July 1999 Issue

FAE Trustees Convene

By Frimette Kass-Shraibman, CPA

The FAE board of trustees met on June 8 at the annual conference in Vermont and reviewed FAE's unaudited financial results for the fiscal year ending May 31, 1999. The Trusted Professional spoke to FAE President George T. Foundotos after the meeting.

"Being CPAs, we are not allowed to call a surplus a surplus," Foundotos said. "Instead, there was modest excess of revenue over expenditures."

Foundotos explained some of the reasons for the first excess in many years.

"It is due in part to a more accurate allocation of joint costs with the NYSSCPA, primarily payroll costs from a new employee time system, and a significantly more efficient control of other actual costs," he said.

This is the second year of gathering statistics to find out who is using the POP Pass and how it is being used. Foundotos said the program is working well and explained how the FAE board will address change to it.

"If there is to be a change in the POP program, it will be based upon the evaluation of two years' statistics," Foundotos said. "While it is nice to achieve financial excess, this is still a valuable member service. Any changes will occur next September through knowledge, not gut feel or inaccurate information."

A copy of the FAE bylaws, estimated by Foundotos to have been printed in 1991, was found and discussion will continue at the next meeting.

"The bylaws should be updated to reflect today's reality and brought into conformity with those of the Society," Foundotos said.

The board also received a report concerning a proposal for "online" CPE modules on a broad band of topics. The two main features would be the ability for registrants to sign on at their convenience--day or night, weekday or weekend--and to do so in the comfort of their home or office for an attractive price.

"This type of program would neither replace the conference-type educational meetings we offer nor impinge upon the local chapter efforts," Foundotos said. "It is aimed at the home study niches."

Another benefit of online CPE is that certain important topics that do not draw sufficient participants in all parts of our state could be offered online. At present, these topics are either not offered or are posted and then cancelled for lack of enrollment. Offering them online would eliminate the heavy fixed costs of a physical location.

"There is much more research to be done and negotiations to be completed before this type of technological vehicle and product can be endorsed and offered to our members," Foundotos said. "But the march of technology is relentless. The accounting gods and the technology gods are uniting. It will come to pass."

Another topic addressed was the scholarship fund.

"The scholarship fund was formally returned to its rightful place--within FAE," Foundotos said. "Scholarhip Awards Committee Chair Kathleen Brown from Elmira College and committee members Karen Staples from Mid Hudson and Tom Novak from Suffolk made several thoughtful suggestions on how to improve the fund."