0) Call to Order

President Golden called the meeting to order at 2:06 p.m.

1) Approval of
Minutes

President Golden entertained a motion to approve the minutes for the meeting held on August 20, 2003. Mr. Kearney moved and Ms. Fierstein seconded a motion to approve the minutes as written. The motion was unanimously approved.  

2) Update on FAE Operations

a. Financial Report for Three Months Ending on August 31, 2003

Ms. Chambers briefed the committee on details of the financial statements for the three months ending August 31, 2003. She noted that FAE’s professional competency goal expenses are under budget by $164,000. Year-to-date, revenue is about $75,000 lower than last year, reflecting several changes, including a slower rate of recognition of dues revenue, unrealized investment income shows a slight gain this year producing a variance from last year’s losses, and $225,000 deferred POP revenue was recognized in last month compared to $160,000 the year before.

Mr. Grumet raised the subject of the benevolent fund, which has been stagnant over the past year. Mr. Grumet suggested that the Society ask the Courts to allow NYSSCPA to move the money from the benevolent fund to a COAP scholarship fund. The trustees discussed setting up a COAP scholarship committee chaired by a Trustee. Ms.Golden and Mr. Hoops said they would have FAE and NYSSCPA meet to discuss how to structure this committee. The Trustees approved this action by unanimous consent.

b. FAE Attendance Statistics

Mr. Schmelkin updated the Trustees on the attendance figures. Attendance is up despite a drop in the number of seminars provided. Mr. Schmelkin attributed this trend in part to decreased POP pass utilization - down to 30% from 40% a year ago.

Mr. Schmelkin also noted that the successful September SEC conference sold out at 255 people, which equated to about 100 ahead of budgeted figures. 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.

3) Task Force on Subject Matter for Members in Industry

Ms. Fierstein briefed the Trustees on the activities of the task force for industry. The task force has had two conference calls and are examining all courses offered today for possible interest to industry members.

The task force has identified four areas of importance where courses can be offered to industry members:

1) personal attributes
2) leadership qualities
3) broad business perspectives
4) functional specialties, customized for each industry type

4) Schedule of Future Meeting Dates

The Trustees discussed and reviewed the schedule of future FAE meeting dates, noting that the January 13, 2004, meeting will be the budget meeting.

Ms. Golden reported that NYSSCPA contacted the school boards after their meeting with Schools Chancellor Bennett on the idea of NYSSCPA and FAE assisting school districts with audits. While the school boards did not seem interested, NYSSCPA told the Regents that NYSSCPA is willing to move ahead and do it alone, prompting Dan Dustin of the SED to request a meeting in Albany, NY.

b) Sarbanes-Oxley Public Education.

Ms. Golden reported that she is working with Mr. Colson on developing an educational program on Sarbanes-Oxley for the public.

c) NY State Auditing Discussions

The Trustees discussed New York Attorney General Elliot Spitzers proposal to require CPAs auditing non-public companies to have to sign off on financial statements.

d) $25 Coupon to Attendees of SEC Conference

Mr. Schmelkin reported that he was considering offering $25 coupons to the attendees of the sold out SEC conference because of issues with the quality of the facility where the conference took place. The Trustees agreed by consent to provide $25 coupons to attendees of the September, 2003, SEC conference, as a thank you for attending the event and an apology for any inconvenience.

e) Moving Expenses

The Trustees discussed the anticipated move of FAE offices and classrooms in February, 2004, and whether money has been allocated in the FAE budget. Ms. Chambers noted that NYSSCPA has a restricted fund established for the purpose of moving and where $16,666 is placed each month. Ms. Chambers noted that NYSSCPA owns all the equipment that would be moved and is the tenant on the lease. About 20% of office expenses are allocated to FAE.

Ms. Golden also asked whether FAE as a 501(c)(3) should purchase its own equipment and office supplies and if FAE should lease a portion of the new space, whether this could help decrease real estate tax. Mr. Grumet said he would pose this question to the Real Estate Task Force, chaired by former Society President Steven Baum.