added that based on revenue of $70,000 for in-firm training through November 2008 budgeted gross profit is $150,000 for FY2009 with conference gross profit at $794,000 ($819,000 – 25,000 expenses). Unexpired POP coupon revenue of $141,000 is a conservative figure. Mr. Jaffee brought up the idea of registering for 5 programs and printing out an invoice which is submitted to the finance department and a check sent directly to FAE with no credit card involved. Mr. Jaffee also noted that the FAE budget for staff education seemed low. Mr. Schmelkin explained that was only for those certain few people that work directly on FAE programs, not the larger Society staff. Mr. Grumet noted that the residential COAP program seemed to be working for Pace University but not as well for Hofstra University, where there are ongoing discussions about payment for the dorm space for Summer, 2008. Mr. Maier made a motion to adopt the budget. Mr. Jaffee seconded the motion which was approved by the Board with none opposed.
4) Sponsorships and Exhibitor Fees:	Ms. Barry asked Ms. Vikram, marketing manager to walk thru the present sponsorship/exhibit packages: Resource Desk $350 we showcase the vendors product though literature handout; Staffed Exhibition Table $950 and Cocktail Reception $2,850 (plus a per person refreshment charge). Ms. Vikram further reviewed revenues from each category from June 2006 until December 2007 and introduced two ideas: increase pricing for each sponsorship package; $150 across the board and revamping the existing packages: Diamond $5,000 (exhibit table sponsorship premium); Gold $3,000 (cocktail reception sponsorship + per person refreshment charge); Silver $2,000 (luncheon sponsorship + per person cost of food) and Bronze $1,000 (breakfast sponsorship +per person cost of food and finally, a Keynote Speaker Sponsorship $600 + speaker fee. Mr. Jaffee suggested doing more research before increasing sponsorship fees. Mr. Maier mirrored Mr. Jaffee comments and asked to hear about the final set of changes once staff had them completed. Joanne confirmed that she just wanted to make the Trustees aware of current and planned pricing programs.
5) Merger of NYSSCPA Benevolent Fund and FAE:	Mr. Woehlke discussed the six page plan merger which the FAE Trustees approved in July 2004. In September 2007 the last pieces were in place following a vote at the Board of Directors’ meeting. Mr. Jaffee added that the article needed to be amended. Mr. Woehlke added the Board of the Benevolent Fund includes the current NYSSCPA president and the past four presidents. Mr. Jaffee suggested that the merger should be announced in some AICPA publication. Mr. Woehlke remarked that publishing in the Society’s Trusted Professional would be preferable. Mr. Hendler cautioned that there might be some complaints from a small number of Society members. Mr. Woehlke added the Fund could not be used to pay for needy accountants dues. Mr. Jaffee made a motion to approve the proposed plan of merger with the President to make small changes. The motion was seconded by Mr. Bloom and approved by the FAE Trustees.
6) Update on COAP and Scholarships:	Mr. Pape reported on the annual survey of COAP participants which is done annually. The data collected contained the following results: 1897 students have participated since 1987. Mr. Pape stated that 134 students were going on to college. The survey went on and asked participants some open ended questions, the answers to which were very positive and included testimonials from participants. Mr. Pape highlighted that 4-6 students were listed in the CPA Journal. Mr. Maier added that an article should be written in the Trusted Professional.
7) CPE Survey:	Mr. Schmelkin reported that the survey produced a ten (10) percent return among member and non-member participants which the Board found acceptable. Mr. Schmelkin went on to state that the final touches ie: open interviews were being conducted and a final report should be available after the New Year.
8) Future Meetings:	Mr. Schmelkin reported that the Finance Committee set dates for January 10, 2008 and January 24, 2008 and the Trustees do not need to meet between the first and second meeting since the 2008-09 budget was approved today. The FAE Board can decide in January about meeting. Mr. Jaffee made a motion to approve if changes resulted in less than a 10 percent adjustment of the anticipated contribution from the NYSSCPA. which President Maier could approve. All members seconded and all members voted in favor.
9) Other Matters:	At Peter Maier’s request, Alan Schmelkin reviewed the history of the 2007 Educators’ Conference. He explained how Ms. Wightman, Chair of the Higher Education Committee, originally approached him about holding a networking meeting for education members which would be very different from traditional CPE events sponsored by FAE. The Committee members would inviting others to attend as long as they breakeven managed a break even result with lower registration fees. Mr. Schmelkin agreed as long as they covered all program expenses including laptops and projectors, speakers’ expenses, meals, materials, etc. As it turned out, the Committee held a meeting the morning of the second day, so all attendees got their transportation paid for by the Society under the Committee reimbursement policy which was not contemplated at the time the program discussions took place. Mr. Jaffeee suggested that further discussion on chapters and conferences would be helpful at a future meeting. President Maier thanked Mr. Schmelkin.
10) Other Topics:	President Maier opened up a discussion on Governance Procedures and establishing them for FAE Board members. Mr. suggested setting up a Governance sub committee and going to the NYSSCPA website on governance. Mr. Woehlke added that on December 7, a Code of Conduct was approved with penalties if not followed. The Code of Conduct includes a memo from the Governance Committee to the Society Board regarding responsibilities incorporated by state law. President Maier recommended a proposed document to pursue a conduct or governance committee to give consideration to this code of conduct of society, which Mr. Bloom will prepare for consideration at the April 2008 meeting. Mr. Bloom suggested looking at the document and Mr. Jaffee asked all to familiarize themselves with the code and come back to it. Mr. Hendler reported on deliberations of the Audit Committee and stated that four firms to be auditors of the State Society. Mr. Hendler noted that two firms had been interviewed on November 30, 2007 and on December 7, 2007 Loeb & Troper was selected to be proposed to the NYSSCPA Board to serve as Auditors for the fiscal year ended May 31, 2008. The same auditors would serve for FAE as for the State Society.
11) Other Matters:	The next meeting of the Society Board is scheduled for April 2, 2008 at 9:00. FAE Trustees considered the following members to serve on the FAE Nominating Committee: Ms. Burstein, Mr. Martin and Mr. Jaffee.
12) Adjourn:	With no other issues, Mr. Kiamie made a motion to adjourn and Mr. Hendler seconded the motion. President Maier adjourned the meeting at 12:15pm

Respectfully submitted,

Scott J. Jaffee, FAE Secretary