NYSSCPA Governance

The meeting was called to order at 10:35 A.M. Attendees introduced themselves, and discussed their work with the Society. This was a joint meeting with the Foundation of Accounting Education’s Finance Committee, represented by Franco Strangis (by teleconference).

Review of Committee Action Plan

Arthur Bloom reviewed the Committee Action Plan (CAP) and reviewed items that were overseen by the previous committee including the internal audit review, the Department of Labor 401k audit, and the IRS review of the Society’s form 990.

October 31, 2004 Financial Statement Review

Mr. Bloom asked Lynn Chambers to discuss the following items:

Budget Process - Ms. Chambers explained the budget process, and discussed the need for a dues increase in the coming year. Louis Grumet reviewed organizational history with the committee, beginning with the financial state of the organization when he was hired, the increase in the number of FAE industry seminars being presented, and the additional issues of The Trusted Professional that will be published this year. The committee was also informed that FAE’s facility expenses have been greatly reduced in the current year because most conferences can now be held in-house. Mr. Grumet also discussed upgrading the organizations’ Great Plains accounting software.
Statement of Financial Position - Ms. Chambers reviewed this statement with the committee. She focused on the following areas: the increased number of FAE COAP programs, the positive cash position of the organization, the status of the rent security deposit being held by the previous landlord, and the cost of the leasehold improvements for the new offices. The committee asked about the interfund balance, and was told that the budget determines the Society’s underwriting of FAE’s expenses each year. There was also a discussion of a proposed formal contractual agreement between Society and FAE as well as the proposed merger of the Benevolent Fund into FAE.
Cash Flow Statement- Ms. Chambers then reviewed this statement, discussing the changes in Accounts Receivable, Interfund, Accounts Payable, Deferred Dues, and the purchase of Property and Equipment.
Strategic Goals Summary, Narrative, and Detail – Ms. Chambers reviewed the summary and the corresponding strategic goal data. She also discussed the narrative which is prepared by the directors each month as part of the financial statements. Patricia Wright asked about the additional conference space on the 19th floor. Mr. Grumet reviewed the process of the move from 530 Fifth Avenue to 3 Park Avenue, and how the new offices are being used. Ms. Chambers completed her review by discussing the timesheet system and the allocation of support department expenses.

Budgeting Process

Mr. Grumet presented a number of items that he wants to include in the new budget, including an additional Peer Review staff member and a small dues increase. Franco Strangis asked whether staff could be reduced to offset the additional Peer Review position. Mr. Grumet reviewed the staff reductions that have occurred during the past several years, and concluded that any further reductions in staff would hamper the effectiveness of the organization.

Investment Committee

Mr. Bloom discussed the Investment committee and its objectives. He asked for volunteers to join this sub-committee. Michael Bronstein, David Rosenzweig, and Ms. Wright volunteered to serve on this committee. A meeting will be scheduled in January.

Future Finance Committee Meetings

There will be meetings on Friday, January 14, 2005 and Friday, January 28, 2005 to review, discuss, and finalize the budget. Both meetings will be held at 9 AM at the Society’s offices.

There being no further business, a motion was made to adjourn the meeting that was unanimously approved at 12:05 PM

Respectfully submitted,
David Haar, NYSSCPA staff