The
meeting was called to order at 9:25 AM. Minutes from the
1/21/04 meeting were unanimously approved.
FAE
Proposed Budget
Alan
Schmelkin explained to the group that the proposed budget
includes 50 days of industry education, which is an initiative
requested by the FAE Trustees. The budget is prepared
in detail by seminar and by conference, and then rolled
up into the budget lines shown on the material received
by the committee. There was a question on why the speakers
travel budget line had decreased. Mr. Schmelkin replied
there were several reasons for the change. First, some
vendors no longer charge for separate travel expense,
but have increased their material costs to offset that
change. Second, the offerings by the AICPA have been budgeted
at only half the current year’s budget, and that
cut travel expense. Third, a new author of 50 days’
offerings is based in New York City, so there is little
travel cost associated with those seminars that he will
be producing. The committee asked about the details of
how the conference and seminar revenue was calculated.
Mr. Schmelkin answered that POP pass usage during the
current year is 33%, so the same percentage was used in
preparing the budget. Seminar prices were increased by
$20 in next year’s budget, which puts FAE in line
with other regional prices. There was a brief discussion
on the calculation of conference expenses. The committee
thanked Mr. Schmelkin for his budget clarification.
Review
of Proposed Strategic Goals Budget
There
was a discussion of how the sublease payments connected
with the Society’s new lease would affect the current
year’s forecasted results. Lynn Chambers replied
that the forecast did not include anything connected with
the lease because the closing date was uncertain. Ms.
Chambers said that GGK instructed that until the Society
moved into the new office space, all additional rent expense,
sublease payments, and rent offset payments should be
recognized as current activity. The committee asked Ms.
Chambers to email the deferred rent schedule to them.
Mr.
Bloom reported that a member had asked him whether the
Society could add a full time tax position in the new
budget. There was general discussion, and Lou Grumet replied
that additional resources from current staff have been
devoted to tax issues than in the past. Maryann Winters,
who oversees tax committees, agreed that no further staffing
is necessary.
Mr.
Bloom asked if there was any other discussion on the budget.
Mr. Grumet suggested two areas that could be cut, if necessary,
but the committee agreed that all initiatives should be
funded. There was a discussion about whether the Executive
Committee would approve a deficit budget. The committee
voted unanimously to accept the budget as presented.
Internal
Control Review
Mr.
Bloom opened a general discussion of the firms that would
be making presentations later in the meeting.
Representatives
from Reminik Aarons & Co., LLP, Loeb & Troper,
and McGladrey & Pullen, LLP each met with the committee
to present their proposals and answer questions.
After
the presentations, the committee discussed the presentations
and proposals. There was some question about how extensive
a review had been requested by the Board of Directors.
Mr. Bloom was asked to call the two finalists with some
questions, and report back to the committee during a phone
conference scheduled for the next day.
There
being no further business, a unanimous motion adjourned
the meeting at 2:00 PM.
Respectfully
submitted,
Lynn T. Chambers
