Call
to Order
A quorum being present, the meeting
was called to order at 9:00 a.m.
Review
Meeting Minutes
The committee members reviewed the
minutes of the January 20, 2006 meeting. The minutes
were approved as corrected.
Review
of Budget
Chair
Grusd commented that the pie charts and an index had
been asked to be added to the Fiscal Year 2007 Budget
and that he would prepare a highlight report on the
budget to be presented to the Executive Committee
and Board of Directors.
Chair
Grusd noted that the $ 13,000 deficit in the consolidated
unrestricted funds was essentially a balanced budget
and the Society’s budgeted $ 491,000 contribution
to FAE was less than that of the 2005-2006 budget.
As to cash flows, even though the budget balance sheet
was not prepared, it appeared that from the 2006-2007
budget the Society would be able to generate enough
cash to cover the capital budget.
Chair
Grusd commented that the net assets as of June 1,
2006 would be of interest to the Board. Also, the
two new Strategic Plan Goals (Public Trust and Recruiting
& Retention) were mainly reallocation and refocus
of existing Strategic Plan Goals. The initiative on
Public Awareness Program was not included in the budget.
Mr. Grumet confirmed that it would be postponed to
the second year of the 3-year cycle.
Chair
Grusd turned to comment on the Combined Budget Narrative.
He suggested that the narrative be cross-referenced
to the budget especially for the new space and staff
positions. As to presentation of the budget, Chair
Grusd questioned if it was advisable to revise the
2005-2006 budget for comparison purposes. Mr. Grumet
responded that the operations were on budget except
in filling out open positions.
Chair
Grusd suggested carving out the Society’s contribution
to FAE from the Contribution expense line item in
page 1 of the budget. Mr. Grumet answered that the
staff would create a graph showing historic and budgeted
contributions to FAE. Chair Grusd added that pie charts
could be used as good overview tools. Mr. Bronstein
and Ms. Piazza agreed.
Chair
Grusd further recommended moving the budgets columns
from the right to the left in the order of fiscal
year 2007, 2006 and 2005. He asked the other members
if it was advisable to keep the year-to-date actual
figures to the right of the budget columns. Mr. Bronstein
agreed to keep the actual figures but suggested adding
a remaining/unused budget column. Chair Grusd stated
that by the time the revised budget to be presented
to the Board in April 2006, the year-to-date would
be updated to show the latest available figures.
Chair
Grusd asked Mr. Cheung about the components of budgeted
Deferred Rent and to include a footnote on the budgeted
increase in salaries, especially the average percentage
raise compared to the market. Mr. Cheung answered
that Deferred Rent was the excess of rental expense
per GAAP over actual rental payments per contract.
A footnote on salary expense would be added. Mr. Bronstein
added that an organization chart would also be helpful
to the reader of the budget.
Chair
Grusd continued to review the CPA Journal budget and
noted that the 2005-2006 advertising revenue was over-budgeted
and that the 2006-2007 display ad revenue at $650,000
was more realistic. As to Governance, he requested
to add a footnote on the $50,000 investment income
and on total expenses for each Strategic Plan Goal.
As to Chapters, Chair Grusd suggested that the number
of chapter members be added to the detailed chapter
budget.
Turning
back to the Combined Budget Narrative, the committee
members further suggested a few changes including
clarifying the subtitle, revising format and adding
cross-reference to the budget.
Finally
Chair Grusd motioned to adopt the budget subject to
the format and editorial changes. It was unanimously
approved.
Chair
Grusd concluded that he would send the highlight report
to Mr. Cheung next Monday so that the budget could
be distributed to the Executive Committee one week
in advance of the February 7, 2006 meeting.
Adjournment
There being no further business, the
meeting adjourned at approximately 10:00 a.m.
Respectfully
submitted,
Adam
Cheung
Approved by the Finance Committee
5/25/2006.
