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Receivables from KPMG
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Ms.
Kinsella called upon Mr. Woehlke to provide background
on two $10,000 FAE receivables incurred in connection
with advertisements in the 2005 and 2006 COAP journals,
which had been distributed to attendees of the NYSSCPA
Annual Election Dinners held in May of those years.
Mr. Woehlke said that the ads had been taken out at
the instruction of Stephen Langowski, the NYSSCPA President-elect
in 2005 and President in 2006, but despite repeated
staff efforts to collect payment, payment had not been
forthcoming. He said that due to age, Mr. Grumet decided
to write off the receivable during the course of the
2005-2006, consolidated audit of FAE and the NYSSCPA,
rather than continue to show them as FAE assets.
A
discussion ensued regarding staff’s efforts to
collect the outstanding balance and KPMG’s responses
to those efforts. Ms. Kinsella noted that most recently,
a letter was sent to KPMG’s managing partner signed
by her as FAE President and by Thomas Riley as NYSSCPA
President. She said that staff believed the debt would
not be collected and was requesting that FAE ratify
the decision to write off the receivable. She added
that collection efforts would continue, however, in
the hope that payment might eventually be made.
Mr.
Jaffee moved to ratify the decision to write off the
two $10,000 FAE receivables from KPMG, and Mr. Maier
seconded the motion. The motion passed. Mr. Bloom abstained.
Mr. Martin did not participate in the vote.
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2) POP Year in Review (9/1/2005 - 8/31/2006);
Continuation of the POP Program and Pricing for the
2006-2007 Year
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Mr.
Kinsella asked Mr. Schmelkin to provide a summary of
the 2005-2006 POP program year.
Mr.
Schmelkin referred the Trustees to a memorandum prepared
regarding the POP program, which was distributed in
advance of the meeting. He noted that an analysis of
POP usage patterns by firms during the 2005-2006 year
indicated that 69% of firms used all ten POP coupons
and 10% used nine out of ten. With respect to individual
usage during the same period, 23% used all ten while
33% clustered their usage at five to six coupons. Mr.
Schmelkin reported that the high usage pattern at nine
to ten coupons among firms suggested not only a strong
recognition of POP value and savings, but also a relatively
high likelihood that firms would accept a price increase.
With respect to individuals, Mr. Schmelkin observed
that the high usage cluster of 33% at five and six coupons
indicated that individuals would be receptive to a price
amount close to the real cost of five days of CPE, currently
$1,500. Based on this analysis, Mr. Schmelkin recommended
that the Trustees consider a POP price of $2,350 for
firms and $1,350 for individuals, which were increases
from the prior year’s POP pricing of $1,995 and
$1,195 for firms and individuals, respectively. He suggested
that an “early bird” discount (currently
$100) apply to purchases made before November 30 of
the POP year, subject to Trustee approval of POP pricing
and discount amounts.
A
discussion ensued regarding the POP program, including
the fees assessed to POP pass holders who register for
but do not attend, or leave early from courses. A Trustee
asked if there had been any complaints concerning the
fees or a POP pass surcharge approved by the Trustees
last year for certain types of conferences. Mr. Schmelkin
responded that he had received no complaints regarding
either.
Mr.
Schmelkin then noted that the FAE budget for 2006-2007
had been based on the current POP pricing, adding that
no course revenue increases were incorporated into the
budget based on the price adjustments recently approved
by the FAE Board at the July meeting..
He
also noted that budgeted POP usage took into account
the fact that some POP holders were allowed in extraordinary
circumstances to use one or more otherwise-expired coupons
in the following POP program year. He said that such
discretionary exceptions were made by him on a case
by case basis, depending on the extraordinary circumstances
surrounding each request.
Mr.
Maier then moved to approve the continuation of the
FAE POP program during the 2006-2007 program year at
prices of $1,350 and $2,350 for individuals and firms,
respectively, while allowing a $100 discount for individuals
and firms who purchase their POP passes before November
30, 2006. Mr. Bloom seconded the motion. The motion
passed unanimously.
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