Restructures CPE Unit

By Philip J. Luongo Jr.

The AICPA announced on February 22 its plans to acquire the accounting and financial management education arm of Professional Development Institute (PDI) and restructure its own professional development unit.

PDI is the nation's second largest provider of CPE courses. The AICPA will operate its CPE activities from PDI's headquarters in Denton, Texas. Dr. Paden Neely, president of PDI, will become AICPA vice president, CPE group study.

"Continuing education has always been an essential mission of the Institute, and the acquisition of PDI will enable us to strengthen our course lines," AICPA President Barry C. Melancon said. "As a result, we'll be able to provide a single point of contact for state society customers."

The AICPA expects this $1 million acquisition to improve its CPE ordering, billing, and customer service systems. The Texas location will handle state society relations and development along with a host of other CPE operations. The AICPA also will contract out its printing operations to IKON, a multifacility vendor, to create a print-on-demand capability. The CPE self study and conference marketing group will remain in the AICPA's New York and New Jersey locations. In all, the acquisition will result in the elimination or restructuring of approximately 50 jobs.

In a letter to state society executive directors, Melancon said this acquisition is necessary to sustain an "economically viable CPE model." The AICPA acknowledges that it cannot produce courses as cost-effectively as PDI. Melancon believes this move will make the AICPA's cost structure more responsive to the marketplace and make course development and delivery more efficient. He said that the acquisition will not affect the AICPA's current CPE product line.

"The Foundation for Accounting Education will work with the AICPA to best meet Society members' needs," FAE Director of Education Services Frimette Kass-Shraibman said. "We are committed to making this a smooth transition in order to continue delivering quality education to our members without impacting the start of the CPE season."

The acquisition of PDI is the most recent in a series of AICPA initiatives to address CPE issues. Earlier this month, the AICPA announced a spring launch of interactive online courses. In December, it purchased the seminar business series of professional education courses from Practitioners Publishing Co., a division of Research Institute of America Group. *