COCO to Sunset

COCO to Sunset
Executive Committee Consolidates Committee Operations

NEW YORK—A streamlined New York State Society of CPAs’ committee structure that will include the dissolution of a supervisory committee that has completed its mandate is set to take effect this summer.

The NYSSCPA’s Executive Committee voted to discontinue the Committee on Committee Operations (COCO) at its Feb. 10 meeting, which also included discussion of the Society’s opposition to proposed fee increases to the computer-based exam for CPA licensure, among other exam issues; the fundraising efforts for the Career Opportunities in the Accounting Profession (COAP) program; and the dates for this year’s Annual Leadership Conference.

Winding Down

In COCO’s place, the Society’s secretary will be responsible for periodically meeting with the five oversight committee chairs. The secretary, who served as COCO chair under NYSSCPA bylaws, will give a report on these meetings to the Executive Committee, which will also hear directly from the oversight chairs periodically.

The recommendation to terminate the oversight committee, effective June 1, actually came from COCO, based on findings of a special task force led by NYSSCPA director and COCO member Richard Piluso, as well as discussions with many COCO and non-COCO members. The task force and COCO felt that committee operations and objectives should be more closely tied to the Society’s strategic plan, which was implemented three years ago and incorporates three principal goals: professional competency, advocacy, and recognition and visibility for the CPA profession. To do this, COCO concluded that the committees should have direct access to the Executive Committee, rather than working through COCO.

With the strategic plan in mind, COCO also made a number of other suggestions to the Executive Committee, which the committee approved at its February meeting. Effective June 1, these recommendations include having the Peer Review Committee and the Professional Ethics Committee remain in the Operations Division but report to the Quality Enhancement Policy Committee; shifting the Mediation and Arbitration Committee from the Operations Division into the Consulting Services Division; dissolving the Furtherance Committee; and merging the Managing Partners Committee into the Large and Medium-Sized Firms Practice Management Committee.

For more information on the discontinuation of COCO and other actual and proposed changes to the Society’s committees, read the “Committee Bulletin” on page 2 by NYSSCPA Secretary Raymond M. Nowicki.

Computer-Based Exam Inquiry

During the meeting, Executive Committee members also discussed a letter recently sent by New York State Board for Public Accountancy Executive Secretary Dan Dustin to the American Institute of CPAs, which issues the CPA exam. The letter expresses concern over proposed fee increases for the computer-based licensing exam and other problem areas, including quality control and difficulties with the testing hardware.

While the Society supports the action taken by the accountancy board, it has asked the State Education Department to address other exam-related issues, including belated testing results and a pass/fail scoring method that is exclusive only to New York.

To learn more about Dustin’s letter and the Society’s involvement with the CBT, click here.

News Flashes

To date, the COAP Fundraising Committee, chaired by Frank Fusaro, has raised $65,000 for this year’s COAP program, including $10,000 sponsorships from each of the Big Four firms. Dates for all eight of the COAP sessions that will take place across the state this summer have been scheduled, with many guest speakers and field trips already confirmed. Founded in 1987, COAP recruits minority high school juniors to participate in five-day summer programs that encourage careers in accounting and provide an invaluable preview of college life.

Dates for the 2005 Leadership Conference have also been set. This year’s event will take place July 10–12 at the Sagamore in Bolton Landing, N.Y. This year’s topics will include proposed accounting reform legislation and the need for consistent quality throughout the CPA profession.

Society Vice President Peter Berlant reported during the meeting that three separate NYSSCPA committees have each issued a comment letter over the last two months. These are the Financial Accounting Standards Committee, the International Accounting and Auditing Committee and the Technology Assurance Committee.

“This tells me they are very much involved, and it shows how many different areas our constituency is being affected by regulations and rules,” Berlant said.

At the time of press, the Auditing Standards and Procedures Committee planned to issue a comment letter to the Public Company Accounting Oversight Board on its proposed independence rules.